Baozun Inc (BZUN) 2025 Q1 法說會逐字稿

Good morning ladies and gentlemen, and thank you for standing by for Baozun's first-quarter, 2025 earnings conference call. Currently, all participants are in a listen-only mode. After the management pre prepared remarks, there will be a question and answer session.

女士們、先生們，早安，感謝大家參加寶尊 2025 年第一季財報電話會議。目前，所有參與者都處於只聽模式。管理階層預先準備好的發言之後，將有一個問答環節。

As a reminder, today's conference call is being recorded. I would now like to 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, Ms. Wendy.

提醒一下，今天的電話會議正在錄音。現在，我想將會議交給今天的電話會議主持人，寶尊企業發展和投資者關係高級總監孫文迪女士。請繼續，溫迪女士。

Thank you, operator. Hello, everyone, and thank you for joining us today. Our first quarter 2025 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. They have also posted a PowerPoint presentation that accompanies our comments to the same IR website where they are available for your download.

謝謝您，接線生。大家好，感謝大家今天加入我們。我們的 2025 年第一季財報已在本次電話會議之前發布，可在我們的 IR 網站 ir.baozun.com 以及 PR Newswire 服務上查閱。他們還將附有我們評論的 PowerPoint 簡報發佈到了同一個 IR 網站上，您可以下載。

On the call today from Baozun, we have Mr. Vincent Qiu, Chairman and Chief Executive Officer; Ms. Catherine Zhu, Chief Financial Officer; Mr. Junhua Wu, Director and Chief Strategy Officer of Baozun Group; and Mr. Ken Huang, Chief Executive Officer of Baozun Brand Management. Mr. Qiu will first share our business strategy and company highlights. Ms. Zhu will then discuss our financials followed by Mr. Wu and Mr. Huang who will share more about our E-Commerce and Brand Management segments, respectively. They will all be available to answer your questions during the Q&A session that follows.

今天寶尊的電話會議嘉賓有董事長兼首席執行官仇文森先生、首席財務官朱凱瑟琳女士、寶尊集團董事兼首席戰略官吳俊華先生以及寶尊品牌管理首席執行官黃昆先生。邱總首先會分享我們的經營策略和公司亮點。隨後，朱女士將討論我們的財務狀況，隨後吳先生和黃先生將分別分享有關我們的電子商務和品牌管理部門的更多資訊。在接下來的問答環節中，他們都會回答您的問題。

Before we begin, I would like to remind you that this conference call contains forward-looking statements within the meaning of The US Securities Act of 1933 as amended, The US Securities Exchange Act of 1934 as amended and The US Private Securities 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 年證券法修正案、美國 1934 年證券交易法修正案和美國 1995 年私人證券訴訟改革法所定義義的前瞻性陳述。

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.

這些前瞻性陳述是基於管理層目前的預期以及當前的市場和營運條件，涉及已知或未知的風險、不確定性和其他因素，所有這些因素都難以預測，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 and uncertainties or factors is included in the company's filings with the US Securities and Exchange and its announcement, notice or other documents published on the website of the Stock Exchange of Hong Kong Limited. 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.

有關這些及其他風險及不明朗因素或因素的進一步資料，請參閱本公司向美國證券交易委員會提交的文件及在香港聯合交易所有限公司網站上發布的公告、通知或其他文件。本次電話會議中提供的所有資訊均截至本電話會議之日，並基於本公司認為截至本電話會議之日合理的假設。

And the company does not undertake any obligation to update any forward-looking statement except as required under applicable law. 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-general accepted accounting principles or non-GAAP in order to reduce oral confusions that may arise from our discussions about financial related to the Gap brand.

除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。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非公認會計原則或非 GAAP，以減少在討論與 Gap 品牌相關的財務問題時可能出現的口頭混淆。

It is now my pleasure to introduce our Chairman and CEO, Mr. Vincent Qui. Vincent, go ahead.

現在我很高興介紹我們的董事長兼執行長 Vincent Qui 先生。文森特，繼續。

Thank you, Wendy. Hello, everyone, and thank you all for your time. I'm pleased to report that Baozun continues to execute our strategic transformation with constant quarterly progress. Our revenue streams are now more diversified and our operational excellence continues to strengthen across the businesses.

謝謝你，溫迪。大家好，感謝大家抽空。我很高興地報告，寶尊繼續執行我們的策略轉型，並持續取得季度進展。我們的收入來源現在更加多樣化，我們各項業務的卓越營運能力不斷增強。

Baozun Group achieved 4% year-over-year revenue growth. BEC sustained a stable top line, while BBM accelerated its strong momentum with 23% year-over-year sales growth. BEC is making strides in quality development and the value generation for our brand partners. Our ongoing progress in omnichannel and the content creation initiatives is transforming customer engagement and the shopping experience.

寶尊集團營收年增4%。BEC 維持了穩定的營收，而 BBM 則維持了強勁成長勢頭，銷售額較去年同期成長 23%。BEC 正在為我們的品牌合作夥伴大力推動品質發展和價值創造。我們在全通路和內容創作計畫方面不斷取得的進展正在改變客戶參與度和購物體驗。

We also improved the quality of our product sales model, achieving both healthy top line growth and the gross margins mentioned. In addition, we are leveraging technology and AI applications to build a linear and efficient organization. These innovations set a clear path for margin expansion for BEC and foster a culture of excellence. Within BBM, both Gap and Hunter are performing ahead of expectations. Our efforts to localize teams, products and merchandising plans for Gap are yielding strong results.

