Baozun Inc. (Nasdaq: BZUN and HKEX: 9991) (“Baozun” or the
“Company”), the leading brand e-commerce service partner that helps
brands execute their e-commerce strategies in China, today
announced its unaudited financial results for the fourth quarter
and fiscal year ended December 31, 2020.
Fourth Quarter 2020 Financial
Highlights
- Total net
revenues were RMB3,346.7 million (US$1512.9 million), an increase
of 20.2% year-over-year. Services revenue was RMB1,872.5 million
(US$287.0 million), an increase of 25.6% year-over-year.
- Income from
operations was RMB300.6 million (US$46.1 million), an increase of
53.4% year-over-year. Operating margin was 9.0%, compared with 7.0%
in the same quarter of last year.
- Non-GAAP income
from operations2 was RMB333.1 million (US$51.1 million), an
increase of 53.8% year-over-year. Non-GAAP operating margin was
10.0%, compared with 7.8% in the same quarter of last year.
- Net income
attributable to ordinary shareholders of Baozun Inc. was RMB239.3
million (US$36.7 million), an increase of 69.9%
year-over-year.
- Non-GAAP net
income attributable to ordinary shareholders of Baozun Inc.3 was
RMB271.6 million (US$41.6 million), an increase of 68.4%
year-over-year.
- Basic and
diluted net income attributable to ordinary shareholders of Baozun
Inc. per American Depository Share (“ADS4”) were RMB3.27 (US$0.50)
and RMB3.17 (US$0.49), respectively, compared with RMB2.42 and
RMB2.36, respectively, for the same period of 2019.
- Basic and
diluted non-GAAP net income attributable to ordinary shareholders
of Baozun Inc. per ADS5 were RMB3.71 (US$0.57) and RMB3.58
(US$0.55), respectively, compared with RMB2.77 and RMB2.71,
respectively, for the same period of 2019.
________________1 This announcement contains translations of
certain Renminbi (RMB) amounts into U.S. dollars (US$) at a
specified rate solely for the convenience of the reader. Unless
otherwise noted, the translation of RMB into US$ has been made at
RMB6.5250 to US$1.00, the noon buying rate in effect on December
31, 2020 as set forth in the H.10 Statistical Release of the
Federal Reserve Board.2 Non-GAAP income from operations is a
non-GAAP financial measure, which is defined as income from
operations excluding share-based compensation expenses and
amortization of intangible assets resulting from business
acquisition.3 Non-GAAP net income attributable to ordinary
shareholders of Baozun Inc. is a non-GAAP financial measure, which
is defined as net income attributable to ordinary shareholders of
Baozun Inc. excluding share-based compensation expenses and
amortization of intangible assets resulting from business
acquisition.4 Each ADS represents three Class A ordinary shares.5
Basic and diluted non-GAAP net income attributable to ordinary
shareholders of Baozun Inc. per ADS are non-GAAP financial
measures, which are defined as non-GAAP net income attributable to
ordinary shareholders of Baozun Inc. divided by weighted average
number of shares used in calculating basic and diluted net income
per ordinary share multiplied by three, respectively.6 GMV includes
value added tax and excludes (i) shipping charges, (ii) surcharges
and other taxes, (iii) value of the goods that are returned and
(iv) deposits for purchases that have not been settled.7
Distribution GMV refers to the GMV under the distribution business
model.8 Non-distribution GMV refers to the GMV under the service
fee business model and the consignment business model.
Fourth Quarter 2020 Operational
Highlights
- Total Gross
Merchandise Volume (“GMV”)6 was RMB22,872.8 million, an increase of
28.7% year-over-year.
- Distribution
GMV7 was RMB1,645.8 million, an increase of 13.6%
year-over-year.
- Non-distribution
GMV8 was RMB21,227.0 million, an increase of 30.0%
year-over-year.
- Number of brand
partners increased to 266 as of December 31, 2020, from 231 as of
December 31, 2019.
- Number of GMV
brand partners increased to 258 as of December 31, 2020, from 222
as of December 31, 2019.
Fiscal Year 2020 Financial
Highlights
- Total net
revenues were RMB8,851.6 million (US$1,356.6 million), an increase
of 21.6% year-over-year.
- Income from
operations was RMB558.7 million (US$85.6 million), an increase of
45.6% year-over-year.
- Non-GAAP income
from operations was RMB668.7 million (US$102.5 million), an
increase of 45.2% year-over-year.
- Net income
attributable to ordinary shareholders of Baozun Inc. was RMB426.0
million (US$65.3 million), an increase of 51.4%
year-over-year.
- Non-GAAP net
income attributable to ordinary shareholders of Baozun Inc. was
RMB535.0 million (US$82.0 million), an increase of 49.8%
year-over-year.
- Basic and
diluted net income attributable to ordinary shareholders of Baozun
Inc. per ADS were RMB6.82 (US$1.05) and RMB6.69 (US$1.03),
respectively, compared with RMB4.85 and RMB4.72, respectively, for
the fiscal year of 2019.
