Baozun Inc.

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

Thank you, operator. Hello everyone and thank you for joining us today. Our third quarter 2020 earnings release was distributed earlier today and is available on our IAR website at ir.baozun.com as well as on global newsware services. On the call today from Baozhen, we have Mr. Winston Qiu, Chairman and Chief Executive Officer, Mr. Junhua Wu, Chief Growth Officer, and Mr. Robin Lu, Chief Financial Officer. Mr. Qiu will review the 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 want to remind you that this conference call contains forward-looking statements within the meaning of the Security Exchange Act of 1934 and the U.S. Private Security Litigation Reform Act of 1995. These forward-looking statements are based upon the management's current expectations and current market and operating conditions and relates to environments that involve no or no risk, 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 to differ materially from those in the forelooking statement. Further information regarding these and other risks and uncertainties are factors included in the company's filing in the U.S. SEC and announcement on the website of the Stock Exchange of Hong Kong Limited. The company does not undertake any obligation to update any forward-looking statements except as required under applicable law. Finally, please note that, unless otherwise stated, all figures mentioned during this conference call are in RMD. It is now my pleasure to introduce our Chairman and Chief Executive Officer, Mr. Winston Chu. Winston, please go ahead.

Thank you, Wendy, and thank you all for joining us. I'm pleased to report another solid quarter with a lot of accomplishments. This is our very first earning call as a public company on both the Nasdaq and Hong Kong Stock Exchange. Our dual lifting in the US and Hong Kong marks another exciting milestone during our evolution as a leading pioneer in innovative brand e-commerce solutions in China. In particular, it increases our ability to pursue expansion opportunities and Alternative Financing Options to Grow and demonstrates our long-term commitment to create value for our growing base of global shareholders. In the past few years, we have focused on building our competitive mode around technology and innovation. Our impressive results for this year's Double Eleven Shopping Festival is a great example of our progress. where our total order value rose by 54.8% during the extended 11-day period to a record-high 16.5 billion. While the headline statistic itself is impressive, I want to highlight that it was our solid technology infrastructure, data intelligence capabilities, and a robust and systematic team, you know, coordination that underpinned our success overall. Our core infrastructure accelerated efficiency and promoted effectiveness across the board, from e-commerce merchandising all the way to order fulfillment. Most recently, we were honored by being named one of the Fortune's annual top 100 fastest growing companies for the second year in a row. We ranked number 27 globally and number 2 among Chinese companies. We continue to strengthen brand engagement in the third quarter, which was helped by improving consumer sentiment as the retail industry recovered from COVID-19 restrictions. In particular, during the third quarter, we added a net of 10 new brand partners, including a few internal international luxury brands, a UK-hard-corded luxury market place, a China collection store, as well as a few domestic brands in a variety of categories. As everyone knows, China has the world's largest e-commerce market and the opportunities to grow are vast given our unique positioning as a leading solution-driven platform. We also noted there are certain categories that are reacting more sharply to this trend. Luxury sector is a great example. Not only have we been able to attract a meaningful number of luxury brands this year, but we are also seeing a trend in more luxury brands establishing their flagship stores through third-party marketplaces. In our most recent breakthrough, we are in the process of expanding our service coverage with a Tier 1 European luxury brand to not only serve its official brand store, but who also establish and manages Marketplace flagship store. This will be the brand's first ever move to a third-party marketplace and we believe this will be a major catalyst that will accelerate the digital transformation of luxury e-commerce in China. As that wave materializes, we will be well positioned and ready to capture the emerging opportunities in the luxury sector. As e-commerce continues to grow and evolve quickly, we are committed to capturing these opportunities through continuous progress in digitalization. Over the past few years, we have constructed a very comprehensive digital operating platform, or DOP, that integrates our IT infrastructure, AI applications, and data intelligence capabilities. Going forward, we will leverage our DOP to develop More innovative tools and applications that serve as an engine for grant-honored sales schools. This will not only improve order fulfillment and merchandising efficiency, but will also stimulate demand generation and optimize lead-to-cash management. In addition to developing innovative technology solutions, business innovation is also critical for executing our high-quality growth strategy. You may recall from recent earning calls that we have launched two strategic initiatives to drive further innovation. First, we launched the Business Operating Center, or BOC, to drive operational efficiency, shared resources, reallocation, and the promotion of standard solutions. Second, we announced the opening of our Ghost Brand Operating Center, or GBO, to capture increasing opportunities among local and emerging brands. This quarter, we were able to advance a variety of efficiency and quality enhancements within our BOC. Based on the early trial programs for over a dozen brand owners on our BOC, we believe that we will achieve a meaningful increase in efficiency. For GBO, we intend to use innovation to expand our service scope We submerge in brands as we support their entire journey from setting up their go-to-market strategy to using high-level integration through our data intelligence and insight solutions. Our co-branding and co-marketing initiatives will help brand partners to optimize their brand positioning and even SKU planning, as well as manufacturing that relates to their supply chain. Another understated but very important benefit will be in reaching their touchpoints with a wider range of omni-channel marketplaces. We have strong prospects in the pipeline and we will be able to share more progress about them early next year. Following our successful secondary listing on the Hong Kong Stock Exchange, we have started a new journey. We believe it is an opportune time to accelerate our growth further by using strategic channels to capture high potential pipeline opportunities. Lastly, as you may have also noticed earlier today, we announced a few leadership enhancing changes to push forward these initiatives. We are happy to announce that Robin Lu, whom all of you know as our CFO, is moving forward to take a new role to lead the company's devotion to strategic business development and investment initiatives, both internationally and operationally. We plan to leverage on these initiatives to promote exposure to emerging brands, new e-commerce trends, and other business development opportunities, also to pre-lock emerging opportunities in China e-commerce arena. Taking his place as CFO is Arthur Yu, our current VP of Finance, who came on board with substantial experience in global finance acquired at large multinational organizations such as Jaguar Land Rover and BT Gold. We couldn't be happier to have him with us, and we are confident that our deepened venture will sharpen our focus and help drive long-term growth. I will now pass the call to Robin to go over financial support for us. Thank you.