Baozun Announces First Quarter 2020 Unaudited Financial Results
First Quarter 2020 Financial Highlights
- Total net revenues were
RMB1,523.6 million (US$1215.2 million), an increase of 18.4% year-over-year. Services revenue wasRMB822.5 million (US$116.2 million ), an increase of 22.9% year-over-year. - Income from operations was
RMB12.8 million (US$1.8 million ), as compared withRMB45.8 million in the same quarter of last year. Operating margin was 0.8%, compared with 3.6% in the same quarter of last year. - Non-GAAP income from operations2 was
RMB36.8 million (US$5.2 million ), as compared withRMB64.7 million in the same quarter of last year. Non-GAAP operating margin was 2.4%, compared with 5.0% in the same quarter of last year. - Net income attributable to ordinary shareholders of
Baozun Inc. wasRMB2.2 million (US$0.3 million ), as compared withRMB34.0 million in the same quarter of last year. - Non-GAAP net income attributable to ordinary shareholders of
Baozun Inc. 3 wasRMB26.0 million (US$3.7 million ), as compared withRMB52.6 million in the same quarter of last year. - Basic and diluted net income attributable to ordinary shareholders of
Baozun Inc. per American Depository Share (“ADS4”) wereRMB0.04 (US$0.01 ) andRMB0.04 (US$0.01 ), respectively, compared withRMB0.59 andRMB0.57 , respectively, in the same quarter of last year. - Basic and diluted non-GAAP net income attributable to ordinary shareholders of
Baozun Inc. per ADS5 wereRMB0.44 (US$0.06 ) andRMB0.44 (US$0.06 ), respectively, compared withRMB0.91 andRMB0.89 , respectively, in the same quarter of last year.
First Quarter 2020 Operational Highlights
- Total Gross Merchandise Volume (“GMV”)6 was
RMB9,209.8 million , an increase of 17.6% year-over-year. - Distribution GMV7 was
RMB782.9 million , an increase of 10.4% year-over-year. - Non-distribution GMV8 was
RMB8,426.9 million , an increase of 18.3% year-over-year. - Number of brand partners increased to 239 as of
March 31, 2020 , from 200 as ofMarch 31, 2019 . - Number of GMV brand partners increased to 228 as of
March 31, 2020 , from 192 as ofMarch 31, 2019 .
Mr.
Mr.
First Quarter 2020 Financial Results
Total net revenues were
Product sales revenue was
Services revenue was
Total operating expenses were
- Cost of products was
RMB590.1 million (US$83.3 million ), compared withRMB508.8 million in the same quarter of last year. The increase was primarily due to higher costs associated with an increase in product sales revenue, especially for newly acquired brand partners. - Fulfillment expenses were
RMB413.0 million (US$58.3 million ), compared withRMB287.6 million in the same quarter of last year. The increase was primarily due to an increase in GMV contribution from the Company’s distribution and consignment model and incremental logistics costs associated with the outbreak of COVID-19 inChina . - Sales and marketing expenses were
RMB366.2 million (US$51.7 million ), compared withRMB311.4 million in the same quarter of last year. The increase was in line with GMV growth. - Technology and content expenses were
RMB95.9 million (US$13.5 million ), compared withRMB87.9 million in the same quarter of last year. The increase was primarily due to growth in GMV and the Company’s ongoing investment in technological innovation and productization. - General and administrative expenses were
RMB49.9 million (US$7.1 million ), compared withRMB45.5 million in the same quarter of last year. The increase was primarily due to an increase in administrative, corporate strategy, and business planning staff.
Income from operations was
Non-GAAP income from operations was
Net income attributable to ordinary shareholders of
Non-GAAP net income attributable to ordinary shareholders of
As of
Business Outlook
Based on the market and operational conditions, provided that the macroeconomic environment does not deteriorate further, the Company expects total net revenues to be between
Conference Call
The Company will host a conference call to discuss the earnings at
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/2043268. Once preregistration has been complete, 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
Dial-in numbers for the replay are as follows:
International Dial-in | +61-2-8199-0299 |
1-855-452-5696 | |
Passcode: | 2043268# |
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/(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
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 and non-GAAP net income/(loss) 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. 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
The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest
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
About
For more information, please visit http://ir.baozun.com
For investor and media inquiries, please contact:
Ms.
Email: ir@baozun.com
Christensen
In
Mr.
