Technology

Baozun Announces Second Quarter 2024 Unaudited Financial Results

Published

2 years ago

August 28, 2024

SHANGHAI, Aug. 28, 2024 /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 second quarter ended June 30, 2024.

Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun, commented, “I’m pleased that in the second quarter, E-Commerce revenue returned to growth after ten quarters of contraction, highlighting our effective revitalization efforts in both services and product sales. Additionally, we smoothly integrated Location, a top Douyin partner, into Baozun’s livestreaming business unit. This integration strengthened our value proposition in the Douyin ecosystem. Brand Management continued to reduce its operating losses and accelerated its store expansion plans. We have also been working more closely with Gap Inc to maximize its global assets in the Chinese market. With improved momentum in E-commerce and ongoing progress in building Brand Management, we remain committed to our strategic transformation to drive further growth.”

Ms. Catherine Zhu, Chief Financial Officer of Baozun Inc., commented, “I’m delighted to report that Baozun achieved 3% year-over-year revenue growth, and significant annual improvement in non-GAAP operating profits. We anticipate this revenue growth momentum will persist for the remainder of 2024. In addition, we are advancing our sustainability initiatives and are well on track to fulfill our commitment to creating long-term value for our shareholders. Year to date, Baozun has repurchased approximately 2.0 million ADSs for $4.9 million, reflecting our confidence in the company’s future.”

Second Quarter 2024 Financial Highlights

Total net revenues were RMB2,391.0 million (US$[1]329.0 million), representing an increase of 3.1% compared with RMB2,320.2 million for the same period of 2023.Loss from operations was RMB18.8 million (US$2.6 million), an improvement from RMB36.4 million in the same quarter of last year which was mainly due to a reduction in losses from Brand Management. Operating margin was negative 0.8%, an improvement from negative 1.6% for the same period of 2023.Non-GAAP income from operation[2] was RMB10.0 million (US$1.4 million), an improvement from RMB0.7 million in the same quarter of last year which was mainly due to a reduction in losses from Brand Management. Non-GAAP operating margin was 0.4%, improved from 0.03% for the same period of 2023.Adjusted operating profit of E-Commerce[3] was RMB60.2 million (US$8.3 million), largely in line with RMB60.8 million for the same period of 2023.Adjusted operating loss of Brand Management[3] was RMB50.0 million (US$6.9 million), an improvement from RMB60.1 million for the same period of 2023.Net loss attributable to ordinary shareholders of Baozun Inc. was RMB30.6 million (US$4.2 million), compared with RMB20.0 million for the same period of 2023.Non-GAAP net loss attributable to ordinary shareholders of Baozun Inc.[4] was RMB3.9 million (US$0.5 million), compared with RMB4.4 million for the same period of 2023.Basic and diluted net loss attributable to ordinary shareholders of Baozun Inc. per American Depositary Share (“ADS[5]”) were both RMB0.51 (US$0.07), compared with both RMB0.34 for the same period of 2023.Diluted non-GAAP net loss attributable to ordinary shareholders of Baozun Inc. per ADS[6] was RMB0.06 (US$0.01), compared with RMB0.07 for the same period of 2023.Cash and cash equivalents, restricted cash, and short-term investments totaled RMB2,853.3 million (US$392.6 million), as of June 30, 2024, compared with RMB3,072.8 million as of December 31, 2023.

[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 RMB7.2672 to US$1.00, the noon buying rate in effect on June 28, 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, loss on variance from expected contingent acquisition payment, and cancellation fees of repurchased ADSs and returned 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 Inc. is a non-GAAP financial measure, which is defined as net income (loss) attributable to ordinary shareholders of Baozun Inc. excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisition, acquisition-related expenses, impairment of goodwill and investments, loss on variance from expected contingent acquisition payment, cancellation fees of repurchased ADSs and returned ADSs, fair value loss on derivative liabilities, loss on disposal of subsidiaries and investment in equity investee, and unrealized investment loss.

[5] Each ADS represents three Class A ordinary shares.

[6] Diluted non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS are non-GAAP financial measures, which are respectively defined as non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. divided by weighted average number of shares used in calculating diluted net income (loss) per ordinary share multiplied by three, respectively.

Reconciliations of GAAP measures to non-GAAP measures presented above are included at the end of this results announcement.

Adjusted operating profits/losses by segment are included in the Segments data of Segment Information.

Business Highlights

Baozun e-Commerce, or “BEC”

BEC includes our China e-commerce businesses, such as brands’ store operations, customer services and value-added services in logistics and supply chain management, IT and digital marketing. During the quarter, the total service revenue achieved a 10.4% year-over-year growth, with double digit growth in sportswear store operation revenues and strong performance in digital marketing and IT services.

Omni-channel expansion remains a key theme for our brand partners. By the end of the second quarter, approximately 45.8% of our brand partners engaged with us for store operations of at least two channels.

Baozun Brand Management, or “BBM”

BBM engages in holistic brand management, including strategy and tactic positioning, branding and marketing, retail and e-commerce operations, supply chain and logistics, and technology empowerment. We aim to leverage our portfolio of technologies to forge longer and deeper relationships with brands.

Currently, our Brand Management business line includes the Gap and Hunter brands. During the quarter, product sales revenue for Brand Management totaled RMB292.3 million, with a gross profit margin of 52.3%.

Second Quarter 2024 Financial Results

Total net revenues were RMB2,391.0 million (US$329.0 million), an increase of 3.1% from RMB2,320.2 million in the same quarter of last year. The increase in total net revenues was mainly driven by a 9.4% increase in service revenue.

