Baozun Inc.

Good morning, ladies and gentlemen. Thank you for standing by for Bowson's fourth quarter and full year 2020 earnings conference call. At this time, all participants are 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 will now turn the meeting over to host for today's call, Ms. Wendy Sun, Investor Relations Director of Bowson. Please proceed, Wendy.

Thank you, operator. Hello, everyone, and thank you for joining us today. Our fourth quarter and full year 2020 earnings release was distributed earlier today and is available on our IR website at ir.baozhen.com, as well as on global newswire services. You can also find a PowerPoint presentation that accompanies our comments today on our IR website at the sections for quarterly results and webcasts and presentations. On the call today from Bowdoin, we have Mr. Vincent Chiu, Chairman and Chief Executive Officer, Mr. Arthur Yu, Chief Financial Officer, and Ms. Tracy Lee, our BD Vice President. Mr. Qiu will review the business operations and the company highlights, followed by Mr. Yu, who will discuss financials and guidance. They will all be available to answer your questions during the Q&A section that follows. Before we begin, I would like to remind you that this conference call contains forward looking statements within the meaning of the Securities Exchange Act of 1934 and the U.S. Private Security Litigation Reform Act of 1995. Those 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 to differ materially from those in the forward-looking statements. Further information regarding these and other risks and certainties or factors is included in the company's filing with the U.S. SEC and the announcement notice and other documents published on the website of the Stock Exchange of Hong Kong Limited. The company does not undertake any obligation to update any follow-up statement except as required and applicable law. family, please note that unless otherwise stated, all figures mentioned during this call are R&D. It is now my pleasure to introduce our Chief Executive Officer, Mr. Winston Chu.

Thank you, Wendy, and thank you all for joining us. It's been a busy and exciting quarter, and I'm pleased to report another solid set of results. During the fourth quarter, Brand partners accelerated their digital transformation in response to rapid changes across the e-commerce landscape in China. The nature of online consumption is evolving rapidly. Our unique positioning as a leader solution-driven platform for brands puts us at the center of this evolution. With technology that enables us to keep our brand partners ahead of the curve. If you are following along with our presentation, I'll start on slide number two. We executed our strategies throughout the fourth quarter. We would like to share a few key highlights with you, including a record-breaking W11 campaign, strong momentum in brand acquisition with a net of six brand partners to reach 263. and continuous operating margin enhancements. Overall, our non-GAAP operating profit grew by 64% while non-GAAP net income increased by 67%. We believe these achievements demonstrate the effectiveness of our high-quality growth strategy and reflect the long-term cumulative results of our investments in technology infrastructure. Now moving on to slide number three. Empowered by technology and innovation, we have been able to achieve continuous breakthroughs that improve customer experience and enhance operational efficiency. 2020, the 11 day long W11 campaign has become a touchstone validating the efforts we have put into creating such solid, effective, and efficient infrastructure. During the quarter, we upgraded our dynamic technology system and expanded capacity to 5 million orders per hour to support a record-breaking order search. In addition, we launched a variety of automation and one-click toolkits, including SKU rollout, labeling, short video processing, and sales intelligence applications from our proprietary retail operations support system, or ROSP. By leveraging Cloud infrastructure, AI algorithms, and data analytics, we launched a virtual intelligence dashboard system that improves operation efficiency while reducing risk. From a digital marketing perspective, we focused on the deployment of creative and innovative engagements to drive consumer exposure and the conversion rate. Deployment of data-driven analytical tools and the insights enables us to help brand partners better understand their customers and engage with them more effectively through price precise targeting and positioning. Besides, this fourth quarter we established a 1,000 square meter live streaming studio that allows us to integrate in-store live streaming into daily operations and streamline our portfolio of live streaming solutions. On the warehouse and logistics side, for corporate this year's extended double peaks during the W11 campaign, we not only upgraded our capacity and equipment, but also used algorithms to optimize real-time big data monitoring across the entire order flow process to improve order fulfillment efficiency. All these efforts enabled us to launch instant arrival services for several of our brand partners, that allows us to deliver over 80% of packages to consumers within 24 hours, which in return greatly enhanced customer experience. All these efforts greatly enhanced our value proposition for our client partners, allowing them to extend touchpoints and capture emerging opportunities for omni-channel strategies. As a third-party service provider, our infrastructure and tech assets allow us to allocate resources in an optimal way based on a universal online strategy. As we look ahead on slide number four, we reiterate our vision of technology empowers future success. And we will continue delivering for our brand partners a customer-centric e-commerce solution to reinforce our value proposition. To capitalize on the opportunities, we are launching a three- to five-year medium-term strategy plan to achieve our objectives of sustainable and profitable growth. First, we will adopt a customer-first approach to drive growth by focusing on service differentiation to meet brand partners' diverse needs. We will explore business opportunities and implement customer segmentation strategies to attract potential new business from both our existing and new brand partners. Though we have been the market leader in China's brand e-commerce service industry, we believe there are a lot of opportunities for us to become number one in more subcategories to increase market share. Secondly, we will drive growth through new business expansion. We believe that as e-commerce in China evolves, there are increasing opportunities to explore new channels, such as the Tencent Mini program, and the JD platforms. In the meantime, we will continue to explore new business models in accordance with the new channels. we will seek even greater optimization of our cost structure through technology-driven business process re-engineering and service quality-oriented location strategy. As our initial step, we recently established two additional remote service centers in low-cost cities of Nantong and Hefei. which we believe will improve service quality and reduce costs from the second half of 2021. Lastly, on slide number five, what was abundantly clear throughout 2020 was that our people are the greatest asset. This is key to our culture and based on our belief of delivering quality through developing people. the resilience, agility and commitment demonstrated by the Baozhen team and honored to have once again been awarded Shanghai Best Employer Top 30. Here I'm excited to announce a major office move planned for the second half of 2021 to a brand new headquarters with over 40,000 square meters. We believe the new Baozhen campus will accommodate our growing talent team support future business expansion and nurture the bulging culture of leading edge innovation. I will now pass the call over to Arthur who will go over our financials. Thank you. Okay.