我們也提高了產品銷售模式的質量，實現了健康的營收成長和上述毛利率。此外，我們正在利用技術和人工智慧應用來建立一個線性、高效的組織。這些創新為 BEC 的利潤擴張指明了方向，並培養了卓越的文化。在 BBM 內部，Gap 和 Hunter 的表現均超乎預期。我們為 Gap 在地化團隊、產品和行銷計劃所做的努力正在取得顯著成果。

As Gap China continues to innovate and grow, we remain committed in delivering exceptional value to customers. Meanwhile, Hunter expanded the product offering category, achieved strong sales growth and received widespread recognition. To capitalize on this momentum and further strengthen on this footprint, we will open three new stores simultaneously this May in Beijing, Shanghai and Hangzhou.

隨著 Gap 中國不斷創新和發展，我們始終致力於為客戶提供卓越的價值。同時，亨特擴大了產品種類，實現了強勁的銷售成長並獲得了廣泛認可。為了利用這一勢頭並進一步加強這一足跡，我們將於今年五月在北京、上海和杭州同時開設三家新店。

Overall, we closed the quarter with a constant positioning to accelerate our transformation through 2025. Notably, 2025 marks Baozun's 18th anniversary, a symbolic and strategic milestone. I'm proud of how far we've come. In China tradition, 18 signifies a time of renewed vigor, maturity and ambition. We view this milestone as a reflection of our transformation into an innovation-led platform focusing on long-term value creation.

總體而言，我們在本季結束時始終堅持加速轉型的定位，直至 2025 年。值得注意的是，2025年是寶尊成立18週年，具有像徵意義和戰略意義的里程碑。我為我們所取得的進步感到自豪。在中國傳統中，18歲象徵重新煥發活力、成熟和雄心壯志。我們認為這一里程碑是我們向專注於長期價值創造的創新主導平台轉型的體現。

Now, I will turn the call over to our team for a deeper look into our financials and the business performance.

現在，我將把電話轉給我們的團隊，讓他們更深入地了解我們的財務狀況和業務表現。

Thanks, Vincent, and hello, everyone. Now, let me provide a more detailed overview of financial results for the first quarter of 2025. Please turn to Slide number 3. Baozun Group's total net revenues for the first quarter of 2025 increased by 4.3% year-over-year to RMB2.1 billion.

謝謝，文森特，大家好。現在，讓我更詳細地概述一下 2025 年第一季的財務表現。請翻到幻燈片 3。寶尊集團2025年第一季總淨營收年增4.3%至人民幣21億元。

Of this total, E-Commerce revenue grew slightly by 1.4% to RMB1.7 billion while Brand Management revenue rose by 23% to RMB387 million breaking down E-Commerce revenue by business model. Services revenue remained flat at RMB1.3 billion. BEC product sales revenue increased 7.3% year-over-year to RMB423 million driven by strong performance in new categories.

其中，電商收入小幅成長1.4%至17億元人民幣，品牌管理收入則上漲23%至3.87億元人民幣（依業務模式劃分）。服務收入與上年持平，為人民幣13億元。受新品類強勁表現的推動，BEC產品銷售收入年增7.3%至4.23億元。

BBM product sales totaled RMB387 million representing a 23% year-over-year growth. This growth was mainly driven by the strong performance of the Gap brand with both online and offline channels delivering healthy gains.

BBM產品銷售總額達3.87億元人民幣，較去年同期成長23%。這一成長主要得益於 Gap 品牌的強勁表現，線上和線下管道均實現了健康成長。

Please turn to Slide number 4. From a profitability perspective, our blended gross margin for product sales at the group level was 32.4%. Gross profit increased by 18.9% year-over-year to RMB262 million for the quarter. Breaking this down by our key business lines, gross margin for E-Commerce product sales expanded to 15%, a 130 basis point improvement compared to 13.7% a year ago.

請翻到幻燈片 4。從獲利能力角度來看，我們集團層級產品銷售的混合毛利率為32.4%。本季毛利較去年同期成長18.9%至人民幣2.62億元。以我們的主要業務線細分，電子商務產品銷售毛利率擴大至 15%，較去年同期的 13.7% 提高了 130 個基點。

This margin expansion was primarily driven by product mix diversification. Gross margin for BBM was 51.6% compared with 53.1% a year ago. The decrease was mainly due to product offering adjustment and optimization of commercial plans for the Gap brand.

利潤率的擴大主要得益於產品結構多樣化。BBM 的毛利率為 51.6%，而去年同期為 53.1%。下降主要由於Gap品牌產品結構的調整及商業計劃的最佳化。

Now turning to bottom line items. Please refer to Slide number 5. During the quarter, our adjusted loss from operations totaled RMB67 million. This included an adjusted operating loss of RMB46 million from E-Commerce segment, a decline of RMB58 million from the same period last year.

現在轉向底線專案。請參閱投影片 5。本季度，我們的調整後經營虧損總計人民幣 6,700 萬元。其中，電商板塊調整後營運虧損4,600萬元人民幣，較去年同期減少5,800萬元。

The decline was mainly due to low seasonality for E-Commerce retail in Q1 as well as personnel adjustment and the strategic investment initiatives to transform and realign with our operational tactics. We incurred approximately RMB80 million in restructure costs related to human resource reform in the quarter. BBM's adjusted operating loss totaled RMB21 million an improvement of 28% from the same period last year.

下降的主要原因是第一季電子商務零售的季節性較低，以及人員調整和為轉型和重新調整我們的營運策略而採取的策略投資措施。本季度，我們發生了與人力資源改革相關的重組成本約人民幣8,000萬元。BBM調整後營業虧損總計2,100萬元人民幣，較去年同期改善28%。

Lastly, please turn to Slide number 6. We published our 2024 sustainability report, highlighting tangible progress across environmental, social and governance metrics in April. We achieved a 36% reduction in Scope 1, 2 carbon emissions versus our base year 2021 and we are on track with our commitment to reduce by 50% by 2030. These initiatives demonstrate our commitment to building sustainable and responsible business.