- Basic and
diluted non-GAAP net income attributable to ordinary shareholders
of Baozun Inc. per ADS were RMB8.57 (US$1.31) and RMB8.40
(US$1.29), respectively, compared with RMB6.16 and RMB5.99,
respectively, for the fiscal year of 2019.
Fiscal Year 2020 Operational
Highlights
- Total GMV was
RMB55,687.4 million, an increase of 25.4% year-over-year.
- Distribution GMV
was RMB4,334.6 million, an increase of 12.6% year-over-year.
-
Non-distribution GMV was RMB51,352.8 million, an increase of 26.6%
year-over-year.
Mr. Vincent Qiu, Chairman and Chief Executive
Officer of Baozun, commented, “While digitalization continues to
advance, our unique position as a leading strategic partner enables
us to keep our brand partners ahead of the curve as China’s
e-commerce industry evolves. As we look forward, we reiterate our
vision of “Technology empowers future success”, and with our
commitment to technology and innovation, we plan to continue
delivering to our brand partners a “customer-centric” e-commerce
solution to further penetrate our value proposition. To capitalize
on the opportunities and growing total addressable market ahead, we
are launching a three-to-five-year medium-term strategic plan
focusing on three areas, specifically, customer-oriented service
penetration, new business expansion through omni-channel and new
models, as well as cost optimization and transformation. We believe
our multi-year strategy positions us well for 2021 and long-term
sustainable and profitable growth for years beyond.”
“What was abundantly clear throughout 2020 is
that our people are our greatest asset. Our culture is one of
delivering quality through developing people. I am proud of the
resilience, agility and commitment demonstrated by the Baozun team,
and we are honored to have been once again named "Shanghai Best
Employers Top 30" at one of the most influential and prestigious
nomination events. Finally, I am excited to announce a major office
move, planned for the second half of 2021, to an over 40,000
meter-square new headquarter. This will give us space to
accommodate our growing team and enable us to hire additional
talent to provide industry-leading support and service to our
global brand partners. We believe that the new Baozun campus will
support future business expansion and nurture the Baozun culture of
leading-edge innovation.” Mr. Vincent Qiu concluded.
Mr. Arthur Yu, Chief Financial Officer of
Baozun, commented, “As we look back at 2020, we demonstrated good
execution of our growth strategy, which was reflected in our 22%
year-over-year increase in net revenues. Moreover, we made even
more progress on profitability as our non-GAAP income from
operations rose 45% year-over-year, and we generated positive
operating cash flow for the second consecutive year. In addition,
our secondary listing on the Hong Kong Stock Exchange positioned us
with a solid cash foundation to pursue an exciting new journey to
further boost growth momentum. Looking ahead, while we take our
value proposition further with our brand partners, we will explore
new growth opportunities both organically and through M&A
opportunities to drive top line improvement. We also plan to
further optimize our cost base through efficiency and business
process re-engineering to improve our competitiveness and
profitability. Last but not least, we are initiating a
comprehensive ESG program which we believe will be critical for
long-term sustainable growth. In everything we do and plan our
ultimate goal is to generate long-term value for our
shareholders.”
Fourth Quarter 2020 Financial
Results
Total net revenues were
RMB3,346.7 million (US$512.9 million), an increase of 20.2% from
RMB 2,784.1 million in the same quarter of last year.
Product sales revenue was
RMB1,474.2 million (US$225.9 million), an increase of 14.0% from
RMB 1,293.1 million in the same quarter of last year. The increase
was primarily attributable to the increased popularity of brand
partners’ products, partially offset by a decrease in product sales
revenue in personal-care products in appliances category.
Services revenue was RMB1,872.5
million (US$287.0 million), an increase of 25.6% from RMB 1,491.0
million in the same quarter of last year. The increase was
primarily attributable to the rapid growth of the Company’s
consignment model and service fee model.
Total operating expenses were
RMB3,046.1 million (US$466.8 million), compared with RMB 2,588.2
million in the same quarter of last year.
- Cost of
products was RMB1,286.7 million (US$197.2 million),
compared with RMB1,057.3 million in the same quarter of last year.
The increase was primarily due to higher costs associated with an
increase in product sales revenue.
-
Fulfillment expenses were RMB851.0 million
(US$130.4 million), compared with RMB 665.3 million in the same
quarter of last year. The increase was primarily due to a rise in
GMV contribution from the Company’s distribution and consignment
model, an increase of hourly-rate in selection cost due to an
extended 2020 11.11 Shopping Festival, and an increase in warehouse
rental expenses associated with expanded warehouse capacity to
address additional growth opportunities, all of which were
partially offset by efficiency improvements.
- Sales
and marketing expenses were RMB741.4 million (US$113.6
million), compared with RMB648.0 million in the same quarter of
last year. The increase was in line with GMV growth and an increase
in digital marketing services, which was partially offset by
efficiency improvements.
-
Technology and content expenses were RMB110.1
million (US$16.9 million) compared with RMB108.7 million in the
same quarter of last year. The slight increase was mainly
attributable to the Company’s continuous efforts in investments in
innovation and productization, partially offset by the Company’s
cost control initiatives and efficiency improvements.
