Baozun Inc (BZUN) 2024 Q3 法說會逐字稿

Good morning, ladies and gentlemen. And thank you for standing by for Baozun's third-quarter 2024 earnings conference call. (Operator Instructions)

早安，女士們先生們。感謝您出席寶尊2024年第三季財報電話會議。（操作員說明）

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.

提醒一下，今天的電話會議正在錄音。現在我將會議交給今天的主持人，寶尊企業發展和投資者關係高級總監孫雯女士。請溫迪繼續。

Thank you operator. Hello, everyone, and thank you for joining us today. Our third-quarter 2024 earnings release was distributed earlier before this call, and is available on our IR website at ir.baozun.com as well as on PR Newswire services.

謝謝運營商。大家好，感謝您今天加入我們。我們在本次電話會議之前發布了 2024 年第三季財報，可在我們的 IR 網站 ir.baozun.com 以及美通社服務上取得。

We have also posted a powerpoint presentation that accompanies our comments to the same IR website where they are available for your download. On the call today from Baozun, we have Mr. Vincent Qiu, Chairman and Chief Executive Officer; Ms. Catherine Zhu, Chief Financial Officer; Mr. Arthur Yu, President of Baozun e-commerce; and Mr. Ken Huang, Chief Financial Officer of Baozun Brand Management.

我們也在同一個 IR 網站上發布了附有我們評論的幻燈片演示文稿，您可以在該網站上下載這些演示文稿。今天，寶尊董事長兼執行長邱文森先生接聽了我們的電話；朱凱瑟琳女士，財務長；寶尊電商總裁於亞瑟先生；寶尊品牌管理財務長黃肯先生。

Mr. Qiu will first share our business strategy and company highlights, followed by Ms. Zhu, who will discuss our financials and outlook, then by Mr. Yu and Mr. Huang to share more about our e-commerce and brand management business separately. They will all be available to answer your questions during the Q&A session that follows.

邱先生將首先分享我們的業務策略和公司亮點，隨後朱女士將討論我們的財務狀況和前景，然後由於先生和黃先生分別分享更多有關我們的電子商務和品牌管理業務的信息。他們都將在接下來的問答環節回答您的問題。

Before we begin, I would like to remind you that this conference call contains forward-looking statements within the meaning of the US Security Act of 1933 as amended, the US Security Exchange Act of 1934 as amended, and the US Private Security Litigation Reform Act of 1995.

在我們開始之前，我想提醒您，本次電話會議包含美國 1933 年安全法修訂案、美國 1934 年證券交易法修訂案以及美國私人安全訴訟改革法所界定的前瞻性陳述。

These forward-looking statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risk, 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 statement.

這些前瞻性陳述是基於管理層當前的預期以及當前的市場和經營狀況，並涉及涉及已知或未知風險、不確定性和其他因素的事件，所有這些因素都難以預測，其中許多超出了公司的能力範圍。

Further information regarding these and other risks and certainties or factors is included in the company's filings with the US Security and Exchange Commission, and its announcement notice or other documents published on the website of the stock exchange of Hong Kong Limited.

有關這些及其他風險和確定性或因素的更多信息，請參閱該公司向美國證券交易委員會提交的文件、其公告通知或在香港聯合交易所有限公司網站上發布的其他文件。

All information provided in this call is as of the date hereof, and is based on assumptions that the company believes to be reasonable as of this date. And the company does not undertake any obligation to update any forward-looking statement except as required and applicable law.

本次電話會議中提供的所有資訊均截至本新聞稿發布之日，並基於本公司認為截至該日期合理的假設。除根據要求和適用法律外，本公司不承擔更新任何前瞻性聲明的任何義務。

Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB. In addition, we may elect to use adjusted in place of non-generally accepted accounting principles or non-GAAP in order to reduce aural confusion that may cause from our discussions about financials and operations related to the Gap brand.

最後請注意，除非另有說明，本次電話會議中提到的所有數字均以人民幣為單位。此外，我們可能會選擇使用調整後的會計準則或非公認會計原則來取代非公認會計準則或非公認會計準則，以減少我們討論與 Gap 品牌相關的財務和營運時可能造成的聽覺混亂。

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

現在我很高興向大家介紹我們的董事長兼執行長邱文森先生。文森特，請繼續。

Thank you, Wendy. Hello everyone, and thank you all for your time. I'm pleased to report that Baozun is well on track with advancing our strategic transformation. Our total revenues grew by 13% year-over-year, reflecting the strength of our revitalized approach and the consistent operational alignment.

謝謝你，溫迪。大家好，感謝大家抽出寶貴的時間。我很高興地向大家報告，寶尊正在穩步推進我們的策略轉型。我們的總收入年增 13%，反映了我們重振活力的方法和一致的營運調整的優勢。

Both BEC and the BBM have enhanced key growth drivers. BEC achieved a 14% revenue increase, driven by improvements in both the services and the product sales. Notably, the DouYin business grew by triple digit year over year, directly resulting from our strategic integration with location, and our commitment to launching innovations that capitalize on emerging trends. These initiatives have strengthened our presence on DouYin, further reinforcing Baozun's leadership in digital commerce.

BEC 和 BBM 都增強了關鍵的成長動力。由於服務和產品銷售的改善，BEC 的收入成長了 14%。值得注意的是，抖音業務年增了三位數，這直接歸功於我們與地點的策略整合，以及我們致力於推出利用新興趨勢的創新。這些舉措增強了我們在抖音上的影響力，進一步鞏固了寶尊在數位商務領域的領導地位。

BBM has also resumed growth with a 10% year-over-year increase. The first apple to apple revenue expansion since our acquisition, and effect, following years of top line contraction from Gap brand in China. Our efforts to build partnerships have been instrumental in integrating global resources with local insights and networks, and we anticipate sustained topline growth momentum in 2025.

