Baozun Announces Third Quarter Fiscal Year 2016 Unaudited Financial Results
Third Quarter 2016 Financial Highlights
- Total net revenues were
RMB749.3 million (US$1112.4 million), an increase of 27.5% year-over-year. - Net income attributable to
Baozun ordinary shareholders wasRMB19.6 million (US$2.9 million ), an increase of 172.0% year-over-year. - Non-GAAP net income attributable to
Baozun ordinary shareholders2 wasRMB28.0 million (US$4.2 million ), an increase of 134.7% year-over-year. - Basic and diluted net income attributable to
Baozun ordinary shareholders per American Depository Share (“ADS3”) wereRMB0.39 (US$0.06) andRMB0.36 (US$0.05) , respectively, compared with basic and diluted net income attributable toBaozun ordinary shareholders per ADS ofRMB0.15 andRMB0.12 , respectively, for the same period of 2015.
Third Quarter 2016 Operational Highlights
- Total Gross Merchandise Volume (“GMV”)4 was
RMB2,403.9 million , an increase of 71.1% year-over-year. Maikefeng, the Company’s online retail platform, contributedRMB31.8 million to total GMV, a decrease of 51.8% year-over-year. - Distribution GMV5 was
RMB558.7 million , an increase of 9.0% year-over-year. - Non-distribution GMV6 was
RMB1,845.2 million , an increase of 106.9% year-over-year. - Number of brand partners increased to 127 as of
September 30, 2016 , from 109 as ofSeptember 30, 2015 . - Number of GMV brand partners increased to 115 as of
September 30, 2016 , from 95 as ofSeptember 30, 2015 .
“We are pleased to report another quarter of robust financial and operational results driven primarily by strong growth from our existing online stores and the expansion and further optimization of our portfolio of brand partners,” commented Mr.
Mr. Beck Chen, Chief Financial Officer of
Third Quarter 2016 Financial Results
Total net revenues were
Product sales revenue was
Services revenue was
Total operating expenses were
- Cost of products was
RMB419.9 million (US$63.0 million ), compared withRMB396.8 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. Maikefeng accounted forRMB6.9 million (US$1.0 million ) in cost of products, compared withRMB13.8 million in the same quarter of last year. The decrease was mainly due to Maikefeng’s transition from a direct sales model to a marketplace-focused model. - Fulfillment expenses were
RMB110.1 million (US$16.5 million ), compared withRMB68.2 million in the same quarter of last year. The increase was primarily due to an increase in GMV contribution from the Company’s consignment business, an increase in the percentage of total orders fulfilled by a premium delivery service provider, and an increase in warehouse rental expenses. Maikefeng accounted forRMB1.9 million (US$0.3 million ) in fulfillment expenses, compared withRMB3.8 million in the same quarter of last year. - Sales and marketing expenses were
RMB151.5 million (US$22.7 million ), compared withRMB93.8 million in the same quarter of last year. The increase was primarily due to an increase in promotional and marketing expenses associated with the Company-operated online stores. Maikefeng accounted forRMB2.2 million (US$0.3 million ) in sales and marketing expenses, compared withRMB13.5 million in the same quarter of last year. - Technology and content expenses were
RMB23.6 million (US$3.5 million ), compared withRMB15.0 million in the same quarter of last year. The increase was primarily due to increases in technology-focused staff and project-based variable technological expenses from brand stores. Maikefeng accounted forRMB1.6 million (US$0.2 million ) in technology and content expenses, compared withRMB1.7 million in the same quarter of last year. - General and administrative expenses were
RMB22.3 million (US$3.3 million ), compared withRMB19.6 million in the same quarter of last year. Maikefeng accounted forRMB0.3 million (US$0.04 million ) in general and administrative expenses, compared with nil during the same quarter of last year.
Income from operations was
Non-GAAP income from operations7 was
Net income attributable to
Non-GAAP net income attributable to
As of
1 This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) 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
Business Outlook
For the fourth quarter of 2016, 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: 8627788 |
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.