Total product sales revenue was RMB870.3 million (US$119.8 million), compared with RMB930.3 million in the same quarter of last year, of which:

Product sales revenue of E-Commerce was RMB579.2 million (US$79.7 million), a decrease of 4.4% from RMB606.1 million in the same quarter of last year. The decrease was primarily attributable to the Company’s optimization of its product portfolio in distribution model, especially in the electronics and fast-moving consumer goods sectors.

The following table sets forth a breakdown of product sales revenues of E-Commerce by key categories [7] for the periods indicated:

For the three months ended June 30,

2023

2024

RMB

% of
Net
Revenues

RMB

US$

% of
Net
Revenues

YoY
Change

(In millions, except for percentage)

Product Sales of E-Commerce

Appliances

276.0

12 %

264.2

36.4

11 %

-4 %

Beauty and cosmetics

104.4

4 %

107.9

14.8

5 %

3 %

Others

225.7

10 %

207.1

28.5

8 %

-8 %

Total net revenues from product
sales of E-Commerce

606.1

26 %

579.2

79.7

24 %

-4 %

Product sales revenue of Brand Management was RMB292.3 million (US$40.2 million), a decrease of 9.8% from RMB324.2 million in the same quarter of last year. The decrease was primarily due to weak offline traffic during the quarter, partially offset by an improved visitor conversion rate.

Services revenue was RMB1,520.7 million (US$209.3 million), an increase of 9.4% from RMB1,389.9 million in the same quarter of last year. The increase was primarily due to the double-digit growth in digital marketing and IT solutions and online store operations.

The following table sets forth a breakdown of services revenues by service type for the periods indicated:

For the three months ended June 30,

2023

2024

RMB

% of
Net
Revenues

RMB

US$

% of
Net
Revenues

YoY
Change

(In millions, except for percentage)

Services revenue

Online store operations

388.3

17 %

441.4

60.8

18 %

14 %

Warehousing and fulfillment

570.5

25 %

587.8

80.9

25 %

3 %

Digital marketing and IT solutions

446.2

19 %

520.5

71.6

22 %

17 %

Inter-segment eliminations8

-15.1

-1 %

-29.0

-4.0

-1 %

92 %

Total net revenues from services

1,389.9

60 %

1,520.7

209.3

64 %

9 %

8The inter-segment eliminations mainly consist of revenues from online store operations, warehousing and fulfillment, and digital marketing and IT services provided by E-Commerce to Gap, a brand under Brand Management.

For the three months ended June 30,

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

258.3

11 %

317.8

43.7

13 %

23 %

– Luxury

97.9

4 %

96.9

13.3

4 %

-1 %

– Sportswear

95.0

4 %

117.1

16.1

5 %

23 %

– Other apparel

65.4

3 %

103.8

14.3

4 %

59 %

Others

130.0

6 %

123.6

17.1

6 %

-5 %

Inter-segment eliminations10

-9.3

-1 %

-12.0

-1.7

-1 %

29 %

Total net revenues from online
store operations in services

379.0

16 %

429.4

59.1

18 %

13 %

[7] Key categories refer to the categories that accounted for no less than 10% of product sales of E-Commerce revenues during the periods indicated.

[8] The inter-segment eliminations mainly consist of revenues from online store operations, warehousing and fulfillment, and digital marketing and IT services provided by E-Commerce to Gap, a brand under Brand Management.

[9] Key categories refer to the categories that accounted for no less than 10% of services revenue of E-Commerce during the periods indicated.

[10] The inter-segment eliminations mainly consist of revenues from store operation services provided by E-Commerce to Gap, a brand under Brand Management.

Total operating expenses were RMB2,409.8 million (US$331.6 million), compared with RMB2,356.6 million in the same quarter of last year.

Cost of products was RMB649.7 million (US$89.4 million), compared with RMB675.1 million in the same quarter of last year. The decrease was primarily due to a decline in product sales volume.Fulfillment expenses were RMB627.0 million (US$86.3 million), compared with RMB658.7 million in the same quarter of last year. The decrease was primarily attributable to the Company’s cost control initiatives and efficiency improvements.Sales and marketing expenses were RMB844.7 million (US$116.2 million), compared with RMB706.4 million in the same quarter of last year. The increase was mainly due to more active performance-driven digital marketing activities during the quarter.Technology and content expenses were RMB129.8 million (US$17.9 million), compared with RMB129.1 million in the same quarter of last year. The expenses were largely in line with same period last year.General and administrative expenses were RMB171.6 million (US$23.6 million), compared with RMB249.5 million in the same quarter of last year. The decrease was primarily due to higher G&A expenses in the same period of last year, which included higher severance expenses following the acquisition of Gap Shanghai. Additionally, decrease reflects the Company’s cost control initiatives and efficiency improvements.

Loss from operations was RMB18.8 million (US$2.6 million), an improvement from RMB36.4 million in the same quarter of last year. Operating margin was negative 0.8%, an improvement from negative 1.6% in the same quarter of last year.

Non-GAAP income from operations was RMB10.0 million (US$1.4 million), an improvement from RMB0.7 million in the same quarter of last year. The increase was mainly due to the narrowed loss in the Brand Management business. Non-GAAP operating margin was 0.4%, up from 0.03% in the same quarter of last year.

Adjusted operating profit of E-Commerce was RMB60.2 million (US$8.3 million), largely in line with RMB60.8 million in the same quarter of last year. Adjusted operating loss of Brand Management was RMB50.0 million (US$6.9 million), an improvement from RMB60.1 million in the same quarter of last year.

