(BZUN) 2022 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and thank you for standing by for Baozun's Fourth Quarter and Fiscal Year 2022 Earnings Conference Call. (Operator Instructions) As a reminder, today's conference call is being recorded.

女士們，先生們，早上好，感謝您支持寶尊第四季度和 2022 財年財報電話會議。 （操作員說明）提醒一下，今天的電話會議正在錄製中。

I'll 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.

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 fourth quarter and full year 2022 earnings release was distributed earlier and is available on our IR website at ir.baozun.com as well as on Globe Newswire services. We have also posted a PowerPoint presentation that accompanies our comments to the same IR website, where they're available for download.

謝謝你，運營商。大家好，感謝您今天加入我們。我們的第四季度和 2022 年全年收益發布已提前發布，可在我們的 IR 網站 ir.baozun.com 以及 Globe Newswire 服務上獲取。我們還在同一個 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; and Ms. Sandrine Zerbib, President of Baozun Brand Management. Mr. Qiu will review the business strategy and company highlights followed by Mr. Yu, who will discuss financials and share more regarding the business development of Baozun e-commerce. We will then pass the call to Ms. Sandrine to address more about Baozun brand management. 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 先生今天接到寶尊電話。首席財務官Arthur Yu先生；寶尊品牌管理總裁Sandrine Zerbib女士。邱先生將回顧業務戰略和公司亮點，余先生將討論財務並分享更多有關寶尊電子商務業務發展的信息。然後我們會將電話轉給 Sandrine 女士，以解決更多有關寶尊品牌管理的問題。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 U.S. Securities Exchange Act of 1934 and the U.S. Private Security Litigation Reform Act of 1995. These forward-looking statements can be identified by [terminations] such as will, expect, anticipate, future, intend, plans, believes, estimates, confident, potential, ongoing target, looking forward or other similar expressions. These forward-looking statements are based upon management's current expectations and current market and operation conditions and related to events that involve known or unknown risks, uncertainties and other factors 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 年美國證券交易法和 1995 年美國私人證券訴訟改革法案含義內的前瞻性陳述。這些前瞻性陳述可以通過以下方式識別[終止] 如 will、expect、expect、future、intend、plans、believes、estimates、confident、potential、ongoing target、looking forward 或其他類似表達。這些前瞻性陳述是基於管理層當前的預期和當前的市場和運營狀況，涉及已知或未知的風險、不確定性和其他難以預測的因素的事件，其中許多因素超出了公司的控制範圍，可能導致公司的實際結果與前瞻性陳述中的結果存在重大差異。

Further information regarding these and other risks, uncertainties or factors is included in the company's filings with the U.S. SEC and in announcements, notice or other documents published on the website of Hong Kong Stock Exchange. All information provided in this presentation is as of the date and it's based on the assumptions that the company believes to be reasonable as of today. The company does not undertake any obligation to update any forward-looking statements, except as required under applicable laws.

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以及在香港聯合交易所網站上發布的公告、通知或其他文件中。本演示文稿中提供的所有信息均為截止日期，並且基於公司認為截至目前合理的假設。公司不承擔任何更新任何前瞻性陳述的義務，除非適用法律要求。

Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB with appropriate rounding.

最後請注意，除非另有說明，本次電話會議中提及的所有數字均以人民幣為單位並進行了適當的四捨五入。

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. The tough environment persisted in the fourth quarter, making the entire 2022 a challenging year, especially ending the COVID zero policy resulted in a significant outbreak of COVID cases in late 2022 that led to a nationwide disruption in supply chain and logistics, along with the worst ever consumption sentiment.

謝謝你，溫迪。大家好，謝謝大家的寶貴時間。艱難的環境一直持續到第四季度，使整個 2022 年成為充滿挑戰的一年，尤其是結束 COVID 零政策導致 2022 年末 COVID 病例大量爆發，導致全國供應鍊和物流中斷，最嚴重的是曾經的消費情緒。

We witnessed a general decline in sales across different categories, channels and cities. Reflecting the lower consumer spending our revenue declined approximately 20% year-over-year in the fourth quarter. However, we are glad that despite the weaker top line, we achieved a higher operating profit and recorded positive cash flow for the fourth quarter. We were able to achieve this under such a difficult and unpredictable environment by making sure operations were uninterrupted, relying on our battle-tested technology and regional service centers.

我們目睹了不同類別、渠道和城市的銷售額普遍下降。由於消費者支出減少，我們的收入在第四季度同比下降了約 20%。然而，我們很高興，儘管收入疲軟，但我們在第四季度實現了更高的營業利潤並錄得正現金流。依靠我們久經考驗的技術和區域服務中心，我們能夠在如此困難和不可預測的環境下通過確保運營不間斷來實現這一目標。

In addition, our reform of employee compensation and incentive programs also generated higher productivity. As a result, we were able to improve the quality of our earnings. In the COVID -- in the past 3 years, has had a dramatic impact on our people daily life. Just like long COVID, it also has a long-term impact on consumer confidence. While we observed a modest rise in China's retail industry this February, we believe a full recovery in consumer sentiment will take time.

此外，我們對員工薪酬和激勵計劃的改革也帶來了更高的生產力。因此，我們能夠提高盈利質量。在過去的 3 年中，COVID 對我們人們的日常生活產生了巨大影響。就像長期的 COVID 一樣，它也會對消費者信心產生長期影響。雖然我們觀察到今年 2 月中國零售業出現溫和增長，但我們認為消費者信心的全面復甦需要時間。

In spite of this difficult environment, it is encouraging to see that many of our brand partners have remained committed to invest in China for the long term, especially with regards to technology, digitalization and local marketing to serve Chinese consumers in local relevant ways. Looking forward, we see a rapid emerging of online and off-line commerce, of which it represents a huge opportunity. We believe it is our expertise in technology for the service of brand operations that fundamentally defines who Baozun is.

儘管環境艱難，但令人鼓舞的是，我們的許多品牌合作夥伴仍致力於長期投資中國，尤其是在技術、數字化和本地營銷方面，以當地相關方式為中國消費者提供服務。展望未來，我們看到線上和線下商業的快速興起，其中蘊含著巨大的機遇。我們相信，正是我們在為品牌運營服務的技術方面的專業知識從根本上定義了寶尊是誰。

As shown on Slide #3, adhering to our vision of technology empowers future success, our technology and operating platform serves as a unified and solid foundation that powers our broadened scope of service and markets. Baozun now has 3 major business lines: Baozun e-commerce, BEC; Baozun Brand Management, BBM; and Baozun International, BZI Baozun e-commerce or BEC remains our core business in recent years, in addition to leading the way and helping brand partners accelerate their digital transformation, we continue to improve our value-added services, upgrade BEC's integrated operating platforms and the middle office systems for better accountability, efficiency and flexibility. We also diversed our category mix, made complementary business acquisitions and invested in our people.

如幻燈片 #3 所示，秉承我們的技術賦能未來成功的願景，我們的技術和運營平台作為統一而堅實的基礎，為我們擴大的服務範圍和市場提供動力。寶尊現擁有3大業務線：寶尊電商、BEC；寶尊品牌管理，BBM；而寶尊國際、BZI寶尊電商或BEC仍然是我們近年來的核心業務，除了引領和幫助品牌合作夥伴加速數字化轉型外，我們不斷完善增值服務，升級BEC的綜合運營平台和中台系統，以提高問責制、效率和靈活性。我們還多樣化了我們的類別組合，進行了互補的業務收購併投資於我們的員工。

I would like to highlight one person in particular, Arthur Yu, who was instrumental in every aspect of this advancement to make our e-commerce business more resilient and balanced. Naturally, as we expand our scope and markets, I'm thankful to Arthur for accepting the additional role of President of BEC in addition to his role as Group CFO. For additional BEC highlights and objectives, I will let Arthur discuss later in the call.

