UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

 

 

For the month of May 2018

 

 

 

Commission File Number: 001-37385

 

Baozun Inc.

 

Building B, No. 1268 Wanrong Road

Shanghai 200436

The People’s Republic of China

+86 21 8026-6000

(Address, including zip code, and telephone number, including area code, of Registrant’s principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

 

 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Baozun Inc.
     
  By: /s/ Beck Zhaoming Chen
  Name: Beck Zhaoming Chen
  Title: Chief Financial Officer

 

Date: May 17, 2018

 

 

 

 

Exhibit Index

 

Exhibit 99.1 — Press Release

 

 

EXHIBIT 99.1 

 

Baozun Announces First Quarter 2018 Unaudited Financial Results

 

SHANGHAI, CHINA – May 17, 2018 – Baozun Inc. (Nasdaq: BZUN) ("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 first quarter ended March 31, 2018.

 

 

First Quarter 2018 Financial Highlights

 

lTotal net revenues were RMB921.2 million (US$1146.9 million), an increase of 14.5% year-over-year. Services revenue was RMB461.3 million (US$73.5 million), an increase of 50.3% year-over-year.

 

lIncome from operations was RMB28.4 million (US$4.5 million), an increase of 85.2% year-over-year. Operating margin was 3.1%, compared with 1.9% in the same quarter of last year.

 

lNon-GAAP income from operations2 was RMB45.7 million (US$7.3 million), an increase of 36.0% year-over-year. Non-GAAP operating margin was 5.0%, compared with 4.2% in the same quarter of last year.

 

lNet income attributable to ordinary shareholders of Baozun Inc. was RMB14.9 million (US$2.4 million), an increase of 40.8% year-over-year.

 

lNon-GAAP net income attributable to ordinary shareholders of Baozun Inc.3 was RMB31.9 million (US$5.1 million), an increase of 10.7% year-over-year.

 

lBasic and diluted net income attributable to ordinary shareholders of Baozun Inc. per American Depository Share (“ADS4”) were RMB0.27 (US$0.04) and RMB0.25 (US$0.04), respectively, compared with basic and diluted net income attributable to ordinary shareholders of Baozun Inc. per ADS of RMB0.20 and RMB0.18, respectively, for the same period of 2017.

 

lBasic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS5 were RMB0.57 (US$0.09) and RMB0.54 (US$0.09), respectively, compared with basic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS of RMB0.54 and RMB0.50 , respectively, for the same period of 2017.

 

 

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 RMB6.2726 to US$1.00, the noon buying rate in effect on March 30, 2018 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 (loss) 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.

 

 

 

First Quarter 2018 Operational Highlights

 

lTotal Gross Merchandise Volume (“GMV”)6 was RMB4,943.2 million, an increase of 66.2% year-over-year.

 

lDistribution GMV7 was RMB535.9 million, a decrease of 7.6% year-over-year.

 

lNon-distribution GMV8 was RMB4,407.3 million, an increase of 84.1% year-over-year.

 

lNumber of brand partners increased to 156 as of March 31, 2018, from 136 as of March 31, 2017.

 

lNumber of GMV brand partners increased to 150 as of March 31, 2018, from 125 as of March 31, 2017.

 

“We are pleased to report another outstanding quarter, which was primarily driven by growth in our existing online stores,” commented Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. “On May 11, 2018, we held our third annual Global Brand E-commerce Summit in Shanghai. This year’s theme was ‘Eyes on The Data’ and featured talks on big data, artificial intelligence, and cloud computing. We are firmly focused on becoming the leading brand e-commerce business partner and technology development and solution services provider. We plan to continue investing in innovation to further strengthen our industry leading position and create greater value for our shareholders.”

 

Mr. Beck Chen, Chief Financial Officer of Baozun commented, “We delivered another strong quarter of growth with GMV increasing by 66.2% year-over-year. During this quarter, additional investments in innovation and productization were RMB13.5 million. We believe the investments we are now making in innovation will enable us to expand our addressable market, further strengthen our long-term competitiveness, and provide more value to our brand partners over the long run.”

 

 

First Quarter 2018 Financial Results

 

Total net revenues were RMB921.2 million (US$146.9 million), an increase of 14.5% from RMB804.9 million in the same quarter of last year.