Unrealized investment loss was RMB2.8 million (US$0.4 million), compared with RMB9.3 million unrealized investment loss in the same quarter of last year. The unrealized investment loss of this quarter was mainly related to the decrease in the trading price of iClick Interactive Asia Group Limited, or iClick Interactive, a public company listed on the Nasdaq Global Market that the Company invested in January 2021.

Share of loss in equity method investment was RMB3.6 million (US$0.5 million), compared with a share of gain in equity method investment of RMB4.4 million in the same quarter of last year. The change to a share of loss in equity method investment in this quarter was primarily due to the allocation of losses related to the equity method investment during the current period.

Net loss attributable to ordinary shareholders of Baozun Inc. was RMB30.6 million (US$4.2 million), compared with RMB20.0 million in the same quarter of last year.

Basic and diluted net loss attributable to ordinary shareholders of Baozun Inc. per ADS were both RMB0.51 (US$0.07), compared with both RMB0.34 for the same period of 2023.

Non-GAAP net loss attributable to ordinary shareholders of Baozun Inc. was RMB3.8 million (US$0.5 million), compared with RMB4.4 million in the same quarter of last year.

Diluted non-GAAP net loss attributable to ordinary shareholders of Baozun Inc. per ADS were RMB0.06 (US$0.01), compared with RMB0.07 for the same period of 2023.

Segment Information

(a) Description of segments

Following the acquisition of Gap Shanghai in February 2023, the Group updated its operating segments structure resulting in two segments, which were (i) E-Commerce and (ii) Brand Management;

The following summary describes the operations in each of the Group’s operating segment:

(i) E-Commerce focuses on Baozun traditional e-commerce service business and comprises two business lines, BEC (Baozun E-Commerce) and BZI (Baozun International).

a> BEC includes our mainland China e-commerce businesses, such as brands’ store operations, customer services and value-added services in logistics and supply chain management, IT and digital marketing.

b> BZI includes our e-commerce businesses outside of mainland China, including locations such as Hong Kong, Macau, Taiwan, South East Asia and Europe.

(ii) Brand Management engages in holistic brand management, encompassing strategy and tactic positioning, branding and marketing, retail and e-commerce operations, supply chain and logistics and technology empowerment to leverage our portfolio of technologies to forge into longer and deeper relationships with brands. Currently, the Company runs brand management operations for the Gap and Hunter brands in Greater China.

(b) Segments data

The table below provides a summary of the Group’s reportable segment results for the three months ended June 30, 2023 and 2024, with prior periods’ segment information retrospectively recast to conform to current period presentation:

For the three months ended June 30,

2023

2024

RMB

Net revenues:

E-Commerce

2,010,976

2,130,881

Brand Management

324,297

294,283

Inter-segment eliminations *

(15,112)

(34,170)

Total consolidated net revenues

2,320,161

2,390,994

Adjusted Operating Profits (Losses) **:

E-Commerce

60,828

60,212

Brand Management

(60,090)

(49,976)

Total Adjusted Operating Profits

738

10,236

Inter-segment eliminations *

–

(200)

Unallocated expenses:

Share-based compensation expenses

(29,264)

(17,478)

Amortization of intangible assets
resulting from business acquisition

(7,911)

(10,916)

Cancellation fees of repurchased ADSs

–

(415)

Total other expenses

22,337

4,163

Loss before income tax

(14,100)

(14,610)

*The inter-segment eliminations mainly consist of revenues from services provided by E-Commerce to Brand Management.

**Adjusted Operating Profits (Losses) represent segment profits (losses), which is income (loss) from operations from each segment without allocating share-based compensation expenses, acquisition-related expenses and amortization of intangible assets resulting from business acquisition, and cancellation fees of repurchased ADSs.

Update in Share Repurchase Programs

On January 24, 2024, the Company’s board of directors (the “Board”) authorized the management to set up and implement a new share repurchase program under which the Company may repurchase up to US$20 million worth of its outstanding (i) American depositary shares (“ADSs”), each representing three Class A ordinary shares, and/or (ii) Class A ordinary shares over the next 12 months starting from January 24, 2024. As of August 28, 2024, the Company repurchased approximately 2.0 million of ADSs for approximately US$4.9 million under its share repurchase program through the open market. The remaining amount of Board authorization for our share repurchase program, which is effective through January 2025, was US$15.1 million as of August 28, 2024.

Conference Call

The Company will host a conference call to discuss the earnings at 7:30 a.m. Eastern Time on Wednesday, August 28, 2024 (7:30 p.m. Beijing time on the same day).

Dial-in details for the earnings conference call are as follows:

United States:                         1-888-317-6003
Hong Kong:                            800-963-976
Singapore:                               800-120-5863
Mainland China:                     4001-206-115
International:                           1-412-317-6061
Passcode:                                9965929

A replay of the conference call may be accessible through September 4, 2024 by dialing the following numbers:

United States:                         1-877-344-7529
International:                           1-412-317-0088
Canada:                                   855-669-9658
Replay Access Code:              6727395

A live webcast of the conference call will be available on the Investor Relations section of Baozun’s website at http://ir.baozun.com. An archived webcast will be available through the same link following the call.