我想特別強調一個人，Arthur Yu，他在這一進步的各個方面都發揮了重要作用，使我們的電子商務業務更具彈性和平衡。自然地，隨著我們擴大我們的範圍和市場，我很感謝亞瑟除了擔任集團首席財務官的角色外，還接受了 BEC 總裁的額外角色。對於其他 BEC 亮點和目標，我將讓 Arthur 在電話中稍後進行討論。

Baozun Brand Management, or BBM, is our focus for growth and profitability over the next 3 years and beyond. Consumers now prefer brands powered by China-for-China products and communications, offering China tailor-made updates and iterations. Clearly, in addition to e-commerce and digital business solutions, brands need a brand management powered by technology and digitalization. As you may recall, on February 1 of this year, we completed the acquisition of Gap Shanghai. Gap's operations in Mainland, Hong Kong and Macau, China are now a part of brand Baozun Brand Management, led by Sandrine Zerbib, President of BBM; and Wing Xiao, the newly appointed CEO of Gap Greater China.

寶尊品牌管理（BBM）是我們未來 3 年及以後增長和盈利的重點。消費者現在更喜歡以中國為中國的產品和傳播提供動力的品牌，提供中國量身定制的更新和迭代。顯然，除了電子商務和數字業務解決方案之外，品牌還需要以技術和數字化為動力的品牌管理。大家可能還記得，今年2月1日，我們完成了對Gap上海的收購。 Gap在中國大陸、香港和澳門的業務現隸屬於寶尊品牌管理，由BBM總裁Sandrine Zerbib領導； Gap大中華區新任CEO蕭永。

With a core team of functional experts, who understand both China consumers and local market dynamics, we have confidence in our China-for-China strategy and the digitalization initiatives for Gap Greater China. For BBM's highlights and objectives, I will let Sandrine discuss later in the call.

憑藉一支了解中國消費者和當地市場動態的職能專家核心團隊，我們對我們的 China-for-China 戰略和 Gap 大中華區的數字化計劃充滿信心。對於 BBM 的亮點和目標，我將讓 Sandrine 在稍後的電話會議中討論。

Baozun International or BZI is a longer-term opportunity that we will patiently invest in and explore. We have a natural affinity to replicate our China e-commerce success. We work with brand partners to co-develop glocalization. Glocalization is a term combining global and local, and we refer to our philosophy that while we pursue global opportunities, we will rely on local expertise and resources. Where necessary, we will form local strategic alliances.

寶尊國際或BZI是一個我們會耐心投資和探索的長期機會。我們有一種天然的親和力，可以復制我們在中國電子商務領域的成功。我們與品牌合作夥伴合作，共同開發全球本地化。全球本地化是一個結合了全球和本地的術語，我們指的是我們的理念，即在我們尋求全球機遇的同時，我們將依賴當地的專業知識和資源。必要時，我們將組建本地戰略聯盟。

We are initiating some trials in Southeast Asia and Europe as a sneak peek. In Southeast Asia, we have already established the region's headquarters in Singapore and operations in 6 markets in the region. With our technology, IT infrastructure and data advantage, brands at which to expand into Southeast Asia are excited to engage with us. This February 2023, we made an important minority interest investments along with a board seat in Branded Lifestyle Asia Limited. It is a leading premium fashion retailer with a strong brand portfolio that includes [Blue Dog] and (inaudible), and a proven track record in South Korea and Taiwan. Fung Group, a global leader in the consumer good supply chain is a majority shareholder.

我們正在東南亞和歐洲啟動一些試驗作為先睹為快。在東南亞，我們已經在新加坡設立了該地區的總部，並在該地區的6個市場開展業務。憑藉我們的技術、IT 基礎設施和數據優勢，要擴展到東南亞的品牌很高興與我們合作。 2023 年 2 月，我們進行了一項重要的少數股權投資，並在 Branded Lifestyle Asia Limited 獲得了董事會席位。它是一家領先的高端時裝零售商，擁有強大的品牌組合，包括 [Blue Dog] 和（聽不清），並且在韓國和台灣擁有良好的業績記錄。消費品供應鏈的全球領導者馮氏集團是大股東。

We have also entered into a strategic cooperation agreement to become the preferred strategic service provider for the e-commerce operations in Asia outside of the PRC. Baozun and Fung Group are setting up a strategic technology committee to jointly develop an enterprise wide technology strategy, covering proposals for ERP, technologies, systems and platforms suitable for digital transformation.

我們亦已訂立戰略合作協議，成為中國以外亞洲電子商務業務的首選戰略服務供應商。寶尊和馮氏集團正在成立一個戰略技術委員會，共同製定企業範圍的技術戰略，涵蓋適合數字化轉型的ERP、技術、系統和平台的建議。

We're excited about overseas opportunities. Although we don't aim to immediately generate meaningful revenue from Baozun International in the next 3 years, I'm adopting an entrepreneurial mindset for international expansion. I will personally chair the development of Baozun International in a technology [rooted] approach.

我們對海外機會感到興奮。雖然我們的目標不是在未來 3 年內立即從寶尊國際獲得可觀的收入，但我正在採用一種企業家思維進行國際擴張。我將以技術[紮根]的方式親自主持寶尊國際的發展。

As we expand our scope, we now have increased our addressable market and revenue sources. Clearly, BEC represents our existing China e-commerce revenue stream, while BBM and BZI are incremental opportunities providing tangible growth path over the next 5 years. With greater business diversification and expanded leadership, we are confident in our road map.

隨著我們擴大我們的範圍，我們現在已經增加了我們的可尋址市場和收入來源。顯然，BEC 代表了我們現有的中國電子商務收入來源，而 BBM 和 BZI 是增量機會，為未來 5 年提供了切實的增長路徑。隨著業務多元化和領導力的擴大，我們對我們的路線圖充滿信心。

Let me now pass the call over to Arthur. Thank you.

現在讓我把電話轉給亞瑟。謝謝。

Okay. Thank you, Vincent, and hello, everyone. It's a great pleasure to communicate with you for the first time as the Group CFO and President of Baozun e-commerce. I will do a quick review of the financials of the fourth quarter and full year of 2022 following by a business update on Baozun E-commerce.

好的。謝謝你，文森特，大家好。很高興作為集團CFO兼寶尊電商總裁首次與大家交流。在寶尊電子商務的業務更新之後，我將快速回顧一下 2022 年第四季度和全年的財務狀況。

Now please turn to Slide #4. Despite the weak consumption sentiment, our total GMV showed resilience and was nearly flat on a year-over-year basis, benefiting from a diversified category mix. FMCG outperformed with high double-digit growth, while appliance contracted the most. Our net revenues declined by 20% to RMB 2.6 billion, of which product sales declined by 37% and service revenue decreased by 8% compared with the same period of last year.

