Baozun Announces Fourth Quarter and Fiscal Year 2019 Unaudited Financial Results
Fourth Quarter 2019 Financial Highlights
- Total net revenues were
RMB2,784.1 million (US$1399.9 million), an increase of 26.4% year-over-year. Services revenue wasRMB1,491.0 million (US$214.2 million ), an increase of 21.6% year-over-year. - Income from operations was
RMB195.9 million (US$28.1 million ), a decrease of 14.7% year-over-year. Operating margin was 7.0%, compared with 10.4% in the same quarter of last year. - Non-GAAP income from operations2 was
RMB216.6 million (US$31.1 million ), a decrease of 12.3% year-over-year. Non-GAAP operating margin was 7.8%, compared with 11.2% in the same quarter of last year. - Net income attributable to ordinary shareholders of
Baozun Inc. wasRMB140.9 million (US$20.2 million ), a decrease of 25.2% year-over-year. - Non-GAAP net income attributable to ordinary shareholders of
Baozun Inc. 3 wasRMB161.3 million (US$23.2 million ), a decrease of 21.4% year-over-year. - Basic and diluted net income attributable to ordinary shareholders of
Baozun Inc. per American Depository Share (“ADS4”) wereRMB2.42 (US$0.35 ) andRMB2.36 (US$0.34 ), respectively, compared withRMB3.29 andRMB3.17 , respectively, for the same period of 2018. - Basic and diluted non-GAAP net income attributable to ordinary shareholders of
Baozun Inc. per ADS5 wereRMB2.77 (US$0.40 ) andRMB2.71 (US$0.39 ), respectively, compared withRMB3.59 andRMB3.46 , respectively, for the same period of 2018.
Fourth Quarter 2019 Operational Highlights
- Total Gross Merchandise Volume (“GMV”)6 was
RMB17,771.8 million , an increase of 47.6% year-over-year. - Distribution GMV7 was
RMB1,448.8 million , an increase of 29.5% year-over-year. - Non-distribution GMV8 was
RMB16,323.0 million , an increase of 49.5% year-over-year. - Number of brand partners increased to 231 as of
December 31, 2019 , from 185 as ofDecember 31, 2018 . - Number of GMV brand partners increased to 222 as of
December 31, 2019 , from 178 as ofDecember 31, 2018 .
Fiscal Year 2019 Financial Highlights
- Total net revenues were
RMB7,278.2 million (US$1,045.4 million ), an increase of 35.0% year-over-year. - Income from operations was
RMB383.7 million (US$55.1 million ), an increase of 7.8% year-over-year. - Non-GAAP income from operations was
RMB460.4 million (US$66.1 million ), an increase of 6.3% year-over-year. - Net income attributable to ordinary shareholders of
Baozun Inc. wasRMB281.3 million (US$40.4 million ), an increase of 4.3% year-over-year. - Non-GAAP net income attributable to ordinary shareholders of
Baozun Inc. wasRMB357.1 million (US$51.3 million ), an increase of 3.2% year-over-year. - Basic and diluted net income attributable to ordinary shareholders of
Baozun Inc. per ADS wereRMB4.85 (US$0.70 ) andRMB4.72 (US$0.68 ), respectively, compared withRMB4.76 andRMB4.51 , respectively, for the fiscal year of 2018. - Basic and diluted non-GAAP net income attributable to ordinary shareholders of
Baozun Inc. per ADS wereRMB6.16 (US$0.88 ) andRMB5.99 (US$0.86 ), respectively, compared withRMB6.11 andRMB5.79 , respectively, for the fiscal year of 2018.
Fiscal Year 2019 Operational Highlights
- Total GMV was
RMB44,410.3 million , an increase of 50.9% year-over-year. - Distribution GMV was
RMB3,849.5 million , an increase of 32.6% year-over-year. - Non-distribution GMV was
RMB40,560.8 million , an increase of 52.9% year-over-year.
“We accomplished our 2019 objectives as reflected in the standout 35% revenue growth rate, the highest for our Company in the last four years, coupled with a record high increase in GMV and record net addition of new brand partners,” commented Mr.