Use of Non-GAAP Financial Measures

The Company also uses certain non-GAAP financial measures in evaluating its business. For example, the Company uses non-GAAP income (loss) from operations, non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net margin, non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. and diluted non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS, as supplemental measures to review and assess its financial and operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

The Company defines non-GAAP income (loss) from operations 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, loss on variance from expected contingent acquisition payment, and cancellation fees of repurchased ADSs and returned ADSs. The Company defines non-GAAP operating margin as non-GAAP income (loss) from operations as a percentage of total net revenues. The Company defines non-GAAP net income (loss) as net income (loss) excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisition, acquisition-related expenses, impairment of goodwill and investments, loss on variance from expected contingent acquisition payment, cancellation fees of repurchased ADSs and returned ADSs, fair value loss on derivative liabilities, loss on disposal of subsidiaries and investment in equity investee, and unrealized investment loss. The Company defines non-GAAP net margin as non-GAAP net income (loss) as a percentage of total net revenues. The Company defines non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. as net income (loss) attributable to ordinary shareholders of Baozun Inc. excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisition, acquisition-related expenses, impairment of goodwill and investments, loss on variance from expected contingent acquisition payment, cancellation fees of repurchased ADSs and returned ADSs, fair value loss on derivative liabilities, loss on disposal of subsidiaries and investment in equity investee, and unrealized investment loss. The Company defines diluted non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS as non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. divided by weighted average number of shares used in calculating net income (loss) per ordinary share multiplied by three.

The Company presents the non-GAAP financial measures because they are used by the Company’s management to evaluate the Company’s financial and operating performance and formulate business plans. Non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. and diluted non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS reflect the Company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. The Company believes that the use of the non-GAAP financial measures facilitates investors to understand and evaluate the Company’s current operating performance and future prospects in the same manner as management does, if they so choose. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gain/loss and other items that are not expected to result in future cash payments or that are non-recurring in nature or may not be indicative of the Company’s core operating results and business outlook.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc., and diluted non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS is that they do not reflect all items of income and expense that affect the Company’s operations. Further, the non-GAAP measures may differ from the non-GAAP measures used by other companies, including peer companies, potentially limiting the comparability of their financial results to the Company’s. In light of the foregoing limitations, the non-GAAP income (loss) from operations, non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net margin, non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. and diluted non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS for the period should not be considered in isolation from or as an alternative to income (loss) from operations, operating margin, net income (loss), net margin, net income (loss) attributable to ordinary shareholders of Baozun Inc. and net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS, or other financial measures prepared in accordance with U.S. GAAP.

The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, which should be considered when evaluating the Company’s performance. The company encourages you to review the company’s financial information in its entirety and not rely on a single financial measure. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, “Reconciliations of GAAP and Non-GAAP Results.”

Safe Harbor Statements

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continues,” “ongoing,” “targets,” “guidance,” “going forward,” “looking forward,” “outlook” or other similar expressions. Statements that are not historical facts, including but not limited to statements about Baozun’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to Baozun’s filings with the United States Securities and Exchange Commission and its announcements, notices or other documents published on the website of The Stock Exchange of Hong Kong Limited. All information provided in this announcement is as of the date hereof and is based on assumptions that Baozun believes to be reasonable as of this date, and Baozun undertakes no obligation to update such information, except as required under applicable law.

About Baozun Inc.

Founded in 2007, Baozun Inc. is a leader in brand e-commerce service, brand management, and digital commerce service. It serves more than 450 brands from various industries and sectors around the world, including East and Southeast Asia, Europe and North America.

Baozun Inc. comprises three major business lines – Baozun e-Commerce (BEC), Baozun Brand Management (BBM) and Baozun International (BZI) and is committed to accelerating high-quality and sustainable growth. Driven by the principle that “Technology Empowers the Future Success”, Baozun’s business lines are devoted to empowering their clients’ business and navigating their new phase of development.

For more information, please visit http://ir.baozun.com.

For investor and media inquiries, please contact:

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

Baozun Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

As of

December 31,
2023

June 30,
2024

RMB

US$

ASSETS

Current assets

Cash and cash equivalents

2,149,531

1,454,517

200,148

Restricted cash

202,764

242,679

33,394

Short-term investments

720,522

1,156,066

159,080

Accounts receivable, net

2,184,729

1,842,127

253,485

Inventories

1,045,116

1,130,958

155,625

Advances to suppliers

311,111

309,996

42,657

Derivative financial assets

–

11,179

1,538

Prepayments and other current assets

590,350

678,240

93,329

Amounts due from related parties

86,661

55,874

7,689

Total current assets

7,290,784

6,881,636

946,945

Non-current assets

Long term investments

359,129

364,524

50,160

Property and equipment, net

851,151

816,127

112,303

Intangible assets, net

306,420

350,330

48,207

Land use right, net

38,464

37,951

5,222

Operating lease right-of-use assets

1,070,120

857,192

117,954

Goodwill

312,464

369,333

50,822

Other non-current assets

45,316

67,943

9,349

Deferred tax assets

200,628

198,700

27,342

Total non-current assets

3,183,692

3,062,100

421,359

Total assets

10,474,476

9,943,736

1,368,304

LIABILITIES AND SHAREHOLDERS’
EQUITY

Current liabilities

Short-term loan

1,115,721

1,162,824

160,010

Accounts payable

563,562

439,635

60,497

Notes payable

506,629

418,386

57,572

Income tax payables

18,768

10,255

1,411

Accrued expenses and other current liabilities

1,188,179

1,020,799

140,466

Amounts due to related parties

32,118

22,553

3,103

Current operating lease liabilities

332,983

277,004

38,117

Total current liabilities

3,757,960

3,351,456

461,176

Non-current liabilities

Deferred tax liabilities

24,966

36,628

5,040

Long-term operating lease liabilities

799,096

647,321

89,074

Other non-current liabilities

40,718

40,030

5,508

Total non-current liabilities

864,780

723,979

99,622

Total liabilities

4,622,740

4,075,435

560,798

Redeemable non-controlling interests

1,584,858

1,645,177

226,384

Baozun Inc. shareholders’ equity:

