Baozun Inc.

Good morning, ladies and gentlemen, and thank you for standing by for Bowson's fourth quarter and fiscal year 2023 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 will now turn the meeting over to your host for today's call, Ms. Wendy Sun, Senior Director of Corporate Development and Investor Relations for Bowson. Please proceed, Wendy.

Thank you, operator. Hello, everyone, and thank you for joining us today. Our fourth quarter and fiscal year 2023 earnings release was distributed earlier before this call and is available on our IR website at ir.baozhen.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. A-Se Yu, Chief Financial Officer and President of Baozhen Economics, and Ms. Sun Zui Zerbi, President of Baozhen Brand Management. Ms. Chiu will review the business strategy and company highlights, followed by Mr. Yu, who will discuss the business development of Baozhen Economics, and about our financials and outlook. And then to share more about management. 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 statement within the meaning of the US Security Act of 1933 as a mandate, the US Security Exchange Act of 1934 as a mandate and the US 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 unknown 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 maturely 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. Security Exchange Commission and its announcement, notice, or other documents published on the website of the Stock Exchange of Hong Kong Limited. All information provided in this call is as of the date hereof and is based on the 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 under applicable law. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB. In addition, we may elect to use adjusted in place of non-general accounting, accepted accounting principle or non-GAAP in order to reduce any confusion that may arise from our discussion about the financial related to the GAAP grant. Dear all, please turn to slide number two. And 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. Thank you all for your time. 2023 kicked off our journey of transformation. Throughout 2023, Bosum Group demonstrated our resilience and adaptability to transformation. BEC reinforced its omni-channel capability and improved service quality, consolidating our leadership within the digital commerce ecosystem. EBM contributed additional revenue stream, and extends our value creation from supply chain to also supply chain fulfillment. We also further enhanced our cash generating capabilities with cost optimization, resulting from process re-engineering and more efficient working capital management. Overall, despite challenging market conditions, Our annual operating cash flow and free cash flow both grew by double digit year over year and surged to record highs. This has significantly strengthened the financial health of the group. Total revenues of the group grew 5% year over year to 8.8 billion, underpinned by incremental contributions from Boson Brand Management, BBM. executed its strategy of premiumization for GAAP China and achieved an impressive gross margin of 54% for the year. This has in turn resulted in much lower operating losses, far surpassing our initial forecast. This breakthrough in our first year is the result of having established a solid foundation for growth and success in brand management. BBM is a key component of Bosun Group's second growth curve. Bosun International BZI represents a longer-term opportunity for which we continue to lay the business foundation and the infrastructure. As BBM ramps up expansion following its acquisition of Hunter IP, BZI will play a vital role to expand Hunter into Southeast Asia. starting with Singapore and Malaysia this year. This is a good example of the synergy and collaboration between our business units. We believe that our expertise in technology applied to operations and business transformations is at the core of Bosun's identity. We are happy to share that Bosun has been acknowledged as a representative vendor in Gartner's 2024 Market Guide for Distributed Order Management System. We are proud to be the only Asian vendor selected alongside global retail service giants, such as Oracle, SAP, IBM, and Salesforce. This is a recognition of Boson's outstanding technical capabilities in the industry. Looking forward, we remain cautious about the macro uncertainties, yet we are confident that our ongoing transformation has strengthened our business fundamentals and our value proposition to brand owners. Our main focus this year is to continue to execute our plans diligently and patiently in a sustainable manner. With a healthy cash flow and a balance sheet, we will be ready to seize new opportunities and provide lasting value to our shareholders. This January, Our board has also approved a new share repurchase program of $20 million over the next 12 months. We will exit this program from time to time, taking into account factors such as trading window and marketing fluctuations. Let me now pass the call over to Arthur for a review of our financials. and update on our e-commerce business, BEC. Then to Sanjeev for more elaboration on BBM.