Baozun Inc.

Good morning, ladies and gentlemen, and thank you for standing by for Bizune's third quarter 2025 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 Sun. Senior Director of Corporate Development and Investor Relations of the Zune. Please proceed, Wendy.

Thank you, Operator. Hello, everyone, and thank you for joining us today. Our third quarter 2025 earnings release was distributed earlier before this call and is available on our IR website at ir.baozhen.com, as well on TR Newswire Services. They've 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, our Chief Financial Officer, Mr. Junhua Wu, Director and Chief Strategy Officer of Baozhen Group, and Mr. Ken Huang, Chief Financial Officer of Baozhen Brand Management. Ms. Chu will first share our business strategy and company highlights. Ms. Chu will then discuss our financials and outlook, followed by Mr. Wu and Mr. Huang, who will share more about our e-commerce and 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. 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 relate 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 forelooking statement. Further information regarding these and other risks and certainties or factors is included in the company's filings with the United States Securities Exchange Commission and its announcement, notice, or other documents published on the website of 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 undertake any obligation to update any forelooking statement except as required in the applicable role. Finally, please note that, unless otherwise stated, all figures mentioned during this call are in RMB. You may now turn to slide number two for the executive highlights for the quarter. 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 that Bosnia is advancing its strategic transformation with steady momentum, delivering a strong quarter marked by 5% total revenue growth, and a big improvement in profitability. Filled by strong gross margin expansion, our non-GAAP operating loss narrowed to 11 million from 85 million a year ago. These results show that our transformation is effective and demonstrate the strength of our business model. Both our two core engines are driving this success. BEC's solid execution and growing agility continue to deliver strong results this quarter. Building on the 56% year-over-year increase in adjusted operating profit from Q2, BEC achieved its most profitable third quarter in recent years, with non-gap operating profit of $28 million compared with operating loss of $30 million a year ago. This significant improvement in profitability, along with 6% services revenue growth, and the strong gains in creative content and the marketplace connectivity, shows that the BEC is now more agile and efficient. BBM continued with strong pipeline growth, with revenue up to 20% year over year. driven by impactful merchandising and marketing initiatives. This quarter, we engaged our first Gap China brand ambassador, a top-tier actor with 30 million followers on Weibo and 8 million on Douyin. We also launched a series of marketing campaigns and themed products to deepen emotional connections with local consumers. Hunter continued its brand momentum and opened our new store in Qingdao, bringing Hunter's total offline stores to eight, including five in China and three in Southeast Asia. These efforts contribute to sales growth, stronger gross margin, and improved overall profitability for BBA. In summary, we are firmly on track with our strategic transformation. With a resilient e-commerce foundation, accelerating brand management momentum, and the technology as our catalyst, we believe 2025 is a highly productive building phase. We anticipate 2026 to mark our inflection point, shifting from transformation investment to sustained profitable growth. Now I will hand the call over to our team for a deeper dive into our financials and the business performances.