Class A ordinary shares (US$0.0001 par value;
470,000,000 shares authorized, 167,901,880 and 1
70,820,931 shares issued, 167,901,880 and
167,277,325 shares outstanding, as of December
31, 2023, and June 30, 2024, respectively)

Class B ordinary shares (US$0.0001 par value;
30,000,000 shares authorized, 13,300,738 shares
issued and outstanding as of December 31, 2023,
and June 30, 2024, respectively)

Additional paid-in capital

4,571,439

4,609,277

634,258

Treasury shares (nil and 3,543,606 shares as of
December 31,2023 and June 30,2024,
respectively)

–

(21,630)

(2,976)

Accumulated deficit

(506,587)

(603,844)

(83,092)

Accumulated other comprehensive income

32,251

50,215

6,910

Total Baozun Inc. shareholders’ equity

4,097,204

4,034,121

555,114

Non-controlling interests

169,674

189,003

26,008

Total equity

4,266,878

4,223,124

581,122

Total liabilities, redeemable non-controlling
interests and equity

10,474,476

9,943,736

1,368,304

Baozun Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, except for share and per share data and per ADS data)

For the three months ended June 30,

2023

2024

RMB

US$

Net revenues

Product sales(1)

930,256

870,301

119,757

Services

1,389,905

1,520,693

209,255

Total net revenues

2,320,161

2,390,994

329,012

Operating expenses (1)

Cost of products

(675,050)

(649,696)

(89,401)

Fulfillment(2)

(658,652)

(626,958)

(86,272)

Sales and marketing (2)

(706,440)

(844,698)

(116,234)

Technology and content(2)

(129,142)

(129,788)

(17,859)

General and administrative(2)

(249,503)

(171,637)

(23,618)

Other operating income, net

62,189

13,010

1,789

Total operating expenses

(2,356,598)

(2,409,767)

(331,595)

Loss from operations

(36,437)

(18,773)

(2,583)

Other income (expenses)

Interest income

20,286

16,695

2,297

Interest expense

(9,763)

(10,436)

(1,436)

Unrealized investment loss

(9,305)

(2,830)

(389)

Gain on acquisition of subsidiaries

3,251

–

Exchange loss

-6647

-10418

-1434

Fair value change on financial instruments

24,515

11,152

1,535

Loss before income tax and share of income in equity
method investment

(14,100)

(14,610)

(2,010)

Income tax expense (3)

(2,350)

(3,763)

(518)

Share of loss in equity method investment, net of tax of nil

4,432

(3,616)

(498)

Net loss

(12,018)

(21,989)

(3,026)

Net loss attributable to
noncontrolling interests

4,268

5,862

807

Net income attributable to
redeemable noncontrolling interests

(12,278)

(14,493)

(1,994)

Net loss attributable to ordinary shareholders of
Baozun Inc.

(20,028)

(30,620)

(4,213)

Net loss per share attributable to ordinary
shareholders of Baozun Inc.:

Basic

(0.11)

(0.17)

(0.02)

Diluted

(0.11)

(0.17)

(0.02)

Net loss per ADS attributable to ordinary
shareholders of Baozun Inc.:

Basic

(0.34)

(0.51)

(0.07)

Diluted

(0.34)

(0.51)

(0.07)

Weighted average shares used in calculating net loss
per ordinary share

Basic

177,967,788

181,899,568

Diluted

177,967,788

181,899,568

Net loss

(12,018)

(21,989)

(3,026)

Other comprehensive income, net of tax of nil:

Foreign currency translation adjustment

39,523

6,328

871

Comprehensive loss

27,505

(15,661)

(2,155)

(1) Including product sales from E-Commerce and Brand Management of RMB579.2 million and RMB292.3 million for the three months period ended June 30, 2024, respectively, compared with product sales E-Commerce and Brand Management of RMB606.1 million and RMB324.2 million for the three months period ended June 30, 2023.

(2) Share-based compensation expenses are allocated in operating expenses items as follows:

For the three months ended June 30,

2023

2024

RMB

US$

Fulfillment

1,713

1,358

187

Sales and marketing

10,456

2,242

308

Technology and content

3,512

2,446

337

General and administrative

13,583

11,432

1,573

29,264

17,478

2,405

(3) Including amortization of intangible assets resulting from business acquisition, which amounted to RMB7.9 million and RMB10.9 million for the three months period ended June 30, 2023 and 2024, respectively.

(4) Including income tax benefits of RMB1.5 million and RMB2.3 million related to the reversal of deferred tax liabilities for the three months period ended June 30, 2023 and 2024, respectively, which was recognized on business acquisition.

Baozun Inc.

Reconciliations of GAAP and Non-GAAP Results

(in thousands, except for share and per ADS data)

For the three months ended June 30,

2023

2024

RMB

US$

Loss from operations

(36,437)

(18,773)

(2,583)

Add: Share-based compensation expenses

29,264

17,478

2,405

Amortization of intangible assets resulting
from business acquisition

7,911

10,916

1,502

Cancellation fees of repurchased ADSs

–

415

Non-GAAP Income from operations

738

10,036

1,381

Net loss

(12,018)

(21,989)

(3,026)

Add: Share-based compensation expenses

29,264

17,478

2,405

Amortization of intangible assets resulting
from business acquisition

7,911

10,916

1,502

Cancellation fees of repurchased ADSs

–

415

Unrealized investment loss

9,305

2,830

389

Less: Gain on acquisition of subsidiaries

(3,251)

–

Fair value gain on derivative liabilities

(24,515)

–

Tax effect of amortization of intangible assets resulting from
business acquisition

(1,507)

(2,259)

(311)

Non-GAAP net income

5,189

7,391

1,016

Net loss attributable to ordinary shareholders of Baozun Inc.