最後，請翻到第 6 張投影片。我們在 4 月發布了 2024 年永續發展報告，重點介紹了環境、社會和治理指標的實際進展。與 2021 年基準年相比，我們實現了範圍 1、2 碳排放量減少 36%，並且我們正在按計劃實現到 2030 年減少 50% 的承諾。這些舉措顯示了我們致力於建立可持續和負責任的業務。

Let me now pass the call over to Junhua Wu to update you on BEC, our E-Commerce business.

現在，我將電話轉給吳俊華，讓他向您介紹我們的電子商務業務 BEC 的最新情況。

Thanks, Catherine, and hello, everyone. Since resuming full active duties in March, I'm pleased to report that BEC is now firmly aligned with our commitment to profitability and sustainable growth.

謝謝，凱瑟琳，大家好。自 3 月恢復全面工作以來，我很高興地報告，BEC 現已堅定地履行我們對盈利能力和可持續增長的承諾。

In Q1 2025, we made meaningful progress across key strategic priorities revitalizing E-Commerce, enhancing our value proposition, expanding omnichannel capabilities and driving technology-led efficiency improvements. These early achievements align closely with the objectives of our 2025 annual operating plan, which emphasize integrated business management, profit focused execution and a leaner, more agile organizational model.

2025 年第一季度，我們在振興電子商務、增強價值主張、擴展全通路能力和推動技術主導的效率改進等關鍵策略重點方面取得了重大進展。這些早期成就與我們 2025 年年度營運計畫的目標緊密契合，該計畫強調綜合業務管理、以利潤為中心的執行以及更精簡、更靈活的組織模式。

Now, let me quickly walk through some of our operational highlights in the E-Commerce segment for the first quarter of 2025. BEC revenue totaled RMB1.7 billion largely flat compared to the same period last year. However, our strategic investment in enhancing distribution capabilities is beginning to yield compelling results.

現在，讓我快速介紹一下我們 2025 年第一季電子商務領域的一些營運亮點。BEC營業收入共17億元人民幣，與去年同期大致持平。然而，我們在增強分銷能力方面的策略投資開始產生令人矚目的成果。

Please turn to Slide number 7. In Q1, BEC's product sales grew by 7%, driven by standout category performance in Home & Furniture, Alcohol and Health & Nutrition. Gross profit margin also improved by 130 basis points to 15%, supported by breakthroughs in new categories and renewed terms with several existing brand partners.

請翻到第 7 張投影片。第一季度，BEC 的產品銷售額成長了 7%，這得益於家居與家具、酒類以及健康與營養等類別的出色表現。由於新產品的突破以及與多個現有品牌合作夥伴續約協議，毛利率也提高了 130 個基點，達到 15%。

Turning to BEC service perspective as shown on Slide number 8. While BEC service revenue remained flat, we made structural mix change aimed at quality enhancement. Revenues from online store operations grew by 12% year-over-year, driven by strong performance in the Luxury and Apparel categories, as well as continued progress in omnichannel initiatives.

轉向 BEC 服務視角，如幻燈片 8 所示。在BEC服務收入保持穩定的同時，我們進行了結構組合調整，以提高服務品質。線上商店營運收入年增 12%，這得益於奢侈品和服裝類別的強勁表現以及全通路計畫的持續進展。

Notably, we achieved strong double-digit revenue growth on JD and Douyin and triple-digit growth on RedNote for the quarter. Recently, Baozun was nominated as part of the first batch of brand partners, uniquely among traditional Tmall partners. In the Construction segment, revenue from warehouse and logistics as well as digital marketing and IT, each declined by a middle single-digit year-over-year.

值得注意的是，本季我們在京東和抖音上實現了強勁的兩位數收入成長，在紅筆記上實現了三位數成長。近日，寶尊電商成為天貓首批品牌合作夥伴，這在傳統天貓合作夥伴中尚屬首次。在建築領域，倉儲和物流以及數位行銷和 IT 的收入均比去年同期下降了中等個位數。

The decline in warehouse and logistics revenue was mainly due to reduced volume from several key clients in the Sportwear segment. While we anticipate the challengers to persist with certain clients. We have proactively focused on expanding our B2B business and business development in emerging segments such as Outdoor and FMCG category within our warehouse operations.

倉儲和物流收入的下降主要是因為運動服飾部門幾個主要客戶的業務量減少。雖然我們預期挑戰者會堅持某些客戶。我們積極致力於擴大我們的 B2B 業務以及倉儲業務中戶外和快速消費品類別等新興領域的業務發展。

In our Digital Marketing business, we prioritize value added marketing, while optimizing passive performance marketing to enhancing profitability and capital allocation efficiency. As content becomes increasingly critical to success in E-Commerce, we are committed to innovating in content creation capabilities to stay ahead of the curve.

在我們的數位行銷業務中，我們優先考慮增值行銷，同時優化被動績效行銷，以提高獲利能力和資本配置效率。隨著內容對於電子商務的成功變得越來越重要，我們致力於創新內容創作能力以保持領先地位。

Recently, our content creation efforts were recognized in the Alimama Ecosystem Conference, where we received awards for top performance team in Taobao operations and top data driven investment team as well as the Alimama Future Business Award.

近期，我們的內容創作在阿里媽媽生態大會上獲得認可，榮獲淘寶營運最佳績效團隊、最佳數據驅動投資團隊以及阿里媽媽未來商業獎。

Q1 2025 demonstrates BEC's focus and precise execution. E-Commerce is regaining momentum, distribution is scaling profitability, omnichannel platforms are advancing, and technology investments are driving measurable efficiencies. These results validate our annual plans profit center framework. With solid execution and a clear strategic mandate, BEC is poised to deliver lasting value throughout 2025 and beyond.