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(In thousands) | ||||||
As of | ||||||
December 31, 2019 | 2020 |
2020 |
||||
RMB | RMB | US$ | ||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | 1,144,451 | 947,600 | 133,827 | |||
Restricted cash | 382,359 | 315,394 | 44,542 | |||
Short-term investments | 844,040 | 713,021 | 100,698 | |||
Accounts receivable, net | 1,800,896 | 1,593,099 | 224,989 | |||
Inventories, net | 896,818 | 833,850 | 117,762 | |||
Advances to suppliers | 214,771 | 219,747 | 31,034 | |||
Prepayments and other current assets | 387,713 | 330,766 | 46,713 | |||
Amounts due from related parties | 19,323 | 17,415 | 2,459 | |||
Total current assets | 5,690,371 | 4,970,892 | 702,024 |
Non-current assets | ||||||
Long-term time deposits | 209,495 | 212,706 | 30,040 | |||
Investments in equity investees | 37,373 | 47,833 | 6,755 | |||
Property and equipment, net | 415,648 | 412,382 | 58,239 | |||
Intangible assets, net | 151,041 | 148,066 | 20,911 | |||
Land use right, net | 42,567 | 42,311 | 5,975 | |||
Operating lease right-of-use assets | 440,593 | 406,798 | 57,451 | |||
13,574 | 13,574 | 1,917 | ||||
Other non-current assets | 41,461 | 38,810 | 5,481 | |||
Deferred tax assets | 54,477 | 54,540 | 7,703 | |||
Total non-current assets | 1,406,229 | 1,377,020 | 194,472 | |||
Total assets | 7,096,600 | 6,347,912 | 896,496 | |||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(In thousands, except for share and per share data) | ||||||
As of | ||||||
December 31, 2019 | 2020 |
2020 |
||||
RMB | RMB | US$ | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities | ||||||
Short-term loan | 428,490 | 390,579 | 55,160 | |||
Accounts payable | 877,093 | 523,008 | 73,863 | |||
Notes payable | 210,693 | - | - | |||
Income tax payables | 81,966 | 10,323 | 1,458 | |||
Accrued expenses and other current liabilities | 581,122 | 484,287 | 68,394 | |||
Amounts due to related parties | 6,796 | 6,179 | 873 | |||
Current operating lease liabilities | 137,855 | 128,345 | 18,126 | |||
Total current liabilities | 2,324,015 | 1,542,721 | 217,874 | |||
Non-current liabilities | ||||||
Long-term loan | 1,859,896 | 1,894,724 | 267,586 | |||
Deferred tax liability | 2,929 | 2,831 | 400 | |||
Long-term operating lease liabilities | 309,989 | 285,754 | 40,356 | |||
Total non-current liabilities | 2,172,814 | 2,183,309 | 308,342 | |||
Total liabilities | 4,496,829 | 3,726,030 | 526,216 | |||
Redeemable non-controlling interests | 9,254 | 8,540 | 1,206 | |||
Class A ordinary shares ( |
107 | 107 | 15 | |||
Class B ordinary shares ( |
8 | 8 | 1 | |||
Additional paid-in capital | 2,014,227 | 2,037,887 | 287,805 | |||
Retained earnings | 526,009 | 528,248 | 74,602 | |||
Accumulated other comprehensive income | 28,380 | 25,172 | 3,555 | |||
2,568,731 | 2,591,422 | 365,978 | ||||
Noncontrolling interests | 21,786 | 21,920 | 3,096 | |||
Total equity | 2,590,517 | 2,613,342 | 369,074 | |||
Total liabilities, redeemable non-controlling interests and equity | 7,096,600 | 6,347,912 | 896,496 | |||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
||||||||||
(In thousands, except for share and per share data and per ADS data) | ||||||||||
For the three months ended |
||||||||||
2019 | 2020 | |||||||||
RMB | RMB | US$ | ||||||||
Net revenues | ||||||||||
Product sales | 617,585 | 701,132 | 99,019 | |||||||
Services | 669,176 | 822,508 | 116,160 | |||||||
Total net revenues | 1,286,761 | 1,523,640 | 215,179 | |||||||
Operating expenses (1) | ||||||||||
Cost of products | (508,824 | ) | (590,106 | ) | (83,339 | ) | ||||
Fulfillment | (287,576 | ) | (413,016 | ) | (58,329 | ) | ||||
Sales and marketing (2) | (311,420 | ) | (366,167 | ) | (51,713 | ) | ||||
Technology and content | (87,866 | ) | (95,882 | ) | (13,541 | ) | ||||
General and administrative | (45,469 | ) | (49,935 | ) | (7,052 | ) | ||||
Other operating income, net | 234 | 4,265 | 602 | |||||||
Total operating expenses | (1,240,921 | ) | (1,510,841 | ) | (213,372 | ) | ||||
Income from operations | 45,840 | 12,799 | 1,807 | |||||||
Other income (expenses) | ||||||||||