 

Product sales revenue was RMB459.9 million (US$73.3 million), a decrease of 7.6% from RMB498.0 million in the same quarter of last year. The decrease was primarily attributable to the transition of a leading electronics brand partner’s business from the distribution model to the consignment model in September 2017, which was partially offset by an increase in product sales revenue resulting from the increased popularity of brand partners’ products and Baozun’s increasingly effective marketing and promotional campaigns.

 

 

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. 

 

 

 

Services revenue was RMB461.3 million (US$73.5 million), an increase of 50.3% from RMB306.9 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, and in particular, growth in sales from existing brand partners and the addition of new brand partners in the apparel category.

 

Total operating expenses were RMB892.8 million (US$142.3 million), compared with RMB789.5 million in the same quarter of last year.

 

lCost of products was RMB379.1 million (US$60.4 million), compared with RMB439.1 million in the same quarter of last year. The decrease was primarily due to the transition of a leading electronics brand partner’s business from the distribution model to the consignment model in September 2017 and improved margins from product sales, which were partially offset by higher costs associated with an increase in product sales revenue.

 

lFulfillment expenses were RMB210.6 million (US$33.6 million), compared with RMB132.4 million in the same quarter of last year. The increase was primarily due to an increase in GMV contribution from the Company’s consignment model and warehouse rental expenses.

 

lSales and marketing expenses were RMB221.1 million (US$35.3 million), compared with RMB162.5 million in the same quarter of last year. The increase was primarily due to the recruitment of additional online store operational staff and an increase in promotional and marketing expenses associated with Company-operated online stores.

 

lTechnology and content expenses were RMB50.3 million (US$8.0 million), compared with RMB28.8 million in the same quarter of last year. The increase was primarily due to increased investments in innovation and productization, including recruitment of additional technology-focused staff.

 

lGeneral and administrative expenses were RMB32.3 million (US$5.2 million), compared with RMB27.2 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 RMB28.4 million (US$4.5 million), compared with RMB15.3 million in the same quarter of last year. Operating margin was 3.1%, compared with 1.9% in the same quarter of last year.

 

Non-GAAP income from operations was RMB45.7 million (US$7.3 million), compared with RMB33.6 million in the same quarter of last year. Non-GAAP operating margin was 5.0%, compared with 4.2% in the same quarter of last year.

 

Net income attributable to ordinary shareholders of Baozun Inc. was RMB14.9 million (US$2.4 million), an increase of 40.8% from the same quarter of last year. Basic and diluted net income attributable to ordinary shareholders of Baozun Inc. per ADS were RMB0.27 (US$0.04) and RMB0.25 (US$0.04), respectively, compared with basic and diluted net income attributable to ordinary shareholders of Baozun Inc. per ADS of RMB0.20 and RMB0.18, respectively, in the same period of 2017.

 

 

 

 

Non-GAAP net income attributable to ordinary shareholders of Baozun Inc. was RMB31.9 million (US$5.1 million), an increase of 10.7% from the same quarter of last year. Basic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS were RMB0.57 (US$0.09) and RMB0.54 (US$0.09), respectively, compared with basic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS of RMB0.54 and RMB0.50, respectively, in the same period of 2017.

 

As of March 31, 2018, the Company had RMB709.3 million (US$113.1 million) in cash, cash equivalents and short-term investment, an increase from RMB557.4 million as of December 31, 2017 primarily due to the collection of accounts receivable during the first quarter of 2018.

 

 

Business Outlook

 

The Company expects total net revenues to be between RMB1,060 million and RMB1,100 million for the second quarter of 2018.

 

While the Company is transitioning more of its business from the distribution model towards the non-distribution model, Baozun is providing quarterly guidance on services revenues. The Company expects services revenue to increase by over 50% on a year-over-year basis for the second quarter of 2018.

 

Conference Call

 

The Company will host a conference call to discuss the earnings at 7:30 a.m. Eastern Time on Thursday, May 17, 2018 (7:30 p.m. Beijing time on the same day).

 

Dial-in numbers for the live conference call are as follows:

 

International  +852 3027 6500
U.S. Toll Free  +1 855-824-5644
Mainland China Toll Free  8009-880563
Hong Kong  3027 6500

Passcode: 52759033#

 

A telephone replay of the call will be available after the conclusion of the conference call through 11:59 p.m. Hong Kong Time, May 24, 2018.