- General
and administrative expenses were RMB69.2 million (US$10.6
million), compared with RMB66.8 million in the same quarter of last
year. The increase was primarily due to a rise in administrative,
corporate strategy, and business planning staff, which were
partially offset by the leverage gained while the Company scales
its business.
Income from operations was
RMB300.6 million (US$46.1 million), an increase of 53.4% compared
with RMB195.9 million in the same quarter of last year. Operating
margin was 9.0%, compared with 7.0% in the same quarter of last
year.
Non-GAAP income from operations
was RMB333.1 million (US$51.1 million), an increase of 53.8%
compared with RMB216.6 million in the same quarter of last year.
Non-GAAP operating margin was 10.0%, compared with 7.8% in the same
quarter of last year.
Net income attributable to
ordinary shareholders of Baozun Inc. was RMB239.3 million (US$36.7
million), an increase of 69.9% from the same quarter of last year.
Basic and diluted net income attributable to ordinary shareholders
of Baozun Inc. per ADS were RMB3.27 (US$0.50) and RMB3.17
(US$0.49), respectively, compared with RMB2.42 and RMB2.36,
respectively, in the same period of 2019.
Non-GAAP net income
attributable to ordinary shareholders of Baozun Inc. was RMB271.6
million (US$41.6 million), an increase of 68.4% from the same
quarter of last year. Basic and diluted non-GAAP net income
attributable to ordinary shareholders of Baozun Inc. per ADS were
RMB3.71 (US$0.57) and RMB3.58 (US$0.55), respectively, compared
with RMB2.77 and RMB2.71, respectively, in the same period of
2019.
Fiscal Year 2020 Financial
Results
Total net
revenues were RMB8,851.6
million (US$1,356.6 million), an increase of 21.6%
from RMB 7,278.2 million in fiscal year 2019.
Product sales
revenue was RMB3,906.6 million (US$598.7
million), an increase of 14.2% from RMB 3,422.2
million in fiscal year 2019. The increase was primarily
attributable to the increased popularity of brand partners’
products, partially offset by slower growth in personal-care
products in appliances category.
Services
revenue was RMB4,945.0 million (US$757.8
million), an increase of 28.2% from RMB 3,856.0
million in fiscal year 2019. The increase was primarily
attributable to the rapid growth of the Company’s consignment model
and service fee model.
Total operating
expenses were RMB8,292.9
million (US$1,270.9 million), compared with RMB6,894.5
million in fiscal year 2019.
- Cost
of products was RMB3,326.2
million (US$509.8 million), compared with RMB2,774.3
million in fiscal year 2019, with the increase primarily due
to higher costs associated with an increase in product sales
revenue.
-
Fulfillment expenses were RMB2,259.2
million (US$346.2 million), compared with RMB1,678.2
million in fiscal year 2019. The increase was primarily due to
a rise in GMV contribution from the Company’s distribution and
consignment model and an increase in warehouse rental expenses
associated with expanded warehouse capacity to address additional
growth opportunities, which were partially offset by efficiency
improvements.
- Sales
and marketing expenses were RMB2,130.7
million (US$326.5 million), compared with RMB1,815.6
million in fiscal year 2019. The increase was in line with GMV
growth and an increase in digital marketing services, which were
partially offset by efficiency improvements.
-
Technology and content
expenses were RMB409.9 million (US$62.8
million), compared with RMB393.0 million in fiscal year 2019.
The increase was in line with GMV growth, and the Company’s
continuous efforts in investments in innovation and productization,
partially offset by the Company’s cost control initiatives and
efficiency improvements.
- General
and administrative expenses were RMB224.0
million (US$34.3 million), compared with RMB215.7
million in fiscal year 2019. The increase was primarily due to
an increase in administrative, corporate strategy, and business
planning staff, which were partially offset by the leverage gained
while the Company scales its business.
Income from operations was
RMB558.7 million (US$85.6 million), an increase of 45.6% compared
with RMB383.7 million in fiscal year 2019. Operating margin was
6.3%, compared with 5.3% in fiscal year 2019.
Non-GAAP income from operations
was RMB668.7 million (US$102.5 million), an increase of 45.2%
compared with RMB460.4 million in fiscal year 2019. Non-GAAP
operating margin was 7.6%, compared with 6.3% in fiscal year
2019.
Net income attributable to
ordinary shareholders of Baozun Inc. was RMB426.0 million (US$65.3
million), an increase of 51.4% from RMB281.3 million in fiscal year
2019. Basic and diluted net income attributable to ordinary
shareholders of Baozun Inc. per ADS were RMB6.82 (US$1.05) and
RMB6.69 (US$1.03), respectively, compared with RMB4.85 and RMB4.72,
respectively, in fiscal year 2019.
Non-GAAP net income
attributable to ordinary shareholders of Baozun Inc. was RMB535.0
million (US$82.0 million), an increase of 49.8% from RMB357.1
million in fiscal year 2019. Basic and diluted non-GAAP net income
attributable to ordinary shareholders of Baozun Inc. per ADS were
RMB8.57 (US$1.31) and RMB8.40 (US$1.29), respectively, compared
with RMB6.16 and RMB5.99, respectively, in fiscal year 2019.
