Baozun Announces Third Quarter 2020 Unaudited Financial Results

SHANGHAI, China, Nov. 23, 2020 (GLOBE NEWSWIRE) — Baozun Inc. (Nasdaq: BZUN and HKEX: 9991) (“Baozun” or a “Company”), a heading formula e-commerce use partner that helps brands govern their e-commerce strategies in China, currently announced a unaudited financial formula for a third entertain finished Sep 30, 2020.

Third Quarter 2020 Financial Highlights

  • Total net revenues were RMB1,829.2 million (US$1269.4 million), an boost of 21.7% year-over-year. Services income was RMB1,025.7 million (US$151.1 million), an boost of 22.0% year-over-year.

  • Income from operations was RMB84.6 million (US$12.5 million), an boost of 50.9% year-over-year. Operating domain was 4.6%, compared with 3.7% in a same duration of final year.

  • Non-GAAP income from operations2 was RMB111.7 million (US$16.4 million), an boost of 47.1% year-over-year. Non-GAAP handling domain was 6.1%, compared with 5.1% in a same duration of final year.

  • Net income attributable to typical shareholders of Baozun Inc. was RMB64.6 million (US$9.5 million), an boost of 64.2% year-over-year.

  • Non-GAAP net income attributable to typical shareholders of Baozun Inc.3 was RMB91.5 million (US$13.5 million), an boost of 55.1% year-over-year.

  • Basic and diluted net income attributable to typical shareholders of Baozun Inc. per American Depository Share (“ADS4”) were RMB1.09 (US$0.16) and RMB1.07 (US$0.16), respectively, compared with RMB0.68 and RMB0.66, respectively, for a same duration of 2019.

  • Basic and diluted non-GAAP net income attributable to typical shareholders of Baozun Inc. per ADS5 were RMB1.55 (US$0.23) and RMB1.52 (US$0.22), respectively, compared with RMB1.01 and RMB0.99, respectively, for a same duration of 2019.

Third Quarter 2020 Operational Highlights

  • Total Gross Merchandise Volume (“GMV”)6 was RMB10,847.0 million, an boost of 19.4% year-over-year.

  • Distribution GMV7 was RMB868.3 million, an boost of 17.4% year-over-year.

  • Non-distribution GMV8 was RMB9,978.8 million, an boost of 19.6% year-over-year.

  • Number of formula partners increasing to 260 as of Sep 30, 2020, from 223 as of Sep 30, 2019.

  • Number of GMV formula partners increasing to 253 as of Sep 30, 2020, from 214 as of Sep 30, 2019.

Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun, commented, “We strike another pivotal miracle with a successful delegate inventory on a Hong Kong Stock Exchange during a entertain and we have now embarked on a new journey. Dual inventory in dual of a largest financial markets in a universe positions us good to pursue marketplace enlargement opportunities and vital alliances. we am really vehement about a vital changes we’ve done recently to accelerate a gait of creation and strengthening of leadership, and we will continue to maintain and deposit in a enlightenment of creation while compelling tenure and entrepreneurship during all levels during Baozun. We trust that a bid in this area will concede us to pursue collaborative creativity and build a value-generating ecosystem together with all a different partners.”

“In navigating a post-COVID liberation in China, e-commerce, quite formula e-commerce and digitalization, is apropos a some-more poignant prejudiced of bland life, and we are gratified to see a continual extended liberation opposite a accumulation of categories. By leveraging a record and expertise, we are providing cutting-edge information comprehension and sales analytic collection that expostulate enhancements in user engagement, conversions and retention. Once again, we are respected to be a pivotal writer towards a success of a formula partners, with many of them tip ranked in any of their segments during a new 11.11 Shopping Festival. As e-commerce continues to rise and digitalization becomes some-more vicious for both general and domestic brands, we are vehement about a new tour brazen of us. We are assured that a extended concentration on vital business development, continual scrutiny of omni-channel alliances, and strengthened collateral resources, will be a clever engine for pushing long-term high-quality and tolerable growth,” Mr. Vincent Qiu concluded.