BBM 也恢復了成長，年增 10%。自我們收購以來，這是繼 Gap 品牌在中國的收入多年來不斷萎縮之後，首次出現蘋果對蘋果的收入擴張。我們建立合作夥伴關係的努力有助於將全球資源與本地見解和網絡相結合，我們預計 2025 年將實現持續的營收成長動能。

Hunter has also made solid progress as we continue refining product categories, and optimizing our channel network. This momentum was highlighted by the recent launch of a pop up store in Shanghai high fashion district Zhangyuan.

隨著我們不斷精進產品品類、優化通路網絡，亨特也取得了紮實的進展。最近在上海高級時尚區張園開設的快閃店凸顯了這一氣勢。

The opening generated a remarkable attention during golden week, attracting widespread visibility that drives traffic and sales. These initiatives and bolster Hunter's brand equity, and further underscore our brand management capabilities, and localization of brand appeal.

該開業在黃金周期間引起了極大關注，吸引了廣泛的關注，從而推動了客流量和銷售。這些舉措增強了亨特的品牌資產，進一步凸顯了我們的品牌管理能力和本土化品牌吸引力。

In summary, Q3 has been a pivotal quarter of growth and the progress across our business segments. I am confident about sustaining this momentum.

總而言之，第三季是我們各業務部門成長和進步的關鍵季度。我對保持這股勢頭充滿信心。

Now let me pass to Catherine for financial update.

現在讓我請凱瑟琳了解最新財務狀況。

Thanks, Vincent, and hello everyone. Now let me share with you our third-quarter 2024 financial results. Please turn to slide number 3, Baozun Group's total net revenues increased by 13% year over year to RMB2.1 billion. Of this, e-commerce revenue grew 14% to RMB1.8 billion, while brand management revenue grew 10% to RMB331 million.

謝謝文森特，大家好。現在讓我與大家分享我們2024年第三季的財務表現。請翻第3張投影片，寶尊集團總淨收入較去年同期成長13%至人民幣21億元。其中，電商收入成長14%至人民幣18億元，品牌管理收入成長10%至人民幣3.31億元。

Breaking down the e-commerce revenue by business model, services revenue increased by 15% to RMB1.3 billion for the quarter. This growth was primarily driven by a 40% year-over-year increase in revenue from digital marketing and IT solutions, as well as improved performance in emerging channels such as DouYin and Tencent's mini programs.

依業務模式劃分電商收入，本季服務收入成長 15% 至 13 億元。這項成長主要得益於數位行銷和IT解決方案營收年增40%，以及抖音和騰訊小程式等新興通路績效的改善。

BEC product sales revenue resumed the growth for the first time since the launch of our transformation plan, rising 10% year-over-year to RMB454 million. This growth was mainly driven by stronger performance in the beauty and cosmetics categories, along with increased contributions from our self-incubated brands and those under the exclusive distribution business model.

BEC產品銷售收入自轉型計畫啟動以來首次恢復成長，年增10%至人民幣4.54億元。這一成長主要得益於美容及化妝品類別的強勁表現，以及我們的自孵化品牌和獨家分銷業務模式下的品牌貢獻的增加。

BBM product sales totaled RMB330 million for the quarter, reflecting an 11% year-over-year growth compared with the same period of last year. This growth was mainly attributable to our product segmentations and the merchandizing plans.

本季BBM產品銷售額總計人民幣3.3億元，較去年成長11%。這一成長主要歸功於我們的產品細分和銷售計劃。

Please turn to slide number 4. From a profitability perspective, our blended growth margin at the group level for product sales was 28.1% ,and the gross profit increased by 2% to RMB220 million.

請翻到第 4 張投影片。從獲利能力來看，集團層級產品銷售綜合成長率為28.1%，毛利成長2%至2.2億元。

Breaking this down by our key business lines, gross margin for e-commerce product sales were 10.2% for the quarter. The decrease in gross margin for e-commerce product sales was mainly due to a higher proportion of promotional rebates, mostly cash rebates from brand partners, compared to the great portion of procurement rebates in the same period of last year.

按我們的主要業務線細分，本季電子商務產品銷售的毛利率為 10.2%。電商產品銷售毛利率下降的主要原因是促銷回饋比例較高，其中大部分是來自品牌合作夥伴的現金回饋，而去年同期大部分是購買回饋金。

On a like for like comparison basis, gross margin for e-commerce expanded by approximately 500 basis points from the same period of last year. Gross margin for BBM was 52.9% relatively flat compared to the previous quarter.

以同類比較，電商毛利率較去年同期成長約500個基點。BBM 的毛利率為 52.9%，與上一季相比相對持平。

Now turning to bottom line items, please refer to slide number 5. During the quarter, our adjusted loss from operations totaled RMB85 million, an improvement of RMB5 million from a loss of RMB90 million a year ago. This included an adjusted operating loss of RMB30 million from e-commerce segment, an improvement of RMB10 million compared with RMB40 million in the same period of last year.

現在轉向底線項目，請參閱幻燈片 5。本季度，我們調整後的經營虧損總計人民幣 8,500 萬元，比去年同期的虧損人民幣 9,000 萬元減少了 500 萬元。其中電商板塊調整後營運虧損人民幣3,000萬元，較去年同期的人民幣4,000萬元減少人民幣1,000萬元。

BBM's adjusted operating loss totaled RMB55 million compared to RMB50 million in the same period of last year. Our adjusted net loss attributable to shareholders for the quarter was RMB67 million, an improvement of 12.5% year-over-year from RMB76 million in the same period of last year. As of September 30, 2024, our cash and cash equivalents, restricted cash, and short term investments totaled RMB2.7 billion.

BBM調整後經營虧損總計人民幣5,500萬元，去年同期為人民幣5,000萬元。本季調整後歸屬於股東的淨虧損為人民幣 6,700 萬元，較去年同期的 7,600 萬元成長 12.5%。截至2024年9月30日，我們的現金及現金等價物、限制性現金及短期投資總計27億元。

Lastly, we continue to execute our share repurchase program. Year-to-date, we have repurchased approximately 8.6 million ADS for USD9.9 million through the open market, reflecting our confidence in the company's future.