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
Baozun Inc. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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(In thousands) |
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As of | |||||||
December 31, 2015 |
September 30, 2016 |
September 30, 2016 |
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RMB | RMB | US$ | |||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | 787,257 | 661,407 | 99,184 | ||||
Restricted cash | 48,144 | 27,072 | 4,060 | ||||
Short-term investment | 50,000 | 10,000 | 1,500 | ||||
Accounts receivable, net | 364,782 | 410,384 | 61,541 | ||||
Inventories | 334,347 | 357,387 | 53,593 | ||||
Advances to suppliers | 34,668 | 96,947 | 14,538 | ||||
Deferred tax assets | 13,815 | 13,940 | 2,090 | ||||
Prepayments and other current assets | 112,122 | 79,910 | 11,983 | ||||
Amounts due from related parties | 37,565 | 33,926 | 5,088 | ||||
Total current assets | 1,782,700 | 1,690,973 | 253,577 | ||||
Non-current assets | |||||||
Investments in cost method investees | 13,307 | 20,057 | 3,008 | ||||
Property and equipment, net | 59,208 | 94,908 | 14,232 | ||||
Intangible assets, net | 20,128 | 24,865 | 3,729 | ||||
Other non-current assets | 13,830 | 15,991 | 2,398 | ||||
Total non-current assets | 106,473 | 155,821 | 23,367 | ||||
Total assets | 1,889,173 | 1,846,794 | 276,944 | ||||
Baozun Inc. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||||
(In thousands, except for share and per share data) |
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As of |
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December 31, 2015 |
September 30, 2016 |
September 30, 2016 |
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RMB | RMB | US$ | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||
Accounts payable | 457,493 | 378,842 | 56,811 | |||||||||||||||||||
Note payable | 31,088 | 60,390 | 9,056 | |||||||||||||||||||
Income tax payable | 7,793 | 11,601 | 1,740 | |||||||||||||||||||
Accrued expenses and other current liabilities | 150,859 | 142,188 | 21,323 | |||||||||||||||||||
Amounts due to related parties | 7,469 | 7,469 | 1,120 | |||||||||||||||||||
Total current liabilities | 654,702 | 600,490 | 90,050 | |||||||||||||||||||
Total liabilities | 654,702 | 600,490 | 90,050 | |||||||||||||||||||
Baozun Inc. Shareholders’ equity: | ||||||||||||||||||||||
Ordinary shares (US$0.0001 par value; 500,000,000 shares authorized, 150,282,928 shares issued and outstanding as of September 30, 2016) | 93 | 93 | 14 | |||||||||||||||||||
Additional paid-in capital | 1,535,665 | 1,512,918 | 226,875 | |||||||||||||||||||
Accumulated deficit | (320,499 | ) | (295,189 | ) | (44,266 | ) | ||||||||||||||||
Accumulated other comprehensive income | 19,212 | 29,004 | 4,349 | |||||||||||||||||||
Total Baozun Inc. shareholders' equity | 1,234,471 | 1,246,826 | |
186,972 | ||||||||||||||||||
Noncontrolling interests | - | (522 | ) | (78 | ) | |||||||||||||||||
Total equity | 1,234,471 | 1,246,304 | |
186,894 | ||||||||||||||||||
Total liabilities and equity | 1,889,173 | 1,846,794 | 276,944 | |||||||||||||||||||
Baozun Inc. |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
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(In thousands, except for share and per share data and per ADS data) |
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Three months ended September 30, | |||||||||||||||
2015 | 2016 | ||||||||||||||
RMB | RMB | US$ | |||||||||||||
Net revenues | |||||||||||||||
Product sales | 440,416 | 479,782 | 71,948 | ||||||||||||
Services | 147,200 | 269,504 | 40,414 | ||||||||||||
Total net revenues | 587,616 | 749,286 | 112,362 | ||||||||||||
Operating expenses (1) | |||||||||||||||
Cost of products | (396,830 | ) | (419,890 | ) | (62,966 |
) | |||||||||
Fulfillment | (68,172 | ) | (110,103 | ) | (16,511 | ) | |||||||||
Sales and marketing | (93,759 | ) | (151,467 | ) | (22,714 | ) | |||||||||