現在請轉到幻燈片 #4。儘管消費情緒低迷，但我們的總 GMV 顯示出韌性，同比幾乎持平，這得益於多元化的品類組合。快速消費品以兩位數的高增長跑贏大市，而家電收縮幅度最大。我們的淨收入下降了 20% 至人民幣 26 億元，其中產品銷售額同比下降了 37%，服務收入同比下降了 8%。

Let's turn to Slide #5 for a breakdown of revenue. We continue to prioritize the service model, especially focusing on value added service in digital marketing and IT services, while reducing low-quality product sales during the quarter. Digital marketing and IT solutions decreased by 7%, mainly due to brand partners reduced the marketing budgets. Warehousing and fulfillment service revenue declined by 13%, of which 10% was due to the disposable of Baobida, the delivery business, representing a 3% reduction in an apples-to-apples comparison basis.

讓我們轉到幻燈片 #5 了解收入明細。我們繼續優先考慮服務模式，特別關注數字營銷和 IT 服務中的增值服務，同時減少本季度低質量產品的銷售。數字營銷和 IT 解決方案下降 7%，主要是由於品牌合作夥伴減少了營銷預算。倉儲和履行服務收入下降 13%，其中 10% 是由於交付業務寶必達的一次性減少，在同類比較基礎上減少了 3%。

In addition, our service revenue from apparel and accessories effect a lower GMV in category continued to grow during the quarter, reflecting higher take rate for deeper service penetration. In total, revenue from service declined by [80%] year-over-year. Our total product sales declined by 37% during the quarter, reflecting the weak consumption sentiment towards appliance category, and our continuous efforts in optimization of less profitable product sales from electronics.

此外，我們來自服裝和配飾的服務收入受到類別 GMV 的影響在本季度繼續增長，反映出更高的服務滲透率。總體而言，服務收入同比下降 [80%]。我們的產品總銷售額在本季度下降了 37%，反映出對家電類別的消費情緒疲軟，以及我們不斷努力優化利潤較低的電子產品銷售。

Please turn to Slide #6. In this quarter, our cost of products decreased by 38% to RMB 643 million, mainly due to lower product sales. One highlight is the gross margin for product sales improved by 155 bps to 16.7%. Our overall gross margin improved by 770 bps to 74.8%, driven by a combination of higher service revenue mix and improving gross margin of product sales.

請轉到幻燈片#6。本季度，我們的產品成本下降了 38% 至人民幣 6.43 億元，主要是由於產品銷售額下降。一大亮點是產品銷售的毛利率提高了 155 個基點至 16.7%。我們的整體毛利率提高了 770 個基點，達到 74.8%，這得益於更高的服務收入組合和產品銷售毛利率的提高。

Now turning to Slide #7. Our non-GAAP income from operations was RMB 183 million during the quarter, more than doubled than a year ago. Non-GAAP operating profit margin was 7.2% compared with 2.2% a year ago. During the same quarter of last year, there was a one-off G&A of RMB 44 million related to our move into the new headquarters and a loss of RMB 30 million from Baobida. Excluding such impact, our non-GAAP operating profit still grew 43% year-over-year.

現在轉到幻燈片#7。本季度我們的非美國通用會計準則運營收入為人民幣 1.83 億元，比一年前翻了一番多。非美國通用會計準則營業利潤率為 7.2%，而一年前為 2.2%。去年同一季度，與我們遷入新總部相關的一次性 G&A 為 4400 萬元人民幣，寶必達虧損為 3000 萬元人民幣。排除此類影響，我們的非美國通用會計準則營業利潤仍同比增長 43%。

Non-GAAP net income was RMB 168 million this quarter, compared with RMB 89 million in the same period of last year. 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 be used as supporting numbers to aid discussion.

本季度非美國通用會計準則淨利潤為人民幣 1.68 億元，上年同期為人民幣 0.89 億元。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，僅應用作支持數字以幫助討論。

Next, on Slide #8, this shows our net revenues work from Q4 of 2021 to Q4 2022. In red, you can see that the biggest item impacting our revenue this quarter was product sales, as we just talked about. Revenue from DM and IT services has shown resilience. And warehouse and logistics revenue, excluding the disposable of Baobida, declined by 3%. Excluding the impact of such disposal, the apple-to-apple revenue declined by 17%, of which service revenue declined by 4%.

接下來，在幻燈片 #8 上，這顯示了我們從 2021 年第四季度到 2022 年第四季度的淨收入。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，正如我們剛剛談到的那樣。來自 DM 和 IT 服務的收入顯示出彈性。倉庫和物流收入，不包括寶必達的可支配收入，下降了 3%。剔除此類處置的影響，蘋果對蘋果的收入下降了 17%，其中服務收入下降了 4%。

Now please turn to Slide #9 for the indicative walk of non-GAAP operating profit. In light of the weaker consumption sentiment, we have implemented several cost optimization initiatives, including centralizing our operating capabilities, rationalizing incentives and consolidating office footprint since the beginning of 2022. More than 1,600 of our customer service staff are now located in regional service centers. By utilizing some S-ANY modules across regional service centers, we lowered cost, increased service flexibility and agility to better cope with COVID-induced turbulence.

現在請轉到幻燈片 #9，了解非 GAAP 營業利潤的指示性走動。鑑於消費情緒疲軟，自 2022 年初以來，我們實施了多項成本優化舉措，包括集中我們的運營能力、合理化激勵措施和整合辦公室足跡。我們目前有 1,600 多名客戶服務人員位於區域服務中心。通過跨區域服務中心使用一些 S-ANY 模塊，我們降低了成本，提高了服務靈活性和敏捷性，以更好地應對 COVID 引起的動盪。

For full year 2022, we generated over RMB 30 million in savings from regional service centers another major cost saving initiative is through the introduction of Baozun Business Ownership, BBO compensation framework, which provides higher performance incentives linking to improvement in productivity, quality and sustainability. We achieved another RMB 50 million cost savings from BBO initiative in 2022. This quarter, we are seeing profitability leverage, especially with the strong seasonality of China e-commerce in the fourth quarter.

到 2022 年全年，我們從區域服務中心節省了超過 3000 萬元人民幣的成本，另一項主要的成本節約舉措是通過引入寶尊企業所有權、BBO 薪酬框架，該框架提供與提高生產力、質量和可持續性相關的更高績效激勵。 2022 年，我們通過 BBO 計劃又節省了 5000 萬元人民幣的成本。本季度，我們看到了盈利槓桿，尤其是第四季度中國電子商務的季節性很強。

And the leverage applies to almost all categories and all service models. I believe the chart is self-explanatory. I just want to highlight the disposal of Baobida, which generated a profit saving of RMB 30 million and product sales bottom line deteriorated by RMB 12 million due to weak top line as well as higher product costs related to default and imperfect products due to higher return rates.

並且槓桿適用於幾乎所有類別和所有服務模型。我相信圖表是不言自明的。我只想強調寶必達的處置，它節省了 3000 萬元人民幣的利潤，由於收入疲軟以及與違約和不完善的產品相關的產品成本更高，因此產品銷售底線惡化了 1200 萬元，因為更高的回報費率。

Now turning to Slide #10 about our cash flow. As of December 31, 2022, our cash, cash equivalents, restricted cash and short-term investment totaled RMB 3.1 billion. In light of the macro uncertainties, we continue to improve the working capital efficiency and our initiatives to further advance our back-end processes to improve inventory management, billing and collection activities have proven to be effective. During the quarter, our total operating cash flow grew by 17% to RMB 622 million.

