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 August 2021

 

 

 

Commission File Number: 001-37385

 

Baozun Inc.

 

Building B, No. 1268 Wanrong Road

Shanghai 200436

The People’s Republic of China

(Address of principal executive office)

 

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/ Arthur Yu
  Name: Arthur Yu
  Title: Chief Financial Officer

 

Date: August 19, 2021

 

 

 

 

Exhibit Index

 

Exhibit 99.1 —  Press Release

 

 

 

Exhibit 99.1

 

Baozun Announces Second Quarter 2021 Unaudited Financial Results

 

SHANGHAI, China, August 19, 2021 -- Baozun Inc. (Nasdaq: BZUN and HKEX: 9991) (“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 second quarter ended June 30, 2021.

 

Second Quarter 2021 Financial Highlights

 

lTotal net revenues were RMB2,304.1 million (US$1356.9 million), an increase of 7.1% year-over-year.

 

lIncome from operations was RMB106.6 million (US$16.5 million), compared with RMB160.6 million in the same quarter of last year. Operating margin was 4.6%, compared with 7.5% in the same quarter of last year.

 

lNon-GAAP income from operations2 was RMB161.6 million (US$25.0 million), compared with RMB187.1 million in the same quarter of last year. Non-GAAP operating margin was 7.0%, compared with 8.7% in the same quarter of last year.

 

lNet income attributable to ordinary shareholders of Baozun Inc. was RMB 79.8 million (US$12.4 million), a decrease of 33.4% year-over-year.

 

lNon-GAAP net income attributable to ordinary shareholders of Baozun Inc.3 was RMB150.8 million (US$23.4 million), an increase of 3.3% year-over-year.

 

lBasic and diluted net income attributable to ordinary shareholders of Baozun Inc. per American Depositary Share (“ADS4”) were RMB1.08 (US$0.17) and RMB1.06 (US$0.16), respectively, compared with RMB2.04 and RMB2.00, respectively, for the same period of 2020.

 

lBasic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS5 were RMB2.04 (US$0.32) and RMB2.01 (US$0.31), respectively, compared with RMB2.48 and RMB2.43, respectively, for the same period of 2020.

 

 

 

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 RMB6.4566 to US$1.00, the noon buying rate in effect on June 30, 2021 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, amortization of intangible assets resulting from business acquisition and unrealized investment loss.

 

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 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.

 

 

 

 

Second Quarter 2021 Operational Highlights

 

lTotal Gross Merchandise Volume (“GMV”)6 was RMB15,727.2 million, an increase of 23.3% year-over-year.

 

lDistribution GMV7 was RMB1,094.1 million, an increase of 5.4% year-over-year.

 

lNon-distribution GMV8 was RMB14,633.1 million, an increase of 24.9% year-over-year.

 

lGMV generated from non-TMALL marketplaces and channels accounted for approximately 31.7% of total GMV during the quarter, compared with 24.7% for the same period of 2020.

 

Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun, commented “Whilst the impact of the Better Cotton Initiative continues to sweep through the industry, especially affecting our international brand partners in apparel, we have continued to execute on our strategic medium-term plan to deliver sustainable growth. In particular, backed by our comprehensive infrastructure and service offerings, we have made significant inroads in innovating and executing our omni-channel strategy and further penetrating into the luxury sector. In addition, as part of the transformation of our business, we started to build a technology-powered middle-office, which we believe will improve our service quality and reduce operational cost meaningfully in the long run. While we anticipate ongoing headwinds from the Better Cotton Initiative in the second half of this year, online shopping increasingly pervades people’s daily life, therefore we believe the comprehensive suite of e-commerce solutions that we deploy for our brand partners will improve the shopping experience for consumers.”

 

Mr. Arthur Yu, Chief Financial Officer of Baozun commented, “Despite the headwinds of the Better Cotton Initiative, we still managed to deliver a solid year-on-year GMV growth of 23.3% and net revenue growth of 7.1% year-over-year. We also achieved positive operating cash flow with non-GAAP income from operations of RMB161.6 million, a clear indication of our sound financial status and strong cash flow management. Meanwhile, we made substantial progress in extracting value from the various acquisitions and strategic alliances this year. Going forward, we intend to continue to deploy our capital to facilitate our strategic medium-term plan to boost our long-term sustainable and profitable growth. We believe the progress we have made and our groundwork thus far, has positioned us to further enhance our value proposition.”

 

Second Quarter 2021 Financial Results

 

Total net revenues were RMB2,304.1 million (US$356.9 million), an increase of 7.1% from RMB 2,152.1 million in the same quarter of last year.