Mr.
Fourth Quarter 2019 Financial Results
Total net revenues were
Product sales revenue was
Services revenue was
Total operating expenses were
- Cost of products was
RMB1,057.3 million (US$151.9 million ), compared withRMB790.1 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 new brands acquired. - Fulfillment expenses were
RMB665.3 million (US$95.6 million ), compared withRMB512.0 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 warehouse rental expenses, an increase in warehouse capacity to address additional growth opportunities, which were partially offset by efficiency improvements. - Sales and marketing expenses were
RMB648.0 million (US$93.1 million ), compared withRMB543.7 million in the same quarter of last year. The increase was in line with GMV growth, which were partially offset by efficiency improvements. - Technology and content expenses were
RMB108.7 million (US$15.6 million ), compared withRMB84.0 million in the same quarter of last year. The increase was in line with GMV growth, and the Company’s continuous efforts in investments in innovation and productization. - General and administrative expenses were
RMB66.8 million (US$9.6 million ), compared withRMB42.8 million in the same quarter of last year. The increase was primarily due to an increase in administrative, corporate strategy, and business planning staff, as well as provision for allowance for doubtful accounts during the quarter. - Other operating loss was
RMB42.1 million (US$6.0 million ), compared with other operating income ofRMB0.4 million in the same quarter of last year. The increase in other operating loss was mainly due to an operating loss ofRMB45.5 million (US$6.5 million ) relating to an accidental fire that occurred at a third-party warehouse inShanghai onOctober 29, 2019 .
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
Fiscal Year 2019 Financial Results
Total net revenues were RMB7,278.2 million (
Product sales revenue was RMB3,422.2 million (
Services revenue was RMB3,856.0 million (
Total operating expenses were RMB6,894.5 million (
- Cost of products was RMB2,774.3 million (
US$398.5 million ), compared withRMB2,034.9 million in fiscal year 2018, with the increase primarily due to higher costs associated with an increase in product sales revenue, especially for new brands acquired. - Fulfillment expenses were RMB1,678.2 million (
US$241.1 million ), compared with RMB1,262.3 million in fiscal year 2018. The increase was primarily due to an increase in GMV contribution from the Company’s distribution and consignment model and warehouse rental expenses, an increase in warehouse capacity to address additional growth opportunities, which were partially offset by efficiency improvements. - Sales and marketing expenses were RMB1,815.6 million (
US$260.8 million ), compared withRMB1,339.0 million in fiscal year 2018. 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 RMB393.0 million (
US$56.4 million ), compared withRMB269.0 million in fiscal year 2018. The increase was in line with GMV growth, and the Company’s continuous efforts in investments in innovation and productization. - General and administrative expenses were RMB215.7 million (
US$31.0 million ), compared withRMB154.8 million in fiscal year 2018. The increase was primarily due to an increase in administrative, corporate strategy, and business planning staff, as well as provision for allowance for doubtful accounts during the year. - Other operating loss was
RMB17.8 million (US$2.6 million ), compared with other operating income ofRMB22.7 million in fiscal year 2018. The increase in other operating loss was mainly due to an operating loss ofRMB45.5 million (US$6.5 million ) relating to an accidental fire that occurred at a third-party warehouse inShanghai onOctober 29, 2019 .
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 December 31, 2019, the Company had
Business Outlook
Based on the market and operational conditions, 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 | +65-6713-5090 |
+1-845-675-0437 | |
Mainland |
400-620-8038 or 800-819-0121 |
+852-3018-6771 | |
Passcode: | 9184106# |
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: | 9184106# |
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 China
Mr.