現在轉到幻燈片 #10，了解我們的現金流。截至 2022 年 12 月 31 日，我們的現金、現金等價物、受限制的現金和短期投資合計人民幣 31 億元。鑑於宏觀不確定性，我們繼續提高營運資金效率，我們進一步推進後端流程以改善庫存管理、計費和收款活動的舉措已被證明是有效的。本季度，我們的總經營現金流增長了 17% 至人民幣 6.22 億元。

Please turn to Slide #11 for a quick full year summary. We ended 2022 on a solid note with total GMV of RMB 84 billion, an increase of 19% year-over-year. Our non-GAAP operating profit is RMB 256 million, an increase of 14% year-over-year. Annual operating cash flow reached RMB 367 million, a new record since our inception. And our balance sheet also remained solid with RMB 3.1 billion in total cash.

請轉到幻燈片 #11 快速了解全年總結。我們以穩健的成績結束了 2022 年，總 GMV 為人民幣 840 億元，同比增長 19%。我們的非美國通用會計準則營業利潤為人民幣 2.56 億元，同比增長 14%。全年經營性現金流達人民幣3.67億元，創成立以來新高。我們的資產負債表也保持穩定，現金總額為人民幣 31 億元。

In summary, this makes a challenging year. Our business model delivered positive non-GAAP operating profit and cash flow. I want to quickly mention that given our new group structure, we will be reporting segment financials in quarter 1 2023 to better reflect our business activities. Along these thoughts, we will stop reporting quarterly GMV metrics as this metric has become less indicative of our actual group performance.

總之，這是充滿挑戰的一年。我們的商業模式帶來了正的非 GAAP 營業利潤和現金流。我想快速提一下，鑑於我們新的集團結構，我們將在 2023 年第一季度報告分部財務狀況，以更好地反映我們的業務活動。沿著這些想法，我們將停止報告季度 GMV 指標，因為該指標已變得不那麼能反映我們的實際集團績效。

I'd like to take this opportunity to share some progress we made in the Baozun e-commerce during last year. Right at the beginning of 2022, we stressed that our overall goal is high-quality sustainable business accrual. To achieve this goal, we continuously make efforts for our services to be more customer-centric, diversified our business models through innovation and continuously optimized our cost structure.

我想藉此機會分享一下我們去年在寶尊電商方面取得的一些進展。就在 2022 年初，我們強調了我們的總體目標是高質量的可持續業務增長。為實現這一目標，我們不斷努力以客戶為中心，通過創新豐富業務模式，不斷優化成本結構。

Let me share some specific items on Slide #12. Our omni-channel end-to-end value-added services are highly recognized by customers. By the end of the year, we have 42% of our branded partners engaged with us on an omni-channel basis. We further enhanced our service penetration with value-added service accounting half of our revenue stream. By end of 2022, we have a total of over 400 brand partners. And some of these brands engage with us, firstly, in value added service of technology and digital marketing.

讓我分享幻燈片 #12 上的一些具體項目。我們的全渠道端到端增值服務得到了客戶的高度認可。到今年年底，我們有 42% 的品牌合作夥伴在全渠道基礎上與我們合作。我們進一步提高了服務滲透率，增值服務占我們收入流的一半。到2022年底，我們共有超過400個品牌合作夥伴。其中一些品牌首先與我們合作，提供技術和數字營銷的增值服務。

Our regional service center, RSC, continues to expand, reducing cost and increasing efficiency while improving the service quality. We launched BOCDOP to deepen the commercialization of technology and explore new market opportunities. Our logistics and warehouse division further enhanced this strategic cooperation with Cainiao. We published Baozun Carbon Neutrality White Paper, clarifying the de-carbon goal and releasing sustainable development responsibilities in multiple dimensions.

我們的區域服務中心 RSC 不斷擴大，在降低成本和提高效率的同時提高了服務質量。我們推出 BOCDOP 以深化技術商業化並探索新的市場機會。我們的物流倉儲事業部進一步加強了與菜鳥的戰略合作。發布寶尊碳中和白皮書，多維度明確去碳目標，釋放可持續發展責任。

On November 1, 2022, we officially become a dual primary listed company on the main board of the Hong Kong Stock Exchange and NASDAQ global select market. And lastly, in 2022, we won the Best Employer Brands Award for the 7th consecutive year. This exemplifies our business development has always been in harmony with social responsibility.

2022年11月1日，我們正式成為香港聯交所主板和納斯達克全球精選市場雙重主要上市公司。最後，在 2022 年，我們連續 7 年獲得最佳雇主品牌獎。這體現了我們的業務發展始終與社會責任相協調。

Our business philosophy is to put customers first and create value for them. Throughout the year, we continue to help our brand partners with initiatives for innovative user engagement and to find on customer journeys. These innovations include fund generation campaigns, AI-based short video creation tools, game-based interactive social marketing, and business in halogen dashboards to improve decision-making effectiveness.

我們的經營理念是把客戶放在第一位，為他們創造價值。全年，我們繼續幫助我們的品牌合作夥伴採取創新用戶參與和尋找客戶旅程的舉措。這些創新包括籌款活動、基於人工智能的短視頻創作工具、基於遊戲的互動社交營銷，以及用於提高決策效率的滷素儀表板業務。

For instance, in last year's Double 11, our efforts enables one of our brand partners, a leading international sportswear brand, not only ranked #1 brand in GMV generation, but also #1 in traffic, #1 in live streaming, along with #1 in membership acquisition. This is a demonstration of how we empower our brand partners and of our commitment to facilitate our brand partners' success.

比如去年的雙11，我們的努力讓我們的品牌合作夥伴之一，國際領先的運動服飾品牌，不僅在GMV生成中排名第一，而且在流量上排名第一，在直播中排名第一，同時# 1 在會員獲取方面。這展示了我們如何為品牌合作夥伴賦能，以及我們致力於促進品牌合作夥伴取得成功的承諾。

This commitment also applies to our new journeys in Baozun Brand Management, so let me now turn the call over to Sandrine to elaborate more on BBM.

這一承諾也適用於我們在寶尊品牌管理的新旅程，所以現在讓我把電話轉給 Sandrine，詳細說明 BBM。

Thank you, Vincent and Arthur, and thank you all for joining us today. It is my great pleasure to speak with you. As we have previously stated, Baozun Brand Management is a strategic addition that naturally flows from existing core e-commerce service business. BBM, Baozun Brand Management, is a holistic all-rounded partner for global brands to further unlock their business potential in China. Our technologies and insights enable us to forge a sustainable symbiotic relationship between physical retail and online commerce. We aim to deliver the best-in-class, seamless omni-channel experience by integrating the digital and the physical upscale and succeed where few have done so in retail.

謝謝文森特和亞瑟，感謝大家今天加入我們。很高興與您交談。正如我們之前所說，寶尊品牌管理是一項戰略性的補充，自然而然地來自現有的核心電子商務服務業務。 BBM，Baozun Brand Management，是全球品牌在中國進一步釋放商業潛力的全方位全方位合作夥伴。我們的技術和見解使我們能夠在實體零售和在線商務之間建立可持續的共生關係。我們的目標是通過整合數字和實體高檔產品來提供一流的無縫全渠道體驗，並在零售業很少有人這樣做的地方取得成功。

Please turn to Slide #13, Baozun Brand Management. Today's digital transformation impacts every aspect of business in general and of brand business in particular, from integration of online and offline stores, increasing share of marketing budgets to digital marketing and the accelerating use of big data and AI in brand product creation cycle and customer relationships. Baozun is exceptionally positioned to leverage its leading technology portfolio and insights accumulated in the past 15 years, serving top leading global brands.