2025 年第一季展現了 BEC 的專注和精確的執行力。電子商務正在恢復勢頭，分銷正在擴大盈利能力，全通路平台正在發展，技術投資正在推動可衡量的效率。這些結果驗證了我們的年度計劃利潤中心框架。憑藉穩健的執行力和明確的策略任務，BEC 預計在 2025 年及以後創造持久的價值。

Now, I'll pass the call to Ken for an update on Baozun Brand Management.

現在，我將把電話轉給 Ken，以了解寶尊品牌管理的最新進展。

Thank you, Team, and thank you all. Please turn to Slide number 9 for additional insights into BBM. I'm happy that we carried our strong momentum into Q1, achieving 23% year-on-year sales growth, an acceleration from 17% in the previous quarter.

謝謝團隊，謝謝大家。請翻到投影片第 9 號，以了解更多關於 BBM 的見解。我很高興我們在第一季保持了強勁的成長勢頭，銷售額年增 23%，高於上一季的 17%。

Total BBM revenue for the quarter was RMB387 million driven by improvements across key operating metrics, including same-store sales growth, traffic growth and the conversion rate. Overall, our same-store sales growth improved to 5% for the quarter. As discussed in our previous call, our strategic priorities moving forward are clearly defined channels, merchandising and marketing.

BBM 本季總營收為 3.87 億元人民幣，這得益於同店銷售額成長、客流量成長和轉換率等關鍵營運指標的改善。整體而言，本季我們的同店銷售額成長率提高至 5%。正如我們在先前的電話會議中所討論的，我們未來的策略重點是明確定義的管道、商品銷售和行銷。

In the first quarter, we achieved the growth in both online and offline channels, even amidst ongoing macroeconomic challenges. Throughout 2024, we conducted a comprehensive store network optimization and collaborated with key strategic partners to tap into emerging markets.

第一季度，儘管宏觀經濟挑戰持續存在，我們仍然實現了線上和線下管道的成長。2024年全年，我們進行了全面的門市網路優化，並與主要策略夥伴合作開拓新興市場。

In the first quarter, we closed another four stores. Our optimized offline network has achieved healthier productivity with double-digit growth in sales per square meter compared to a year ago. More encouraging stores opened in second half of 2024 have generally achieved higher efficiency.

第一季度，我們又關閉了四家門市。我們優化的離線網路實現了更健康的生產力，每平方公尺的銷售額與去年同期相比實現了兩位數的成長。2024年下半年開設的門市較為鼓舞人心，普遍實現了更高的效率。

Year-to-date, we have secured an opening pipeline of more than 40 new stores with about 10 set to officially open in the second quarter. Our merchandising strategy remains closely attuned to market dynamics. In the first quarter, we focused on responsive product planning and the compelling pricing strategy, all of which have strengthened customer engagements, enhanced traffic and conversion.

今年迄今為止，我們已確定開設 40 多家新店，其中約 10 家將於第二季正式開幕。我們的行銷策略始終與市場動態緊密結合。第一季度，我們專注於響應式產品規劃和引人注目的定價策略，所有這些都加強了客戶參與度，並提高了流量和轉換率。

We also leveraged the data analytics to identify and target high potential customer segments in emerging markets, tailoring our product offerings to meet their specific needs. Our marketing initiatives in Q1 further deepened Gap's brand of resonance through localized storytelling.

我們也利用數據分析來識別和鎖定新興市場中具有高潛力的客戶群，並客製化我們的產品來滿足他們的特定需求。我們第一季的行銷舉措透過在地化的故事敘述進一步加深了 Gap 品牌的共鳴。

A standout example was our collaboration with the Forbidden City during Chinese Spring Festival, which showcased our ability to blend China's rich culture heritage with Gap's brand DNA, emphasizing comfort, safety and quality.

一個突出的例子是我們在中國春節期間與故宮的合作，展示了我們將中國豐富的文化遺產與 Gap 的品牌 DNA 相融合的能力，強調舒適、安全和品質。

By the end of first quarter, the Forbidden City collaboration had generated total sales of RMB10 million and also recorded at the highest sales rate for any IP collaborations in our history during the same period. Building more local culture relevance is one of our key strategies in China.

截至第一季末，故宮合作項目累計銷售額已達1,000萬元人民幣，創下了公司歷史上同期IP合作的最高銷售業績。打造更具當地文化特色的品牌是我們在中國的關鍵策略之一。

We will continue to explore and engage in more collaborations with Chinese culture IPs to enhance our market influence. In January, we kicked off our community engagement trial, Brannan Bear Events at our flagship store in Shanghai. This initiative is designed to create memorable experience for families and children who are fostering a positive brand image.

我們將繼續探索與中國文化IP進行更多合作，提升市場影響力。今年一月，我們在上海旗艦店啟動了社區參與試驗計畫「Brannan Bear Events」。該計劃旨在為家庭和兒童創造難忘的體驗，並建立積極的品牌形象。

We also amplified our reach by leveraging social media platforms and the influencers to better connect with younger audience. Our Brannan Bear campaign deepened emotional connections with consumers, contributing kids and baby to be the highest growing sector during the quarter.

我們也利用社群媒體平台和有影響力的人來更好地與年輕觀眾建立聯繫，從而擴大了我們的影響力。我們的 Brannan Bear 活動加深了與消費者的情感聯繫，使兒童和嬰兒成為本季成長最快的產業。

We plan to expand such community engagement initiatives to other cities in the coming quarters. Overall, gross margin for BBM grew 20%, with the blended gross margin remaining healthier at 52% for the quarter.