(20,028)

(30,620)

(4,213)

Add: Share-based compensation expenses

29,264

17,478

2,405

Amortization of intangible assets resulting from
business acquisition

5,991

7,523

1,035

Cancellation fees of repurchased ADSs

–

415

Unrealized investment loss

9,305

2,830

389

Less: Gain on acquisition of subsidiaries

(3,272)

–

Fair value gain on derivative liabilities

(24,515)

–

Tax effect of amortization of intangible assets
resulting from business acquisition

(1,127)

(1,510)

(208)

Non-GAAP net loss attributable to ordinary
shareholders of Baozun Inc.

(4,382)

(3,884)

(535)

Diluted non-GAAP net income (loss) attributable
to ordinary shareholders of Baozun Inc. per ADS

(0.07)

(0.06)

(0.01)

Weighted average shares used in calculating
diluted net loss per ordinary share

177,967,788

181,899,568

(1) The Company evaluated the non-GAAP adjustments items and concluded that these items have immaterial income tax effects except for amortization of intangible assets resulting from business acquisition.

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SOURCE Baozun Inc.

Technology

IDrive® e2 Announces New Storage Region in Tokyo, Delivering High-Performance S3-Compatible Cloud Object Storage Optimized for AI and Modern Data Workloads

Published

46 minutes ago

April 24, 2026

LOS ANGELES, April 24, 2026 /PRNewswire/ — IDrive® e2, offering fast S3 compatible object storage, has added a new storage region in Tokyo, Japan, marking its first storage region in the country and providing customers in the region the opportunity to utilize one of the fastest and most affordable S3 compatible object storage solutions on the market.

Since the inception of IDrive® e2, international demand for the service has continued to accelerate. This expansion into Japan is part of IDrive’s ongoing mission to enhance the accessibility and performance of its cloud storage services for a global customer base.

The new location in Tokyo will bring high-performing object storage closer to businesses and developers in the region, enabling significantly faster data access, lower latency, and improved service reliability. By expanding to Japan, IDrive is further strengthening its commitment to providing secure, efficient, and scalable cloud storage solutions to the rapidly growing tech sector in East Asia.

With more than 14 locations across the United States, Canada, Europe, and Asia, this expansion underscores IDrive’s dedication to delivering high-quality cloud storage solutions that meet the needs of customers all over the world. With the new location in Tokyo, users can expect:

Enhanced Performance: Faster response times for S3 API calls by storing data closer to the point of use.Global Footprint: Access to a distributed network of storage regions, allowing for geo-redundancy and optimized data routing.Compliance & Security: IDrive® e2 is committed to upholding rigorous data protection standards, ensuring personal data is processed securely within the region.

“As we continue to see a surge in data generation across Asia, especially with AI workloads, expanding our footprint to Japan was a natural next step,” said Raghu Kulkarni, CEO of IDrive Inc. “Our goal is to provide the highest performance and cost-effective object storage available. With the Tokyo storage region, Asian businesses can now manage massive datasets with the speed of local storage and the economics of the cloud.”

IDrive® e2 remains one of the most affordable and feature-packed object storage solutions available. It features a straightforward pricing approach starting at $49.50/TB/year, as well as a $5/TB/month pay-as-you-go option, with no fees for egress or API calls.

Users in the region can now point their data to the Tokyo location for faster network performance and ease of access.

About IDrive

IDrive Inc. is a privately held company specializing in cloud storage, cloud backup, file sharing, remote access, compliance and related technologies. Core services include IDrive®, RemotePC™ and IBackup. The company’s services help over 5 million customers backup over 1 Exabyte of data.

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SOURCE IDrive Inc.

Technology

Fuutura Launches as a Blockchain Infrastructure Company Building a Compliance-First Financial Ecosystem for the Global Market

Published

46 minutes ago

April 24, 2026

Founded by a King’s Counsel and a blockchain strategist, the company introduces a unified financial ecosystem for the over a billion adults left behind by legacy financial systems

PANAMA CITY, Panama, April 24, 2026 /PRNewswire/ — Fuutura, a blockchain infrastructure company building a compliance-first financial ecosystem for the global market, today announced its official launch. Founded by Oliver Cook KC and Ellis McGrath, Fuutura launches with three integrated products designed to replace the fragmented financial infrastructure that prevents over a billion adults from fully participating in global financial markets.

Across the Global South, governments are writing digital asset frameworks for the first time. Fuutura has been built with this shift already in mind. The architecture is designed to be visible to regulators by default, with KYC and AML sitting within the protocol itself. Fuutura welcomes the inspection that responsible oversight requires.

Traditional financial systems were designed for specific markets, specific participants, and specific moments in financial history. According to the World Bank’s Global Findex 2025, 1.3 billion adults remain entirely excluded from the formal financial system – yet 900 million of them already own a mobile phone, and more than half have smartphones. The infrastructure to reach these populations exists and is growing. The financial architecture to serve them has never been built.

Fuutura’s answer is a compliance-first financial ecosystem built as a single connected platform. The ecosystem launches with three integrated products: Fuutura Identity, a reusable digital identity and KYC system that verifies once and works across the entire ecosystem; Fuutura Wallet, a non-custodial multi-chain wallet for storing, sending, receiving, and swapping digital assets; and Fuutura Trade, a digital asset exchange built to trade a significant depth of instruments across crypto, stablecoins, and tokenised real-world-assets.

Every product within the ecosystem is built around compliance from the protocol layer up, with KYC and AML integrated into the architecture rather than added as an afterthought.