Interest income | 1,974 | 10,580 | 1,494 | |||||||
Interest expense | (8,042 | ) | (17,907 | ) | (2,529 | ) | ||||
Exchange gain (loss) | 968 | (4,863 | ) | (687 | ) | |||||
Income before income tax and share of income in equity method investment | 40,740 | 609 | 85 | |||||||
Income tax expense (3) | (7,305 | ) | (3,410 | ) | (482 | ) | ||||
Share of income in equity method investment, net of tax of nil | 515 | 4,460 | 630 | |||||||
Net income | 33,950 | 1,659 | 233 | |||||||
Net (income) loss attributable to noncontrolling interests | 59 | (134 | ) | (19 | ) | |||||
Net loss attributable to redeemable noncontrolling interests | - | 714 | 101 | |||||||
Net income attributable to ordinary shareholders of |
34,009 | 2,239 | 315 | |||||||
Net income per share attributable to ordinary shareholders of |
||||||||||
Basic | 0.20 | 0.01 | 0.00 | |||||||
Diluted | 0.19 | 0.01 | 0.00 | |||||||
Net income per ADS attributable to ordinary shareholders of |
||||||||||
Basic | 0.59 | 0.04 | 0.01 | |||||||
Diluted | 0.57 | 0.04 | 0.01 | |||||||
Weighted average shares used in calculating net income per ordinary share | ||||||||||
Basic | 172,839,612 | 175,765,834 | 175,765,834 | |||||||
Diluted | 178,273,196 | 178,761,156 | 178,761,156 | |||||||
Net income | 33,950 | 1,659 | 233 | |||||||
Other comprehensive income, net of tax of nil: | ||||||||||
Foreign currency translation adjustment | (8,971 | ) | (3,208 | ) | (453 | ) | ||||
Comprehensive income (loss) | 24,979 | (1,549 | ) | (220 | ) | |||||
In
(1) Share-based compensation expenses are allocated in operating expenses items as follows:
For the three months ended |
||||||
2019 | 2020 | |||||
RMB | RMB | US$ | ||||
Fulfillment | 2,897 | 2,663 | 376 | |||
Sales and marketing | 5,271 | 8,252 | 1,165 | |||
Technology and content | 2,620 | 3,288 | 464 | |||
General and administrative | 7,688 | 9,394 | 1,327 | |||
18,476 | 23,597 | 3,332 | ||||
(2) Including amortization of intangible assets resulting from business acquisition, which amounted to
(3) Including income tax benefits of
Reconciliations of GAAP and Non-GAAP Results | |||||||||
(in thousands, except for share and per ADS data) | |||||||||
For the three months ended |
|||||||||
2019 | 2020 | ||||||||
RMB | RMB | US$ | |||||||
Income from operations | 45,840 | 12,799 | 1,807 | ||||||
Add: Share-based compensation expenses | 18,476 | 23,597 | 3,332 | ||||||
Amortization of intangible assets resulting from business acquisition | 391 | 391 | 55 | ||||||
Non-GAAP income from operations | 64,707 | 36,787 | 5,194 | ||||||
Net Income | 33,950 | 1,659 | 233 | ||||||
Add: Share-based compensation expenses | 18,476 | 23,597 | 3,332 | ||||||
Amortization of intangible assets resulting from business acquisition | 391 | 391 | 55 | ||||||
Less: Tax effect of amortization of intangible assets resulting from business acquisition | (98 | ) | (98 | ) | (14 | ) | |||
Non-GAAP net income | 52,719 | 25,549 | 3,606 | ||||||
Net income attributable to ordinary shareholders of |
34,009 | 2,239 | 315 | ||||||
Add: Share-based compensation expenses | 18,476 | 23,597 | 3,332 | ||||||
Amortization of intangible assets resulting from business acquisition | 199 | 199 | 30 | ||||||
Less: Tax effect of amortization of intangible assets resulting from business acquisition | (50 | ) | (50 | ) | (7 | ) | |||
Non-GAAP net income attributable to ordinary shareholders of |
52,634 | 25,985 | 3,670 | ||||||
Non-GAAP net income attributable to ordinary shareholders of |
|||||||||
Basic | 0.91 | 0.44 | 0.06 | ||||||
Diluted | 0.89 | 0.44 | 0.06 | ||||||
Weighted average shares used in calculating net income per ordinary share | |||||||||
Basic | 172,839,612 | 175,765,834 | 175,765,834 | ||||||
Diluted | 178,273,196 | 178,761,156 | 178,761,156 |
_________________________
1 This announcement contains translations of certain Renminbi (RMB) amounts into
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
4 Each ADS represents three Class A ordinary shares.
5 Basic and diluted non-GAAP net income attributable to ordinary shareholders of
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.
Source: Baozun Inc.