Mr. Robin Lu, Chief Financial Officer of Baozun, commented, “We delivered another plain quarter, with year-over-year GMV expansion of 19% and net income expansion of 22%. Despite a impact of stronger seasonality during a quarter, a record infrastructure, difficulty brew optimization, joined with creation in business indication towards consolidating and streamlining business operations, have severely extended a handling efficiency. Overall, a non-GAAP handling boost grew by 47% year-over-year and non-GAAP handling distinction domain stretched to 6.1% for a third quarter, a top numbers for a third entertain given 2015. We trust these active efforts are solidifying a substructure that underpins a high-quality expansion strategy.”

Third Quarter 2020 Financial Results

Total net revenues were RMB1,829.2 million (US$269.4 million), an boost of 21.7% from RMB1,503.1 million in a same entertain of final year.

Product sales revenue was RMB803.4 million (US$118.3 million), an boost of 21.3% from RMB662.3 million in a same entertain of final year. The boost was essentially attributable to a merger of new formula partners and a increasing recognition of formula partners’ products.

Services revenue was RMB1,025.7 million (US$151.1 million), an boost of 22.0% from RMB840.8 million in a same entertain of final year. The boost was essentially attributable to a fast expansion of a Company’s shipment indication and use price model.

Total handling expenses were RMB1,744.6 million (US$256.9 million), compared with RMB1,447.0 million in a same entertain of final year.

  • Cost of products was RMB673.7 million (US$99.2 million), compared with RMB529.0 million in a same entertain of final year. The boost was essentially due to aloft costs compared with an boost in product sales revenue.

  • Fulfillment expenses were RMB419.8 million (US$61.8 million), compared with RMB333.4 million in a same entertain of final year. The boost was essentially due to a arise in GMV grant from a Company’s placement and shipment model, and an boost in room let waste compared with stretched room ability to residence additional expansion opportunities, both of that were partially equivalent by potency improvements.

  • Sales and selling expenses were RMB501.1 million (US$73.8 million), compared with RMB443.1 million in a same entertain of final year. The boost was in line with GMV expansion and an boost in digital selling services, that was partially equivalent by potency improvements.

  • Technology and calm expenses were RMB101.6 million (US$15.0 million) compared with RMB94.1 million in a same entertain of final year, that was especially attributable to expansion in GMV and a Company’s ongoing investment in technological creation and productization, that was partially equivalent by a Company’s cost control initiatives and potency improvements.

  • General and executive expenses were RMB51.1 million (US$7.5 million), compared with RMB51.7 million in a same entertain of final year. The diminution was essentially attributable to a Company’s cost control initiatives and precedence gained as a business scales.

Income from operations was RMB84.6 million (US$12.5 million), an boost of 50.9% compared with RMB56.1 million in a same entertain of final year. Operating domain was 4.6%, compared with 3.7% in a same entertain of final year.

Non-GAAP income from operations was RMB111.7 million (US$16.4 million), an boost of 47.1% compared with RMB75.9 million in a same entertain of final year. Non-GAAP handling domain was 6.1%, compared with 5.1% in a same entertain of final year.

Net income attributable to typical shareholders of Baozun Inc. was RMB64.6 million (US$9.5 million), an boost of 64.2% from a same entertain of final year. Basic and diluted net income attributable to typical shareholders of Baozun Inc. per ADS were RMB1.09 (US$0.16) and RMB1.07 (US$0.16), respectively, compared with RMB0.68 and RMB0.66, respectively, in a same duration of 2019.

Non-GAAP net income attributable to typical shareholders of Baozun Inc. was RMB91.5 million (US$13.5 million), an boost of 55.1% from a same entertain of final year. Basic and diluted non-GAAP net income attributable to typical shareholders of Baozun Inc. per ADS were RMB1.55 (US$0.23) and RMB1.52 (US$0.22), respectively, compared with RMB1.01 and RMB0.99, respectively, in a same duration of 2019.