As of December 31, 2020, the Company had
RMB5,028.5 million (US$770.7 million) in cash, cash
equivalents and short-term investments, an increase from
RMB1,988.5 million as of December 31, 2019. The significant
increase in cash, cash equivalents and short-term investments was
mainly attributable to the offering proceeds received from the
issuance of the Company’s ordinary shares in connection with the
Company’s secondary listing on the Hong Kong Stock Exchange.
Most Recent Update
Equity Investment and Strategic Business
Cooperation with iClick Interactive Asia Group Limited
(“iClick”)
On January 26, 2021, Baozun entered into certain
agreements with iClick, an independent online marketing and
enterprise data solutions provider in China. Pursuant to the share
subscription agreement entered into between Baozun and iClick, and
a share purchase agreement with an existing shareholder of iClick,
Baozun has acquired and beneficially owns approximately 4% of
iClick’s total outstanding shares, representing approximately 10%
total voting equity of iClick based on ordinary shares of iClick
outstanding as of January 25, 2021 and taking into account the
ordinary shares subscribed by Baozun.
Under the strategic cooperation framework
agreement between Baozun and iClick, Baozun will provide online
operation and infrastructure services to brand partners, including
but not limited to performance-based advertising, online-store
operation, customer services, warehousing and fulfillment and
relevant back-end systems, while iClick will provide SaaS-based IT
and system solutions for clients’ e-commerce infrastructure
establishment in the Tencent ecosystem, including but not limited
to storefront setup, social CRM system, data management platform,
marketing automation tool and any additional SaaS products as
required. Both parties are expected to jointly develop a private
domain traffic platform within Tencent’s e-commerce ecosystem.
Acquisition of Full Jet Limited (“Full
Jet”) to Accelerate Expansion of Luxury and Premium Brand
Footprint
On February 2, 2021, Baozun entered into a share
purchase agreement to acquire a 100% equity interest in Full Jet, a
strategic and brand-focused industry expert that specializes in
developing go-to-market strategies for high-end and luxury brands
entering the Chinese market. Full Jet’s key business coverage
includes brand development, strategic consulting, e-commerce
operations and marketing. Full Jet has global offices in Paris,
Hong Kong and Shanghai, China. The acquisition was closed on
February 5, 2021. The Company believes that this strategic
acquisition of Full Jet strengthens the Company’s expertise in
business development, strategic consulting, and brand management,
and expands its geographic touchpoints with premium and luxury
brands globally. The acquisition is expected to help Baozun unlock
the potential for future growth of premium and luxury sectors and
develop additional strong growth drivers over the coming years.
Conference Call
The Company will host a conference call to
discuss the earnings at 7:00 a.m. Eastern Time on Thursday, March
4, 2021 (8:00 p.m. Beijing time on the same day).
Due to the outbreak of COVID-19, operator
assisted conference calls are not available at the moment. All
participants wishing to attend the call must preregister online
before they can receive the dial-in numbers. Preregistration may
require a few minutes to complete. The Company would like to
apologize for any inconvenience caused by not having an operator as
a result of COVID-19.
Participants can register for the conference
call by navigating to
http://apac.directeventreg.com/registration/event/8393732. Once
preregistration has been completed, participants will receive
dial-in numbers, the passcode, and a unique access PIN.
To join the conference, simply dial the number
in the calendar invite you receive after preregistering, enter the
passcode followed by your PIN, and you will join the conference
instantly.
A telephone replay of the call will be available
after the conclusion of the conference call through 08:59 p.m.
Beijing Time, March 12, 2021.
Dial-in numbers for the replay are as follows: |
International Dial-in |
+61-2-8199-0299 |
U.S. Toll Free |
+1-855-452-5696 |
Passcode |
8393732# |
A live and archived webcast of the conference
call will be available on the Investor Relations section of
Baozun’s website at http://ir.baozun.com/.
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 from operations, non-GAAP operating margin,
non-GAAP net income, non-GAAP net margin, non-GAAP net income
attributable to ordinary shareholders of Baozun Inc. and non-GAAP
net income 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. Non-GAAP income from
operations is income from operations excluding the impact of
share-based compensation expenses and amortization of intangible
assets resulting from business acquisition. Non-GAAP operating
margin is non-GAAP income from operations as a percentage of total
net revenues. Non-GAAP net income is net income excluding the
impact of share-based compensation expenses and amortization of
intangible assets resulting from business acquisition. Non-GAAP net
margin is non-GAAP net income as a percentage of total net
revenues. Non-GAAP net income attributable to ordinary shareholders
of Baozun Inc. is net income attributable to ordinary shareholders
of Baozun Inc. excluding the impact of share-based compensation
expenses and amortization of intangible assets resulting from
business acquisition. Non-GAAP net income attributable to ordinary
shareholders of Baozun Inc. per ADS is non-GAAP net income
attributable to ordinary shareholders of Baozun Inc. divided by
weighted average number of shares used in calculating net income
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 from operations and
non-GAAP net income enable the Company’s management to assess the
Company’s financial and operating results without considering the
impact of share-based compensation expenses and amortization of
intangible assets resulting from business acquisition. Such items
are non-cash expenses that are not directly related to the
Company’s business operations. Share-based compensation expenses
represent non-cash expenses associated with share options and
restricted share units the Company grants under the share incentive
plans. Amortization of intangible assets resulting from business
acquisition represents non-cash expenses associated with intangible
assets acquired through one-off business acquisition. The Company
also believes that the use of the non-GAAP measures facilitates
investors’ assessment of the Company’s financial and operating
performance.