 

Dial-in numbers for the replay are as follows:

 

International Dial-in  +852 3027-6520
U.S. Toll Free  +1 646-982-0473

Passcode: 319290002#

 

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 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 Baozun Inc. and non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS, as supplemental measures to review and assess the Company’s 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/(loss) from operations is income/(loss) 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/(loss) is net income/(loss) 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 (loss) attributable to ordinary shareholders of Baozun Inc. is net income (loss) 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 (loss) attributable to ordinary shareholders of Baozun Inc. per ADS is non-GAAP net income (loss) 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 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 and amortization of intangible assets resulting from business acquisition. 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, non-GAAP net income/(loss), non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc., and non-GAAP net income (loss) 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/(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 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 Baozun Inc. and non-GAAP net income (loss) 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/(loss) from operations, operating margin, net income/(loss), net margin, net income (loss) attributable to ordinary shareholders of Baozun Inc. and net income (loss) 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 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 U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

 

About Baozun Inc.

 

Baozun is the leading brand e-commerce service partner that helps brands execute their e-commerce strategies in China by selling their goods directly to customers online or by providing services to assist with their e-commerce operations. The Company's integrated end-to-end brand e-commerce capabilities encompass all aspects of the e-commerce value chain, covering IT solutions, store operations, digital marketing, customer services, warehousing and fulfillment.

 

For more information, please visit http://ir.baozun.com

 

For investor and media inquiries, please contact:

 

Baozun Inc.

Ms. Caroline Dong

ir@baozun.com

 

Christensen

In China

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

 

 

 

 

Baozun Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

             

 

   As of 
   December 31,
2017
  

March 31,
2018

  

March 31,
2018

 
   RMB   RMB   US$ 
ASSETS            
Current assets               
Cash and cash equivalents   244,809    533,545    85,060 
Restricted cash   48,848    105,150    16,763 
Short-term investment   312,614    175,714    28,013 
Accounts receivable, net1   1,085,669    837,988    133,595 
Inventories1   382,028    365,975    58,345 
Advances to suppliers   88,881    82,431    13,141 
Prepayments and other current assets1   214,636    121,124    19,310 
Amounts due from related parties   88,795    72,156    11,503 
Total current assets   2,466,280    2,294,083    365,730 
                
Non-current assets               
Investments in equity investees   24,268    40,308    6,426 
Property and equipment, net   330,924    332,382    52,990 
Intangible assets, net   66,150    74,500    11,877 
Land use right, net   44,618    44,362    7,072 
Goodwill   13,158    13,158    2,098 
Other non-current assets   18,043    22,350    3,563 
Deferred tax assets   15,528    15,646    2,494 
Total non-current assets   512,689    542,706    86,520 
                
Total assets   2,978,969    2,836,789    452,250 

 

 

 

 

Baozun Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share data)

             

 

   As of 
  

December 31,
2017

  

March 31,
2018

  

March 31,
2018

 
   RMB   RMB   US$ 
             
LIABILITIES AND SHAREHOLDERS' EQUITY               
Current liabilities               
Short-term loan   172,000    127,463    20,321 
Accounts payable   583,532    485,333    77,373 
Notes payable   48,000    19,400    3,093 
Income tax payables   30,420    13,353    2,129 
Accrued expenses and other current liabilities1   314,870    278,295    44,367 
Total current liabilities   1,148,822    923,844    147,283 
                
Long-term loan   -    63,306    10,092 
Deferred tax liability   3,710    3,612    576 
Total Non-current liabilities   3,710    66,918    10,668 
                
Total liabilities   1,152,532    990,762    157,951 
                
Baozun Inc. shareholders’ equity:               
Class A ordinary shares (US$0.0001 par value; 470,000,000 shares authorized, 152,824,659 and 156,567,603 shares issued and outstanding as of December 31, 2017 and March 31, 2018, respectively)   95    97    16 
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, 2017 and March 31, 2018, respectively)   8    8    1 
Additional paid-in capital   1,823,925    1,843,084    293,831 
Accumulated deficit   (25,000)   (10,069)   (1,606)
Accumulated other comprehensive income   9,995    (5,041)   (804)
                
Total Baozun Inc. shareholders' equity   1,809,023    1,828,079    291,438 
                
Noncontrolling interests   17,414    17,948    2,861 
Total equity   1,826,437    1,846,027    294,299 
                
Total liabilities and shareholders' equity   2,978,969    2,836,789    452,250 

 

 

 

1 Certain reclassifications in accounts receivable, inventories, prepayments and other current assets and accrued expenses and other current liabilities as of December 31, 2017 were retrospectively adjusted as a result of the adoption of a new revenue accounting standard effective on January 1, 2018.