最後，我們繼續執行股票回購計畫。年初至今，我們已透過公開市場以990萬美元回購了約860萬股ADS，體現了我們對公司未來的信心。

Please note that our stock repurchase program must adhere to applicable US and Hong Kong statutes and regulations, as well as compliance requirements of Nasdaq and the Hong Kong Stock Exchange, including but not limited to daily trading volume, trading windows, and impact on management's voting rights.

請注意，我們的股票回購計畫必須遵守適用的美國和香港法律法規，以及納斯達克和香港聯交所的合規要求，包括但不限於每日交易量、交易窗口以及對管理層投票的影響權利。

Year-to-date, we have repurchased approximately 6% of our total shares outstanding at the beginning of the year. As of today, the remaining amount of shares as authorized by our Board for our share repurchase program effective through January 2025 is USD10 million.

年初至今，我們已回購了年初已發行股份總數的約 6%。截至今天，董事會授權的股票回購計畫剩餘股份數量為 1,000 萬美元，有效期至 2025 年 1 月。

Let me now pass the call over to Arthur to update you on BEC, our e-commerce business.

現在讓我將電話轉接給 Arthur，向您介紹我們的電子商務業務 BEC 的最新情況。

Okay. Thank you, Vincent and Catherine, and hello everyone. We are glad to report that BEC continued its growth in quarter three, achieving a 14% year-over-year revenue increase. Our services revenue further accelerated its upward trend, and grew 15% year-over-year.

好的。謝謝文森和凱瑟琳，大家好。我們很高興地報告，BEC 在第三季度繼續成長，營收年增 14%。服務收入進一步加速上升，較去年同期成長15%。

Product sales also made a notable recovery to achieve a 10% year-over-year growth, following years of contraction. We believe the improving top line momentum reflects the progress of our strategy to transform BEC business towards a healthier, more diversified, and resilient model.

產品銷售在經歷多年收縮後也顯著復甦，年增 10%。我們相信，營收成長動能的改善反映了我們將 BEC 業務轉型為更健康、更多元化和更有彈性模式的策略的進展。

Now please turn to slide number 6 for operational highlights on services. Our core categories including apparel and luxury, displayed consistent growth, setting a solid foundation for service revenues. Our brand partners are actively engaging with us on creative content and omni channel marketing to boost brand awareness online.

現在請翻到第 6 投影片，了解服務的營運亮點。我們的核心類別包括服裝和奢侈品，持續成長，為服務收入奠定了堅實的基礎。我們的品牌合作夥伴正在積極與我們合作進行創意內容和全通路行銷，以提高線上品牌知名度。

Our continued innovation in digital marketing had earned up several prestigious industry recognitions, including the top notch award of best e-commerce agency of the year at the recent ROI Festival.

我們在數位行銷方面的持續創新贏得了多項享有盛譽的行業認可，包括最近在投資回報率節上獲得的年度最佳電子商務機構最高獎。

In terms of omni channel expansion, our DouYin business achieved triple digit growth year over year. We focused on brand centric live streaming, and delivered several high impact projects. This included a brand live stream for a leading luxury automotive brand, and a sales driven live stream for an international theme park brand.

全通路拓展方面，抖音業務較去年同期實現三位數成長。我們專注於以品牌為中心的直播，並交付了多個高影響力的項目。其中包括領先豪華汽車品牌的品牌直播，以及國際主題樂園品牌的銷售驅動直播。

In addition, we hosted multiple high profile fashion show live streams, significantly enhancing both brand visibility and sales conversion for our brand partners. Beyond DouYin, we also recorded high growth on emerging platforms like Tencent's mini program and Little Red Book.

此外，我們舉辦了多場高調時裝秀直播，顯著提高了品牌合作夥伴的品牌知名度和銷售轉換率。除了抖音之外，我們在騰訊小程式和小紅書等新興平台也實現了高成長。

As a right partner on Little Red Book, we have made it a strategic focal point, and we will continue to upgrade operations and marketing services to drive substantial growth for our clients on this recent content driven platform.

作為小紅書的合適合作夥伴，我們已將其作為策略重點，我們將繼續升級營運和行銷服務，以推動我們的客戶在這個最新的內容驅動平台上實現大幅成長。

Now turning to product sales, I've highlighted on slide number 7. The growth turn around in product sales was mainly driven by our efforts in prioritizing high quality business lines, and the completion of optimization of low margin projects in previous quarters.

現在轉向產品銷售，我在第 7 號投影片上強調了這一點。產品銷售的成長主要得益於我們優先考慮優質業務以及完成前幾季低利潤項目的優化。

Categories such as beauty and cosmetics, kids and baby, and home and furnishing achieved strong double digit growth. We also expanded our category metrics with new initiatives in apparel and (inaudible) further strengthening our diversification and business resilience.

美容和化妝品、兒童和嬰兒、家居和家具等類別實現了兩位數的強勁增長。我們也透過服裝領域的新措施擴大了我們的品類指標，並（聽不清楚）進一步加強了我們的多元化和業務彈性。

Regarding our exclusive distribution business, we are focusing on China expansion and brand marketing. Among the brands we operate, the British high end kitchen wear brand, Joseph & Joseph sales performance this quarter far exceeded our expectations.

關於我們的獨家經銷業務，我們專注於中國擴張和品牌行銷。在我們經營的品牌中，英國高級廚具品牌Joseph & Joseph本季銷售業績遠超過我們的預期。

We anticipate continued top line growth and improve the profitability for our product sales business in the coming quarters. In addition to building a higher (inaudible) top line growth, we also implemented efficiency enhancing measures through the application of AIGC tools.

我們預計未來幾季我們的產品銷售業務將持續成長並提高獲利能力。除了實現更高（聽不清楚）的收入成長外，我們還透過應用 AIGC 工具實施了效率提高措施。

During the quarter, we launched our intelligent customer service assistant S-Whiz, to quickly understand and respond to consumer needs, delivering personalized high quality service.