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 from
operations, non-GAAP net income, non-GAAP net income attributable
to ordinary shareholders of Baozun Inc., and non-GAAP net income
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. Share-based compensation expenses
and amortization of intangible assets resulting from business
acquisition have been and may continue to be incurred in the
Company’s business and is not reflected in the presentation of
non-GAAP income from operations and non-GAAP net income. 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 from operations,
non-GAAP operating margin, non-GAAP net income, non-GAAP net
margin, non-GAAP net income attributable to ordinary shareholders
of Baozun Inc. and non-GAAP net income 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 from
operations, operating margin, net income, net margin, net income
attributable to ordinary shareholders of Baozun Inc. and net income
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. 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 press release 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,” “potential,”
“continue,” “ongoing,” “targets,” “guidance,” “going forward,”
“outlook” and similar statements. Statements that are not
historical facts, including quotes from management in this
announcement and statements about the Company’s strategies and
goals, are or contain 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 the following: the Company’s operations and business
prospects; the Company’s business and operating strategies and its
ability to implement such strategies; the Company’s ability to
develop and manage its operations and business; competition for,
among other things, capital, technology and skilled personnel; the
Company’s ability to control costs; the Company’s dividend policy;
changes to regulatory and operating conditions in the industry and
geographical markets in which the Company operates; and other risks
and uncertainties. Further information regarding these and other
risks, uncertainties or factors is included in the Company’s
filings with the U.S. Securities and Exchange Commission and
Company’s announcements, notice or other documents published on the
website of The Stock Exchange of Hong Kong Limited. All information
provided in this press release is as of the date of this press
release and are based on assumptions that the Company believes to
be reasonable as of this date, and the Company does not undertake
any obligation to update any forward-looking statement, except as
required under applicable law.
About Baozun Inc.
Baozun Inc. is the leader and a pioneer in the
brand e-commerce service industry in China. Baozun empowers a broad
and diverse range of brands to grow and succeed by leveraging its
end-to-end e-commerce service capabilities, omni-channel coverage
and technology-driven solutions. Its integrated one-stop solutions
address all core aspects of the e-commerce operations covering IT
solutions, online store operations, digital marketing, customer
services, and warehousing and fulfillment.
For more information, please visit
http://ir.baozun.com.
For investor and media inquiries, please
contact:
Baozun Inc.Ms. Wendy SunEmail:
ir@baozun.com
ChristensenIn ChinaMr. Rene
VanguestainePhone: +852-6686-1376E-mail:
rvanguestaine@christensenir.com
In U.S.Ms. Linda BergkampPhone:
+1-480-614-3004Email: lbergkamp@ChristensenIR.com
|
Baozun Inc. |
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands) |
|
|
|
|
|
|
|
|
|
As of |
|
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2020 |
|
|
RMB |
|
RMB |
|
US$ |
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
1,144,451 |
|
3,579,665 |
|
548,608 |
Restricted cash |
|
382,359 |
|
151,354 |
|
23,196 |
Short-term investments |
|
844,040 |
|
1,448,843 |
|
222,045 |
Accounts receivable, net |
|
1,800,896 |
|
2,188,977 |
|
335,475 |
Inventories, net |
|
896,818 |
|
1,026,038 |
|
157,247 |
Advances to suppliers |
|
214,771 |
|
