First Quarter 2017 Financial Highlights
- Total net revenues were
RMB804.9 million (US$1116.9 million), an increase of 20.5% year-over-year. - Net income attributable to
Baozun ordinary shareholders wasRMB10.6 million (US$1.5 million ), an increase of 157.4% year-over-year. - Non-GAAP net income attributable to
Baozun ordinary shareholders2 wasRMB28.9 million (US$4.2 million ), an increase of 104.0% year-over-year. - Basic and diluted net income attributable to
Baozun ordinary shareholders per American Depository Share (“ADS3”) wereRMB0.20 (US$0.03) andRMB0.18 (US$0.03) , respectively, compared with basic and diluted net income attributable toBaozun ordinary shareholders per ADS ofRMB0.09 for the same period of 2016. - Basic and diluted non-GAAP net income attributable to
Baozun ordinary shareholders per ADS wereRMB0.54 (US$0.08) andRMB0.50 (US$0.07) , respectively, compared with basic and diluted non-GAAP net income attributable toBaozun ordinary shareholders per ADS ofRMB0.29 andRMB0.27 , respectively, for the same period of 2016.
First Quarter 2017 Operational Highlights
- Total Gross Merchandise Volume (“GMV”)4 was
RMB2,974.4 million , an increase of 60.5% year-over-year. - Distribution GMV5 was
RMB580.1 million , an increase of 7.2% year-over-year. - Non-distribution GMV6 was
RMB2,394.3 million , an increase of 82.5% year-over-year. - Number of brand partners increased to 136 as of
March 31, 2017 , from 116 as ofMarch 31, 2016 . - Number of GMV brand partners increased to 125 as of
March 31, 2017 , from 98 as ofMarch 31, 2016 .
“Our business continued to gain growth momentum with another strong quarter,” commented Mr.
Mr. Beck Chen, Chief Financial Officer of
First Quarter 2017 Financial Results
Total net revenues were
Product sales revenue was
Services revenue was
Total operating expenses were
- Cost of products was
RMB439.1 million (US$63.8 million ), compared withRMB410.8 million in the same quarter of last year. The increase was primarily due to an increase in the volume of product sales from the Company’s core brand e-commerce business. - Fulfillment expenses were
RMB132.4 million (US$19.2 million ), compared withRMB93.0 million in the same quarter of last year. The increase was primarily due to increases in GMV contribution from the Company’s consignment business, percentage of total orders fulfilled by a premium delivery service provider, and warehouse rental expenses. - Sales and marketing expenses were
RMB162.5 million (US$23.6 million ), compared withRMB119.4 million in the same quarter of last year. The increase was primarily due to increases in store operation staff and promotional and marketing expenses associated with Company-operated online stores. - Technology and content expenses were
RMB28.8 million (US$4.2 million ), compared withRMB21.2 million in the same quarter of last year. The increase was primarily due to increases in technology-focused staff, share-based compensation expense and project-based variable technological expenses from brand stores. - General and administrative expenses were
RMB27.2 million (US$4.0 million ), compared withRMB20.3 million in the same quarter of last year. The increase was primarily due to increases in administrative staff cost and share-based compensation expense.
Income from operations was
Non-GAAP income from operations7 was
Net income attributable to
Non-GAAP net income attributable to
As of
Business Outlook
For the second quarter of 2017, the Company expects total net revenues to be between
Conference Call
The Company will host a conference call to discuss the earnings at
Dial-in numbers for the live conference call are as follows:
International: | +852 5808 3202 | |
U.S. Toll Free | +1 631-514-2526 | |
Mainland China Toll Free | 4001-200-539 | |
Hong Kong Toll Free | 800-905-927 | |
Passcode: BZUN | ||
A telephone replay of the call will be available after the conclusion of the conference call through
Dial-in numbers for the replay are as follows:
International Dial-in | +61-2-9641-7900 | |
U.S. Toll Free | 1-866-846-0868 | |
Passcode: 8208293 | ||
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
In evaluating the Company’s business, the Company considers and uses non-GAAP net income/(loss) from operations, non-GAAP operating margin, non-GAAP net income/(loss), non-GAAP net margin, non-GAAP net income (loss) attributable to
The Company presents the non-GAAP financial measures because they are used by the Company’s management to evaluate the Company’s operating performance and formulate business plans. Non-GAAP income/(loss) from operations and non-GAAP net income/(loss) enable the Company’s management to assess the Company’s operating results without considering the impact of share-based compensation expenses. The Company also believes that the use of the non-GAAP measures facilitate investors’ assessment of the Company’s 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/(loss) from operations and non-GAAP net income/(loss) is that they do not reflect all items of income and expense that affect the Company’s operations. Share-based compensation expenses have been and may continue to be incurred in the Company’s business and is not reflected in the presentation of non-GAAP income/(loss) from operations and non-GAAP net income/(loss). Further, the non-GAAP measures may differ from the non-GAAP measures used by other companies, including peer companies, and therefore their comparability may be limited. In light of the foregoing limitations, the non-GAAP net income/(loss) from operations, non-GAAP operating margin, non-GAAP net income/(loss), non-GAAP net margin, non-GAAP net income (loss) attributable to
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.