 

 

 

 

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, 
   2017   2018 
   RMB   RMB   US$ 
             
Net revenues               
Product sales   497,950    459,930    73,324 
Services   306,921    461,269    73,537 
Total net revenues   804,871    921,199    146,861 
                
Operating expenses (1)               
Cost of products   (439,085)   (379,135)   (60,443)
Fulfillment   (132,437)   (210,601)   (33,575)
Sales and marketing (2)   (162,468)   (221,132)   (35,254)
Technology and content   (28,763)   (50,254)   (8,012)
General and administrative   (27,243)   (32,315)   (5,152)
Other operating income, net   468    658    105 
Total operating expenses   (789,528)   (892,779)   (142,331)
Income from operations   15,343    28,420    4,530 
Other income (expenses)               
Interest income   3,132    1,942    310 
Interest expense   (15)   (4,116)   (656)
Exchange loss   (151)   (1,424)   (227)
Income before income tax   18,309    24,822    3,957 
Income tax expense (3)   (7,174)   (8,556)   (1,364)
Share of loss in equity method investment, net of tax of nil   (530)   (801)   (128)
Net income   10,605    15,465    2,465 
                
Net income attributable to noncontrolling interests   -    (534)   (85)
Net income attributable to ordinary shareholders of Baozun Inc.   10,605    14,931    2,380 
                
Net income per share attributable to ordinary shareholders of Baozun Inc.:               
Basic   0.07    0.09    0.01 
Diluted   0.06    0.08    0.01 
Net income per ADS attributable to ordinary shareholders of Baozun Inc.:               
Basic   0.20    0.27    0.04 
Diluted   0.18    0.25    0.04 
Weighted average shares used in calculating net income per ordinary share               
Basic   159,516,894    166,857,263    166,857,263 
Diluted   174,776,404    177,061,602    177,061,602 
                
Net income   10,605    15,465    2,465 
Other comprehensive income, net of tax of nil:               
Foreign currency translation adjustment   (5,493)   (15,036)   (2,397)
Comprehensive income   5,112    429    68 

 

 

 

 

(1) Share-based compensation expenses are allocated in operating expenses items as follows:

 

   For the three months ended March 31, 
   2017   2018 
   RMB   RMB   US$ 
             
Fulfillment   738    861    137 
Sales and marketing   5,246    6,220    992 
Technology and content   5,379    3,646    581 
General and administrative   6,886    6,133    978 
    18,249    16,860    2,688 

 

(2) Including amortization of intangible assets resulting from business acquisition, which amounted to RMB nil and RMB0.4 million for the three months period ended March 31, 2017 and 2018, respectively.

 

(3) Including income tax benefits of RMB nil and RMB0.1 million related to the reversal of deferred tax liabilities, which was recognized on business acquisition for the three months period ended March 31, 2017 and 2018, respectively.

 

 

 

 

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, 
   2017   2018 
   RMB   RMB   US$ 
             
             
Income from operations   15,343    28,420    4,530 
Add: Share-based compensation expenses   18,249    16,860    2,688 
  Amortization of intangible assets resulting from business acquisition   -     391     62 
Non-GAAP income from operations   33,592    45,671    7,280 
                
Net Income   10,605    15,465    2,465 
Add: Share-based compensation expenses   18,249    16,860    2,688 
  Amortization of intangible assets resulting from business acquisition   -    391     62 
Less: Tax effect of amortization of intangible assets resulting from business acquisition   -    (98)   (15)
Non-GAAP net income   28,854    32,618    5,200 
                
Net income attributable to ordinary shareholders of Baozun Inc.   10,605    14,931    2,380 
Add: Share-based compensation expenses   18,249    16,860    2,688 
  Amortization of intangible assets resulting from business acquisition   -    199     32 
Less: Tax effect of amortization of intangible assets resulting from business acquisition   -    (50)   (8)
Non-GAAP net income attributable to ordinary shareholders of Baozun Inc.   28,854    31,940    5,092 
                
                
Non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS:               
Basic   0.54    0.57    0.09 
Diluted   0.50    0.54    0.09 
Weighted average shares used in calculating net income per ordinary share               
Basic   159,516,894    166,857,263    166,857,263 
Diluted   174,776,404    177,061,602    177,061,602