284,777 |
|
43,644 |
Prepayments and other current assets |
|
387,713 |
|
438,212 |
|
67,159 |
Amounts due from related parties |
|
19,323 |
|
40,935 |
|
6,274 |
Total current assets |
|
5,690,371 |
|
9,158,801 |
|
1,403,648 |
Non-current assets |
|
|
|
|
|
|
Long-term time deposits |
|
209,495 |
|
- |
|
- |
Investments in equity investees |
|
37,373 |
|
53,342 |
|
8,175 |
Property and equipment, net |
|
415,648 |
|
430,089 |
|
65,914 |
Intangible assets, net |
|
151,041 |
|
146,373 |
|
22,433 |
Land use right, net |
|
42,567 |
|
41,541 |
|
6,366 |
Operating lease right-of-use assets |
|
440,593 |
|
524,792 |
|
80,428 |
Goodwill |
|
13,574 |
|
13,574 |
|
2,080 |
Other non-current assets |
|
41,461 |
|
51,531 |
|
7,898 |
Deferred tax assets |
|
54,477 |
|
54,649 |
|
8,375 |
Total non-current assets |
|
1,406,229 |
|
1,315,891 |
|
201,669 |
|
|
|
|
|
|
|
Total assets |
|
7,096,600 |
|
10,474,692 |
|
1,605,317 |
|
|
|
|
|
|
|
|
Baozun Inc. |
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands, except for share and per share
data) |
|
|
|
|
|
|
|
|
|
As of |
|
|
December 31,2019 |
|
December 31, 2020 |
|
December 31, 2020 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Short-term loan |
|
428,490 |
|
- |
|
|
- |
|
Accounts payable |
|
877,093 |
|
421,562 |
|
|
64,607 |
|
Notes payable |
|
210,693 |
|
500,820 |
|
|
76,754 |
|
Income tax payables |
|
81,966 |
|
72,588 |
|
|
11,125 |
|
Accrued expenses and other current liabilities |
|
581,122 |
|
991,180 |
|
|
151,905 |
|
Amounts due to related parties |
|
6,796 |
|
44,997 |
|
|
6,896 |
|
Current operating lease liabilities |
|
137,855 |
|
165,122 |
|
|
25,306 |
|
Total current liabilities |
|
2,324,015 |
|
2,196,269 |
|
|
336,593 |
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Long-term loan |
|
1,859,896 |
|
1,762,847 |
|
|
270,168 |
|
Deferred tax liability |
|
2,929 |
|
2,538 |
|
|
389 |
|
Long-term operating lease liabilities |
|
309,989 |
|
370,434 |
|
|
56,772 |
|
Total non-current liabilities |
|
2,172,814 |
|
2,135,819 |
|
|
327,329 |
|
|
|
|
|
|
|
|
Total liabilities |
|
4,496,829 |
|
4,332,088 |
|
|
663,922 |
|
|
|
|
|
|
|
|
Redeemable non-controlling interests |
|
9,254 |
|
9,000 |
|
|
1,379 |
|
|
|
|
|
|
|
|
Baozun Inc. shareholders’ equity: |
|
|
|
|
|
|
Class A ordinary shares (US$0.0001 par value; 470,000,000 shares
authorized, 174,918,929 and 220,505,115 shares issued and
outstanding as of December 31, 2019 and 2020, respectively) |
|
107 |
|
137 |
|
|
21 |
|
Class B ordinary shares (US$0.0001 par value; 30,000,000 shares
authorized, 13,300,738 shares issued and outstanding as of December
31, 2019 and 2020, respectively) |
|
8 |
|
8 |
|
|
1 |
|
Additional paid-in capital |
|
2,014,227 |
|
5,207,631 |
|
|
798,104 |
|
Retained earnings |
|
526,009 |
|
952,001 |
|
|
145,901 |
|
Accumulated other comprehensive income |
|
28,380 |
|
(48,756 |
) |
|
(7,472 |
) |
Total Baozun Inc. shareholders' equity |
|
2,568,731 |
|
6,111,021 |
|
|
936,555 |
|
|
|
|
|
|
|
|
Non-controlling interests |
|
21,786 |
|
22,583 |
|
|
3,461 |
|
|
|
|
|
|
|
|
Total equity |
|
2,590,517 |
|
6,133,604 |
|
|
940,016 |
|
|
|
|
|
|
|
|
Total liabilities, redeemable non-controlling interests and
equity |
|
7,096,600 |
|
10,474,692 |
|
|
1,605,317 |
|
|
|
|
|
|
|
|
|
|
|
Baozun Inc. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME |
(In thousands, except for share and per share data and per
ADS data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, |
|
For the year ended December 31, |
|
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Product sales |
|
1,293,079 |
|
|
1,474,246 |
|
|
225,938 |
|
|
3,422,151 |
|
|
3,906,611 |
|
|
598,714 |
|
Services |
|
1,491,048 |
|
|
1,872,452 |
|
|
286,966 |
|
|
3,856,041 |
|
|
4,944,952 |
|
|
757,847 |
|
Total net revenues |
|
2,784,127 |
|
|
3,346,698 |
|
|
512,904 |
|
|
7,278,192 |
|
|
8,851,563 |
|
|
1,356,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products |
|
(1,057,311 |
) |
|
(1,286,659 |
) |
|
(197,189 |
) |
|