請轉到幻燈片 #13，寶尊品牌管理。今天的數字化轉型影響著一般業務的方方面面，尤其是品牌業務，從線上線下商店的整合、營銷預算份額的增加到數字營銷，以及大數據和人工智能在品牌產品創建週期和客戶關係中的加速使用.寶尊定位於利用其領先的技術組合和過去 15 年積累的洞察力，為全球頂級領先品牌提供服務。

BBM approaches brand management holistically from online to off-line, from supply chain to marketing, go-to-market and distribution. We aim to grow a portfolio of brands under BBM. We are positioning in the mid-end and premium consumer lifestyle brand segment, and we target brands with strong potential in China and Asia, and strong digital presence.

BBM 從線上到線下，從供應鏈到營銷、上市和分銷，全方位地進行品牌管理。我們的目標是在 BBM 旗下發展品牌組合。我們定位於中端和高端消費生活方式品牌細分市場，我們的目標是在中國和亞洲具有強大潛力和強大數字影響力的品牌。

Now let me provide you with a high-level summary of our first 50 days post acquisition of Gap, the first brand that has entered the BBM portfolio. Gap is an advantageous starting point for us in this line of business. In our business arrangements with Gap, we secured complete control of the supply chain, which with Gap scale will enable us to accelerate the establishment of a modern, technology-driven flexible and responsive supply chain that will be leveraged for the entire brand management portfolio. Likewise, we have started already to work on our technologies to turn them into state-of-the-art systems to manage retail across all channels.

現在讓我為您提供我們收購 Gap 後第一個 50 天的高級摘要，Gap 是第一個進入 BBM 產品組合的品牌。 Gap 是我們在這一業務領域的有利起點。在我們與 Gap 的業務安排中，我們獲得了對供應鏈的完全控制，Gap 的規模將使我們能夠加速建立現代的、技術驅動的靈活和響應迅速的供應鏈，該供應鏈將用於整個品牌管理組合。同樣，我們已經開始研究我們的技術，將它們變成最先進的系統來管理所有渠道的零售。

And last, but not least, Gap is a formidable chance for us to rapidly strengthen the talent pool for brand management, new line of business. Our first 50 days have confirmed the diagnosis we had made before the acquisition, and the focus on product and margin -- gross margin we were planning for is fully confirmed by our first observation. Eventually, execution is everything. In addition to mobilizing the best experts at Baozun to fully leverage Baozun's resources, we have started to identify key resources to contribute to the execution of our plans and we are building the necessary ecosystem to rapidly increase our competencies in the management of Gap China.

最後但並非最不重要的一點是，Gap 是我們快速加強品牌管理和新業務線人才庫的絕佳機會。我們的前 50 天已經證實了我們在收購之前所做的診斷，並且我們對產品和利潤的關注——我們計劃的毛利率已通過我們的第一次觀察得到充分證實。最終，執行就是一切。除了動員寶尊最優秀的專家充分利用寶尊的資源外，我們還開始尋找有助於執行我們計劃的關鍵資源，我們正在構建必要的生態系統，以快速提升我們在 Gap 中國的管理能力。

As you know, apparel retailing is a seasonal and cyclical business, and therefore the changes we are making will take at least several quarters to bring measurable results, product commitments and purchases for the first half of 2023 were made before our acquisition of Gap Greater China, and we are only able to meaningfully impact products from winter '23.

如您所知，服裝零售是季節性和周期性業務，因此我們所做的改變至少需要幾個季度才能帶來可衡量的結果，2023 年上半年的產品承諾和採購是在我們收購 Gap 大中華區之前做出的，而且我們只能對 winter '23 的產品產生有意義的影響。

Having said that, we've been very active. With Wing at the helm, we've been able to quickly identify and hire excellent top-level experts, including local designers, supply chain specialists and a proven financial officer for Gap. These are the experts, along with HR and production specialists, that will propel forward our focus on China-for-China products and communication and optimize Gap Greater China supply chain to be closer to market needs, improve on costs, expand gross profit and ultimately achieve net profit.

話雖如此，我們一直非常活躍。在 Wing 的領導下，我們能夠快速識別並聘請優秀的頂級專家，包括本地設計師、供應鏈專家和 Gap 的資深財務官。這些專家，連同人力資源和生產專家，將推動我們專注於中國對中國的產品和溝通，優化 Gap 大中華區供應鏈，以更貼近市場需求，降低成本，擴大毛利，並最終實現淨利潤。

We also quickly tested a limited higher-priced product capital in collaboration with one of China's rising stars in fashion. In this release, we started at a significantly higher price point, which is 4x Gap-typical price point. And yet, we were able to sell half of the inventory in a couple of weeks at 0 discount. On the first day of release, the highest priced item had sold out within 1 hour, and our (inaudible) ranking climbed from rank lower than 30 to #8. This set offered an excellent opportunity to practice our integrated marketing, and we're glad to have won the attention of a younger audience. This is something that we were able to ideate and execute at blazing speed and that proves the validity of our strategy and plan.

我們還與中國時尚界的後起之秀之一合作，快速測試了有限的高價產品資本。在此版本中，我們以明顯更高的價格開始，這是 Gap 典型價格的 4 倍。然而，我們能夠在幾週內以 0 折扣售出一半的存貨。在發布的第一天，最高價的商品在 1 小時內售罄，我們的（聽不清）排名從低於 30 名攀升至第 8 名。這個系列提供了一個很好的機會來實踐我們的整合營銷，我們很高興贏得了年輕觀眾的關注。這是我們能夠以驚人的速度構思和執行的東西，證明了我們的戰略和計劃的有效性。

We have also been able to fully leverage China post zero COVID recovery and to enjoy 22% growth in retail traffic over 500 basis points retail gross margin improvement in the last 10 weeks. While we are still very early in the Gap transformation, we believe our ability to quickly establish a strong local team and successfully test new launches validate that our analysis for the Gap acquisition was right. We are confident that Gap is now on the right track.

過去 10 週，我們還能夠充分利用中國 COVID 零復甦後的影響，零售流量增長 22%，零售毛利率提高 500 個基點以上。雖然我們仍處於 Gap 轉型的早期階段，但我們相信我們能夠快速建立一支強大的本地團隊並成功測試新品發布，這證明我們對 Gap 收購的分析是正確的。我們相信 Gap 現在走上了正確的軌道。

Since our closing of the Gap Shanghai acquisition, many other brands have come to us to discuss the China-to-China strategy and our technology-driven approach. These are the brands genuinely wish to explore possible cooperation with BBM, which further strengthens our confidence that BBM will meaningfully expand Baozun's total addressable market. It has become obvious that our brand management offering can add more to our value proposition and differentiate us from traditional service providers.

自從我們完成對 Gap 上海的收購後，許多其他品牌來找我們討論中國對中國的戰略和我們的技術驅動方法。這些品牌真誠地希望探索與 BBM 的可能合作，這進一步增強了我們對 BBM 將有意義地擴大寶尊的整體潛在市場的信心。很明顯，我們的品牌管理產品可以為我們的價值主張增加更多，並使我們與傳統服務提供商區分開來。

With all this being said, I shall now hand over the call back to Arthur. Thank you.

話雖如此，我現在將把電話轉回給亞瑟。謝謝。

Thank you, Sandrine. Overall, our effectiveness in maintaining operations and supporting our partners' success during this period of macro uncertainty once again proved the durability and strength of Baozun's business model. Throughout 2022, we prioritized high-quality business development, partnered with value-added service and continued to improve cost optimization and working capital efficiency.