我們計劃在未來幾季將此類社區參與計劃擴展到其他城市。總體而言，BBM 的毛利率成長了 20%，本季的混合毛利率仍維持在 52% 的較高水準。

Operationally, we made continuous progress in efficiency enhancement. Our adjusted operating loss narrowed by 28% year-over-year to RMB21 million. thanks to displaying the cost management and better unit economics.

營運上，效率提升不斷取得進展。由於成本管理和單位經濟效益的提高，我們的調整後營運虧損較去年同期收窄28%至2,100萬元。

Looking ahead, BBM's partnership with Gap Inc. continues to strive, fueled by our local expertise and strong execution. With double-digit top line growth in clear view for 2025. We are in a strong position to further unlock new avenues for growth and improved profitability as we keep scaling.

展望未來，BBM 與 Gap Inc. 的合作將繼續蓬勃發展，這得益於我們本地的專業知識和強大的執行力。2025 年營收將明顯實現兩位數成長。隨著我們不斷擴大規模，我們有能力進一步開闢新的成長途徑並提高獲利能力。

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

我們的準備好的演講到此結束。謝謝。接線員，我們現在可以開始問答環節了。

Thank you. We will now begin the question-and-answer session.

謝謝。我們現在開始問答環節。

(Operator Instructions)

（操作員指示）

Alicia Yap, Citigroup.

花旗集團的 Alicia Yap。

Hi. Good morning. So good evening management. Thanks for taking my questions. I have a couple of questions here. One is that just if management can give us update in terms of what your expectation for this year 618? And then any preliminary result that you can see from just the past like one week or so on the promotion? And then across your different E-Commerce platform, how do you think is actually trending, which platform is actually generating or getting more traction? And then second question is that, I know we've been working on the IT and also logistics service. Wondering any of the -- can we -- have we actually able to get more brands actually onboarding to use our IT services and also the logistics services? Thank you.

你好。早安.各位管理層晚上好。感謝您回答我的問題。我這裡有幾個問題。一是管理階層能否向我們更新您對今年 618 的期望？那麼，從過去一周左右的促銷活動來看，您能看到任何初步結果嗎？那麼，在不同的電子商務平台上，您認為實際趨勢如何，哪個平台實際上正在產生或獲得更多的吸引力？第二個問題是，我知道我們一直在致力於 IT 和物流服務。想知道—我們是否真的能夠讓更多品牌真正使用我們的 IT 服務和物流服務？謝謝。

Okay. Thank you, Alicia, for the question. This is Junhua Wu. So let me address your first question about the campaign of 618. So this 618 is the longest campaign by far. So it started from the 13th of May to the 20th of June. So it's about a 37 days campaign. So if you're talking about the some kind of difference between this 618 with the others is they provide a lot of instant discount at day one. And without giving a lot of threshold discounts, they provide some lower tiers with a sliding scale starting from 200 minus 20 to 5000 minus 500.

好的。謝謝艾莉西亞提出的問題。我是吳俊華。那麼，讓我來回答你關於 618 活動的第一個問題。所以這次的618是目前為止持續時間最長的一次活動。所以它從 5 月 13 日開始到 6 月 20 日。所以這是一場為期 37 天的活動。因此，如果您談論的是這次 618 與其他活動之間的某種區別，那就是他們在第一天提供了很多即時折扣。而且，他們沒有給出很多門檻折扣，而是提供了一些較低等級的折扣，折扣幅度從 200 減 20 到 5000 減 500。

So as you can see that, this is only about like 8 days after the 13th of May. So I can only share you with the first wave result. So as far as we're concerned and we observed from our number, so the first wave came really well. A lot of brands, they keep ramping up their presale stage and their existing transactions convert rate is really pretty well.

正如您所看到的，這距離 5 月 13 日僅過去了大約 8 天。所以我只能跟大家分享第一波結果。就我們而言，從我們的人數來看，第一波疫情來得非常好。許多品牌不斷增加預售階段的力度，現有的交易轉換率確實相當不錯。

And in terms of the cancel rates, now the current data suggests that we have a single mid-digit lower down than last year. So which means a better result. The return rate is also relatively lower than last year, which is also a better result. But as far as we still have about 50% of the shipments still ongoing. So maybe we can share that data later on after the next wave or someday in the middle of June.

就取消率而言，目前的數據顯示，我們的取消率比去年同期下降了一位數。這意味著更好的結果。回報率也相對去年降低，也是比較好的結果。但就目前而言，我們仍有大約 50% 的貨物在運輸過程中。因此，也許我們可以在下一波疫情之後或六月中旬的某一天分享這些數據。

So in the categories differentiation, we look forward to see, of course, the first one is Home Appliance category and Consumer Electronics category is ramping up very well because of the subsidiaries from the government. And also Luxury category and the Fashion Apparel category is also very catching up. So we can see that the Home Appliance category and the Fashion Luxury category is leading the 618 by far. And second thing is about the IT services and Logistics services.

因此，在類別差異化方面，我們期待看到，當然，第一個是家用電器類別，而消費性電子類別由於政府的補貼而增長良好。奢侈品類別和時尚服飾類別也正在迎頭趕上。所以我們可以看到，家電品類和時尚奢侈品類別在618大促中遙遙領先。第二件事是關於IT服務和物流服務。

So for the IT part, so you can see that our revenue growth has a little bit decline year-over-year because the cadence of IT services is very different from the regular store like our flagship store operations. So they have to just sign a new client and based on different kind of the solution they provide, the revenue contribution period and cadence is very different.