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(In thousands) | ||||||
As of | ||||||
December 31, 2018 |
2019 |
2019 |
||||
RMB | RMB | US$ | ||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | 457,340 | 1,144,451 | 164,390 | |||
Restricted cash | 56,074 | 382,359 | 54,922 | |||
Short-term investment | 56,535 | 844,040 | 121,239 | |||
Accounts receivable, net | 1,547,631 | 1,800,896 | 258,683 | |||
Inventories | 650,348 | 896,818 | 128,820 | |||
Advances to suppliers | 166,076 | 214,771 | 30,850 | |||
Prepayments and other current assets | 286,149 | 387,713 | 55,691 | |||
Amounts due from related parties | 32,270 | 19,323 | 2,776 | |||
Total current assets | 3,252,423 | 5,690,371 | 817,371 |
Non-current assets | ||||||
Restricted cash | 69,441 | - | - | |||
Held-to-maturity investments | - | 209,495 | 30,092 | |||
Investments in equity investees | 33,974 | 37,373 | 5,368 | |||
Property and equipment, net | 402,740 | 415,648 | 59,704 | |||
Intangible assets, net | 132,393 | 151,041 | 21,696 | |||
Land use right, net | 43,593 | 42,567 | 6,114 | |||
Right-of-use assets1 | - | 440,593 | 63,287 | |||
13,158 | 13,574 | 1,950 | ||||
Other non-current assets | 30,021 | 41,461 | 5,956 | |||
Deferred tax assets | 38,081 | 54,477 | 7,825 | |||
Total non-current assets | 763,401 | 1,406,229 | 201,992 | |||
Total assets | 4,015,824 | 7,096,600 | 1,019,363 | |||
_______________________________________
1 In
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(In thousands, except for share and per share data) | ||||||||||
As of | ||||||||||
December 31, 2018 |
2019 |
2019 |
||||||||
RMB | RMB | US$ | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
Current liabilities | ||||||||||
Short-term loan | 436,200 | 428,490 | 61,549 | |||||||
Accounts payable | 886,340 | 877,093 | 125,987 | |||||||
Notes payable | 26,770 | 210,693 | 30,264 | |||||||
Income tax payables | 62,764 | 81,966 | 11,774 | |||||||
Accrued expenses and other current liabilities | 322,668 | 581,122 | 83,473 | |||||||
Amounts due to related parties | 13,994 | 6,796 | 976 | |||||||
Operating lease liabilities1 | - | 137,855 | 19,802 | |||||||
Total current liabilities | 1,748,736 | 2,324,015 | 333,825 | |||||||
Long-term loan | 68,753 | 1,859,896 | 267,157 | |||||||
Deferred tax liability | 3,319 | 2,929 | 421 | |||||||
Operating lease liabilities1 | - | 309,989 | 44,527 | |||||||
Total non-current liabilities | 72,072 | 2,172,814 | 312,105 | |||||||
Total liabilities | 1,820,808 | 4,496,829 | 645,930 | |||||||
Redeemable non-controlling interests | - | 9,254 | 1,329 | |||||||
Class A ordinary shares ( |
98 | 107 | 16 | |||||||
Class B ordinary shares ( |
8 | 8 | 1 | |||||||
Additional paid-in capital | 1,903,503 | 2,014,227 | 289,326 | |||||||
Retained earnings | 244,712 | 526,009 | 75,555 | |||||||
Accumulated other comprehensive income | 29,222 | 28,380 | 4,077 | |||||||
2,177,543 | 2,568,731 | 368,975 | ||||||||
Noncontrolling interests | 17,473 | 21,786 | 3,129 | |||||||
Total equity | 2,195,016 | 2,590,517 | 372,104 | |||||||
Total liabilities, redeemable non-controlling interests and shareholders' equity | 4,015,824 | 7,096,600 | 1,019,363 | |||||||
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 |
For the year ended |
|||||||||||||||||
2018 | 2019 | 2018 | 2019 | |||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
