Baozun Inc.

Good morning, ladies and gentlemen, and thank you for standing by for Balzone's second quarter 2023 earnings conference call. At this time, all participants are in 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 your host for today's call, Ms. Wendy Sun, Senior Director of Corporate Development and Investor Relations at Balzone. Please proceed, Wendy.

Thank you, operator. Hello, everyone, and thank you for joining us today. Our second quarter 2023 earnings release was distributed earlier before the call and is available on our IR website at ir.bozen.com, as well as on Global Newswire Services. They have also posted a PowerPoint presentation that accompanies our comments to the same IR website, where they are available for download. On the call today from Baozhen, we have Mr. Vincent Chiu, Chairman and Chief Executive Officer, Mr. Arthur Yu, Chief Financial Officer and President of Baozhen E-commerce, and Ms. Sandree Zerbeek, President of Baozhen Brand Management. Ms. Chiu will review the business strategy and company highlights, followed by Ms. Yu, who will discuss the business development of Baozhen E-commerce and about our financial outlook. and then by Ms. Zerbit to share more about thousand-branch measurements. 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 the U.S. Security Act of 1933 as a mandate. the U.S. Security Exchange Act of 1934 as amended, and the U.S. Private Security Litigation Reform Act of 1995. These forward-looking statements are based upon management current expectations and current market and operating conditions and relates to events that involve no or are 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 forward-looking statement. Further information regarding these and other risks and certainties or factors is included in the company's filings with the U.S. Exchange Commission and its announcement notice in the company's filings published on the website of the Stock Exchange of Hong Kong Limited. All information provided in this call is as of the date here and is based on assumptions that the company believes to be reasonable as of today. And the company does not undertake any obligation to update any forward-looking statements except as required and applicable law. Finally, please note that unless otherwise stated, all figures mentioned during this call are in RMD. In addition, we may elect to use adjusted in place of non-general accepted accounting principle or non-GAAP in order to reduce oral confusion that may arise from our discussion about financials related to the GAAP brand. It is now my pleasure to introduce our chairman and chief executive officer, Mr. Vincent Chu. Vincent, please go ahead.

Thank you, Wendy. Hello, everyone, and thank you all for your time. Last quarter, we detailed our exciting transformation roadmap where we are expanding Baozhen Group into three business lines, Baozhen E-commerce, Baozhen Brand Management, and Baozhen International. As demonstrated on slide number two, these three business lines create an ecosystem in which each complements the other two, and all three concurrently promote each other. This turns Bulging Group into a one-stop ecosystem with the most comprehensive services. Today, I'm happy to share our strategic partnership with Authentic Brand Group, or ABG, which exemplifies the advantages and benefits of Bulging Group's one-stop ecosystem. Drive number four is a snapshot of ABG. ABG is a global leader in brand development, boosting a large portfolio of more than 50 iconic and world-renowned sportswear and lifestyle brands. Earlier this year, ABG's executives visited us to discuss Bosun brand management and our potential collaboration with Hunter, a British premium outdoor brand under its portfolio. They quickly recognized that Baozhen's vision and ecosystem can elevate Hunter's business in Greater China. Specifically, Baozhen's advancements in marketing technology and digitalization, as well as our game-changing new retail philosophy and a broad international reach makes us the ideal strategic partner. Accordingly, ABG has chosen Baozhen Group to become its strategic partner in Great China. We have signed a license agreement for Hunter. Beyond the typical license partnership, we are moving further and are in the process of forming up a joint venture with ABG to co-own Hunter's intellectual property in Great China and Southeast Asia. This marks another milestone in our transformation where all three business lines we will cooperate together to deliver an extraordinary suite of services to leading global brand partners. Looking forward, we anticipate the challenging macro environment in China to continue. However, we have set key objectives for each of our business lines for the rest of 2023. With a priority in higher business quality, Baozong e-commerce delivered solid growth in profits and cash flows in the first half of the year. BEC is also prepared to transition into its second growth curve to adapt to the rapidly changing dynamics of China's e-commerce market. Baozong Brand Management, or BBM, made through a smooth transition period as we have put in place the right infrastructure supply chain partners, and the seasoned team. DBM is now accelerating its China for China product offerings, featuring GAP's new local designs and marketing. For Baozun International, we continue to establish infrastructures throughout Asia, focusing on technology-enabled distribution to deliver the maximum omni-channel reach for brand partners. Currently, Baozun Asia employs around 150 employees across Singapore, Malaysia, Thailand, South Korea, the Philippines, Hong Kong, and Taiwan. Over the past 15 years in our history, I am thankful that Boson has been successful in a booming industry. We quickly expanded the business, built the best team, accumulated the best knowledge, and became the industry leaders. Now, as the e-commerce industry matures, we have updated our aspiration to focus on refinement towards extraordinary. Whereas in a booming environment, where success was built on catching the wave, we now are building future success on making a difference to create the trend. I'm pleased that in such a short term, since our acquisition of Gap, the team has already delivered notable achievements in its first five months of operations. With a solid new foundation in place, the team is accelerating its localization initiatives to drive further enhancements. Furthermore, by adding Hunter to its portfolio, BBM continues to scale, and I am confident that its success will greatly contribute to the next wave of positive success. Let me now pass the call over to Arthur for a review of our financials and updates on e-commerce business. Arthur, please proceed.