對於 IT 部分，您可以看到我們的收入成長同比略有下降，因為 IT 服務的節奏與旗艦店營運等常規商店非常不同。因此，他們只需簽署一個新客戶，根據他們提供的不同類型的解決方案，收入貢獻期和節奏就會有很大差異。

But a lot more brands, they are focusing on the new one-stop solution to leverage their online inventory with their offline inventory, especially with their offline flagship stores. So more and more brands, they are exploring the possibility with Baozun's IT team to think about a one-stop solution. So we have a strong confidence that in the coming Q3 and Q4, we can catch up the revenue growth. For the Logistics service traction, so we can say that right now as you might know that we're focusing on several key clients as like the report just said.

但更多的品牌專注於新的一站式解決方案，利用他們的線上庫存和線下庫存，特別是線下旗艦店。因此，越來越多的品牌正在探索與寶尊的IT團隊合作的可能性，思考一站式解決方案。因此，我們有信心在即將到來的第三季和第四季趕上營收成長。對於物流服務的牽引力，我們現在可以說，正如您可能知道的那樣，我們專注於幾個關鍵客戶，就像報告剛才所說的那樣。

So we focus on several key clients and their business is remaining flat. Some of them are declining. So as keep supporting those clients, so we need to just keep supporting them and increase the quality of the services and also have a new development of new B2B and some kind of the return reverse Warehousing and Logistics services as a complement. Okay. Hope that makes sense to you.

因此，我們專注於幾個關鍵客戶，他們的業務保持穩定。其中一些正在衰落。為了繼續支持這些客戶，我們需要繼續支持他們，提高服務質量，同時開發新的 B2B 和某種回報逆向倉儲和物流服務作為補充。好的。希望這對你有意義。

Jin Yan, CITIC.

金燕，中信人。

Good evening, management. Thank you for taking my question. Congratulations on this quarter's strong performance. My first question is regarding the BBM sector. Is there any update for the Gap operation strategy? And how does the company plan to balance scale expansion with profitability? And is Baozun considering acquiring more new brands? That's my first question. My second question is concerns recent collaboration between RedNote and Tmall. What is Baozun's strategy and have companies seen brands allocate more results to RedNote? Thank you.

晚上好，管理層。感謝您回答我的問題。恭喜本季的強勁表現。我的第一個問題是關於 BBM 部門的。Gap的營運策略有什麼更新嗎？公司又將如何平衡規模擴張與獲利能力？寶尊考慮收購更多新品牌？這是我的第一個問題。我的第二個問題是關於RedNote和天貓最近的合作。寶尊的策略是什麼？各公司是否看到品牌將更多業績分配給 RedNote？謝謝。

Okay. This is Ken. I will answer the first question about the strategy of the Gap. I think from 2025 our strategy is quite clear in product, marketing and channels. For product we are further enhancing the Gap's DNA. We are trying to enhance our key Gap categories, including Gap Denim, Gap Khaki, Gap Sweatshirt and the Kids & Baby category. A

好的。這是肯。我先回答第一個問題，關於Gap的策略。我認為從2025年開始，我們的產品、行銷和通路策略就非常明確了。對於產品，我們正在進一步增強 Gap 的 DNA。我們正在努力增強我們的主要 Gap 類別，包括 Gap 牛仔布、Gap 卡其布、Gap 運動衫和兒童及嬰兒類別。一個

nd in the same time, we want to be more balanced between the local assortments and global products to bring more value to our Chinese customers. And for marketing, we are creating more local culture relevance, including the IP collaboration with Forbidden City we just did and we will continue to do this year. And starting from last month, we also launched a series of RedNote campaigns with the key KOLs, delivering our connections with our customers through music and dance.

同時，我們希望在本地產品種類和全球產品之間取得更加平衡，為中國客戶帶來更多價值。在行銷方面，我們正在創造更多與當地文化相關的內容，包括我們剛剛與故宮進行的智慧財產權合作，今年我們將繼續這樣做。從上個月開始，我們還與關鍵 KOL 合作推出了一系列 RedNote 活動，透過音樂和舞蹈與客戶建立聯繫。

And the third one about channel, I think for online channels, we are expanding all channels and our advantage is our faster response to every platform. And we are further improving our supply chain for our online exclusive products.

第三個關於管道，我認為對於線上管道，我們正在擴展所有管道，我們的優勢是對每個平台的反應更快。我們正在進一步改善我們的線上獨家產品的供應鏈。

And for offline, we are partnering with a number of strategic partners in different regions for us to further expanding our local stores in emerging markets. So in terms of balancing our scale and profits, I think we are continue looking for the increase of scale.

對於線下，我們正在與不同地區的多家策略合作夥伴合作，以進一步擴大我們在新興市場的本地門市。因此，在平衡規模和利潤方面，我認為我們將繼續尋求規模的成長。

As we mentioned, we will keep a double-digit increase this year. We target to open 50 stores new stores this year. So with the increased scale, it will help us to balance our back office cost in the end to breakeven. So we want to keep this momentum quarter-by-quarter to deliver solid results and in the end to reach a breakeven point in the last quarter.

正如我們所提到的，今年我們將保持兩位數的成長。我們今年的目標是開設 50 家新店。因此，隨著規模的擴大，它最終將幫助我們平衡後台成本，實現收支平衡。因此，我們希望逐季保持這種勢頭，取得穩健的業績，並最終在最後一個季度達到收支平衡。

But of course when we are balancing the scale and the profit, we are also considering our brand. So we are still continuing investing in our brand marketing. But, yes, it's really a challenge, it's really a challenge, but in the same time I think we are confident by working with the Gap Inc.'s team together for the branding part.

