SHANGHAI, March 20, 2025 /PRNewswire/ -- Baozun Inc. (Nasdaq: BZUN and HKEX: 9991) ("Baozun", the "Company" or the "Group"), a leading brand e-commerce solution provider and digital commerce enabler in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024.
Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun, commented, "I am pleased that Baozun's three-year transformation continues with strong momentum, as both BEC and BBM segments return to topline growth alongside bottom-line improvements. In the fourth quarter of 2024, we achieved 8% year-over-year revenue growth and remarkable growth in operating profit. With technology as our backbone, we drive digital innovations and AI applications to enhance efficiency, streamline omni-channel operations, and improve content creation for sustainable growth. As 2025 marks the transformation's culmination, we remain committed to accelerating this shift, fostering an entrepreneurial, innovative and customer-centric approach to drive quality growth."
Ms. Catherine Zhu, Chief Financial Officer of Baozun Inc., commented, "Baozun delivered solid topline growth in the fourth quarter of 2024, with E-Commerce revenue increasing by 6% and Brand Management revenue accelerating by 17% year-over-year. While investing in our strategic initiatives, we have also implemented comprehensive measures to enhance efficiency and optimize costs. These efforts drove a 16% increase in adjusted operating profits for our BEC segment and reduced adjusted operating loss for our BBM segment by 20% for the quarter. With healthy cash reserves, a continuing focus on financial discipline and innovation in technology, we remain confident in sustaining long-term profitability and growth."
Fourth Quarter 2024 Financial Highlights
- Total net revenues were RMB2,994.4 million (US$[1] 410.2 million), representing an increase of 7.7% compared with RMB2,780.4 million in the same quarter of last year.
- Income from operations was RMB73.2 million (US$10.0 million), an improvement from RMB6.4 million in the same quarter of last year. Operating margin was 2.4%, improved from 0.2% for the same period of 2023.
- Non-GAAP income from operations[2] was RMB103.3 million (US$14.2 million), an improvement of 36.6% from RMB75.7 million in the same quarter of last year. Non-GAAP operating margin was 3.5%, improved from 2.7% for the same period of 2023.
- Adjusted operating profit of E-Commerce[3] was RMB137.4 million (US$18.8 million), an improvement of 16.3% from RMB118.2 million for the same period of 2023.
- Adjusted operating loss of Brand Management[3] narrowed to RMB34.2 million (US$4.7 million), an improvement of 19.7% from RMB42.5million for the same period of 2023.
- Net income attributable to ordinary shareholders of Baozun was RMB0.1 million (US$0.02 million), compared with net loss attributable to ordinary shareholders of Baozun was RMB48.4 million for the same period of 2023.
- Non-GAAP net income attributable to ordinary shareholders of Baozun[4] was RMB45.7 million (US$6.3 million), an improvement of 58.9% from RMB28.8 million for the same period of 2023.
- Basic and diluted net income attributable to ordinary shareholders of Baozun per American Depositary Share ("ADS[5]") were both RMB0.00[6], compared with basic and diluted net loss attributable to ordinary shareholders of Baozun per American Depositary Share were both RMB0.80 for the same period of 2023.
- Diluted non-GAAP net income attributable to ordinary shareholders of Baozun per ADS[7] was RMB0.77 (US$0.11), compared with RMB0.47 for the same period of 2023.
- Cash and cash equivalents, restricted cash, and short-term investments totaled RMB2,915.9 million (US$399.5 million), as of December 31, 2024, compared with RMB3,072.8 million as of December 31, 2023.
- Total net revenues were RMB9,422.2 million (US$1,290.8million), representing an increase of 6.9% compared with RMB8,812.0 million in the fiscal year of 2023.
- Loss from operations was RMB114.8 million (US$15.7 million), improved from RMB206.4 million in the fiscal year of 2023. Operating margin was negative 1.2%, compared with negative 2.3% for the fiscal year of 2023.
- Non-GAAP income from operations was RMB10.6 million (US$1.5 million), compared with non-GAAP loss from operations RMB23.7 million for the fiscal year of 2023. Non-GAAP operating margin was 0.1%, compared with negative 0.3% for the fiscal year of 2023.
- Adjusted operating profit of E-Commerce was RMB179.6 million (US$24.6 million), an improvement of 9.5% from RMB164.0 million for the fiscal year of 2023.
- Adjusted operating loss of Brand Management narrowed to RMB168.8 million (US$23.1 million), an improvement of 10.1% from RMB187.7 million for the fiscal year of 2023.