Net revenues | ||||||||||||||||||
Product sales | 975,395 | 1,293,079 | 185,739 | 2,516,862 | 3,422,151 | 491,561 | ||||||||||||
Services | 1,226,552 | 1,491,048 | 214,176 | 2,876,175 | 3,856,041 | 553,886 | ||||||||||||
Total net revenues | 2,201,947 | 2,784,127 | 399,915 | 5,393,037 | 7,278,192 | 1,045,447 | ||||||||||||
Operating expenses (1) | ||||||||||||||||||
Cost of products | (790,131 | ) | (1,057,311 | ) | (151,873 | ) | (2,034,852 | ) | (2,774,342 | ) | (398,509 | ) | ||||||
Fulfillment | (511,967 | ) | (665,322 | ) | (95,568 | ) | (1,262,302 | ) | (1,678,191 | ) | (241,057 | ) | ||||||
Sales and marketing (2) | (543,658 | ) | (647,972 | ) | (93,075 | ) | (1,338,970 | ) | (1,815,642 | ) | (260,801 | ) | ||||||
Technology and content | (83,995 | ) | (108,687 | ) | (15,612 | ) | (268,973 | ) | (392,951 | ) | (56,444 | ) | ||||||
General and administrative | (42,794 | ) | (66,802 | ) | (9,596 | ) | (154,845 | ) | (215,660 | ) | (30,978 | ) | ||||||
Other operating income (loss), net | 370 | (42,098 | ) | (6,047 | ) | 22,678 | (17,753 | ) | (2,550 | ) | ||||||||
Total operating expenses | (1,972,175 | ) | (2,588,192 | ) | (371,771 | ) | (5,037,264 | ) | (6,894,539 | ) | (990,339 | ) | ||||||
Income from operations | 229,772 | 195,935 | 28,144 | 355,773 | 383,653 | 55,108 | ||||||||||||
Other income (expenses) | ||||||||||||||||||
Interest income | 1,415 | 13,147 | 1,888 | 8,017 | 42,614 | 6,121 | ||||||||||||
Interest expense | (4,897 | ) | (19,973 | ) | (2,869 | ) | (13,058 | ) | (61,316 | ) | (8,807 | ) | ||||||
Impairment loss of investments | (7,497 | ) | (9,021 | ) | (1,296 | ) | (9,021 | ) | (9,021 | ) | (1,296 | ) | ||||||
Exchange gain (loss) | 1,279 | (3,452 | ) | (496 | ) | (5,991 | ) | (7,663 | ) | (1,101 | ) | |||||||
Income before income tax | 220,072 | 176,636 | 25,371 | 335,720 | 348,267 | 50,025 | ||||||||||||
Income tax expense (3) | (31,936 | ) | (37,961 | ) | (5,453 | ) | (64,953 | ) | (71,144 | ) | (10,219 | ) | ||||||
Share of income (loss) in equity method investment, net of tax of nil |
312 | 3,624 | 521 | (996 | ) | 4,768 | 685 | |||||||||||
Net income | 188,448 | 142,299 | 20,439 | 269,771 | 281,891 | 40,491 | ||||||||||||
Net income attributable to noncontrolling interests |
(205 |
) |
(1,425 |
) |
(205 |
) |
(59 |
) |
(594 |
) |
(85 |
) |
||||||
Net income attributable to ordinary shareholders of |
188,243 |
140,874 |
20,234 |
269,712 |
281,297 |
40,406 |
||||||||||||
Net income per share attributable to ordinary shareholders of |
||||||||||||||||||
Basic | 1.10 | 0.81 | 0.12 | 1.59 | 1.62 | 0.23 | ||||||||||||
Diluted | 1.06 | 0.79 | 0.11 | 1.50 | 1.57 | 0.23 | ||||||||||||
Net income per ADS attributable to ordinary shareholders of |
||||||||||||||||||
Basic | 3.29 | 2.42 | 0.35 | 4.76 | 4.85 | 0.70 | ||||||||||||
Diluted | 3.17 | 2.36 | 0.34 | 4.51 | 4.72 | 0.68 | ||||||||||||
Weighted average shares used in calculating net income per ordinary share | ||||||||||||||||||
Basic | 171,399,524 | 174,763,688 | 174,763,688 | 169,884,906 | 173,937,013 | 173,937,013 | ||||||||||||
Diluted | 178,026,070 | 178,703,772 | 178,703,772 | 179,327,029 | 178,932,010 | 178,932,010 | ||||||||||||
Net income | 188,448 | 142,299 | 20,439 | 269,771 | 281,891 | 40,491 | ||||||||||||
Other comprehensive income, net of tax of nil: | ||||||||||||||||||