但當然我們在平衡規模和利潤的時候也會考慮我們的品牌。因此我們仍在繼續投資我們的品牌行銷。但是，是的，這確實是一個挑戰，這確實是一個挑戰，但同時我認為我們對與 Gap Inc. 團隊合作開展品牌推廣部分充滿信心。

(Operator Instructions)

（操作員指示）

I think the second question regarding the RedNote and Tmall and also whether the company's plans for acquiring new brands are not addressed yet. Maybe Vincent and Junhua you can share.

我認為第二個問題關於紅筆記和天貓以及公司收購新品牌的計劃是否尚未解決。也許你可以分享 Vincent 和 Junhua。

Maybe you can say something about the RedNote and Tmall first.

也許您可以先談談RedNote和天貓。

Yes. Sure. I believe that you're asking about the Red Cat initiative. So let me explain that to you, use it before and after kind of scenario. So before the Red Cat initiative, we used to spend a lot of marketing spending on RedNote for seating for new arrivals and for driving some keys for consumers can really just get a lot of content on RedNote before they drop in transaction.

是的。當然。我相信您問的是 Red Cat 計劃。所以讓我向你解釋一下，在之前和之後的場景中使用它。因此，在推出 Red Cat 計劃之前，我們曾經在 RedNote 上投入大量行銷費用，用於吸引新客戶，並為消費者提供一些關鍵支持，使他們能夠在交易之前在 RedNote 上獲得大量內容。

So like ten years ago when a consumer made their decision for purchasing, they used to go open an PDP and then reading a lot of reviews of the product and then make the decision. And now they are using RedNote for UGC content platform to getting a lot of information from different angle and then make place a transaction on the Tmall, JD or wherever they are familiar to.

因此，就像十年前一樣，當消費者做出購買決定時，他們會打開 PDP，然後閱讀大量產品評論，然後做出決定。現在他們正在使用RedNote作為UGC內容平台，從不同角度獲取大量信息，然後在天貓、京東或任何他們熟悉的平台上進行交易。

But the Red Cat project is directly provided way to just link directly from the content or a different link or different heat, a different forwarding from RedNote directly to Tmall transaction PDP page. You can seamlessly experience that kind of things. So the Red project to us is more related to the performance marketing part.

但紅貓計畫直接提供的方式只是直接從內容連結或不同的連結或不同的熱度、不同的轉發，從RedNote直接到天貓交易PDP頁面。您可以無縫地體驗這類事情。因此，紅色專案對我們來說與績效行銷部分相關。

So for now in the 618 campaign several of brand partners already reallocate some of their online performance marketing budget from the in Tmall search performance marketing budget to the Red Cat project. So we can directly just invest on driving traffic on RedNote from all the seats, all the content and getting the transaction done.

因此，目前在618活動中，一些品牌合作夥伴已經將部分線上效果行銷預算從天貓搜尋效果行銷預算重新分配給紅貓專案。因此，我們可以直接投資從各個席位吸引 RedNote 流量、增加所有內容並完成交易。

Compared with the ROI for now, the ROI is relatively higher than the one on the Tmall inside performance marketing results. So because this is very new, the Red Cat initiative only just opened for two weeks and we have only several brands for trying that kind of the initiatives and we will get back to you with a more detailed result after we have a significant awareness and balancing all those kind of ROIs in a stable way. Yes, hope that makes sense to you.

比較目前ROI來看，ROI比天貓內部效果行銷效果還是比較高的。因為這是一個非常新的舉措，Red Cat 計劃才剛剛開放兩週，我們只有幾個品牌嘗試這種計劃，在我們有了顯著的認識並以穩定的方式平衡所有這些投資回報率後，我們會向您提供更詳細的結果。是的，希望這對你有意義。

Okay. This is Vincent. I'm making some comments for your third part of the questions, which is a new brand acquisition plan for the I think it is for the Brand Management part of our business. BBM, actually our strategy is the portfolio strategy, which means that we will do multiple brands and trying to build up the synergy in different brands. So that is the strategy. So far we have two brand already.

好的。這是文森特。我對你問題的第三部分發表一些評論，這是一個新的品牌收購計劃，我認為它是針對我們業務的品牌管理部分。BBM，實際上我們的策略是組合策略，這意味著我們將做多個品牌，並嘗試在不同的品牌之間建立協同效應。這就是策略。到目前為止我們已經有兩個品牌。

First one is Gap, second one is Hunter, both doing quite well. And for other new brands, they can be either onboard for BBM platform or if it is majorly distribution model, it can be also onboard our BEC platform. So we have home platforms for the new brands to onboard. And sometimes you can imagine that BEC and BBM will meet in the middle.

第一個是Gap，第二個是Hunter，都表現不錯。對於其他新品牌，它們可以加入 BBM 平台，或者如果主要採用分銷模式，也可以加入我們的 BEC 平台。因此，我們有本土平台供新品牌加入。有時你可以想像 BEC 和 BBM 會在中間相遇。

So that gives the potential brands more opportunities to work easier, more focused on products, development or channel development. So we always have a quite strong pipeline for BEC and also BBM. But recently given the macroeconomic situation, we are quite careful and cautious in onboarding new brands. But we are seeing more and more synergies between brands and it's the brand in BEC and BBM and also between BBM and BEC. Yes, hope that answers your question. Thank you.

這為潛在品牌提供了更多機會，使其能夠更輕鬆地開展工作，並更加專注於產品、開發或通路開發。因此，我們始終擁有相當強大的 BEC 和 BBM 管道。但考慮到最近的宏觀經濟形勢，我們在引入新品牌時非常謹慎。但我們看到品牌之間的協同作用越來越多，包括 BEC 和 BBM 中的品牌以及 BBM 和 BEC 之間的品牌。是的，希望這能回答你的問題。謝謝。

Thank you. Very clear.