本季度，我們推出智慧客服助理S-Whiz，快速了解並回應消費者需求，提供個人化的高品質服務。

Finally, let me provide a quick update on the recent Double 11 shopping festival. Our total order value reached a record high with double digits year over year growth. Among all brand partners we participate in the campaign, more than half achieved year over year growth.

最後，讓我簡單介紹一下最近的雙11購物節的最新情況。我們的訂單總額創下歷史新高，年增兩位數。在我們參與活動的所有品牌合作夥伴中，超過一半實現了同比增長。

And 20% of the brands are more than doubled their gross sales. Across channels including Tmall, JD, DouYin and Vipshop, we all achieved double digit growth. While the recent Double 11 was encouraging, the high -- the record high return rate also drop down overall operating efficiency.

20% 的品牌銷售額成長了一倍以上。天貓、京東、抖音、唯品會等管道均達到了兩位數成長。雖然最近的雙11令人鼓舞，但創歷史新高的退貨率也拉低了整體營運效率。

As we headed into quarter four, we remain cautious due to persistent macroeconomic pressures and a slower than expected consumer recovery. We are committed to helping brands succeed in the competitive market in China.

在進入第四季時，由於持續的宏觀經濟壓力和消費者復甦速度慢於預期，我們仍保持謹慎態度。我們致力於幫助品牌在中國競爭激烈的市場中取得成功。

Now let now I will pass to Ken for an update on BBM.

現在我將向 Ken 詢問 BBM 的最新情況。

Thank you team, and thank you all. Please turn to slide number 8 for additional insights into BBM's progress through Q3. I'm pleased to report that BBM achieved the 10% year over year revenue growth, making the first top line turnaround for Gap in recent years on April to April basis.

謝謝團隊，也謝謝大家。請參閱第 8 張投影片，以了解有關 BBM 第三季進度的更多見解。我很高興地向大家報告，BBM 實現了 10% 的年收入成長，實現了 Gap 近年來在 4 月至 4 月間的首次營收扭虧為盈。

More encouragingly, Q3 demonstrated a steady sales momentum with sequential improvements from July through September. This goes to reflects the earlier success of our strategic initiatives, despite the ongoing macro challenges.

更令人鼓舞的是，第三季表現出穩定的銷售勢頭，從 7 月到 9 月連續改善。這反映出儘管宏觀挑戰持續存在，但我們的策略舉措早期取得了成功。

Close collaboration with Gap Inc's global resources remains central to our development plan. This close partnership enables us to tailor products to local preferences, while preserving global brand integrity. We also incorporated the global campaigns, such as for Get Loose regional appeal, to create a seamless and satisfying experience for our customers.

與 Gap Inc 的全球資源的密切合作仍然是我們發展計劃的核心。這種密切的合作夥伴關係使我們能夠根據當地喜好客製化產品，同時保持全球品牌的完整性。我們還整合了全球活動，例如 Get Loose 區域吸引力活動，為我們的客戶創造無縫且令人滿意的體驗。

We continue to optimize planning and execution across design and supply chains to enhance efficiency and the consistency from concept to delivery, ensuring better alignment of product availability with demand. During the quarter, we introduced channel specific exclusive products, and implemented a more strategic pricing regime aligned with product and lifecycle.

我們繼續優化設計和供應鏈的規劃和執行，以提高從概念到交付的效率和一致性，確保產品可用性與需求更好地保持一致。本季度，我們推出了特定於通路的獨家產品，並實施了與產品和生命週期一致的更具策略性的定價制度。

On DouYin, in particular, we participated in the Superbrands show for both adults and kids and baby, which drove the channel to account for over 40% of our online sales for the quarter. We expect exclusive products to continue being a major driver of our online sales in the coming months. This approach enabled us to achieve higher conversions while maintaining stable gross margins.

特別是在抖音上，我們參加了成人、兒童和嬰兒的超級品牌秀，這使得該管道占我們本季線上銷售額的 40% 以上。我們預計獨家產品將在未來幾個月繼續成為我們在線銷售的主要推動力。這種方法使我們能夠實現更高的轉換率，同時保持穩定的毛利率。

In Q3, we opened 24 new stores, including high performing stores, such as Urumqi, Xi'an, Shaoxing, as well as Beijing and Shanghai. These new stores delivered strong conversion rates, healthy gross margins, and impressive monthly productivity in terms of sales per square meter.

第三季度，我們新開了24家門市，包括烏魯木齊、西安、紹興以及北京和上海等表現優異的門市。這些新店提供了強勁的轉換率、良好的毛利率以及令人印象深刻的每月每平方米銷售額的生產力。

As mentioned in our previous communication, we continue to fine tune our new store opening philosophy to maximize store productivity, while capitalizing on opportunities in emerging markets. Additionally, we have enriched the shopping environment to be family friendly, and enjoyable for all ages.

正如我們在先前的溝通中所提到的，我們繼續微調我們的新店開業理念，以最大限度地提高商店生產力，同時利用新興市場的機會。此外，我們也豐富了購物環境，使其適合家庭入住，適合所有年齡層的人。

Going forward, our expansion strategy will focus on quality locations, high traffic neighborhood areas in emerging cities. At the same time, we are leveraging local partnerships in new Tier 1 and Tier 2 cities to ensure that new openings align with market demand and the long term potential.

展望未來，我們的擴張策略將聚焦於新興城市的優質地段、高人流的鄰里地區。同時，我們正在利用新的一二線城市的當地合作夥伴關係，確保新開幕符合市場需求和長期潛力。

We believe collaborating with strong local partners will not only enhance our success, but also mitigate market risks. A recent national wide roadshow with existing and potential landlords and franchise partners highlighted the increased confidence and commitment to the brand growth. They stressed appreciation for Gap's consistent brand identity and our flexibility in localizing products and operations.