謝謝你，桑德琳。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再次證明了寶尊商業模式的持久性和實力。整個2022年，我們將高質量的業務發展放在首位，與增值服務合作，並繼續提高成本優化和營運資金效率。

Our efforts started to bear fruit in terms of higher gross margins, lower operating expense and better cash flow. We are confident that our technology-driven capabilities will help us to pursue incremental growth opportunity in BBM and Baozun International.

我們的努力開始在更高的毛利率、更低的運營費用和更好的現金流方面取得成果。我們相信，我們的技術驅動能力將幫助我們在 BBM 和寶尊國際尋求增量增長機會。

Meanwhile, for Baozun E-commerce, we will put customer first and increase value-added service penetration to drive quality revenue and earnings growth. In light of our consumption recovery in China for BEC, we are confident that our top line in 2023 will return to growth, and our non-GAAP operating profit will expand by double digits year-over-year. For BBM, our top priority is to stabilize that China top line while narrowing its loss in 2023. For Baozun International, we do not yet expect significant contributions to revenue and operating profit in 2023. But it is a strategic initiative for longer-term growth.

同時，對於寶尊電商，我們將以客戶至上，提高增值服務滲透率，推動優質收入和盈利增長。鑑於 BEC 在中國的消費復甦，我們有信心我們的收入在 2023 年將恢復增長，我們的非 GAAP 營業利潤將同比增長兩位數。對於 BBM，我們的首要任務是在 2023 年穩定中國收入並縮小虧損。對於寶尊國際，我們預計 2023 年不會對收入和營業利潤做出重大貢獻。但這是長期增長的戰略舉措.

In 2023, we project the Baozun Inc's. total revenue will grow above 25% year-over-year. And as BEC's operating profit and cash flow should be able to cover investments required in BBM and Baozun International. We focus, Baozun Group will achieve positive operating profit and cash flow in 2023.

2023年，我們預測寶尊公司的。總收入將同比增長25%以上。而BEC的經營利潤和現金流應該能夠覆蓋BBM和寶尊國際的投資。我們關注，寶尊集團2023年將實現正的營業利潤和現金流。

That concludes our prepared remarks. Thank you. Operator, we are now ready to begin the Q&A session.

我們準備好的發言到此結束。謝謝。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, can management elaborate a little bit the latest consumption sentiment over the past few months, especially on the discretionary category? I'm also more interested in regarding to the domestic brands versus the international brands, specifically on the sports -- international sports brand. Would you -- have you seen a decent rebound from the international brands?

我有兩個問題。首先，管理層能否詳細說明過去幾個月的最新消費情緒，尤其是可自由支配的類別？我也更感興趣的是國內品牌與國際品牌，特別是體育——國際體育品牌。你會 - 你看到國際品牌的體面反彈了嗎？

And then second question is related to the overall e-commerce space. Given there's a number of e-commerce platform continue to further diversify their sales promotion to smaller or more frequent kind of the $1 billion type of subsidy rather than concentrating the sales effort in the 2 promotional period, like the June 18 and Singles' Day. How will that affect Baozun's sales seasonality for your domestic business this year? Do you think the brand partners are ready for some of these shifts?

然後第二個問題與整個電子商務空間有關。鑑於有許多電子商務平台繼續將其促銷活動進一步多樣化，以更小或更頻繁的形式提供 10 億美元的補貼，而不是將銷售精力集中在第二個促銷期，例如 6 月 18 日和光棍節。這將如何影響寶尊今年國內業務的銷售季節性？您認為品牌合作夥伴是否已準備好應對其中的一些轉變？

Okay. Thank you, Alicia. This is Arthur. Let me address your 3 questions in turn. So the first one, so basically, we have seen a recovery of the consumer confidence level, but this is slower than our expectation. And particularly, we have seen some categories, which related to travel doing pretty well. So for example, the outdoor and also the apparel, we have seen that start to recover. We're also seeing the consumers become more conservative and sensitive on price.

好的。謝謝你，艾麗西亞。這是亞瑟。讓我依次回答你的3個問題。所以第一個，基本上，我們已經看到消費者信心水平的恢復，但這比我們的預期要慢。特別是，我們已經看到一些與旅行相關的類別做得很好。因此，例如，戶外和服裝，我們已經看到開始復蘇。我們還看到消費者對價格變得更加保守和敏感。

So for example, the affordable luxury and also the mass market section has grown pretty well. We're also seeing a mix of performance, which the execution of the brand themselves become really important. And so it's critical for a brand to know their own strategy on product, on channel strategy and also how to implement strategy. So that's the first one.

因此，例如，負擔得起的奢侈品和大眾市場部分都增長得很好。我們還看到了混合性能，品牌本身的執行變得非常重要。因此，品牌了解自己的產品戰略、渠道戰略以及如何實施戰略至關重要。所以這是第一個。

So second one related to the international brands and local brand. So it's actually a mixed picture. We have seen some international brands doing very well. We're also seeing some domestic brands doing really well. I think the key is not about whether it's an international brand or a domestic brand. It's about why the brands can adopt a suitable strategy, i.e., a China-for-China strategy, which includes the product selection, how they utilize the omni-channel on e-commerce we have in China today.

所以第二個與國際品牌和本土品牌有關。所以這實際上是一幅混合圖。我們看到一些國際品牌做得很好。我們還看到一些國內品牌做得非常好。我覺得關鍵不在於是國際品牌還是國產品牌。這是關於為什麼品牌可以採取合適的策略，即中國對中國的策略，其中包括產品選擇，他們如何利用我們今天在中國擁有的電子商務全渠道。

And also whether the brands can utilize the IT and also data they accumulate to give them the insight to really drive the top line sales. So that actually represents an opportunity for Baozun, where our value-added service now has accounted for more than 50% of total revenue we generate. So that's where we can add value to the brand.

還有品牌是否可以利用 IT 和他們積累的數據來為他們提供真正推動頂線銷售的洞察力。所以這對寶尊來說實際上是一個機會，我們的增值服務現在已經占我們總收入的 50% 以上。這就是我們可以為品牌增加價值的地方。

And in terms of the focus and also how it impacts Baozun, I think it actually represents a good opportunity for Baozun. So for example, we have seen the international brands that senior management haven't been in China for a long time, they really would like to know in this post-COVID situation, how are they going to deploy a suitable strategy for China. That's where Baozun can come in to give them a lot of advice.

就關注點以及對寶尊的影響而言，我認為這對寶尊來說實際上是一個很好的機會。所以比如說，我們看到一些國際品牌的高管已經很久沒有來過中國了，他們很想知道在後疫情時代，他們將如何部署適合中國的戰略。這就是寶尊可以進來給他們很多建議的地方。

So for example, if they need a tailor-made solution to better improve efficiency, we can give them the advice how to do it. And also we can introduce our Baozun technology, tools and systems to them. If they are interested in how to drive up the return of investments, our digital marketing offer will help them to achieve that. Unless they would like to adopt the online merge offline type of operation, Baozun Logistics will be able to help them to achieve that.

因此，例如，如果他們需要量身定制的解決方案以更好地提高效率，我們可以為他們提供如何去做的建議。我們也可以向他們介紹我們的寶尊技術、工具和系統。如果他們對如何提高投資回報感興趣，我們的數字營銷產品將幫助他們實現這一目標。除非他們願意採取線上線下結合的經營方式，否則寶尊物流可以幫助他們實現這一點。

So overall, I think the current situation actually offers a good chance for Baozun to grow our service, especially the value-added service.

所以總的來說，我認為目前的情況實際上為寶尊提供了一個很好的機會來發展我們的服務，尤其是增值服務。

We'll take the next question from Violet Yi from China Renaissance.