“The financial systems that exist today were built to serve markets that already had the infrastructure to support them. Across the Global South, enormous populations have real demand for financial tools they simply cannot access. Fuutura is building the infrastructure that was always supposed to exist for them, built around compliance from the ground up and designed to support regulatory oversight as it develops.

Oliver Cook KC, Co-founder and Chief Legal Officer, Fuutura

“The same financial instruments available to people in developed markets should be available to anyone. We have built everything in-house, which means we are not dependent on third parties and we are not asking users to piece together a financial life from disconnected services. One ecosystem, genuinely accessible, with compliance built in from the start.”

Ellis McGrath, Co-founder and Chief Technology Officer, Fuutura

Fuutura is building for a market that existing financial infrastructure was never designed to serve. The company’s launch marks the beginning of a phased rollout, with further ecosystem development planned as the platform scales across the Global South and beyond.

About Fuutura
Fuutura is a blockchain infrastructure company building a compliance-first, accessible financial ecosystem for a global market. The platform brings together a reusable digital identity layer, a non-custodial multi-chain wallet, and a digital asset exchange spanning cryptocurrencies, stablecoins, and tokenised real-world assets. Identity verification and compliance attestation are built into the base architecture. Fuutura is designed to be open to regulatory oversight from the protocol layer up. We believe financial participation should be accessible to everyone, and we are building the infrastructure to make that possible.

Media Contact:
Fuutura
pr@fuutura.com

Forward-Looking Statements and Risk Disclosures
Digital asset risk. Digital assets are high-risk and their value may fall as well as rise. Trading digital assets involves significant risk and may not be suitable for all investors. Past performance is not a reliable indicator of future results.
Forward-looking statements. This press release contains forward-looking statements regarding Fuutura, its technology, products, business plans and future conduct, including statements relating to the phased rollout of the ecosystem, regulatory engagement and licensing outcomes, geographic expansion, and market ambitions. Forward-looking statements are identifiable by words such as “building,” “plans,” “intends,” “expects,” “designed to,” “anticipates” and similar expressions, as well as by statements regarding future outcomes, ambitions or strategic direction.
Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that could cause actual outcomes to differ materially from those expressed. These include, without limitation, changes in the regulatory environment across jurisdictions; the availability and timing of licensing or authorisation; developments in digital asset markets; technological and cybersecurity risks; operational risks; counterparty and third-party risks; the pace of product development; and other factors beyond Fuutura’s control.
No offer or advice. Nothing in this press release constitutes an offer to sell, a solicitation to purchase, investment advice, or a recommendation in respect of any digital asset, crypto-asset, token, security, or financial product or instrument. Fuutura’s products and services may not be available in all jurisdictions and may be subject to regulatory restrictions. Access to Fuutura’s platform is restricted to residents of jurisdictions where its services are permitted.
No duty to update. Fuutura undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

This release is not for distribution in any jurisdiction where such distribution would be unlawful.

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Technology

Betterness Closes $2.5m Seed Round and Launches Bett-i, the First Fully Autonomous Voice-First Life-Coaching System for Health and Performance

Published

46 minutes ago

April 24, 2026

A roster of leaders from health-tech, medicine, capital markets, elite athletic performance, and global culture join Betterness as investors and advisors, backing the company’s mission to build the agentic infrastructure for the $6 trillion global health and wellness industry.

MIAMI, April 24, 2026 /PRNewswire/ — Betterness, Inc., the Augmented Wellness™ platform building agent-first infrastructure for the health and wellness industry, today announced the closing of its $2.5m seed round and the public launch of Bett-i™ — the first fully autonomous, voice-first AI life-coaching system ever created — available now at www.betti.bot.

The announcement marks a pivotal evolution for Betterness: from a longevity-focused consumer wellness platform into the company building the agentic operating layer on which the next generation of health and wellness products, services, and businesses will run. It follows the March 2026 debut of the Betterness MCP — the first agentic Model Context Protocol for real-world health and wellness services — and sets the stage for the upcoming launch of Betterness One, an enterprise solution that will fully automate health and wellness business operations on the same foundation.

“When we started Betterness, the question was whether AI could help any single person live better. Two years later the answer is obvious — and the real question has become whether AI can help every clinic, every gym, every longevity program, and every wellness brand run better. Our job now is to build the agentic infrastructure that makes that possible. Closing this round, launching Bett-i, and preparing Betterness One for enterprise is the trifecta that takes us there.”

— Demian Bellumio, Co-Founder & Co-CEO, Betterness

Introducing Bett-i — the first fully autonomous voice-first life coach

Bett-i (www.betti.bot) is the first voice-first, fully autonomous AI life-coaching system designed to accompany a human being through an entire day — not as a chatbot, but as a continuously running team of specialist agents that can order a lab, interpret a result, adjust a training plan, cancel a class, or send a recovery check-in without being asked.

Where previous generations of AI health tools wait for the user to ask a question, Bett-i initiates. It reads signal, it pattern-matches across a person’s life, and it takes action — always under explicit consent, always audit-logged, always voice-native.