我們相信，與強大的本地合作夥伴合作不僅會增強我們的成功，還能降低市場風險。最近與現有和潛在的業主和特許經營合作夥伴舉行的全國路演凸顯了對品牌成長的信心和承諾的增強。他們強調對 Gap 一貫的品牌形像以及我們在產品和經營在地化方面的靈活性表示讚賞。

We are on track to meet our annual target of 50 new stores, increasing total store footage year over year by the end of 2024. Additionally, we opened two new Hunter stores, one in Shanghai, and one in Singapore, bringing the total number of offline stores to 146 under our management by the end of Q3.

我們預計將實現 50 家新店的年度目標，到 2024 年底，商店總面積逐年增加。此外，我們新開設了兩家Hunter門市，一家在上海，一家在新加坡，截至第三季末，我們管理的線下門市總數達到146家。

In summary, despite the challenges of our gradual consumer recovery, we remain disciplined in our strategic direction. Our focus on localized engagement, coupled with Gap's global brand strength, positions us well to expand our footprint, drive top line growth, and maintain healthy gross margins. That concludes our prepared remarks. Thank you.

總而言之，儘管消費者逐漸復甦面臨挑戰，但我們在策略方向上仍保持紀律。我們對在地化參與的關注，加上 Gap 的全球品牌實力，使我們能夠很好地擴大我們的足跡、推動營收成長並維持健康的毛利率。我們準備好的演講到此結束。謝謝。

Operator, we are now ready to begin the Q&A session.

接線員，我們現在準備開始問答環節。

(Operator Instructions) Alicia Yap, Citigroup.

（操作員指示）Alicia Yap，花旗集團。

Hi. Thank you. Good evening management. Thanks for taking my questions, and congratulations on the solid results. I have two questions. First is that can management elaborate the overall performance during this year's singles's day, specifically which category perform better than your expectations, and which category are performing slightly worse than your expectation?

你好。謝謝。晚上好管理。感謝您回答我的問題，並祝賀取得的紮實成果。我有兩個問題。首先是管理階層能否詳細說明今年雙11的整體表現，具體哪些品類表現比你的預期好，哪些品類表現比你的預期稍差？

And then how is your Gap China sales during the single stage? Also wondering if there's any differentiated shopping behavior that you observe this year compared to the previous year.

那麼Gap中國單期銷售如何？也想知道您今年觀察到的購物行為與去年相比是否有什麼不同。

And then second question is related to your advertising tool. So with more platforms are rolling out the AI advertising tool, so how will Baozun actually embrace the AI technology to capture an even bigger opportunity?

第二個問題與您的廣告工具有關。那麼，隨著越來越多的平台推出AI廣告工具，寶尊將如何真正擁抱AI技術，抓住更大的機會呢？

So have you seen or do you anticipate that could be more smaller brands, especially the domestic brands might be more eager or need to seek help from Baozun on helping them to do the better targeting digital ad campaign in the future? Thank you.

那麼您是否看到或預期可能會有更多的小品牌，尤其是國內品牌可能更渴望或需要尋求寶尊的幫助來幫助他們在未來進行更有針對性的數位廣告活動？謝謝。

Hi, Alicia. This is Arthur. Thank you for the question. Let me provide some answers for the two questions. The first one regarding the performance of the single's day for this year, I think we delivered actually a solid performance from our own perspective.

嗨，艾莉西亞。這是亞瑟。謝謝你的提問。讓我為這兩個問題提供一些答案。第一個是關於今年雙十一的表現，我認為從我們自己的角度來看，我們實際上表現得很好。

So basically, the categories which are our strength like the apparel, sports, and luxury, all performed pretty well during the Double 11 campaign. The ones which are not meeting our expectations are the small appliance and also travel, which is the hotel and theme park, which are slightly below our expectation.

所以基本上，我們的優勢類別，像是服裝、運動、奢侈品，在雙11期間都表現得很好。沒有達到我們預期的是小家電，還有旅遊，就是飯店和主題樂園，略低於我們的預期。

The key character for this year is actually (inaudible) is a true omnichannel Double 11. So basically as I mentioned earlier, all the major channels under us has shown a double digit growth, which means our business model is toward more an omnichannel business model.

今年的關鍵人物實際上（聽不清楚）是真正的全通路雙11。所以基本上正如我之前提到的，我們旗下的所有主要管道都呈現出兩位數的成長，這意味著我們的商業模式正在朝向全通路商業模式邁進。

And also there is a character which we have seen is the period of Double 11 has become longer, and also the return rate and cancellation rate has been higher. So this given the campaign period more challenging. But the service provider like Baozun actually stand out during this period, because our service capability and also our infrastructure and IT provide a stable service to the brand which they really like. So this is what I would like to further comment on Double 11.

還有一個特點就是我們看到雙11的週期變長了，退貨率和取消率也更高了。因此，這使得競選期間更具挑戰性。但像寶尊這樣的服務商在這個時期其實是脫穎而出的，因為我們的服務能力以及我們的基礎設施和IT為他們真正喜歡的品牌提供了穩定的服務。這就是我想對雙11進一步評論的內容。

Regarding to AIGC, we actually started to apply the AIGC technology to our business operation a couple of years ago. And from our perspective, AI will help the business from two aspects. Number one is improve the efficiency.

關於AIGC，我們實際上在幾年前就開始將AIGC技術應用到我們的業務運作中。而從我們的角度來看，人工智慧將從兩個方面幫助業務。第一是提高效率。

As I mentioned in the prepared notes -- so in this quarter, we successfully adopted a new tool called S-Whiz, which is helping our customer service agents to simplify the way they do work, improving the service quality, at the same time, reducing the average lead time for each of the operations. So this is one.

正如我在準備好的筆記中提到的那樣，在本季度，我們成功採用了一種名為S-Whiz 的新工具，它正在幫助我們的客戶服務代理簡化他們的工作方式，提高服務質量，同時，減少每項操作的平均交貨時間。這是其中之一。

And the second thing the AI can help our operations is to give a better informed decision making tool to our brand. And from Baozun, we recently pushed out what we call Baozun business intelligence, which are helping the brand to collect and analyze the market data to inform them with a better merchandising and planning strategy.