Technology and content | (15,019 | ) | (23,618 | ) | (3,542 | ) | |||||||||
General and administrative | (19,575 | ) | (22,296 | ) | (3,343 | ) | |||||||||
Other operating income, net | 4,782 | 768 | 115 | ||||||||||||
Total operating expenses | (588,573 | ) | (726,606 | ) | (108,961 |
) | |||||||||
Income(loss) from operations | (957 | ) | 22,680 | 3,401 |
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Other income | |||||||||||||||
Interest income | 3,834 | 2,204 | 331 | ||||||||||||
Gain on disposal of investment | 4,674 | - | - | ||||||||||||
Share of loss in equity method investment | (2,596 | ) | - | - | |||||||||||
Exchange gain (loss) | 528 | (122 | ) | (18 | ) | ||||||||||
Income before income tax and share of loss in equity method investment | 5,483 | 24,762 | 3,714 |
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Income tax benefit (expense) | 1,740 | (5,639 | ) | (846 | ) | ||||||||||
Net income | 7,223 | 19,123 | 2,868 |
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Net loss attributable to noncontrolling interests | - | 522 | 78 | ||||||||||||
Net income attributable to ordinary shareholders of Baozun Inc. | 7,223 | 19,645 | 2,946 |
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Net income per share attributable to ordinary shareholders of Baozun Inc.: | |||||||||||||||
Basic | 0.05 | 0.13 | 0.02 | ||||||||||||
Diluted | 0.04 | 0.12 | 0.02 | ||||||||||||
Net income per ADS attributable to ordinary shareholders of Baozun Inc.: | |||||||||||||||
Basic | 0.15 | 0.39 | 0.06 | ||||||||||||
Diluted | 0.12 | 0.36 | 0.05 | ||||||||||||
Weighted average shares used in calculating net income per ordinary share | |||||||||||||||
Basic | 150,775,312 | 149,487,431 | 149,487,431 | ||||||||||||
Diluted | 162,848,284 | 163,005,730 | 163,005,730 | ||||||||||||
Net income | 7,223 | 19,123 | 2,868 | ||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||
Foreign currency translation adjustment | 11,302 | 1,423 | 213 | ||||||||||||
Comprehensive income | 18,525 | 20,546 | 3,081 |
(1) Share-based compensation expenses are allocated in operating expenses items as follows:
Three months ended September 30, | ||||||
2015 | 2016 | |||||
RMB | RMB | US$ | ||||
Fulfillment | 262 | 500 | 75 | |||
Sales and marketing | 796 | 2,721 | 408 | |||
Technology and content | 1,335 | 2,137 | 320 | |||
General and administrative | 2,322 | 3,014 | 452 | |||
4,715 | 8,372 | 1,255 | ||||
Baozun Inc. |
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Reconciliations of GAAP and Non-GAAP Results |
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(in thousands, except for share and per ADS data) |
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Three months ended September 30, | ||||||||||||||||
2015 |
2016 |
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RMB | RMB | US$ | ||||||||||||||
Income(loss) from operations | (957 | ) | 22,680 | 3,401 | ||||||||||||
Add: Share-based compensation expenses | 4,715 | 8,372 | 1,255 | |||||||||||||
Non-GAAP income from operations | 3,758 | 31,052 | 4,656 | |||||||||||||
Net income | 7,223 | 19,123 | 2,868 | |||||||||||||
Add: Share-based compensation expenses | 4,715 | 8,372 | 1,255 | |||||||||||||
Non-GAAP net income | 11,938 | 27,495 | 4,123 | |||||||||||||
Net income attributable to ordinary shareholders of Baozun Inc. | 7,223 | 19,645 | 2,946 | |||||||||||||
Add: Share-based compensation expenses | 4,715 | 8,372 | 1,255 | |||||||||||||
Non-GAAP net income attributable to ordinary shareholders of Baozun Inc. | 11,938 | 28,017 | 4,201 | |||||||||||||
Non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS: | ||||||||||||||||
Basic | 0.24 | 0.56 | 0.08 | |||||||||||||
Diluted | 0.22 | 0.52 | 0.08 | |||||||||||||
Weighted average shares used in calculating net income per ordinary share | ||||||||||||||||
Basic | 150,775,312 | 149,487,431 | 149,487,431 | |||||||||||||
Diluted | 162,848,284 | 163,005,730 | 163,005,730 |
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