As of Sep 30, 2020, a Company had RMB4,506.4 million (US$663.7 million) in cash, money equivalents and short-term investments, an boost from RMB1,988.5 million as of Dec 31, 2019. The poignant boost in cash, money equivalents and short-term investments was especially attributable to a charity deduction perceived from a placement of a Company’s typical shares in tie with a Company’s delegate inventory on a Stock Exchange of Hong Kong Limited.

Most Recent Updates

Hong Kong Listing

On Sep 29, 2020, a Company successfully listed on a Main Board of The Stock Exchange of Hong Kong Limited underneath a batch formula “9991,” with a tellurian charity of 43,833,700 new Class A typical shares (including an sum of 3,833,700 Class A typical shares listed on Oct 29, 2020 pursuant to a prejudiced practice of a over-allotment option). The Hong Kong-listed shares are entirely fungible with Baozun’s ADSs listed on a Nasdaq Global Select Market, formed on a ratio of 3 Class A typical shares per ADS. Gross deduction from a Global Offering, before any underwriting fees and other charity expenses, were approximately HK$3.6 billion.

Following a Company’s delegate inventory on The Stock Exchange of Hong Kong Limited, a Company will no longer yield superintendence on net revenues or net revenues expansion going forward.

Dismissal of Class Action Lawsuit

On Dec 10, 2019 and Dec 26, 2019, supposed bonds category movement complaints were filed in a United States District Court for a Southern District of New York opposite a Company, a arch executive officer and a arch financial officer. These suits were captioned Snyder, et. al. v. Baozun Inc. et. al. (Case No.: 1: 19 cv-11290) and AUS, et. al. v. Baozun Inc., et. al. (Case No.: 1: 19 cv-11812). On Sep 8, 2020, a justice allocated a lead plaintiffs and a lead warn and combined a apart actions into a combined action. On Nov 6, 2020, a lead warn filed a notice of intentional exclusion with a justice saying that a combined movement is willingly discharged opposite all defendants, though prejudice, and with any celebration identical to bear their possess costs. On Nov 11, 2020, a justice sealed a notice of intentional dismissal, thereby adopting it as an sequence of a court. The placement of this sequence resulted in a exclusion of a combined action.

Conference Call

The Company will horde a discussion call to plead a gain during 7:00 a.m. Eastern Time on Monday, Nov 23, 2020 (8:00 p.m. Beijing time on a same day).

Due to a conflict of COVID-19, user assisted discussion calls are not accessible during a moment. All participants wishing to attend a call contingency preregister online before they can accept a dial-in numbers. Preregistration might need a few mins to complete. The Company would like to apologize for any nuisance caused by not carrying an user as a outcome of COVID-19.

Participants can register for a discussion call by navigating to http://apac.directeventreg.com/registration/event/1414256. Once preregistration has been complete, participants will accept dial-in numbers, a passcode, and a singular entrance PIN.

To join a conference, simply dial a series in a calendar entice we accept after preregistering, enter a passcode followed by your PIN, and we will join a discussion instantly.

A write replay of a call will be accessible after a end of a discussion call by 07:59 p.m. Beijing Time, Dec 1, 2020.

A live and archived webcast of a discussion call will be accessible on a Investor Relations territory of Baozun’s website during http://ir.baozun.com/.