人工智慧可以幫助我們營運的第二件事是為我們的品牌提供更明智的決策工具。而寶尊最近推出了寶尊商業智能，幫助品牌收集和分析市場數據，為他們提供更好的行銷和規劃策略。

So those are how we applied AIGC tools in the day-to-day operations, and we have seen the good result from those.

這就是我們在日常營運中應用 AIGC 工具的方式，我們已經看到了良好的結果。

Thank you.

謝謝。

Maybe Ken can address related question.

也許肯可以解決相關問題。

Yes. And for the sales of Gap's performance on Double 11, I can explain. And our ranking total -- the final ranking in men's apparel on Tmall actually increased three positions compared to last year. The sales on both GMV and net sales increased by double digits, and this performance is not only on Tmall platform. This year, we even performed stronger on JD and other platforms. So in total we are satisfied with our performance of Gap sales on Double 11. Thank you.

是的。而對於Gap在雙11的銷售表現，我可以解釋一下。而我們的總排名——天貓男裝的最終排名實際上比去年上升了三位。GMV和淨銷售額雙雙成長，這樣的表現不只在天貓平台。今年我們在京東等平台的表現甚至更強。所以整體來說我們對雙11 Gap 的銷售表現還是比較滿意的。謝謝。

Thank you.

謝謝。

Frank Tao, CMBI.

陶濤，CMBI。

Thank you. Hi, management. Thanks for taking my question. I have a question regarding your business operating strategy. We've noticed a slowdown trend in the GMV growth rate of live streaming e-commerce platforms this year. And I would like to ask, how does management see this trend? And will there be some adjustment to your business operating strategy in the coming quarters? Thank you.

謝謝。嗨，管理層。感謝您提出我的問題。我有一個關於你們的業務運作策略的問題。我們注意到今年直播電商平台的GMV成長速度有放緩的趨勢。我想問一下，管理階層如何看待這個趨勢？未來幾季您的業務營運策略是否會有所調整？謝謝。

Okay. thank you. This is Arthur. I will comment, and then maybe, Vincent add more if it is required. So basically from my point of view, as I mentioned, we are already omnichannel operations. So the trend in the different channels will not fundamentally change our operations, because what we are now offering, the service and solution to our brand is to helping them to better planning which EC platform should they put more resource and emphasis going forward to do the e-commerce business.

好的。謝謝。這是亞瑟。我會發表評論，然後文森特可能會根據需要添加更多內容。所以基本上從我的角度來看，正如我所提到的，我們已經是全通路營運。所以不同管道的趨勢不會從根本上改變我們的運營，因為我們現在為我們的品牌提供的服務和解決方案是幫助他們更好地規劃他們應該在哪個EC平台上投入更多的資源和重點來做電子商務業務。

And based on that, we have developed a lot of tools and a lot of the analysis to help them make a decision in terms of how to decide where to put resources onto. So this is the first one. And the second one, given our stronghold is on Tmall, and during this year's Double 11 and [618], we have seen a strong recovery in terms of the overall Tmall performance. That is also a good sign which helping us to drive our business forward.

在此基礎上，我們開發了許多工具和大量分析來幫助他們做出如何決定將資源放在哪裡的決定。這是第一個。第二個，我們的大本營是天貓，今年雙11和[618]期間，我們看到天貓整體表現強勁復甦。這也是一個好兆頭，有助於我們推動業務向前發展。

Yeah, I think -- this is Vincent. So right now our capability is already established across all the channels and all the service components, that means that we have the capability to deliver services to each of the platforms in no matter it is a streaming commerce or not.

是的，我想──這是文森。所以現在我們的能力已經建立在所有管道和所有服務元件上，這意味著我們有能力向每個平台提供服務，無論它是否是串流商務。

And also -- so we support all the channels. And just as Arthur mentioned, our business intelligence right now can have a close look of all the channels dynamics, and tell us a little about the future trends, so we can allocate the resources, depends on the judgment for the future potential of each of the platforms to get a better result. Thank you.

而且——所以我們支持所有管道。而且正如Arthur所提到的，我們現在的商業智慧可以近距離觀察所有管道的動態，告訴我們一些未來的趨勢，這樣我們就可以分配資源，取決於對每個管道未來潛力的判斷。更好的結果。謝謝。

Thank you.

謝謝。

Thomas Chong, Jefferies.

托馬斯莊，杰弗里斯。

Thanks management for taking my question. So I have two questions. My first question is about so how is the monthly sales performance in recent months post Double 11? And my second question is how should we think about like the outlook for categories like luxury apparel, FMCG, and consumer electronics, and appliance. Thanks.

感謝管理層回答我的問題。所以我有兩個問題。我的第一個問題是，雙11後近幾個月的月度銷售表現如何？我的第二個問題是，我們應該如何思考奢侈品服裝、快速消費品、消費性電子產品和家電等類別的前景。謝謝。

Okay. Thank you for the question. I think given this year's Double 11, there's a lot of highway promotion and big discounts given by all the platforms. Post Double 11, we have seen a softening sales from all categories. But with the weather getting colder especially for the apparel category, we hope there will be a recovery in terms of the sales going into the December. So this is overall.

好的。謝謝你的提問。我想今年雙11，各平台都會有很多高速公路促銷和大折扣。雙11後，我們看到所有品類的銷售都出現疲軟。但隨著天氣變冷，尤其是服裝類別，我們希望 12 月的銷售能有所復甦。所以這是總體的。

In terms of the luxury apparel and FMCG, those categories, I think overall, we have seen the growth rate being flat year over year. And our outlook into the next year is relatively cautious. Having said that, I think what Baozun has been doing is to be able to provide a high quality service for the brand partners we operate.