(2,774,342 |
) |
|
(3,326,243 |
) |
|
(509,769 |
) |
Fulfillment |
|
(665,322 |
) |
|
(850,991 |
) |
|
(130,420 |
) |
|
(1,678,191 |
) |
|
(2,259,176 |
) |
|
(346,234 |
) |
Sales and marketing (2) |
|
(647,972 |
) |
|
(741,386 |
) |
|
(113,622 |
) |
|
(1,815,642 |
) |
|
(2,130,667 |
) |
|
(326,539 |
) |
Technology and content |
|
(108,687 |
) |
|
(110,148 |
) |
|
(16,881 |
) |
|
(392,951 |
) |
|
(409,870 |
) |
|
(62,815 |
) |
General and administrative |
|
(66,802 |
) |
|
(69,167 |
) |
|
(10,600 |
) |
|
(215,660 |
) |
|
(224,045 |
) |
|
(34,336 |
) |
Other operating (expense) income, net |
|
(42,098 |
) |
|
12,281 |
|
|
1,882 |
|
|
(17,753 |
) |
|
57,115 |
|
|
8,753 |
|
Total operating expenses |
|
(2,588,192 |
) |
|
(3,046,070 |
) |
|
(466,830 |
) |
|
(6,894,539 |
) |
|
(8,292,886 |
) |
|
(1,270,940 |
) |
Income from operations |
|
195,935 |
|
|
300,628 |
|
|
46,074 |
|
|
383,653 |
|
|
558,677 |
|
|
85,621 |
|
Other income (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
13,147 |
|
|
13,679 |
|
|
2,096 |
|
|
42,614 |
|
|
41,373 |
|
|
6,341 |
|
Interest expense |
|
(19,973 |
) |
|
(14,097 |
) |
|
(2,160 |
) |
|
(61,316 |
) |
|
(66,124 |
) |
|
(10,134 |
) |
Impairment loss of investments |
|
(9,021 |
) |
|
(10,000 |
) |
|
(1,533 |
) |
|
(9,021 |
) |
|
(10,800 |
) |
|
(1,655 |
) |
Exchange (loss) gain |
|
(3,452 |
) |
|
25,544 |
|
|
3,915 |
|
|
(7,663 |
) |
|
25,725 |
|
|
3,943 |
|
Income before income tax |
|
176,636 |
|
|
315,754 |
|
|
48,392 |
|
|
348,267 |
|
|
548,851 |
|
|
84,116 |
|
Income tax expense (3) |
|
(37,961 |
) |
|
(75,951 |
) |
|
(11,640 |
) |
|
(71,144 |
) |
|
(127,787 |
) |
|
(19,584 |
) |
Share of income (loss) in equity method investment, net of tax of
nil |
|
3,624 |
|
|
(967 |
) |
|
(148 |
) |
|
4,768 |
|
|
5,470 |
|
|
838 |
|
Net income |
|
142,299 |
|
|
238,836 |
|
|
36,604 |
|
|
281,891 |
|
|
426,534 |
|
|
65,370 |
|
Net (income) loss attributable to non-controlling interests |
|
(1,425 |
) |
|
511 |
|
|
78 |
|
|
(594 |
) |
|
(542 |
) |
|
(83 |
) |
Net income attributable to ordinary shareholders of Baozun
Inc. |
|
140,874 |
|
|
239,347 |
|
|
36,682 |
|
|
281,297 |
|
|
425,992 |
|
|
65,287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to ordinary shareholders
of Baozun Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
0.81 |
|
|
1.09 |
|
|
0.17 |
|
|
1.62 |
|
|
2.27 |
|
|
0.35 |
|
Diluted |
|
0.79 |
|
|
1.06 |
|
|
0.16 |
|
|
1.57 |
|
|
2.23 |
|
|
0.34 |
|
Net income per ADS attributable to ordinary shareholders of
Baozun Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
2.42 |
|
|
3.27 |
|
|
0.50 |
|
|
4.85 |
|
|
6.82 |
|
|
1.05 |
|
Diluted |
|
2.36 |
|
|
3.17 |
|
|
0.49 |
|
|
4.72 |
|
|
6.69 |
|
|
1.03 |
|
Weighted average shares used in calculating net income per
ordinary share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
174,763,688 |
|
|
219,717,614 |
|
|
219,717,614 |
|
|
173,937,013 |
|
|
187,322,781 |
|
|
187,322,781 |
|
Diluted |
|
178,703,772 |
|
|
239,172,660 |
|
|
239,172,660 |
|
|
178,932,010 |
|
|
190,988,171 |
|
|
190,988,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
142,299 |
|
|
238,836 |
|
|
36,604 |
|
|
281,891 |
|
|
426,534 |
|
|
65,370 |
|
Other comprehensive income, net of tax of nil: |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
8,433 |
|
|
(91,702 |
) |
|
(14,054 |
) |
|
(842 |
) |
|
(77,136 |
) |
|
(11,822 |
) |
Comprehensive income |
|
150,732 |
|
|
147,134 |
|
|
22,550 |
|
|
281,049 |
|
|
349,398 |
|
|
53,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In June 2016, the FASB issued ASU 2016-13,
Financial Instruments—Credit Losses (Topic 326), which requires all
entities to disclose their current estimate of all expected credit
losses. We adopted this ASU on January 1, 2020 using the modified
retrospective transition method and no material adjustment to the
opening balance of retained earnings of 2020 was necessary. The
adoption of this new ASU has no material impact on our consolidated
financial position and results of operations.
