Baozun Inc.

Good morning, ladies and gentlemen, and thank you for standing by for Bayozen's first quarter 2025 earnings conference call. Currently, all participants are in a listen-only mode. After the management prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded. I would now like to turn the meeting over to your host for today's call, Ms. Wendy Sun, Senior Director of Corporate Development and Investor Relations of Bayozen. Please proceed, Ms. Wendy.

Thank you, operator. Hello, everyone, and thank you for joining us today. Our first quarter 2025 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. We 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 Mr. Vincent Chiu, Chairman and Chief Executive Officer, Ms. Catherine Zhu, Chief Financial Officer, Mr. Junhua Wu, Director and Chief Strategy Officer of Baozhen Group, and Mr. Ken Huang, Chief Executive Officer of Baozhen Bread Management. Ms. Chiu will first share our business strategy and company highlights. Ms. Zhu will then discuss our financials, followed by Ms. Wu and Mr. Huang. who will 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 Recognition 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, 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 forelooking 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 of the date 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 forelooking statement except as required and applicable law. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in NB. In addition, We may elect to use adjusted in place of non-general accepted accounting principles or non-GAAP in order to reduce oral confusion that may arise from our discussions 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. I'm pleased to report that Baozong continues to execute our strategic transformation with constant quarterly progress. Our revenue streams are now more diversified and our operational excellence continues to strengthen across the businesses. Baozong Group achieved 4% year-over-year revenue growth. BEC sustained a stable top line while BBM accelerated its strong momentum with 23% year-over-year sales growth. DEC is making strides in quality development and the value generation for our brand partners. Our ongoing progress in omnichannel and content creation initiatives is transforming customer engagement and the shopping experience. We also improved the quality of our product sales model achieving both healthy top-line growth and gross margin expansion. In addition, we are leveraging technology and AI applications to build a leaner and efficient organization. These innovations set a clear path for margin expansion for BEC and foster a culture of excellence. Within BBM, both GAP and Hunter are performing ahead of expectations. Our efforts to localize teams, products, and merchandising plans for Gap are yielding strong results. As Gap China continues to innovate and grow, we remain committed in delivering exceptional value to customers. Meanwhile, Hunter expanded the product offering category, achieved strong sales growth, and received widespread recognition. To capitalize on this momentum, and further strengthen Hangzhou's footprint. We will open three new stores simultaneously this May in Beijing, Shanghai, and Guangzhou. And Hangzhou, sorry. Overall, we closed the quarter with a constant positioning to accelerate our transformation through 2025. Notably, 2025 marks Baozhen's 18th anniversary, a symbolic and a strategic milestone. I'm proud of how far we've come. In China's tradition, 18 signifies a time of renewed vigor, maturity, and ambition. We view this milestone as a reflection of our transformation into an innovation-led platform focusing on long-term value creation. Now I will turn the call over to our team for a deeper look into our financials and business performance.