- Net loss attributable to ordinary shareholders of Baozun was RMB185.2 million (US$25.4 million), improved from RMB278.4 million for the fiscal year of 2023.
- Non-GAAP net loss attributable to ordinary shareholders of Baozun was RMB40.4 million (US$5.5 million), improved from RMB65.1 million for the fiscal year of 2023.
- Basic and diluted net loss attributable to ordinary shareholders of Baozun per American Depositary Share ("ADS") were both RMB3.09 (US$0.42), compared with both RMB4.68 for the fiscal year of 2023.
- Diluted non-GAAP net loss attributable to ordinary shareholders of Baozun per ADS was RMB0.67 (US$0.09), compared with RMB1.09 for the fiscal year of 2023.
Adjusted operating profits (losses) are included in the Segments data of Segment Information.
| [1] This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.2993 to US$1.00, the noon buying rate in effect on December 31, 2024 as set forth in the H.10 Statistical Release of the Federal Reserve Board. |
| [2] Non-GAAP income (loss) from operations is a non-GAAP financial measure, which is defined as income (loss) from operations excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisition, acquisition-related expenses, impairment of goodwill and cancellation fees of repurchased ADSs.
|
| [3] Following the acquisition of Gap Shanghai, the Group updated its operating segment structure resulting in two segments, which were (i) E-Commerce; (ii) Brand Management, for more information, please refer to Supplemental Information. |
| [4] Non-GAAP net income (loss) attributable to ordinary shareholders of Baozun is a non-GAAP financial measure, which is defined as net income (loss) attributable to ordinary shareholders of Baozun excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisition, acquisition-related expenses, impairment of goodwill and investments, other-than-temporary impairment of equity method investments, cancellation fees of repurchased ADSs, fair value gain on derivative liabilities, gain on disposal/acquisition of subsidiaries, and unrealized investment loss (gain). |
| [5] Each ADS represents three Class A ordinary shares. |
| [6] The amount is less than RMB 0.01. |
| [7] Diluted non-GAAP net income (loss) attributable to ordinary shareholders of Baozun per ADS are non-GAAP financial measures, which is defined as non-GAAP net income (loss) attributable to ordinary shareholders of Baozun divided by weighted average number of shares used in calculating diluted net income (loss) per ordinary share multiplied by three. |
Baozun e-Commerce, or "BEC"
BEC encompasses our China e-commerce businesses, including brand store operations, customer services, and value-added services in warehouse and logistics management, IT and digital marketing. During the quarter, total revenue from BEC increased by 6.0% year-over-year, primarily driven by higher demand from digital marketing and IT solutions. As of December 31, 2024, we served approximately 490 brand partners, compared to approximately 450 brand partners as of December 31, 2023. The increase in brand partners was mainly driven by greater engagement in our value-added services, aimed at enhancing the consumer experience.
Omni-channel expansion remains a key theme for our brand partners. By the end of the fourth quarter, approximately 48.8% of our brand partners engaged with us for store operations of at least two channels, compared to 44.7% at the end of same quarter of last year. For value-added services in warehouse and logistics management, IT and digital marketing, most brand partners engaged with us in an omni-channel basis, to enhance productivity and efficiency for their omni-channel development.
Baozun Brand Management, or "BBM"
The Company launched the BBM business line in 2023, to leverage its leading portfolio of technologies in service of brands, fostering deeper and longer relationships to drive sustainable business growth in China.
BBM provides holistic brand management, encompassing strategic and tactical positioning, branding and marketing, retail and e-commerce operations, supply chain and logistics, and technology enablement. We aim to leverage our portfolio of technologies to build longer and deeper relationships with brands. Currently, our Brand Management business line includes the Gap and Hunter brands. By the end of the fourth quarter of 2024, Gap and Hunter brands have 156 offline stores under our management.
Fourth Quarter 2024 Financial Results
Total net revenues were RMB2,994.4 million (US$410.2 million), an increase of 7.7% from RMB2,780.4 million in the same quarter of last year. The increase in total net revenues was driven by revenue growth in both the Company's BEC and BBM business lines.