(1) Share-based compensation expenses are
allocated in operating expenses items as follows:
|
|
For the three months ended December 31, |
|
For the year ended December 31, |
|
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fulfillment |
|
2,406 |
|
407 |
|
62 |
|
9,839 |
|
8,497 |
|
1,302 |
Sales and marketing |
|
6,048 |
|
11,760 |
|
1,803 |
|
22,209 |
|
38,631 |
|
5,921 |
Technology and content |
|
1,588 |
|
4,479 |
|
686 |
|
9,817 |
|
16,711 |
|
2,561 |
General and administrative |
|
10,244 |
|
15,452 |
|
2,368 |
|
33,318 |
|
44,601 |
|
6,835 |
|
|
20,286 |
|
32,098 |
|
4,919 |
|
75,183 |
|
108,440 |
|
16,619 |
(2) Including amortization of intangible assets
resulting from business acquisition, which amounted to RMB0.4
million for both the three months period ended December 31, 2019
and 2020. Including amortization of intangible assets resulting
from business acquisition, which amounted to RMB1.6 million for the
year ended December 31, 2019 and 2020, respectively.
(3) Including income tax benefits of RMB0.1
million related to the reversal of deferred tax liabilities, which
was recognized on business acquisition for both the three months
period ended December 31, 2019 and 2020. Including income tax
benefits of RMB0.4 million related to the reversal of deferred tax
liabilities, which was recognized on business acquisition for the
year ended December 31, 2019 and 2020, respectively.
Baozun Inc. |
Reconciliations of GAAP and Non-GAAP Results |
(in thousands, except for share and per ADS
data) |
|
|
|
For the three months ended December 31, |
|
For the year ended December 31, |
|
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
195,935 |
|
|
300,628 |
|
|
46,074 |
|
|
383,653 |
|
|
558,677 |
|
|
85,621 |
|
Add: Share-based compensation expenses |
|
20,286 |
|
|
32,098 |
|
|
4,919 |
|
|
75,183 |
|
|
108,440 |
|
|
16,619 |
|
Amortization of intangible assets resulting from business
acquisition |
|
391 |
|
|
391 |
|
|
60 |
|
|
1,564 |
|
|
1,564 |
|
|
240 |
|
Non-GAAP income from operations |
|
216,612 |
|
|
333,117 |
|
|
51,053 |
|
|
460,400 |
|
|
668,681 |
|
|
102,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
142,299 |
|
|
238,836 |
|
|
36,604 |
|
|
281,891 |
|
|
426,534 |
|
|
65,370 |
|
Add: Share-based compensation expenses |
|
20,286 |
|
|
32,098 |
|
|
4,919 |
|
|
75,183 |
|
|
108,440 |
|
|
16,619 |
|
Amortization of intangible assets resulting from business
acquisition |
|
391 |
|
|
391 |
|
|
60 |
|
|
1,564 |
|
|
1,564 |
|
|
240 |
|
Less: Tax effect of amortization of intangible
assets resulting from business acquisition |
|
(98 |
) |
|
(98 |
) |
|
(15 |
) |
|
(392 |
) |
|
(392 |
) |
|
(60 |
) |
Non-GAAP net income |
|
162,878 |
|
|
271,227 |
|
|
41,568 |
|
|
358,246 |
|
|
536,146 |
|
|
82,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to ordinary shareholders of Baozun
Inc. |
|
140,874 |
|
|
239,347 |
|
|
36,682 |
|
|
281,297 |
|
|
425,992 |
|
|
65,287 |
|
Add: Share-based compensation expenses |
|
20,286 |
|
|
32,098 |
|
|
4,919 |
|
|
75,183 |
|
|
108,440 |
|
|
16,619 |
|
Amortization of intangible assets resulting from business
acquisition |
|
199 |
|
|
199 |
|
|
30 |
|
|
796 |
|
|
796 |
|
|
122 |
|
Less: Tax effect of amortization of intangible
assets resulting from business acquisition |
|
(50 |
) |
|
(50 |
) |
|
(8 |
) |
|
(200 |
) |
|
(200 |
) |
|
(31 |
) |
Non-GAAP net income attributable to ordinary shareholders
of Baozun Inc. |
|
161,309 |
|
|
271,594 |
|
|
41,623 |
|
|
357,076 |
|
|
535,028 |
|
|
81,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income attributable to ordinary shareholders
of Baozun Inc. per ADS: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
2.77 |
|
|
3.71 |
|
|
0.57 |
|
|
6.16 |
|
|
8.57 |
|
|
1.31 |
|
Diluted |
|
2.71 |
|
|
3.58 |
|
|
0.55 |
|
|
5.99 |
|
|
8.40 |
|
|
1.29 |
|
Weighted average shares used in calculating net income per
ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
174,763,688 |
|
|
219,717,614 |
|
|
219,717,614 |
|
|
173,937,013 |
|
|
187,322,781 |
|
|
187,322,781 |
|
Diluted |
|
178,703,772 |
|
|
239,172,660 |
|
|
239,172,660 |
|
|
178,932,010 |
|
|
190,988,171 |
|
|
190,988,171 |
|
|
|
|
|
|
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Baozun (NASDAQ:BZUN)
Historical Stock Chart
From Feb 2024 to Mar 2024
Baozun (NASDAQ:BZUN)
Historical Stock Chart
From Mar 2023 to Mar 2024