Baozun Inc.

Good morning, ladies and gentlemen, and thank you for standing by for Bowson's third quarter 2024 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 of Bowson. Please proceed, Wendy.

Thank you, operator. Hello, everyone, and thank you for joining us today. Our third quarter 2024 earnings release was distributed earlier before this call and is available on our IR website at ir.baozhen.com as well as on PR Newswire services. I have also posted a PowerPoint presentation that accompanies our comments to the same IR website where they are available for your download. On the call today from Baozhen, we have Ms. Winston Chiu, Chairman and Chief Executive Officer, Ms. Catherine Zhu, Chief Financial Officer, Ms. Arthur Yu, President of Baozhen E-commerce, and Ms. Ken Huang, Chief Financial Officer of Baozhen Bread Management. Ms. Chiu will first share our business strategy and company highlights, followed by Ms. Zhu, who will discuss our financials and outlook and then by Mr. Yu and Mr. Huang to share more about our e-commerce and brand management business separately. 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 follow-looking statement 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 Dedication 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 defer 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 and 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 the data here and is based on assumptions that the company believes to be reasonable as of this date. And the company does not undertake any obligation to update any forward-looking statement except as required and 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 principles or non-GAAP in order to reduce overall confusion that may cause from our discussions about financials and operations related to the gap grant. 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. I'm pleased to report that Baozun is well on track with advancing our strategic transformation. Our total revenues grew by 13% year-over-year, reflecting the strengths of our revitalized approach and consistent operational alignment. Both BEC and BBM have enhanced key growth drivers. BEC achieved a 14% revenue increase, driven by improvements in both the services and the product sales. Notably, the Douyin business grew by triple-digit year-over-year. directly resulting from our strategic integration with location and our commitment to launching innovations that capitalize on emerging trends. These initiatives have strengthened our presence on Douyin, further reinforcing Baozun's leadership in digital commerce. BBM has also resumed growth with a 10% year-over-year increase. the first Apple to Apple revenue expansion since our acquisition, and in fact, following years of top-line contraction from Gap Brand in China. Our efforts to build partnerships have been instrumental in integrating global resources with local insights and networks, and we anticipate sustained top-line growth momentum in 2025. Hunter has also made solid progress as we continue refining product categories and optimizing our channel network. This momentum was highlighted by the recent launch of a pop-up store in Shanghai's high fashion district, Zhangyuan. The opening generated remarkable attention during Golden Week, attracting widespread visibility that drives traffic and sales. These initiatives bolster hunters brands equity and further underscore our brand management capabilities and localization of brand appeal. In summary, Q3 has been a pivotal quarter of growth and the progress across our business segments. I'm confident about sustaining this momentum. Now let me pass to Catherine for financial update.