Baozun Inc.

Good morning, ladies and gentlemen, and thank you for standing by for BOWZONE's fourth 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 Soon, Senior Director of Corporate Development and Investor Relations of BOWZONE. Please proceed, Wendy.

Thank you, operator. Hello, everyone, and thank you for joining us today. Our fourth quarter 2025 earnings release was distributed earlier before this call and is available on our IR website at ir.bowden.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 your download. On the call today from Baozhen, we have Mr. Vincent Chiu, Chairman and Chief Executive Officer, Ms. Katherine Zhu, Chief Financial Officer, Mr. Junhua Wu, Director and Chief Strategy Officer of Baozhen Group, and Ms. Ken Huang, Chief Executive Officer of Baozhen Brand Management. Ms. Chiu will first share our business strategy and company highlights. Ms. Zhu then will discuss our financials 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 four 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 four looking statements are based upon management current expectations on current market and operating conditions and relates to events that involve known or unknown 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 result 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. 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 upon assumptions that 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 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 discussion about financials related to the GAAP brand. You may now turn to slide two for the executive highlights for the quarter. It is now my pleasure to introduce our chairman and chief executive officer, Mr. Vincent Hsu. Vincent, please go ahead.

Thank you, Wendy. Hello, everyone, and thank you for joining us. I'm pleased that Baozun delivered a strong fourth quarter closing 2025 on a high note and successfully completing our three-year strategic transformation. Over the past three years, we have rebuilt our company with focus and intention, driving consistent sequential momentum throughout 2025. In the fourth quarter, our revenue increased 6% to $3.2 billion, while non-GAAP operating profits grew 91% to 198 million. This was not just about short-term recovery. It was about fundamentally improving the quality and the potential of our business. BEC has become a sustainable cash engine. Through sharper execution and continued cost rigor, BEC is now more agile and consistently profitable. We have moved from pursuing scale to focusing on value, prioritizing margin expansion and reliable cash generation, and most importantly, built alignment with BBM. BBM, meanwhile, has reached a defining inflection point. After three years of repositioning and localization, our brand management platform achieved its first quarterly breakeven fourth quarter 25. This milestone validates the sustainability of our model. Importantly, scale is beginning to translate into tangible operating leverage, marking the transition from a turnaround to profitable growth. Our financial profile has strengthened alongside operational progress. Margins have expanded. profitability has improved meaningfully and our balance sheet remains solid. In addition, our operating cash flow more than tripled to 420 million in 2025. These results validate that our business is not only growing, it is growing with better structure and healthier economics. In summary, 2025 marks the successful completion of the initial phase of our transformation. As we enter into 2026, our focus shifts decisively from rebuilding to scaling. Our priority now is to amplify the progress to accelerate in the next three years. We will do this by expanding BEC's margin, building scale and operating leverage in BBM, and deepening the strategic synergies between BEC and BBM. Our ambition is clear to drive the group's non-GAAP operating profit growth to 550 million by 2028. With a stronger organization, a proven strategy, and a highly focused execution culture, we are entering this next phase with confidence and momentum. Now I will hand over the call to our team for deeper dive into our financials and the business performance.