 

Product sales revenue was RMB972.1 million (US$150.6 million), an increase of 4.8% from RMB 927.8 million in the same quarter of last year. The increase was primarily attributable to the acquisition of new brand partners and the increased popularity of brand partners’ products, partially offset by slower growth in personal-care products in appliances category.

 

 

 

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 RMB1,332.0 million (US$206.3 million), an increase of 8.8% from RMB1,224.3 million in the same quarter of last year. The increase was primarily attributable to the growth of the Company’s consignment model and service fee model, partially offset by decline of sales in sportswear sector as impacted by the Better Cotton Initiative during the quarter.

 

Total operating expenses were RMB2,197.5 million (US$340.3 million), compared with RMB 1,991.4 million in the same quarter of last year.

 

lCost of products was RMB814.6 million (US$126.2 million), compared with RMB775.8 million in the same quarter of last year. The increase was primarily due to higher costs associated with an increase in product sales revenue.

 

lFulfillment expenses were RMB560.4 million (US$86.8 million), compared with RMB575.3 million in the same quarter of last year. The decrease was primarily due to a decline in freight expenses due to the lower number of outbound orders due to the impact of the Better Cotton Initiative, especially for our brand partners in apparel categories, as well as efficiency improvements.

 

lSales and marketing expenses were RMB648.2 million (US$100.4 million), compared with RMB522.0 million in the same quarter of last year. The increase was in line with GMV growth and an increase in digital marketing services, which was partially offset by efficiency improvements.

 

lTechnology and content expenses were RMB115.4 million (US$17.9 million) compared with RMB102.3 million in the same quarter of last year. The increase was mainly due to growth in GMV and the Company’s ongoing investment in technological innovation and productization, which was partially offset by the Company’s cost control initiatives and efficiency improvements.

 

lGeneral and administrative expenses were RMB98.0 million (US$15.2 million), compared with RMB53.9 million in the same quarter of last year. The increase was primarily due to a rise in staff costs for the Company’s investment in talent recruitment, especially for its growing omni-channel services, and the modification of compensation packages to retain and attract the best talents in the industry, an increase in professional fees related to the Company’s recent M&A activities, an increase in rental expenses for the Company’s new headquarters, and bad debt provision for accounts receivable due from one customer, all of which were partially offset by cost control initiatives.

 

Income from operations was RMB106.6 million (US$16.5 million), a decrease of 33.6% compared with RMB160.6 million in the same quarter of last year. Operating margin was 4.6%, compared with 7.5% in the same quarter of last year.

 

Non-GAAP income from operations was RMB161.6 million (US$25.0 million), a decrease of 13.6% compared with RMB187.1 million in the same quarter of last year. Non-GAAP operating margin was 7.0%, compared with 8.7% in the same quarter of last year.

 

 

 

 

Net income attributable to ordinary shareholders of Baozun Inc. was RMB79.8 million (US$12.4 million), a decrease of 33.4% compared with RMB119.8 million in the same quarter of last year. Basic and diluted net income attributable to ordinary shareholders of Baozun Inc. per ADS were RMB1.08 (US$0.17) and RMB1.06 (US$0.16), respectively, compared with RMB2.04 and RMB2.00, respectively, in the same period of 2020.

 

Non-GAAP net income attributable to ordinary shareholders of Baozun Inc. was RMB150.8 million (US$23.4 million), an increase of 3.3% compared with RMB146.0 million in the same quarter of last year. Basic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS were RMB2.04 (US$0.32) and RMB2.01 (US$0.31), respectively, compared with RMB2.48 and RMB2.43, respectively, in the same period of 2020.

 

As of June 30, 2021, the Company had RMB4,534.2 million (US$702.3 million) in cash, cash equivalents, restricted cash and short-term investments, compared with RMB5,179.9 million as of December 31, 2020.

 

Share Repurchase Program Updates

 

On May 18, 2021, the Company’s Board of Directors authorized a share repurchase program under which the Company may repurchase up to US$125 million worth of its outstanding (i) American depositary shares (“ADSs”), each representing three Class A ordinary shares, and/or (ii) Class A ordinary shares over the next 12 months starting from May 18, 2021. As of June 30, 2021, the Company had repurchased an aggregate of 344,428 ADSs for approximately US$12.5 million under this program.