就奢侈服裝和快速消費品而言，我認為總體而言，這些類別的成長率與去年同期持平。我們對明年的展望相對謹慎。話雖如此，我認為寶尊一直在做的就是能夠為我們經營的品牌合作夥伴提供優質的服務。

Given the current market conditions, all the brand partners are starting to put a lot of emphasis in terms of their infrastructure and capability building, which means they like the partners like Baozun who has a very good capability across all the omnichannel, which helped them to become a partner to help them to make a decision in terms of how to drive the business forward.

從目前的市場情況來看，各品牌合作夥伴都開始重視基礎設施和能力建設，這意味著他們喜歡像寶尊這樣的合作夥伴，他們在全通路上有很好的能力，這有助於他們成為合作夥伴，幫助他們做出如何推動業務發展的決策。

And I think with that, we think even though the overall market outlook is relatively cautious, but under this market there are huge opportunities for Baozun to operate and to succeed. Thank you.

我認為，儘管整體市場前景相對謹慎，但在這個市場下，寶尊有巨大的經營機會和成功機會。謝謝。

Thank you.

謝謝。

(Operator Instructions) [Jiway Yin] CITIC.

（操作員指示）[Jiway Yin]中信。

Hello, good evening, management. And thanks for taking my question. Congrats on the solid quarter. And I have two questions. The first is that JD.com has also invested a lot in the clothing category for this year's Double 11 campaign, and the growth rate is also very impressive. So how is Baozun's layout in this channel?

你好，晚上好，管理層。感謝您提出我的問題。恭喜季度業績穩定。我有兩個問題。首先是京東今年雙11在服飾類別上也投入了大量資金，成長速度也非常可觀。那麼寶尊在這個頻道的佈置如何呢？

And my second question is that we have seen many media reported that the return rate of the Ralph Lauren brand is very high. So what are Baozun's comments on this, and has there been a significant increase in consumer return rates, especially in the clothing category, and for the brand operated by Baozun? Thank you.

我的第二個問題是，我們看到很多媒體報告說Ralph Lauren品牌的退貨率非常高。那麼寶尊對此有何評價，消費者回頭率，尤其是服飾品類，以及寶尊所經營的品牌，是否有明顯的提升？謝謝。

Okay, thank you for the question. This is Arthur. Yes, we have also seen a good performance from JD platform. And Baozun has been working very closely with JD as a strategic partner to drive the growth of the apparel and sports categories.

好的，謝謝你的提問。這是亞瑟。是的，我們也看到了京東平台的良好表現。寶尊作為策略夥伴一直與京東密切合作，共同推動服裝和運動類別的成長。

And in 2023 and 2024, we have been voted as the most high level strategic partner, (inaudible) partner, which means we have achieved a result. They think we are a good partner to them. So basically from a performance wise, our Gap brand is one of the top performing brands in JD.

在2023年和2024年，我們被評為最高層級的策略夥伴，（聽不清楚）合作夥伴，這意味著我們已經取得了成果。他們認為我們是他們的好夥伴。所以基本上從業績來看，我們的Gap品牌是京東表現最好的品牌之一。

And also from a luxury brand perspective, top 10 brands operating in JD, 5 of them are operated by Baozun. So this means how we help JD to push that forward. But having said that, overall size in terms of the apparel and sports category on JD is small -- is still very small compared with Tmall, which represents a huge opportunity for Baozun to further succeed in this platform.

同樣從奢侈品牌角度來看，在京東營運的前10個品牌中，有5個是寶尊經營的。這意味著我們如何幫助京東推動這項進程。但話雖如此，京東的服裝和運動品類整體規模較小，與天貓相比仍然很小，這為寶尊在這個平台上進一步取得成功提供了巨大的機會。

Now, turning to Ralph Lauren. So we also noticed the news about the high return and cancellation for Ralph Lauren. We are very sorry to see that, but we are not in a position to comment. This is our brand business. But what I can share with you is how we help Ralph Lauren to smooth the negative impact in terms of the cancellation, because we operate the technology in terms of e-commerce for Ralph Lauren.

現在，轉向拉爾夫·勞倫。所以我們也注意到了Ralph Lauren高額退貨和取消的消息。我們對此感到非常遺憾，但我們無法發表評論。這是我們的品牌業務。但我可以跟大家分享的是我們如何幫助Ralph Lauren消除取消方面的負面影響，因為我們為Ralph Lauren經營電子商務方面的技術。

And during the Double 11 period, once there is a cancellation, our system can help Ralph Lauren business to put the product back onto the shelf within a very short period, sometimes only within a couple of minutes, which means even though there is a high cancellation rate, but the impact to the brand is very minimal.

而且在雙11期間，一旦出現取消，我們的系統可以幫助Ralph Lauren商家在很短的時間內，有時只有幾分鐘之內將產品重新上架，這意味著即使有很高的訂單量，取消率，但對品牌的影響非常小。

So as a result, the cancellation rate is very high, but the impact to the business is minimized to the levels which are not impacting business hugely. And what I can share with you is the net GMV target on Ralph Lauren for Baozun, we have exceeded that target. So yeah, and also the brands are happy with our service.

因此，取消率非常高，但對業務的影響卻被最小化到不會對業務產生太大影響的程度。我可以跟大家分享的是，Ralph Lauren 為寶尊設定的淨 GMV 目標，我們已經超越了這個目標。是的，品牌也對我們的服務感到滿意。

In terms of the overall apparel, high return and cancellation is still an issue, even though we tried from an operational perspective to solve that problem. But still from this year's overall performance, we still see a high single digit increase in terms of the return and cancellation rate overall. I hope that answers your question.

就整體服裝而言，儘管我們試圖從營運角度解決這個問題，但高退貨和取消仍然是一個問題。但仍從今年的整體表現來看，我們仍然看到整體退貨率和取消率都有較高的個位數成長。我希望這能回答你的問題。

Thank you. That's very clear. And I want to ask a little -- one more question. We have seen that the output of Baozun BBM department is quite encouraging compared to our observation for brands in apparel industry. So can management share more about the topline trends as well? Thank you.

