Baozun Inc.

Good morning, ladies and gentlemen, and thank you for standing by for Belgium's first quarter 2026 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. Now let's turn the call over to your host for today's call, Ms. Wendy Sun, Senior Director of Corporate Development and Investor Relations of Belgium. Please proceed, Wendy.

Thank you, Operator. Hello, everyone, and thank you for joining us today. Our first quarter 2026 earnings release was distributed earlier before this call and is available on our IR website at ir.baljan.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 Mr. Ken Huang, Chief Financial Officer of Baozhen Brand Management. Ms. Chiu will share a first stage about our business strategy and company highlights. Ms. Zhu will then discuss our financials followed by Mr. Wu and Mr. Huang, who will share more regarding 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 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 statements. 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 at the date here and is based upon 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 statements except as required under applicable law. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB. You may now turn to slide two for the executive highlights for the quarter. It is now a pleasure to introduce Chairman and Chief Executive Officer, Mr. Vincent Chiu. Vincent, please go ahead.

Thank you, Wendy. Hello, everyone, and thank you for joining us. Q1 2026 was solid throughout. We achieved growth across every key metric, revenue, profitability, and the working capital turnover efficiency. For the quarter, group revenue grew 15% year over year to 2.4 billion. Non-GAAP operating income turned profitable at 8 million. a significant improvement compared to a loss of 67 million a year ago. Both business lines delivered solid growth in top line and the bottom line. Importantly, these are not just financial improvements. They reflect notable progress in sales quality, profitability, and the cash generation across both engines. BEC resumed the sustainable top-line growth this quarter with a 10% year-over-year revenue increase. Compared with scale, what is even more critical is actually the quality of this growth. We will continue to prioritize our revenue streams towards enhancing business quality, refining service satisfaction, and ultimately improving overall profitability. With growing synergies with BBM and the integration of this brand management mindset, we aim to engage more deeply with our clients, understand their businesses at a gradual level, and collaborate closely to drive sustainable growth. BBM delivered acceleration this quarter with revenue up 39% year over year and a continuing improvement in profitability. GAP reached operating breakeven for the second consecutive quarter. This is especially impressive given the relatively smaller seasonal cycle in the first quarter. We believe this performance is a testament to our methodologies in MMC, merchandising, marketing, and the channel. We will continue to leverage this proven approach to nurture smaller niche brands within our portfolio to expand our addressable market. The strong Q1 results bolster our confidence in the full year outlook, and more importantly, in our ability to excel during the acceleration phase of our business transformation over the next three years. Our two engines are each playing distinct yet reinforcing roles. BEC is not simply resuming growth. It is becoming a higher quality and a value driven business. Meanwhile, BBM is accelerating with gap, a clear path toward 2026 and the operating breakeven. Both engines are performing in sync and operating synergy is beginning to emerge, opening up broader development opportunities and unlocking new growth potential for a company. Now I'll hand over the call to the team for a deeper dive in our financials and business performance.