Baozun Inc.

Good morning, ladies and gentlemen, and thank you for standing by for Boutson's first quarter of 2020 earnings conference call. At this time, all participants are in listen-only mode. After the management's prepared remarks, there will be a question-and-answer session. As a reminder, today's conference call is being recorded. I will now turn the meeting over to your host for today's call, Ms. Wendy Sun, Investor Relations Director at Boutson. Please proceed, Wendy.

Thank you, operator. Hello, everyone. Thank you for joining us today. Baozhen's first quarter 2020 earnings release was distributed earlier today and is available on our website at ir.baozhen.com as well as on Global Newswire Services. On the call today from Baozhen, we have Mr. Vincent Qiu, Chairman and Chief Executive Officer, Mr. Junhua Wu, Chief Growth Officer, and Mr. Robin Lu, Chief Financial Officer. Ms. Qiu will review business operations and company highlights, followed by Mr. Lu, who will discuss financials and guidance. They will all be available to answer your questions during the Q&A session that follows. Before we begin, I would like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Security Exchange Act of 1934 as amended and as defined in the U.S. Highway Security Litigation Reform Act of 1995. These forward-looking 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 achievement to differ materially from those in the forward-looking statement. Further information regarding these and other risks and certainties or factors is included in the company's filing with the US SEC. 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 and applicable law. Finally, please note that, unless otherwise stated, all figures mentioned during this call are in RMD. It is now my pleasure to introduce our Chairman and Chief Executive Officer, Mr. Winston Qiu. Winston, please go ahead.

Thank you, Wendy, and thank you all for joining us. The world continues to feel the impact of the COVID-19 pandemic. During this difficult time, nothing is more important than ensuring the health and safety of you and your families. Hope you all well and stay healthy, like most companies in the world. We face a challenging macroeconomic environment at the start of 2020. Facing the challenge and taking proactive responses, we have shown great resilience and achieved another fruitful operating and financial results. While COVID-19 impacted overall consumption and the growth of e-commerce during the quarter, we mitigated the impact by optimizing and innovating our operational and marketing capabilities. For the first quarter, both GMB and total net revenues grew by 18% year-over-year, exceeding our previous expectations. Although some brands temporarily delayed their e-commerce plans as a result of the pandemic, We continue to add many exciting new brands to our portfolio during the quarter. We were able to add a net total of eight new brand partners, including the leading European home furnishing retailer, a few luxury brands, as well as a few domestic brands in the FMCG category, which grew particularly fast during the pandemic. Meanwhile, as we deploy our high-quality growth strategy, we also made progress in optimizing our category mix and ramping up newly added brands, which continued to a notable improvement in our blended bakery for the quarter. In contrast to the wider e-commerce industry suffered from serious logistics disruptions, we were able to maintain our LSG operations which was critical to ensuring business continuity for our brand partners and sustaining their e-commerce strategies throughout the COVID-19 period. Although these efforts led to incremental costs, the ability to offer uninterruptible services in the procurement capacity even during the most challenging environment have been immensely appreciated by our brand partners. As a result, We are pleased to be more integrated into our brand partners' supply chains and transit from a traditional e-commerce logistics partner to an O2O integrated partner that is supporting many of them in digesting offline inventory and minimizing inventory risk. As a digital strategy enabler, our role is not only to ensure that brand partners are able to merchandise and fulfill orders, and more critically to support them in navigating this challenging environment and driving growth opportunities. Throughout this process, we strategically enhanced our ability to revamp e-commerce and generate high-quality leads and demand for brand partners. For example, we continued to strengthen initiatives to expand consumer touchpoints. We increased our efforts in actively engaging with users through live streaming and leading short radio social platforms such as Douyin and Kuaishou, which consumers spend increasing amount of time on while staying at home. Meanwhile, we adjusted and optimized our operations and strategy to adapt to a stay-at-home economy, which is characterized by increased time spent indoors and the growing consumer theme for indoor entertainment, remote working and health and wellness. Let me share with you an example. In early March, before any recovery in e-commerce traffic, we helped one leading international food and beverage chain to organize its marketing campaign built around the theme of the so-called Cherry Blossom Festival. We organized a digital cherry pollution show and hosted a campaign to allow people to express their best wishes. We are very proud to have partnered with this brand to promote their thoughtful campaign and contribute to building their digital consumer relationships. Just to quantify the results, this specific marketing campaign helped the brand's founder to generate over half a million viewers. He was also top-ranked by Alibaba's most successful live streaming efforts over that time period and drove an increase in conversion rates, a significant achievement that resulted in strong online sales during the pandemic. I'm deeply proud of the great necessity and agility of our organization's display during the pandemic. and, in particular, our technological aptitude during the pandemic. Rooted our vision, technology empowers future success, we have consistently focused on developing technology-driven systematic business contingency plans and innovative and tactical solutions to facilitate our brand partners' success. Lastly, We are very encouraged by the economic recovery we have been seeing in China since March, which has further strengthened in May. We believe that the pandemic has accelerated the adoption of online retail, and our brand partners will continue to enhance and prioritize their digital go-to-market and expansion strategies. Our proven capabilities in driving innovation and digitalization have positioned us well for a post-pandemic boom in demand. We are confident in our ability to capture these mid- to long-term growth opportunities and reaffirm our commitment to driving our brand partners' e-commerce businesses to the next level. Let me now pass the call over to Roddy to go over our financials for the quarter.