 

Recent Developments

 

Acquisition of eFashion

 

On June 28, 2021, the Company announced that it had signed a definitive agreement to acquire 100% equity interest in Shanghai Yi Shang Network Information Co Ltd (“eFashion China”), a leading provider of e-commerce solutions for fashion brands in China, in an all-cash transaction. The acquisition positions the Company strongly to further penetrate the apparel category and reinforce its leadership. Founded in 2008 and headquartered in Shanghai, eFashion China is an e-commerce solution provider that is focused on bringing international fashion brands to China. It provides brands with one-stop e-commerce solutions, including brand consulting, store operation, digital marketing, IT solutions and customer service. It has established itself as one of the key players in China’s branded apparel e-commerce space. It currently serves many well-known international brands, including international premium fashion, sportswear, and luxury brands. The acquistion is expected to be completed in or around September 2021. After the completion of the acquisition, eFashion China will serve as a sub-brand of Baozun and the companies will combine their comprehensive advantages to capture the growth potential of promising brands.

 

Strategic Partnership with Cainiao

 

On July 22, 2021, the Company and its wholly-owned subsidiary Baotong Inc. (“Baotong”) signed a letter of intent with Cainiao for Cainiao’s equity investment in Baotong, the Company’s warehousing and fulfillment solution subsidiary. Baozun, Baotong and Cainiao also entered into a Letter of Intent of Business Cooperation Agreement to further explore and develop brand e-commerce opportunities. The three companies will cooperate to develop competitive solutions in customized, high-value and digitalized logistics services. Baotong may also provide operational and technological management and consulting services, to Cainiao’s broader customer base. The Company and Baotong will leverage Cainiao’s national logistics expertise and technology to greatly improve their cost structure and enrich their service portfolio.

 

 

 

 

Conference Call

 

The Company will host a conference call to discuss the earnings at 7:30 a.m. Eastern Time on Thursday, August 19, 2021 (7:30 p.m. Beijing time on the same day).

 

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/3091935. Once preregistration has been completed, 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 09:59 p.m. Beijing Time, August 27, 2021.

 

Dial-in numbers for the replay are as follows:

International Dial-in         +61-2-8199-0299

U.S. Toll Free                    +1-855-452-5696

Passcode:                          3091935#

 

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 from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net margin, non-GAAP net income attributable to ordinary shareholders of Baozun Inc. and non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS, as supplemental measures to review and assess its financial and 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 from operations is income 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 is net income excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisition and unrealized investment loss. Non-GAAP net margin is non-GAAP net income as a percentage of total net revenues. Non-GAAP net income attributable to ordinary shareholders of Baozun Inc. is net income attributable to ordinary shareholders of Baozun Inc. excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisition, and unrealized investment loss. Non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS is non-GAAP net income 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 financial and operating performance and formulate business plans. Non-GAAP income from operations enables 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. Non-GAAP net income enables the Company’s management to assess the Company’s financial and operating results without considering the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisition and unrealized investment loss. Such items are non-cash expenses that are not directly related to the Company’s business operations. Share-based compensation expenses represent non-cash expenses associated with share options and restricted share units the Company grants under the share incentive plans. Amortization of intangible assets resulting from business acquisition represents non-cash expenses associated with intangible assets acquired through one-off business acquisition. Unrealized investment loss represents non-cash expenses associated with the change in fair value of the equity investment. 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 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 from operations, non-GAAP net income, non-GAAP net income attributable to ordinary shareholders of Baozun Inc., and non-GAAP net income 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, amortization of intangible assets resulting from business acquisition and unrealized investment loss have been and may continue to be incurred in the Company’s business and is not reflected in the presentation of non-GAAP income from operations and non-GAAP net income. Further, the non-GAAP measures may differ from the non-GAAP measures used by other companies, including peer companies, potentially limiting the comparability of their financial results to the Company’s. In light of the foregoing limitations, the non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net margin, non-GAAP net income attributable to ordinary shareholders of Baozun Inc. and non-GAAP net income 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 from operations, operating margin, net income, net margin, net income attributable to ordinary shareholders of Baozun Inc. and net income 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 press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of 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,” “potential,” “continue,” “ongoing,” “targets,” “guidance,” “going forward,” “outlook” and similar statements. Statements that are not historical facts, including quotes from management in this announcement, statements about the Company’s strategies and goals and consummation or benefits of planned transactions, are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s operations and business prospects; the Company’s business and operating strategies and its ability to implement such strategies; the Company’s ability to develop and manage its operations and business; competition for, among other things, capital, technology and skilled personnel; the Company’s ability to control costs; the Company’s dividend policy; changes to regulatory and operating conditions in the industry and geographical markets in which the Company operates; and other risks and uncertainties. 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 and the Company’s announcements, notice or other documents published on the website of The Stock Exchange of Hong Kong Limited. All information provided in this press release is as of the date of this press release and is based on assumptions that the Company believes to be reasonable as of this date, and the Company does not undertake any obligation to update any forward-looking statement, except as required under the applicable law.

