Baozun Inc.

Good morning, ladies and gentlemen, and thank you for standing by for Baozun Second Quarter 2024 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 Soon. Senior Director of Corporate Development and Investor Relations of Baozun. Please proceed, Wendy.

Thank you, operator. Hello, everyone, and thank you for joining us today. Our second quarter 2024 earnings release was distributed earlier before this call and is available on our IR website at ir.baozun.com, as well as on PR 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 Chu, Chairman and Chief Executive Officer, Ms. Catherine Zhu, Chief Financial Officer, Mr. A-Se Yu, President of Baozhen E-commerce, and Mr. Ken Huang, Chief Financial Officer of Baozhen Brand Management. Ms. Chu will first share with our business strategy and company highlights, followed by Ms. Chu, who will discuss our financials, and then by Ms. Yu and Mr. Huang to share more about our e-commerce and brand management segments 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 within 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 market and operating conditions, and relates to events 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 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 assumptions that the company believes to be reasonable as of this date, and the company does not take any obligation to update any forelooking 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 accepted accounting principle or non-GAAP in order to reduce overall confusion that may arise from our discussions 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. I'm pleased to share that we continue to achieve success in executing our plans. In the second quarter of 2024, Baozong Group achieved a 3% year-over-year revenue growth, reflecting our ongoing efforts to strengthen our core operations and adapt to the evolving market landscape. BEC has shown solid momentum, with top line returning to growth after 10 consecutive quarters of year-over-year contraction. We're encouraged to see a turning point that highlights our effective revitalization efforts in both services and product sales. Notably, we successfully integrated location, a top Doinb partner, into Boston's live streaming business unit. This is a strategic breakthrough as it strengthens our position within the Douyin ecosystem and further enhances our omnichannel value proposition. BBM is narrowing its losses while accelerating its store expansion and fine-tuning the unit economics of new stores. We are seeing better performance from our new stores, which gives us confidence in further expansion in these markets. This progress was achieved despite the top-line pressure BBM is facing from cautious consumer sentiment. Additionally, in light of GAAP's strong global trend, we have deepened our interactions with GAAP Inc. and developed plans to better leverage this trend and its global resources. Our aim is to balance these resources with our localization efforts to drive growth. This quarter, Baozong Technology has once again been recognized for excellence, receiving another prestigious Garner Award in Direct-to-Consumer Solutions. Tailored for the Chinese market, our DTC solutions offer a comprehensive commerce platform that is secure, scalable, and flexible. This award underscores our ability to build innovative solutions for brands' private domains, empowering their further growth. On the ESG front, we continue to advance our commitment to sustainability. During the quarter, two of our logistic parks were certified as carbon neutral. And we also partnered with Nike on an innovative shoe recycling program. Through these efforts, we are not only reducing our carbon footprint, but also setting industry standards and making a positive contribution to environmental protection. With the improving momentum in e-commerce and a continued focus on strengthening BBM's fundamentals, we remain fully committed towards strategic transformation. Looking ahead, we are confident in our ability to drive further growth and deliver long-term value to our shareholders. Let me pass this to Catherine for financial updates.