Total product sales revenue was RMB1,106.0 million (US$151.5 million), an increase of 5.0% compared with RMB1,053.0 million in the same quarter of last year, of which,
- Product sales revenue of E-Commerce was RMB571.7 million (US$78.3 million), a decrease of 4.3% from RMB597.5 million in the same quarter of last year. The decrease was primarily attributable to lower sales from its brand portfolio under the distribution model in the appliances category, partially offset by the introduction of high-quality new distribution businesses.
| For the three months ended December 31, | |||||||||||
| 2023 | 2024 | ||||||||||
| RMB | % of Net Revenues | RMB | US$ | % of Net Revenues | YoY Change | ||||||
| (In millions, except for percentage) | |||||||||||
| Product Sales of E-Commerce | |||||||||||
| Appliances | 255.6 | 8 % | 220.5 | 30.2 | 7 % | -14 % | |||||
| Beauty and cosmetics | 131.1 | 5 % | 130.7 | 17.9 | 4 % | 0 % | |||||
| Home and furnishing | 46.1 | 2 % | 84.6 | 11.6 | 3 % | 84 % | |||||
| Others | 164.7 | 6 % | 135.9 | 18.6 | 5 % | -17 % | |||||
| Total net revenues from product sales of E-Commerce | 597.5 | 21 % | 571.7 | 78.3 | 19 % | -4 % | |||||
| [8] Key categories refer to the categories that accounted for no less than 10% of product sales of BEC during the periods indicated. |
- Product sales revenue of Brand Management was RMB534.6 million (US$73.2 million), an increase of 17.3% from RMB455.5 million in the same quarter of last year. The increase was primarily driven by higher sales from the Gap brand, as the Company continued to optimize merchandising plans and enhance customer experience to boost sales in both its online and offline channels.
The following table sets forth a breakdown of services revenue by business models for the periods indicated:
| For the three months ended December 31, | |||||||||||
| 2023 | 2024 | ||||||||||
| RMB | % of Net Revenues | RMB | US$ | % of Net Revenues | YoY Change | ||||||
| (In millions, except for percentage) | |||||||||||
| Services revenue | |||||||||||
| Online store operations | 511.8 | 18 % | 594.8 | 81.5 | 20 % | 16 % | |||||
| Warehousing and fulfillment | 704.8 | 25 % | 705.7 | 96.7 | 24 % | 0 % | |||||
| Digital marketing and IT solutions | 549.4 | 20 % | 630.5 | 86.3 | 20 % | 15 % | |||||
| Inter-segment eliminations[9] | (38.6) | -1 % | (42.5) | (5.8) | -1 % | 10 % | |||||
| Total net revenues from services | 1,727.4 | 62 % | 1,888.5 | 258.7 | 63 % | 9 % | |||||
| For the three months ended December 31, | |||||||||||
| 2023 | 2024 | ||||||||||
| RMB | % of Net Revenues | RMB | US$ | % of Net Revenues | YoY Change | ||||||
| (In millions, except for percentage) | |||||||||||
| Online store operations in Services revenue | |||||||||||
| Apparel and accessories | 372.7 | 13 % | 472.0 | 64.6 | 15 % | 27 % | |||||
| Luxury | 123.2 | 4 % | 126.9 | 17.3 | 4 % | 3 % | |||||
| Sportswear | 133.9 | 5 % | 157.6 | 21.6 | 5 % | 18 % | |||||
| Other apparel | 115.6 | 4 % | 187.5 | 25.7 | 6 % | 62 % | |||||
| Others | 139.1 | 6 % | 122.8 | 16.9 | 4 % | -12 % | |||||
| Inter-segment eliminations[11] | (18.6) | -1 % | (14.6) | (2.0) | 0 % | -22 % | |||||
| Total net revenues from online store operations in services | 493.2 | 18 % | 580.2 | 79.5 | 19 % | 18 % | |||||
| [9] The inter-segment eliminations mainly consist of revenues from online store operations, digital marketing and IT services provided by E-Commerce to Gap, a brand under Brand Management. |
| [10] Key categories refer to the categories that accounted for no less than 10% of services revenue during the periods indicated. |
| [11] The inter-segment eliminations mainly consist of revenues from store operation services provided by E-Commerce to Gap, a brand under Brand Management. |
- Cost of products was RMB773.9 million (US$106.0 million), compared with RMB737.8 million in the same quarter of last year. The increase was primarily due to an increase in product sales volume.
- Fulfillment expenses were RMB768.9 million (US$105.3 million), compared with RMB768.0 million in the same quarter of last year. Fulfillment expenses remained flat, which is in line with the warehousing and fulfillment service revenue.
- Sales and marketing expenses were RMB1,041.4 million (US$142.7 million), compared with RMB892.4 million in the same quarter of last year. The increase was mainly due to higher revenue contributions from digital marketing services for BEC, as well as increased marketing activities and expenses associated with the expansion of offline stores for BBM during the quarter.
- Technology and content expenses were RMB146.6 million (US$20.1 million), compared with RMB140.8 million in the same quarter of last year. As the Company continued to implement cost control and efficiency improvements initiatives, technology and content expenses remained flat, despite strong double-digit net revenues growth in IT solutions.