Safe Harbor Statements
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in 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," "target," "going forward," "outlook" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the
About
For more information, please visit http://ir.baozun.com
_______________________
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
2 Non-GAAP net income attributable to
3 Each ADS represents three Class A ordinary shares.
4 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.
5 Distribution GMV refers to the GMV under the distribution business model.
6 Non-distribution GMV refers to the GMV under the service fee business model and the consignment business model.
7 Non-GAAP income from operations is a non-GAAP financial measure, which is defined as income from operations excluding share-based compensation expenses.
8 Basic and diluted non-GAAP net income attributable to
Baozun Inc. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In thousands) | ||||||||
As of | ||||||||
December 31, 2016 | March 31, 2017 | March 31, 2017 | ||||||
RMB | RMB | US$ | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 917,319 | 625,863 | 90,926 | |||||
Restricted cash | 50,832 | 15,390 | 2,236 | |||||
Short-term investment | 40,000 | 251,150 | 36,487 | |||||
Accounts receivable, net | 624,817 | 521,991 | 75,836 | |||||
Inventories | 312,071 | 293,104 | 42,583 | |||||
Advances to suppliers | 75,727 | 69,655 | 10,120 | |||||
Prepayments and other current assets | 108,495 | 97,092 | 14,106 | |||||
Amounts due from related parties | 38,772 | 49,039 | 7,124 | |||||
Total current assets | 2,168,033 | 1,923,284 | 279,418 | |||||
Non-current assets | ||||||||
Investments in equity investees | 33,443 | 32,913 | 4,782 | |||||
Property and equipment, net | 100,892 | 105,647 | 15,349 | |||||
Intangible assets, net | 26,984 | 29,009 | 4,214 | |||||
Other non-current assets | 26,581 | 93,744 | 13,619 | |||||
Deferred tax assets | 12,332 | 12,456 | 1,810 | |||||
Total non-current assets | 200,232 | 273,769 | 39,774 | |||||
Total assets | 2,368,265 | 2,197,053 | 319,192 |
Baozun Inc. | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
(In thousands, except for share and per share data) | ||||||||||||
As of | ||||||||||||
December 31, 2016 | March 31, 2017 | March 31, 2017 | ||||||||||
RMB | RMB | US$ | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable | 526,461 | 457,267 | 66,432 | |||||||||
Notes payable | 115,140 | - | - | |||||||||
Income tax payables | 15,811 | 23,109 | 3,357 | |||||||||
Accrued expenses and other current liabilities | 138,841 | 119,445 | 17,354 | |||||||||
Total current liabilities | 796,253 | 599,821 | 87,143 | |||||||||
Total liabilities | 796,253 | 599,821 | 87,143 | |||||||||
Shareholders’ equity: | ||||||||||||
Class A ordinary shares (US$0.0001 par value; 470,000,000 shares authorized, 146,111,244 and 146,666,712 shares issued and outstanding as of December 31, 2016 and March 31, 2017, respectively) | 92 | 92 | 14 | |||||||||
Class B ordinary shares (US$0.0001 par value; 30,000,000 shares authorized, 13,300,738 shares issued and outstanding as of December 31, 2016 and March 31, 2017, respectively) | 8 | 8 | 1 | |||||||||
Additional paid-in capital | 1,761,430 | 1,781,538 | 258,824 | |||||||||
Accumulated deficit | (233,866 | ) | (223,261 | ) | (32,435 | ) | ||||||
Accumulated other comprehensive income | 44,348 | 38,855 | 5,645 | |||||||||
Total shareholders' equity | 1,572,012 | 1,597,232 | 232,049 | |||||||||
Total liabilities and shareholders' equity | 2,368,265 | 2,197,053 | 319,192 |
Baozun Inc. | ||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||
(In thousands, except for share and per share data and per ADS data) | ||||||||||
For the three months ended March 31, | ||||||||||
2016 | 2017 | |||||||||
RMB | RMB | US$ | ||||||||
Net revenues | ||||||||||