Use of Non-GAAP Financial Measures

The Company also uses certain non-GAAP financial measures in evaluating a business. For example, a Company uses non-GAAP income from operations, non-GAAP handling margin, non-GAAP net income, non-GAAP net margin, non-GAAP net income attributable to typical shareholders of Baozun Inc. and non-GAAP net income attributable to typical shareholders of Baozun Inc. per ADS, as supplemental measures to examination and consider a financial and handling performance. The display of these non-GAAP financial measures is not dictated to be deliberate in isolation, or as a surrogate for a financial information prepared and presented in suitability with U.S. GAAP. Non-GAAP income from operations is income from operations incompatible a impact of share-based remuneration waste and amortization of unsubstantial resources ensuing from business acquisition. Non-GAAP handling domain is non-GAAP income from operations as a commission of sum net revenues. Non-GAAP net income is net income incompatible a impact of share-based remuneration waste and amortization of unsubstantial resources ensuing from business acquisition. Non-GAAP net domain is non-GAAP net income as a commission of sum net revenues. Non-GAAP net income attributable to typical shareholders of Baozun Inc. is net income attributable to typical shareholders of Baozun Inc. incompatible a impact of share-based remuneration waste and amortization of unsubstantial resources ensuing from business acquisition. Non-GAAP net income attributable to typical shareholders of Baozun Inc. per ADS is non-GAAP net income attributable to typical shareholders of Baozun Inc. divided by weighted normal series of shares used in calculating net income per typical share double by three.

The Company presents a non-GAAP financial measures since they are used by a Company’s government to weigh a Company’s financial and handling opening and delineate business plans. Non-GAAP income from operations and non-GAAP net income capacitate a Company’s government to consider a Company’s financial and handling formula though deliberation a impact of share-based remuneration waste and amortization of unsubstantial resources ensuing from business acquisition. Such equipment are non-cash waste that are not directly compared to a Company’s business operations. Share-based remuneration waste paint non-cash waste compared with share options and singular share units a Company grants underneath a share inducement plans. Amortization of unsubstantial resources ensuing from business merger represents non-cash waste compared with unsubstantial resources acquired by one-off business acquisition. The Company also believes that a use of a non-GAAP measures facilitates investors’ comment of a Company’s financial and handling performance.

The non-GAAP financial measures are not tangible underneath U.S. GAAP and are not presented in suitability with U.S. GAAP. The non-GAAP financial measures have stipulations as methodical tools. One of a pivotal stipulations of regulating non-GAAP income from operations, non-GAAP net income, non-GAAP net income attributable to typical shareholders of Baozun Inc., and non-GAAP net income attributable to typical shareholders of Baozun Inc. per ADS is that they do not simulate all equipment of income and responsibility that impact a Company’s operations. Share-based remuneration waste and amortization of unsubstantial resources ensuing from business merger have been and might continue to be incurred in a Company’s business and is not reflected in a display of non-GAAP income from operations and non-GAAP net income. Further, a non-GAAP measures might differ from a non-GAAP measures used by other companies, including counterpart companies, potentially tying a comparability of their financial formula to a Company’s. In light of a foregoing limitations, a non-GAAP income from operations, non-GAAP handling margin, non-GAAP net income, non-GAAP net margin, non-GAAP net income attributable to typical shareholders of Baozun Inc. and non-GAAP net income attributable to typical shareholders of Baozun Inc. per ADS for a duration should not be deliberate in siege from or as an choice to income from operations, handling margin, net income, net margin, net income attributable to typical shareholders of Baozun Inc. and net income attributable to typical shareholders of Baozun Inc. per ADS, or other financial measures prepared in suitability with U.S. GAAP.

The Company compensates for these stipulations by reconciling a non-GAAP financial measures to a nearest U.S. GAAP opening measures, that should be deliberate when evaluating a Company’s performance. For reconciliations of these non-GAAP financial measures to a many directly allied GAAP financial measures, greatfully see a territory of a concomitant tables titled, “Reconciliations of GAAP and Non-GAAP Results.”