謝謝。非常清楚。

[Chris Kao], [Hightower Securities].

[Chris Kao]，[Hightower Securities]。

Thank you management for taking my question. I have two questions. The first question is about Apparel and Sports. And I think these two categories are performing very well this quarter compared to the overall weak market consumption sentiment. Could you please share the key drivers behind it and how should we think about the future trends of these two categories? And my second question is about BBM sector. As 618 campaign approach, how should we think about the potential opportunity of integration of the BBM sector and BEC sector during the 618 campaign? Thank you. These are my two questions.

感謝管理層回答我的問題。我有兩個問題。第一個問題是關於服裝和運動。我認為，相對於整體疲軟的市場消費情緒，這兩個類別本季的表現非常好。您能否分享背後的關鍵驅動因素以及我們應該如何看待這兩個類別的未來趨勢？我的第二個問題是關於 BBM 部門的。隨著618活動的臨近，我們該如何看待618活動中BBM產業與BEC產業融合的潛在機會？謝謝。這是我的兩個問題。

Okay. Chris, this is Junhua Wu, the first question is regarding the Apparel and Sportwear category, so this is for me. So, yes, indeed, the Apparel especially Sportswear and Luxury Apparel category they are the key in the battlefield across different platforms, especially as far as you might know that JD has been restructured and hires some kind of key players to in charge of their Apparel category, which used to work for Tmall.

好的。克里斯，我是吳俊華，第一個問題是關於服裝和運動服類別的，這是我的問題。所以，是的，服裝，特別是運動服和奢侈服裝類別，確實是跨平台戰場的關鍵，特別是你可能知道京東已經重組並聘請了一些關鍵人物來負責他們的服裝類別，這些人曾經在天貓工作。

So Apparel and Sportswear and Luxury, they are rat racing in a very heavy way especially in those big campaigns like 618. They've been spending a lot of providing coupons and instant discount in this category. So, yes, as far as the momentum currently for Apparel and Sportswear industry, everybody is catching up and some of the leading brands they are ramping up.

因此，服裝、運動服和奢侈品行業的競爭非常激烈，尤其是在 618 這樣的大型活動中。他們在這個類別上投入了大量資金來提供優惠券和即時折扣。所以，是的，就服裝和運動服行業目前的發展勢頭而言，每個人都在追趕，一些領先品牌正在加速發展。

So they've been spending a lot of drivers in different consumers. They spend a lot of investment into segregate different kind of consumers by different tiers like they set up the Apparel into trendsetters, quality chasers, pragmatic consumers and price sensitive consumers.

因此，他們在不同的消費者身上投入了大量的精力。他們投入大量資金，將不同類型的消費者按不同的層次進行細分，例如將服裝分為潮流引領者、品質追逐者、務實消費者和價格敏感消費者。

So based on the consumer study, so we've been spending a lot of time finding the right assortment, leveraging the right message, using the right marketing approach way to send a group of assortment to the right group of consumers to make the right transaction.

因此，基於消費者研究，我們花費大量時間尋找正確的商品組合，利用正確的訊息，使用正確的行銷方法將一組商品發送給正確的消費者群體，以進行正確的交易。

So for Apparel, Sportswear and Luxury category, so more and more resources are spending into the day-to-day operations based on databank they provide, based on historical data, based on a lot of merchandising and assortment collections, we can work with our brand partners. So we look forward to foreseeing this category have a better momentum in this 618 and maybe across this year.

因此，對於服裝、運動服和奢侈品類別，越來越多的資源被投入到日常營運中，基於他們提供的資料庫、基於歷史數據、基於大量的商品銷售和分類收集，我們可以與我們的品牌合作夥伴合作。因此，我們期待這一類別在 618 甚至全年有更好的發展勢頭。

Okay. And then for the second question, for the synergies between BBM and the BEC, I think we mentioned that the synergies we are having from the beginning because for BBM, our brands, both our brands Gap and Hunter, we are working very closely with BEC for TP service, DP service, logistics service, IT service, digital marketing service.

好的。然後對於第二個問題，對於 BBM 和 BEC 之間的協同作用，我想我們從一開始就提到了這種協同作用，因為對於 BBM，我們的品牌，包括 Gap 和 Hunter，我們都與 BEC 密切合作，提供 TP 服務、DP 服務、物流服務、IT 服務、數位行銷服務。

It's not just for 618. It's for our day-to-day work. And especially mentioning to the 618, I think the advantage is we have more, for BBM, we have more all channels information in advance and the resources management. So we can anticipate what we should respond to each platform.

不只是618。這是為了我們的日常工作。特別是提到 618，我認為優勢是我​​們擁有更多，對於 BBM 來說，我們擁有更多提前掌握的所有管道資訊和資源管理。因此我們可以預測我們應該對每個平台做出什麼反應。

And the BBM as a platform that can produce products itself. Our advantage is to make our word supply chain more responsive, faster response to the different platforms' needs. So I think this is a major advantage between BBM and the BEC when we are facing fast changing platform strategies. Hope it answers your question.

而BBM作為一個平台，可以自己生產產品。我們的優勢是讓我們的全球供應鏈反應更快，更快地回應不同平台的需求。因此，我認為當我們面對快速變化的平台策略時，這是 BBM 和 BEC 之間的一個主要優勢。希望它能回答你的問題。

Thank you.

謝謝。

(Operator Instructions)

（操作員指示）

This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks. Please go ahead.

我們的問答環節到此結束。我想將會議交還給管理階層，請他們發表結束語。請繼續。

Okay. Thank you, operator. 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 us today. This concludes the call. Thank you.

好的。謝謝您，接線生。我謹代表寶尊管理團隊感謝您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。通話到此結束。謝謝。

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。