 

About Baozun Inc.

 

Baozun Inc. is the leader and a pioneer in the brand e-commerce service industry in China. Baozun empowers a broad and diverse range of brands to grow and succeed by leveraging its end-to-end e-commerce service capabilities, omni-channel coverage and technology-driven solutions. Its integrated one-stop solutions address all core aspects of the e-commerce operations covering IT solutions, online store operations, digital marketing, customer services, and warehousing and fulfillment.

 

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

 

 

 

 

For investor and media inquiries, please contact:

 

Baozun Inc.

Ms. Wendy Sun

Email: ir@baozun.com

 

Christensen

In China

Mr. Rene Vanguestaine

Phone: +852-6686-1376

E-mail: rvanguestaine@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,
2020
  

June 30,
2021

  

June 30,

2021

 
   RMB   RMB   US$ 
ASSETS               
Current assets               
Cash and cash equivalents   3,579,665    3,391,749    525,315 
Restricted cash   151,354    177,549    27,499 
Short-term investments   1,448,843    964,864    149,438 
Accounts receivable, net   2,188,977    1,994,697    308,939 
Inventories, net   1,026,038    991,645    153,586 
Advances to suppliers   284,776    238,548    36,946 
Prepayments and other current assets   438,212    482,030    74,657 
Amounts due from related parties   40,935    47,479    7,354 
Total current assets   9,158,800    8,288,561    1,283,734 
                
Non-current assets               
Investments in equity investees   53,342    455,336    70,523 
Property and equipment, net   430,089    505,133    78,235 
Intangible assets, net   146,373    303,343    46,982 
Land use right, net   41,541    41,028    6,354 
Operating lease right-of-use assets   524,792    892,987    138,306 
Goodwill   13,574    213,426    33,055 
Other non-current assets   51,531    93,363    14,461 
Deferred tax assets   54,649    51,543    7,983 
Total non-current assets   1,315,891    2,556,159    395,899 
                
Total assets   10,474,691    10,844,720    1,679,633 

 

 

 

 

Baozun Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

   As of 
   December 31,
2020
  

June 30,
2021

  

June 30,
2021

 
   RMB   RMB   US$ 
LIABILITIES AND SHAREHOLDERS' EQUITY               
Current liabilities               
Accounts payable   421,562    515,082    79,776 
Notes payable   500,820    535,888    82,998 
Income tax payables   72,588    22,802    3,532 
Accrued expenses and other current liabilities   991,180    565,521    87,588 
Amounts due to related parties   44,997    89,212    13,817 
Current operating lease liabilities   165,122    247,160    38,280 
Total current liabilities   2,196,269    1,975,665    305,991 
                
Non-current liabilities               
Long-term loan   1,762,847    1,755,164    271,840 
Deferred tax liabilities   2,538    35,218    5,455 
Long-term operating lease liabilities   370,434    678,601    105,102 
Other non-current liabilities   -    92,233    14,285 
Total non-current liabilities   2,135,819    2,561,216    396,682 
                
Total liabilities   4,332,088    4,536,881    702,673 
                
Redeemable non-controlling interests   9,000    -    - 
                
Baozun Inc. shareholders’ equity:               
Class A ordinary shares (US$0.0001 par value; 470,000,000 shares authorized, 220,505,115 and 220,770,780 shares issued and outstanding as of December 31, 2020 and June 30, 2021, respectively)   137    137    21 
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, 2020 and June 30, 2021, respectively)   8    8    1 
Additional paid-in capital   5,207,631    5,286,693    818,804 
Treasury shares   -    (80,268)   (12,432)
Retained earnings   952,001    1,033,022    159,996 
Accumulated other comprehensive income   (48,756)   (75,893)   (11,754)
                
Total Baozun Inc. shareholders' equity   6,111,021    6,163,699    954,636 
                
Non-controlling interests   22,582    144,140    22,324 
                
Total equity   6,133,603    6,307,839    976,960 
                
Total liabilities, redeemable non-controlling interests and equity   10,474,691    10,844,720    1,679,633 

 

 

 

 

Baozun Inc.