Safe Harbor Statements

This press recover contains forward-looking statements. These statements are done underneath a “safe harbor” supplies of a U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by vernacular such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance,” “going forward,” “outlook” and identical statements. Statements that are not chronological facts, including quotes from government in this proclamation and statements about a Company’s strategies and goals, are or enclose forward-looking statements. Forward-looking statements engage fundamental risks and uncertainties. A series of factors could means tangible formula to differ materially from those contained in any forward-looking statement, including though not singular to a following: a Company’s operations and business prospects; a Company’s business and handling strategies and a ability to exercise such strategies; a Company’s ability to rise and conduct a operations and business; foe for, among other things, capital, record and learned personnel; a Company’s ability to control costs; a Company’s division policy; changes to regulatory and handling conditions in a attention and geographical markets in that a Company operates; and other risks and uncertainties. Further information per these and other risks, uncertainties or factors is enclosed in a Company’s filings with a U.S. Securities and Exchange Commission and announcements on a website of The Stock Exchange of Hong Kong Limited. All information supposing in this press recover is as of a date of this press recover and are formed on assumptions that a Company believes to be reasonable as of this date, and a Company does not commence any requirement to refurbish any forward-looking statement, only as compulsory underneath germane law.

About Baozun Inc.

Baozun is a personality and a colonize in a formula e-commerce use attention in China. Baozun empowers a extended and different operation of brands to grow and attain by leveraging a end-to-end e-commerce use capabilities, omni-channel coverage and technology-driven solutions. Its integrated one-stop solutions residence all core aspects of a e-commerce operations covering IT solutions, online store operations, digital marketing, patron services, and warehousing and fulfillment.

For some-more information, greatfully revisit http://ir.baozun.com

For financier and media inquiries, greatfully contact:

Baozun Inc.
Ms. Wendy Sun
Email: ir@baozun.com

Christensen
In China
Mr. Andrew McLeod
Phone: +852-2232-3941
E-mail: baozun@christensenir.com

In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com

In Jun 2016, a FASB released ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), that requires all entities to divulge their stream guess of all approaching credit losses. We adopted this ASU on Jan 1, 2020 regulating a mutated retrospective transition process and no element composition to a opening change of defended gain of 2020 was necessary. The adoption of this new ASU has no element impact on a combined financial position and formula of operations.

(1) Share-based remuneration waste are allocated in handling waste equipment as follows:

(2) Including amortization of unsubstantial resources ensuing from business acquisition, that amounted to RMB0.4 million for both a 3 months duration finished Sep 30, 2019 and 2020.

(3) Including income taxation advantages of RMB0.1 million compared to a annulment of deferred taxation liabilities, that was famous on business merger for both a 3 months duration finished Sep 30, 2019 and 2020.

______________________________

1 This proclamation contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) during a specified rate only for a preference of a reader. Unless differently noted, a interpretation of RMB into US$ has been done during RMB6.7896 to US$1.00, a noon shopping rate in outcome on Sep 30, 2020 as set onward in a H.10 Statistical Release of a Federal Reserve Board.
2 Non-GAAP income from operations is a non-GAAP financial measure, that is tangible as income from operations incompatible share-based remuneration waste and amortization of unsubstantial resources ensuing from business acquisition.
3 Non-GAAP net income attributable to typical shareholders of Baozun Inc. is a non-GAAP financial measure, that is tangible as net income attributable to typical shareholders of Baozun Inc. incompatible share-based remuneration waste and amortization of unsubstantial resources ensuing from business acquisition.
4 Each ADS represents 3 Class A typical shares.
5 Basic and diluted non-GAAP net income attributable to typical shareholders of Baozun Inc. per ADS are non-GAAP financial measures, that are tangible as non-GAAP net income attributable to typical shareholders of Baozun Inc. divided by weighted normal series of shares used in calculating simple and diluted net income per typical share double by three, respectively.
6 GMV includes value combined taxation and excludes (i) shipping charges, (ii) surcharges and other taxes, (iii) value of a products that are returned and (iv) deposits for purchases that have not been settled.
7 Distribution GMV refers to a GMV underneath a placement business model.
8 Non-distribution GMV refers to a GMV underneath a use price business indication and a shipment business model.

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