- General and administrative expenses were RMB191.8 million (US$26.3 million), a decrease of 16.1% compared with RMB228.7 million in the same quarter of last year. The decrease was primarily due to the Company's cost control initiatives and efficiency improvements.
Non-GAAP income from operations was RMB103.3 million (US$14.2 million), an increase of 36.6% compared with RMB75.7 million in the same quarter of last year. Non-GAAP operating margin was 3.5%, an improvement from 2.7% in the same quarter of last year.
- Adjusted operating profit of E-Commerce was RMB137.4 million (US$18.8 million), an improvement of 16.3% from RMB118.2 million in the same quarter of last year.
- Adjusted operating loss of Brand Management was RMB34.2 million (US$4.7 million), an improvement of 19.7% compared with RMB42.5million in the same quarter of last year.
Impairment loss of investments was RMB14.4 million (US$2.0 million), compared with nil in the same quarter of last year. The impairment loss of investments during the period was primarily associated with certain equity investees.
Fair value change on financial instruments was a gain of RMB17.7 million (US$2.4 million), compared with nil in the same quarter of last year. The fair value change on financial instruments is mainly comprised of the gain recognized from the financial instruments the Company invested in during the second quarter of 2024.
Exchange loss was RMB11.5 million (US$1.6 million), due to exchange rate fluctuation in the quarter ended December 31, 2024, compared to exchange gain of RMB0.7 million in the same quarter last year.
Net income attributable to ordinary shareholders of Baozun was RMB0.1 million (US$0.02 million), compared with net loss attributable to ordinary shareholders of Baozun RMB48.4 million in the same quarter of last year.
Basic and diluted net income attributable to ordinary shareholders of Baozun per ADS were both RMB0.00[12], compared with net loss of both RMB0.80 for the same period of 2023.
Non-GAAP net income attributable to ordinary shareholders of Baozun Inc. was RMB45.7 million (US$6.3 million), compared with Non-GAAP net loss attributable to ordinary shareholders of Baozun Inc. RMB28.8 million in the same quarter of last year.
Diluted non-GAAP net income attributable to ordinary shareholders of Baozun per ADS was RMB0.77 (US$0.11), compared with diluted non-GAAP net loss attributable to ordinary shareholders of Baozun per ADS was RMB0.47 for the same period of 2023.
| [12] The amount is less than RMB 0.01. |
Total net revenues were RMB9,422.2 million (US$1,290.8 million), an increase of 6.9% from RMB8,812.0 million in fiscal year 2023. The increase in total net revenues was driven by revenue growth in both the Company's E-Commerce and BBM business lines.
Total product sales revenue was RMB3,466.9 million (US$475.0 million), compared with RMB3,357.2 million in the fiscal year of 2023, of which,
- Product sales revenue of E-Commerce was RMB1,999.6 million (US$273.9 million), a decrease of 4.4% from RMB2,092.2 million in the fiscal year of 2023. The decrease was primarily attributable lower sales from the brand portfolio under the distribution model in the appliances category, fast-moving consumer goods and electronics categories, due to the macro-economic weakness, as well as the Company's optimization of its brand portfolio in distribution model.
| For the fiscal year ended December 31, | |||||||||||
| 2023 | 2024 | ||||||||||
| RMB | % of Net Revenues | RMB | US$ | % of Net Revenues | YoY Change | ||||||
| (In millions, except for percentage) | |||||||||||
| Product Sales of E-Commerce | |||||||||||
| Appliances | 936.3 | 11 % | 852.5 | 116.8 | 9 % | -9 % | |||||
| Beauty and cosmetics | 378.2 | 4 % | 397.3 | 54.4 | 4 % | 5 % | |||||
| Home and furnishing | 169.9 | 2 % | 201.9 | 27.7 | 2 % | 19 % | |||||
| Others | 607.8 | 7 % | 547.9 | 75.0 | 6 % | -10 % | |||||
| Total net revenues from product sales of E-Commerce | 2,092.2 | 24 % | 1,999.6 | 273.9 | 21 % | -4 % | |||||
- Product sales revenue of Brand Management was RMB1,469.6 million (US$201.3 million), an increase of 16.2% from RMB1,265.0 million in the fiscal year of 2023. The increase was primarily driven by higher sales from the Gap brand, as the Company continued to optimize its merchandising plans and enhance customer experience to boost sales in both its online and offline channels.
The following table sets forth a breakdown of services revenue by business models for the years indicated:
| For the fiscal year ended December 31, | |||||||||||
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