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 June 30, 
   2020   2021 
   RMB   RMB   US$ 
Net revenues               
Product sales   927,799    972,077    150,556 
Services   1,224,267    1,332,040    206,307 
Total net revenues   2,152,066    2,304,117    356,863 
                
Operating expenses (1)               
Cost of products   (775,783)   (814,617)   (126,168)
Fulfillment (2)   (575,323)   (560,382)   (86,792)
Sales and marketing (2)   (521,969)   (648,233)   (100,399)
Technology and content   (102,258)   (115,421)   (17,876)
General and administrative (2)   (53,892)   (97,960)   (15,172)
Other operating income, net   37,802    39,130    6,060 
Total operating expenses   (1,991,423)   (2,197,483)   (340,347)
Income from operations   160,643    106,634    16,516 
Other income (expenses)               
Interest income   9,090    19,404    3,005 
Interest expense   (18,112)   (13,285)   (2,058)
Unrealized investment loss   -    (17,254)   (2,672)
Impairment loss of investments   -    (3,541)   (548)
Exchange gain   274    24,747    3,833 

Income before income tax and share of income in equity

method investment

   151,895    116,705    18,076 
Income tax expense (3)   (29,107)   (35,470)   (5,494)
Share of income (loss) in equity method investment, net of tax of nil   (1,719)   587    91 
Net income   121,069    81,822    12,673 
                
Net income attributable to non-controlling interests   (653)   (2,056)   (318)
Net income attributable to redeemable non-controlling interests   (645)   -    - 
Net income attributable to ordinary shareholders of Baozun Inc.   119,771    79,766    12,355 
                
Net income per share attributable to ordinary shareholders of Baozun Inc.:               
Basic   0.68    0.36    0.06 
Diluted   0.67    0.35    0.05 
Net income per ADS attributable to ordinary shareholders of Baozun Inc.:               
Basic   2.04    1.08    0.17 
Diluted   2.00    1.06    0.16 
Weighted average shares used in calculating net income per ordinary share               
Basic   176,473,910    221,946,486    221,946,486 
Diluted   179,857,079    225,009,009    225,009,009 
                
Net income   121,069    81,822    12,673 
Other comprehensive income, net of tax of nil:               
Foreign currency translation adjustment   1,899    (32,971)   (5,107)
Comprehensive income   122,968    48,851    7,566 

 

 

 

 

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

 

   For the three months ended June 30, 
   2020   2021 
   RMB   RMB   US$ 
Fulfillment   2,681    4,815    746 
Sales and marketing   9,074    25,406    3,935 
Technology and content   4,412    11,513    1,783 
General and administrative   9,893    9,975    1,545 
    26,060    51,709    8,009 

 

(2) Including amortization of intangible assets resulting from business acquisition, which amounted to RMB0.4 million and RMB3.3 million for the three months period ended June 30, 2020 and 2021, respectively.

 

(3) Including income tax benefits of RMB0.1 million and RMB0.8 million related to the reversal of deferred tax liabilities, which was recognized on business acquisition for the three months period ended June 30, 2020 and 2021, respectively.

 

 

 

 

Baozun Inc.

Reconciliations of GAAP and Non-GAAP Results

(in thousands, except for share and per ADS data)

 

   For the three months ended June 30, 
   2020   2021 
   RMB   RMB   US$ 
Income from operations   160,643    106,634    16,516 
Add: Share-based compensation expenses   26,060    51,709    8,009 
   Amortization of intangible assets resulting from business acquisition   391    3,304    512 
Non-GAAP income from operations   187,094    161,647    25,037 
                
Net Income   121,069    81,822    12,673 
Add: Share-based compensation expenses   26,060    51,709    8,009 
   Amortization of intangible assets resulting from business acquisition   391    3,304    512 
   Unrealized investment loss   -    17,254    2,672 
Less: Tax effect of amortization of intangible assets resulting from business acquisition   (98)   (826)   (128)
Non-GAAP net income   147,422    153,263    23,738 
                
Net income attributable to ordinary shareholders of Baozun Inc.   119,771    79,766    12,355 
Add: Share-based compensation expenses   26,060    51,709    8,009 
   Amortization of intangible assets resulting from business acquisition   199    2,827    438 
   Unrealized investment loss   -    17,254    2,672 
Less: Tax effect of amortization of intangible assets resulting from business acquisition   (50)   (707)   (110)
Non-GAAP net income attributable to ordinary shareholders of Baozun Inc.   145,980    150,849    23,364 
                
Non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS:               
Basic   2.48    2.04    0.32 
Diluted   2.43    2.01    0.31 
Weighted average shares used in calculating net income per ordinary share               
Basic   176,473,910    221,946,486    221,946,486 
Diluted   179,857,079    225,009,009    225,009,009