謝謝。這非常清楚。我想再問一個問題。我們看到，與我們對服裝業品牌的觀察相比，寶尊BBM部門的產出相當令人鼓舞。那麼管理階層是否也可以分享更多有關營收趨勢的資訊？謝謝。

For BBM, I think first is the big portion is still Gap, but also Hunter also performing very well on Q3. And for Gap as it was explained before, because our online growth in Q3 is very encouraging, especially our performance on DouYin Superbrand show, as well as our product and commercial strategy such -- like what you ask the question about JD.

對於BBM，我認為首先很大一部分仍然是Gap，而且Hunter在第三季也表現得非常好。對於Gap 來說，正如之前所解釋的，因為我們第三季度的線上成長非常令人鼓舞，特別是我們在抖音超級品牌秀上的表現，以及我們的產品和商業策略，例如你問的關於京東的問題。

When a brand are facing the different platform strategies, this requires the brand to have a more flexible product strategy, and also commercial strategy to be more faster responsive to the platform. And this flexibility in Baozun BBM helps us to increase our online sales higher than our expectations. And for offline, although the overall traffic is not fully recovered, but quarter to quarter is improving.

當品牌面對不同的平台策略時，這就要求品牌有更靈活的產品策略，也要求商業策略能夠更快地回應平台。寶尊BBM的這種靈活性幫助我們提高了線上銷售額，高於我們的預期。而線下方面，雖然整體流量還沒有完全恢復，但逐季正在改善。

And with our expansion into the new Tier 1 and Tier 2 cities, and the new stores performance, especially the sales per square meters, also help us to increase our sales performance. I hope this answer your questions. Thank you.

而隨著我們向新的第一線城市的擴張，新店的業績，特別是每平方公尺的銷售額，也幫助我們提高了銷售業績。我希望這能回答您的問題。謝謝。

Very clear. Thank you.

非常清楚。謝謝。

(Operator Instructions) Jack Hou, Huatai Securities.

（操作員指令） 侯傑，華泰證券。

Hi, thanks, management for taking my questions. Congratulations on the solid results. And I have two questions for you. The first one is about with this year's Double 11 promotion, maybe we saw a slightly warming consumption sentiment versus third quarter.

您好，謝謝管理層回答我的問題。祝賀取得了紮實的成果。我有兩個問題想問你。第一個是今年雙11促銷，或許我們看到消費情緒比第三季略有回升。

We all know Baozun operates many brands and many categories. So how does Baozun expect the consumption trend and opportunities in the next year?

我們都知道寶尊旗下經營多個品牌、多個品類。那麼寶尊如何預期明年的消費趨勢和機會呢？

And I have a follow-up on our outlook for next year as well, as we are approaching the end of this year, could management share some color on our outlook for next year, maybe on top line and margin? Thank you very much.

我也對明年的前景進行了跟進，因為我們已接近今年年底，管理層能否分享一些關於我們明年的前景的信息，也許是在營收和利潤方面？非常感謝。

Okay, thank you. I will take the first question, for the second one, maybe Vincent and Catherine, in terms of outlook for Baozun. So the first one, in terms of the outlook for consumption, we think for next year, the overall consumption will further stabilize. So after the up and downs during the COVID period, a lot of the brands choose to be cautious on the China market.

好的，謝謝。我先回答第一個問題，第二個問題，可能是文森和凱瑟琳，對寶尊的展望。所以第一，從消費前景來看，我們認為明年整體消費會進一步穩定下來。所以在經歷了疫情期間的起起落落之後，很多品牌都選擇對中國市場保持謹慎。

From a Baozun perspective, we have seen the brands want to spend more money in terms of building their internal capability, which we will put more emphasis on helping them to do so. And from our own perspective, we will focus more on service quality and innovation, as a key to maintain our stronghold in terms of apparel, luxury, and sports.

從寶尊的角度來看，我們看到品牌希望花更多的錢來建立內部能力，我們會更重視幫助他們這樣做。從我們自己的角度來看，我們將更加重視服務品質和創新，這是保持我們在服裝、奢侈品和運動方面的優勢的關鍵。

At the same time, we will use our capability in those core categories to expand into other new categories which to drive the growth. So this is from a Baozun perspective.

同時，我們將利用我們在這些核心品類上的能力擴展到其他新品類，以推動成長。所以這是從寶尊的角度來看的。

Vincent, Catherine, do you want to comment on the outlook?

Vincent、Catherine，您想對前景發表評論嗎？

Sure. Yeah, the second one, yes. Looking forward, we think two things. Number one is that we are seeing that more and more policies and initiatives from the government, we think this will better the economy in general. So we have a reason to be a little more optimistic for next year.

當然。是的，第二個，是的。展望未來，我們認為有兩件事。第一是我們看到政府推出了越來越多的政策和舉措，我們認為這將改善整體經濟。因此，我們有理由對明年更加樂觀。

And also, I think most importantly, our focus will be in optimizing our operations to make our own business better. This is even more important than the others. So I think next year for us in all the aspects of the business operations, we will look into the potential seriously, and make that to be realized more in 2025. Thank you.

而且，我認為最重要的是，我們的重點將是優化我們的運營，以使我們自己的業務變得更好。這一點甚至比其他的更重要。所以我認為明年對於我們業務運營的各個方面來說，我們將認真研究潛力，並使其在 2025 年得到更多實現。謝謝。

Very helpful. Thank you.

非常有幫助。謝謝。

This concludes our question-and-answer session, I would like to turn the conference back over to the company for any closing remarks.

我們的問答環節到此結束，我想將會議轉回公司進行總結發言。

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

謝謝運營商。我們謹代表寶尊管理團隊感謝大家參加今天的電話會議。如果您需要任何進一步的信息，請隨時與我們聯繫。感謝您今天加入我們。通話就此結束。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。