Baozun Inc.

Good morning, ladies and gentlemen, and thank you for standing by for Bowson's first quarter 2024 earnings conference call. At this time, all participants are in the 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, Mr. Wendy Sun, Senior Director of Corporate Development and Investor Relations of Baozhen. Please proceed, Wendy.

Thank you, operator. Hello, everyone, and thank you for joining us today. Our first quarter 2024 earnings release was distributed earlier before this call and is available on our IAR website at ir.baozhen.com as well as on PR Newswire services. We have also posted a PowerPoint presentation that accompanies our comments to the same IR website, where they're available for download. On the call today from Baozhen, we have Mr. Vincent Zhou, Chairman and Chief Executive Officer, Ms. Catherine Zhu, the Chief Financial Officer, Mr. Arthur Yu, President of Baozhen E-commerce, and Ms. Sanjay Zabit, President of Baozhen Brand Management. Ms. Chu will review the business strategy and company highlights, followed by Ms. Zhu, who will discuss our financials and outlook, and then by Ms. Yu and Ms. Zervis to share more regarding our e-commerce and the brand management segment respectively. 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 the meaning of the U.S. Security Act of 1933 as a mandate, the U.S. Security Exchange Act of 1934 as a mandate, and the U.S. Private Security Litigation Reform Act of 1995. These forward-looking statements are based upon management current expectations and current markets and operating conditions and relates to events that involve known or unknown risks, uncertainties, and other factors. 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, uncertainties, or factors is included in the company's filing with the U.S. Security and Exchange Commission and its announcement, notice, and 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 based upon assumptions that the company believes to be reasonable as of this date. And the company does not undertake any obligation to update any forwarding statements except as required and applicable to 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 accepted accounting principles or non-GAAP in order to reduce all the confusion that may arise from our discussion about financials related to the GAAP grant. It is now my pleasure to introduce our Chairman and Chief Executive Officer, Ms. Vincent Chu. Vincent, please go ahead.

Thank you, Wendy. Hello, everyone, and thank you all for your time. As you may recall, our primary focus for 2024 is to continue executing our plans diligently and sustainably. I'm pleased to share the progress and the results of our ongoing transformation journey. Please turn to slide number three. In the first quarter of 2024, Baozong Group achieved a 5% year-over-year revenue growth, reaching 2 billion. This growth was primarily driven by BBM's 66% year-over-year revenue increase and the better top line momentum from BEC. Additionally, our operating cash flow improved by 129 million, reflecting the robustness of our business model and operational efficiency. A closer look at the top line enables for the quarter. For BEC, it's encouraging that the service revenue returned to growth after six quarters of year-over-year contraction. This is attributed to our consistent efforts in enhancing client satisfaction, building our omni-channel capabilities, and extending our value proposition to our brand partners. In addition, we introduced a high quality product sales model by entering into exclusive distribution collaborations with several brands. This exclusivity allows us to make full use of our digitalization capabilities and the retail expertise to enable brands to build a consistent go-to-market strategy which is comprehensive and covers product positioning, marketing, pricing, channels, and the customer's experience. Along with daily sales operations, with deeper involvement and alignment in strategy and merchandising tactics, we are confident to help brands increase sales and boost their brand equity. We are confident this model will enable BEC product sales to resume growth. next quarter and gradually improve BEC's overall margin. BBM continues to make headway in transforming GAAP China, focusing on China for China products and merchandising tactics that resonate with local customers. BBM delivered solid Q&A results in both top and bottom lines. These efforts have had positive market acceptance and increased GAP's growth potential for the second half of 2024. Lastly, we are proud to share another significant milestone in our technology advancement. Our Technology Innovation Center successfully deployed over 5,000 partner offline stores for a global electronic brand giant. This involved a full set of demand chain management solution that manages online DTC, offline retail, and upon the distribution network with up-to-date digital commerce capabilities. It is fully integrated with the Baozun digital operating platform to ensure a seamless and close-loop omni-channel digital e-commerce, digital commerce experience. These are highlights that reflect the solid and constant effort Baozhen team has put into effect our ongoing transformation. I'm also proud to welcome Catherine Zhu, our newly appointed CFO, to this call. Catherine brings a wealth of experience and expertise to our senior management team. Importantly, Catherine is no stranger to Baozhen. as she has worked with us for the past four years in various key functions. With Catherine taking on the CFO role, Arthur is now more dedicated to leading our BEC segment to accelerate its transformation and further growth in 2024. Let me now pass the call over to Catherine for a review of her financials.