我們將接受華興資本的 Violet Yi 的下一個問題。

So I got a question on the development of non-Tmall channels. So do you see any changes in the competitive landscape in the non-Tmall channels? And any breakthroughs or strategies that you could share? And maybe a quick update on the take rate trend?

於是就得到了非天貓渠道開發的問題。那麼您認為非天貓渠道的競爭格局有什麼變化嗎？您可以分享任何突破或策略嗎？也許快速更新採用率趨勢？

This is Arthur again. Thank you for the question. I think non-Tmall channel has become more competitive, given the different platform has start to fight for the traffic. And what we have seen is many brand partners chose an omni kind of strategy, which means outside of the Tmall, how they choose the channel becomes very important.

這又是亞瑟。感謝你的提問。我認為非天貓渠道已經變得更具競爭力，因為不同的平台已經開始爭奪流量。而我們看到的是，很多品牌合作夥伴選擇了一種全方位的策略，也就是說在天貓之外，他們如何選擇渠道變得非常重要。

And from a volumes perspective, we think each channel has their own character. The most important thing is to deploy the right product to the channel by understanding the customer base of each channel. So that's how we currently help a lot of the brands, our partners with to design and to implement a suitable strategy for this omni-channel on the e-commerce.

從銷量的角度來看，我們認為每個渠道都有自己的特點。最重要的是通過了解每個渠道的客戶群，將正確的產品部署到渠道。這就是我們目前如何幫助許多品牌、我們的合作夥伴為電子商務的全渠道設計和實施合適的戰略。

In terms of the take rate, I think it will depend on the different categories. I think the take rate trend has become more competitive. But at the same time, if we can focus the right level of resource on the right channel, we will be able to optimize that end result.

就拿率而言，我認為這將取決於不同的類別。我認為採用率趨勢變得更具競爭力。但與此同時，如果我們能夠將正確水平的資源集中在正確的渠道上，我們將能夠優化最終結果。

Our next question comes from Andre Chang from JPMorgan.

我們的下一個問題來自摩根大通的 Andre Chang。

I have 2 questions actually related to the BBM business. So firstly, as Sandrine mentioned, we will do a lot of the consolidation and introducing the best talent and the resources from Baozun. Can you elaborate more about like what other area that probably we will do the -- we think that the most improvement can be done? And also for us to understand the pace, right, will the changes happen very front loaded in the first half this year? Are you leading to more financial pressure for the group in the first half? Or will it take time to show this kind of like consolidation and the financial impact, but maybe throughout this year into later part of this year?

我有 2 個問題實際上與 BBM 業務有關。所以首先，正如 Sandrine 提到的，我們將做很多整合，並從寶尊引進最優秀的人才和資源。您能否詳細說明我們可能會做的其他領域——我們認為可以做最大的改進？也讓我們了解步伐，對吧，這些變化會在今年上半年提前發生嗎？是否導致集團上半年財務壓力加大？還是需要時間來顯示這種整合和財務影響，但可能在今年到今年下半年？

And second is that I think beyond Gap, we are going to introduce more brands, right, and started to have a portfolio. Can we talk more about this approach? What are the potential, say, synergy and how we are going to manage the portfolio? And what kind of scale we expect this to grow in the longer term?

其次，我認為除了 Gap 之外，我們將推出更多品牌，對，並開始擁有一個產品組合。我們可以多談談這種方法嗎？協同作用的潛力是什麼？我們將如何管理投資組合？從長遠來看，我們預計它會增長到什麼樣的規模？

Okay. So let me go one by one. I start with your first question, which is about, if I understand it correctly, is about how we plan to leverage the resources at Baozun. And on this, very clearly, and it's already in action with Gap, we see primarily technology, logistics and e-commerce, e-commerce operations as resources where Baozun is expert and can speed up and accelerate the recovery of Gap in Greater China.

好的。那我就一個一個說吧。我從你的第一個問題開始，如果我理解正確的話，是關於我們計劃如何利用寶尊的資源。在這一點上，很明顯，它已經在與 Gap 採取行動，我們主要將技術、物流和電子商務、電子商務運營視為寶尊擅長的資源，可以加快和加速 Gap 在大中華區的複蘇。

To take a very concrete example, I think I mentioned earlier that we are working at full speed to bring actually the portfolio of technologies of Baozun and to develop them to also be usable for a retail -- physical retail operation, and for certain aspects of the supply chain. So this is really where we focus the integration. It's not integration. It's the wrong word, sorry -- the leveraging of Baozun resources. I mean, obviously, when it comes to back-office resources, Gap has its own back office, but is also fortunate to have this company backing their operations, for instance, for legal or finance. That's for your first question, okay?

舉一個非常具體的例子，我想我之前提到過，我們正在全速工作，以實際引入寶尊的技術組合，並將它們開發為也可用於零售——實體零售業務，以及某些方面的寶尊。供應鏈。所以這真的是我們關注整合的地方。這不是整合。不好意思，打錯詞了——寶尊資源的撬動。我的意思是，很明顯，在後台資源方面，Gap 有自己的後台，但也很幸運有這家公司支持他們的運營，例如法律或財務。這是你的第一個問題，好嗎？

So then your second question is about the time. And I think from the very beginning, and we restated again today that, obviously, in this kind of business, purchases are made well in advance, specifically before we took over because we now plan to really put in place a faster supply chain that it was not the case before, which means that most of 2023 is already purchased. And that the impact we can have on product is fairly limited for 2023 and will be much more measurable at the very end of '23 and from '24. That's for the impact on products, but obviously, the impact on product has a direct impact on growth and gross margin.

那麼你的第二個問題是關於時間的。我認為從一開始，我們今天再次重申，顯然，在這種業務中，採購是提前進行的，特別是在我們接管之前，因為我們現在計劃真正建立一個更快的供應鏈以前不是這樣，也就是說2023的大部分已經買完了。而且我們對產品的影響在 2023 年相當有限，並且在 23 年底和 24 年開始將更加可衡量。這是對產品的影響，但顯然，對產品的影響對增長和毛利率有直接影響。

Having said this, there are still some low-hanging fruit that we are working on as early as now. And as we had announced when we made the acquisition, we plan to reduce the loss very significantly this year, to continue to further reduce the loss next year and to reach a breakeven point in '25. This is the tempo we have planned for, and that is confirmed today. So this is to address your first lot of questions, which were more about Gap.

話雖如此，我們仍然有一些唾手可得的成果，我們早在現在就在努力。正如我們在進行收購時宣布的那樣，我們計劃今年大幅減少虧損，明年繼續進一步減少虧損，並在 25 年達到盈虧平衡點。這是我們計劃的節奏，今天得到確認。所以這是為了解決你的第一批問題，這些問題更多是關於 Gap 的。

Then about the other brands, right now we are in discussion with a number of other brands, which are potentially a bit different in terms of positioning from Gap in the sense that a lot of the brands we are in discussion with are more premium without being luxury, but just a little bit higher positioning than Gap. However, these are brands where we see a lot of synergies. That's also why, for the time being, we focus more on apparel, footwear accessory brands, because, again, everything we're doing in terms of logistics, e-commerce operation and technology, particularly with regards to supply chain, as well as leveraging the resources we have recruited for the recovery of Gap Greater China are going to be usable for other brands when we remain in this area in this segment of business. This is my answer to your question, Andre.