Foreign currency translation adjustment | 1,022 | 9,174 | 1,318 | 19,227 | (88 | ) | (13 | ) | ||||||||||
Comprehensive income | 189,470 | 151,473 | 21,757 | 288,998 | 281,803 | 40,478 | ||||||||||||
(1) Share-based compensation expenses are allocated in operating expenses items as follows:
For the three months ended |
For the year ended |
||||||||||||
2018 | 2019 | 2018 | 2019 |
||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||
Fulfillment | 2,174 | 2,406 | 346 | 5,831 | 9,839 | 1,413 | |||||||
Sales and marketing | 6,509 | 6,048 | 869 | 28,346 | 22,209 | 3,190 | |||||||
Technology and content | 2,367 | 1,588 | 228 | 13,445 | 9,817 | 1,410 | |||||||
General and administrative | 5,853 | 10,244 | 1,471 | 28,240 | 33,318 | 4,786 | |||||||
16,903 | 20,286 | 2,914 | 75,862 | 75,183 | 10,799 | ||||||||
(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 |
For the year ended |
|||||||||||||||||||
2018 | 2019 | 2018 | 2019 | |||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||
Income from operations | 229,772 | 195,935 | 28,144 | 355,773 | 383,653 | 55,108 | ||||||||||||||
Add: Share-based compensation expenses | 16,903 | 20,286 | 2,914 | 75,862 | 75,183 | 10,799 | ||||||||||||||
Amortization of intangible assets resulting from business acquisition | 391 | 391 | 56 | 1,564 | 1,564 | 225 | ||||||||||||||
Non-GAAP income from operations | 247,066 | 216,612 | 31,114 | 433,199 | 460,400 | 66,132 | ||||||||||||||
Net income | 188,448 | 142,299 | 20,439 | 269,771 | 281,891 | 40,491 | ||||||||||||||
Add: Share-based compensation expenses | 16,903 | 20,286 | 2,914 | 75,862 | 75,183 | 10,799 | ||||||||||||||
Amortization of intangible assets resulting from business acquisition | 391 | 391 | 56 | 1,564 | 1,564 | 225 | ||||||||||||||
Less: Tax effect of amortization of intangible assets resulting from business acquisition | (98 | ) | (98 | ) | (14 | ) | (392 | ) | (392 | ) | (56 | ) | ||||||||
Non-GAAP net income | 205,644 | 162,878 | 23,395 | 346,805 | 358,246 | 51,459 | ||||||||||||||
Net income attributable to ordinary shareholders of |
188,243 | 140,874 | 20,234 | 269,712 | 281,297 | 40,406 | ||||||||||||||
Add: Share-based compensation expenses | 16,903 | 20,286 | 2,914 | 75,862 | 75,183 | 10,799 | ||||||||||||||
Amortization of intangible assets resulting from business acquisition | 199 | 199 | 29 | 796 | 796 | 114 | ||||||||||||||
Less: Tax effect of amortization of intangible assets resulting from business acquisition | (50 | ) | (50 | ) | (7 | ) | (200 | ) | (200 | ) | (29 | ) | ||||||||
Non-GAAP net income attributable to ordinary shareholders of |
205,295 |
161,309 |
23,170 |
346,170 |
357,076 |
51,290 |
||||||||||||||
Non-GAAP net income attributable to ordinary shareholders of |
||||||||||||||||||||
Basic | 3.59 | 2.77 | 0.40 | 6.11 | 6.16 | 0.88 | ||||||||||||||
Diluted | 3.46 | 2.71 | 0.39 | 5.79 | 5.99 | 0.86 | ||||||||||||||
Weighted average shares used in calculating net income per ordinary share | ||||||||||||||||||||
Basic | 171,399,524 | 174,763,688 | 174,763,688 | 169,884,906 | 173,937,013 | 173,937,013 | ||||||||||||||
Diluted | 178,026,070 | 178,703,772 | 178,703,772 | 179,327,029 | 178,932,010 | 178,932,010 | ||||||||||||||
_______________________________
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.