What Bett-i can do, out of the box

Voice-first every surface. Wake-word conversational access, phone and SMS fall-through, Telegram, e-mail, and any MCP-compatible agent as a client. No app required.Autonomous daily briefs. Morning recovery + sleep-readiness + day-priorities brief, delivered via the user’s chosen channel. Evening wind-down, supplement reminders, and sleep-optimization protocol activation.End-to-end lab ordering. Bett-i can order labs across major diagnostic networks — Quest, LabCorp, BioReference — schedule draws, track biomarker trends, and surface actionable changes the moment a result returns.Agent marketplace. Hundreds of specialist agents — nutrition, endurance, sleep, longevity, hormone, recovery, fertility, clinical — with more from top partners added weekly. Any specialist can be summoned by voice; many run continuously in the background.Native wearable integrations. Apple Health, Oura, WHOOP, Garmin, Withings, Eight Sleep, and more — all flowing into the same context so every recommendation is life-aware, not generic.Contextual, life-situation-aware coaching. If you’re training for a marathon, Bett-i layers endurance biomarkers and recovery protocols onto your panel. If you’re planning a pregnancy, it pivots to preconception optimization. If you’re on a GLP-1, it watches the specific markers that matter.HIPAA-grade governance and trust. Consent-gated access, full audit trail, end-to-end encryption, never sold. Every tool call and every agent interaction is logged.

Bett-i is powered natively by the Betterness MCP, meaning it can be plugged into Claude, Cursor, or any MCP-compatible agent, and extended by any developer building on Betterness’ open agentic infrastructure.

“Precision health has always existed — but only for those who could afford it. Bett-i was built to change that. Bett-i coaches people through the most important decisions they make about their own health and wellness — autonomously, in their voice, with the full context of their life. Not when they remember to open an app. Just continuously, proactively, in their corner, keeping up with their real life 24/7. That’s what everyone deserves. That’s what everyone wants. That’s what we built.”

— Ari Katz, Co-Founder & Co-CEO, Betterness

The evolution of Betterness — an agentic infrastructure platform

The launch of Bett-i and the closing of this seed round complete the public picture of what Betterness has been quietly building: a coherent three-layer stack on which the global health and wellness industry can run.

Layer 1 — Betterness MCP (launched March 2026). The first agentic Model Context Protocol for real-world health and wellness services. Labs, biomarkers, wearables, provider networks, and specialist agents, accessible to any AI system under consent.Layer 2 — Bett-i (launching today at www.betti.bot). The first fully autonomous, voice-first life-coach ever deployed at consumer scale. Demonstrates the full surface area of the MCP in a product a human being can actually talk to and trust.Layer 3 — Betterness One (June 2026). The enterprise solution that takes the same agentic stack and automates the day-to-day operations of health and wellness businesses — clinics, gyms, longevity programs, wellness brands, med-spas. Zero missed leads, less admin work, members that stay. The business-side counterpart to Bett-i.

All three layers run on a shared enterprise-grade, HIPAA-compliant and SOC2-ready proprietary infrastructure platform.

Investors and advisors

The seed round and advisory board bring together operators, clinicians, capital-market builders, elite athletes, and cultural leaders across health-tech, medicine, capital markets, performance, and wellness lifestyle. Participating investors and advisors announced today include:

Health-tech founders & operators

Martin Varsavsky — Founder of Prelude Fertility and Certuma; one of Europe’s most prolific serial entrepreneurs in digital health and fertility.Justin Stone — Digital-health operator and general counsel to successive unicorn health-tech companies, including MDLIVE (acquired by Cigna), Thirty Madison, and Papa; long-time advisor to 40+ digital-health founders.

Medicine & longevity

Mark Rosenbloom, MD, MBA — Founder of Precision Performance Medicine℠, a concierge longevity and performance-medicine practice serving patients nationally; trained at Northwestern University Feinberg School of Medicine and Stanford GSB. His forthcoming book, ALIVE AF, publishes May 2026.Rabin Rahmani, MD, FACG — Medical Director- Gastroenterology Associates of Brooklyn/South Brooklyn Endoscopy Center.Lloyd Camper, MD, MPH — Center Physician at Cenegenics Miami and board-certified Family & Sports Medicine physician; USC-trained, with a Sports Medicine fellowship at Kaiser Permanente where he cared for athletes from high-school through the pros, including the Los Angeles Football Club (LAFC) of MLS.

Capital markets & digital infrastructure

Carlos Domingo — Co-Founder & CEO of Securitize; the leading tokenization platform for real-world assets, bringing deep expertise in regulated digital infrastructure.David Garcia — CIO and Managing Partner at Borderless Capital; a leading global venture firm bridging traditional capital with programmable financial infrastructure.

Elite performance

Eduardo della Maggiora — Founder & CEO of Betterfly, Latin America’s first “social unicorn” and a purpose-driven insurance and wellness-benefits platform operating across Latam and Europe; four-time Ironman World Championship finisher and two-time runner-up at the Ironman 70.3 World Championships.Apolo Ohno — Eight-time Olympic medalist, the most decorated American winter Olympian in history, and a long-time advisor to athletic-performance and longevity brands.

Culture, brand & wellness lifestyle

Vivie-Ann Bakos (BLOND:ISH) — BLOND:ISH is a globally touring DJ, producer, and movement-builder who left a small Canadian town to become one of electronic music’s most uncompromising forces. As founder of Abracadabra, Bye Bye Plastic, and the $NRG token, she operates on one principle: energy is the only real currency.Jose Molla — Co-Founder of La Comunidad (acquired by Publicis) and CEO & Co-Founder of Plural Doers Hub, the independent, minority-certified content-production studio.

About Betterness

Betterness is the Augmented Wellness™ platform building agent-first infrastructure for the global health and wellness industry. Its products — the Betterness MCP, Bett-i, and the upcoming Betterness One — run on a shared enterprise-grade, HIPAA-compliant and SOC2-ready stack designed to let developers, businesses, and individuals build and run the next generation of AI-powered health systems.

Learn more: www.betterness.ai • www.betti.bot

Media Contact

Jose Molla
Chief Marketing Officer, Betterness
jose@betterness.ai

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SOURCE Betterness, Inc.