然後關於其他品牌，現在我們正在與許多其他品牌進行討論，這些品牌在定位方面可能與 Gap 有點不同，因為我們正在討論的許多品牌都更高端而不是奢華，只是比Gap定位高一點。然而，我們在這些品牌中看到了很多協同效應。這也是為什麼我們目前更關注服裝、鞋類配件品牌，因為我們在物流、電子商務運營和技術方面所做的一切，特別是在供應鏈方面，以及利用我們為恢復 Gap 大中華區而招募的資源，當我們留在該業務領域時，這些資源將可用於其他品牌。這是我對你問題的回答，安德烈。

Our next question comes from the line of Sophia Tan from Credit Suisse.

我們的下一個問題來自瑞士信貸的 Sophia Tan。

I have one question on behalf of Ashley in terms of the Gap business outlook for 2023. Can management please share some color on the financial and operational metrics that is better to look at if we'd like to track performance of Gap? And how do we think about the financial impact of both top line and bottom line for this year?

我代表 Ashley 有一個關於 Gap 2023 年業務前景的問題。如果我們想跟踪 Gap 的表現，管理層能否分享一些財務和運營指標的顏色，以便更好地了解這些指標？我們如何看待今年頂線和底線的財務影響？

Okay. Go ahead, Arthur. That's perfect. Okay. That's fine.

好的。去吧，亞瑟。那很完美。好的。沒關係。

So for the financial, I will make some comments. And then maybe Sandrine can add some colors from the operation perspective. As we mentioned earlier, so basically turning around Gap Greater China is a medium- to long-term effort. So basically, we are looking at a 5-year journey to turn this around. So basically, for the 5 years, we expect our top line CAGR to grow more than double digits. And we expect to break even from both profit and also cash flow perspective by 2025. And in 2023, as we just mentioned, a lot of the decision in terms of the product and the channel strategy has already been made. .

因此，對於財務，我將發表一些評論。然後也許Sandrine 可以從操作的角度添加一些顏色。正如我們之前提到的，基本上扭轉 Gap 大中華區是一個中長期的努力。所以基本上，我們正在尋找一個 5 年的旅程來扭轉這一局面。所以基本上，在這 5 年裡，我們預計我們的收入複合年增長率將增長兩位數以上。我們預計到 2025 年從利潤和現金流的角度實現收支平衡。正如我們剛才提到的，到 2023 年，已經做出了很多關於產品和渠道戰略的決定。 .

Therefore, our aim for 2023 is to stabilize from a financial perspective and also to narrow down the losses of the Gap Greater China in 2023. So -- but the good thing is from the profit and cash flow of Baozun E-commerce business, we are more than enough to cover the investments we need for Gap Greater China. So overall at a group level, our profit for this year will be positive and our cash flow for the group level will also be positive.

因此，我們 2023 年的目標是從財務角度穩定下來，同時縮小 Gap 大中華區 2023 年的虧損。所以——但好在寶尊電商業務的利潤和現金流方面，我們足以支付我們對 Gap 大中華區所需的投資。所以整體在集團層面，我們今年的利潤會是正的，我們集團層面的現金流也會是正的。

Sandrine, would you like to add anything?

桑德琳，你想補充什麼嗎？

Well, I think you said pretty much everything. But indeed, today is mainly a stabilization. However, we still are going to grow the top line this year to a certain extent. And already, we see some positive signs on the gross margin. The gross margin, from the very first day we told you, is a key aspect of recovery, and we already start seeing some positive signs.

好吧，我想你幾乎什麼都說了。但實際上，今天主要是企穩。然而，我們今年的收入仍將在一定程度上增長。我們已經在毛利率上看到了一些積極的跡象。從我們告訴您的第一天起，毛利率就是複甦的一個關鍵方面，我們已經開始看到一些積極的跡象。

But overall, talking about the metrics, obviously, it's about the top line, the growth of the top line. It's about the gross margin. It's about the profit, the positive cash flow and the efficiency of our operations. So this is the metrics by where we actually assess the progress we're making on this business. And for the time being, we are on track. But as Arthur stressed, it's a mid- to long-term journey.

但總的來說，談論指標，顯然，這是關於頂線，頂線的增長。這是關於毛利率。這關係到利潤、正現金流和我們的運營效率。所以這是我們實際評估我們在這項業務上取得的進展的指標。目前，我們正在走上正軌。但正如 Arthur 強調的那樣，這是一個中長期的旅程。

Next is a follow-up question from the line of Violet Yi from China Renaissance.

接下來是來自華興資本的Violet Yi 的後續問題。

Yes. So my question is, since you're upgrading your business line, BC, now also BBM and BZI, how should we view your business profile both in the short term scale and also in a longer-term view, say, 3 to 5 years?

是的。所以我的問題是，既然你正在升級你的業務線，BC，現在還有 BBM 和 BZI，我們應該如何從短期規模和長期角度（比如 3 到 5 年）來看待你的業務概況？

Thanks for the question. So from a business perspective, we have positioned the overall group into the 3 business lines. So basically, for each of the business lines, we will focus on different things.

謝謝你的問題。所以從業務的角度，我們把整個集團定位為3條業務線。所以基本上，對於每個業務線，我們將專注於不同的事情。

For BEC, our goal is to put the customer first and to provide the value-added service, which is the whole business. We will remain focused, and we believe given our expertise and experience in this area, and given the e-commerce overall dynamics in China, we still have a huge potential to keep growing in the top line and bottom line for this business unit.

對於BEC，我們的目標是把客戶放在第一位，提供增值服務，這是整個業務。我們將保持專注，我們相信，鑑於我們在這一領域的專業知識和經驗，以及中國電子商務的整體動態，我們仍有巨大的潛力在該業務部門的收入和利潤中保持增長。

For BBM, our goal, as we mentioned earlier, is to utilizing the experience on technology and digital we accumulated over the last 15 years in China, to transform the Gap Greater China, to make that business a growing business unit overall for the group. So that's our kind of the second wave of growth opportunity. And also the turnaround of Gap Greater China will give us the foundation to build a successful Brand Management Business unit by having the capability in terms of the IT system, the structure, the processes and also the talent.

對於 BBM，正如我們之前提到的，我們的目標是利用我們過去 15 年在中國積累的技術和數字經驗，改造 Gap 大中華區，使該業務成為集團整體增長的業務部門。這就是我們的第二波增長機會。此外，Gap 大中華區的轉型將為我們在 IT 系統、結構、流程和人才方面的能力打造一個成功的品牌管理業務部門奠定基礎。

And thirdly, for Baozun International, it's a long-term investment. So our view is to make sure we can utilize the capability and the experience we accumulated in China. But to adapt that locally for the international market, we selected, i.e. the Southeast Asia and Europe. But that's a long-term investment. And for 2023, we are not expecting that will give us a strong contribution to either top line or bottom line.

第三，對於寶尊國際來說，這是一項長期投資。所以我們的觀點是確保我們能夠利用我們在中國積累的能力和經驗。但為了適應國際市場，我們選擇了東南亞和歐洲。但這是一項長期投資。對於 2023 年，我們預計這不會對我們的收入或利潤做出重大貢獻。

So that's the overall profile for the 3 units.

這就是這 3 個單元的總體概況。

I'm showing no further questions. I'll turn the conference back to the management team for closing remarks.

我沒有進一步的問題。我會將會議轉回給管理團隊作閉幕詞。

Thank you, operator. In closing, on behalf of the Baozun 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 us. Thank you for joining today. This concludes the call.

謝謝你，運營商。最後，我們代表寶尊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，請隨時與我們聯繫。感謝您今天加入。通話到此結束。

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

謝謝。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。