Product sales | 465,669 | 497,950 | 72,343 | |||||||
Services | 202,519 | 306,921 | 44,590 | |||||||
Total net revenues | 668,188 | 804,871 | 116,933 | |||||||
Operating expenses (1) | ||||||||||
Cost of products | (410,805 | ) | (439,085 | ) | (63,791 | ) | ||||
Fulfillment | (92,969 | ) | (132,437 | ) | (19,241 | ) | ||||
Sales and marketing | (119,443 | ) | (162,468 | ) | (23,604 | ) | ||||
Technology and content | (21,160 | ) | (28,763 | ) | (4,179 | ) | ||||
General and administrative | (20,328 | ) | (27,243 | ) | (3,957 | ) | ||||
Other operating income, net | 520 | 468 | 68 | |||||||
Total operating expenses | (664,185 | ) | (789,528 | ) | (114,704 | ) | ||||
Income from operations | 4,003 | 15,343 | 2,229 | |||||||
Other income (expenses) | ||||||||||
Interest income | 2,803 | 3,132 | 455 | |||||||
Interest expense | - | (15 | ) | (2 | ) | |||||
Exchange gain (loss) | 79 | (151 | ) | (22 | ) | |||||
Income before income tax | 6,885 | 18,309 | 2,660 | |||||||
Income tax expense | (2,765 | ) | (7,174 | ) | (1,042 | ) | ||||
Share of loss in equity method investment, net of tax of nil | - | (530 | ) | (77 | ) | |||||
Net income attributable to ordinary shareholders of Baozun Inc. | 4,120 | 10,605 | 1,541 | |||||||
Net income per share attributable to ordinary shareholders of Baozun Inc.: | ||||||||||
Basic | 0.03 | 0.07 | 0.01 | |||||||
Diluted | 0.03 | 0.06 | 0.01 | |||||||
Net income per ADS attributable to ordinary shareholders of Baozun Inc.: | ||||||||||
Basic | 0.09 | 0.20 | 0.03 | |||||||
Diluted | 0.09 | 0.18 | 0.03 | |||||||
Weighted average shares used in calculating net income per ordinary share | ||||||||||
Basic | 148,876,209 | 159,516,894 | 159,516,894 | |||||||
Diluted | 159,274,427 | 174,776,404 | 174,776,404 | |||||||
Net income attributable to ordinary shareholders of Baozun Inc. | 4,120 | 10,605 | 1,541 | |||||||
Other comprehensive income, net of tax of nil: | ||||||||||
Foreign currency translation adjustment | (1,547 | ) | (5,493 | ) | (798 | ) | ||||
Comprehensive income | 2,573 | 5,112 | 743 | |||||||
(1) Share-based compensation expenses are allocated in operating expenses items as follows:
For the three months ended March 31, | ||||||
2016 | 2017 | |||||
RMB | RMB | US$ | ||||
Fulfillment | 462 | 738 | 107 | |||
Sales and marketing | 4,340 | 5,246 | 762 | |||
Technology and content | 1,848 | 5,379 | 781 | |||
General and administrative | 3,377 | 6,886 | 1,000 | |||
10,027 | 18,249 | 2,650 |
Baozun Inc. | |||||||||||||
Reconciliations of GAAP and Non-GAAP Results | |||||||||||||
(in thousands, except for share and per ADS data) | |||||||||||||
For the three months ended March 31, | |||||||||||||
2016 | 2017 | ||||||||||||
RMB | RMB | US$ | |||||||||||
Income from operations | 4,003 | 15,343 | 2,229 | ||||||||||
Add: Share-based compensation expenses | 10,027 | 18,249 | 2,650 | ||||||||||
Non-GAAP income from operations | 14,030 | 33,592 | 4,879 | ||||||||||
Net income attributable to ordinary shareholders of Baozun Inc. | 4,120 | 10,605 | 1,541 | ||||||||||
Add: Share-based compensation expenses | 10,027 | 18,249 | 2,650 | ||||||||||
Non-GAAP net income attributable to ordinary shareholders of Baozun Inc. | 14,147 | 28,854 | 4,191 | ||||||||||
Non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS: | |||||||||||||
Basic | 0.29 | 0.54 | 0.08 | ||||||||||
Diluted | 0.27 | 0.50 | 0.07 | ||||||||||
Weighted average shares used in calculating net income per ordinary share | |||||||||||||
Basic | 148,876,209 | 159,516,894 | 159,516,894 | ||||||||||
Diluted | 159,274,427 | 174,776,404 | 174,776,404 |
For investor and media inquiries, please contact:Baozun Inc. Ms.Caroline Dong ir@baozun.com Christensen InChina Mr.Christian Arnell Phone: +86-10-5900-1548 E-mail: carnell@christensenir.com In U.S. Ms.Linda Bergkamp Phone: +1-480-614-3004 Email: lbergkamp@ChristensenIR.com