Baozun Inc.

Good morning, ladies and gentlemen, and thank you for standing by for Baozun's second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the 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 Baozhen. Please proceed, Wendy.

Thank you, operator. Hello, everyone, and thank you for joining us today. Our second quarter 2026 earnings release was distributed earlier before this call and is available on our IR website at ir.baozhen.com. as well as PR News Square 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. Zhu will first share 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 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 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 known or unknown risk, uncertainties or 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 materially from those in the forward-looking statement. Further information regarding these and other risks, uncertainties or factors is included in the company's filings with the United States 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 the company believes to be reasonable as of this date. And the company does not take any obligation to update any forelooking statement except as required in the 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 the overall confusion that may arise from our discussions about financial related to the GAAP brand. 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. Wenxin Qiu. Wenxin, please go ahead.

Thank you, Wendy. Hello, everyone, and thank you for joining us. We delivered another solid second quarter, with earnings quality continuing to improve. Group revenue grew 7% to $2.7 billion, while non-GAAP operating income reached 74 million. Year over year improvement of 25% compared with adjusted base of 59 million in the same period of last year. Both BBM and BEC have contributed solid results, demonstrating the strengths and the resilience of our business in a competitive market. BEC achieved resilient 5% year-over-year revenue growth. More importantly, BEC improved its efficiency and profitability with the expanded non-GAAP operating profit margin. Against a weak e-commerce industry backdrop, we view this performance as a clear demonstration of BEC improving business quality. Our deep brand know-how has been instrumental in understanding and anticipating market trends, consumer behaviors, and brand needs. This expertise enables us to engage with our brand partners more strategically while keeping value creation at the heart of our approach. BBM sustains strong brand momentum, delivering 22% year-over-year top-line growth Double-digit same-store growth, solid gross margin expansion, and further improvement in operating profitability. GAP remains the primary drive of this performance, supported by our effective MMC initiatives and increased consumer engagements from our seasonal brands ambassador program. At the same time, our emerging brands are progressing according to plan and are beginning to make more contribution to the top line as we start to invest in building their long-term presence. We also are very excited to share our advancements in technology innovation and the AI empowerment. We recently began piloting AI and automation initiatives within our GAP e-commerce operations to streamline selected processes The initial results have demonstrated substantial productivity gains, highlighting the potential to extend these capabilities across the broader BEC ecosystem. We are glad that the success of our strategic transformation over the past three years have laid a strong foundation for a more flexible and scalable business model. Leveraging AI and our established technology infrastructure BBM provides an environment where we can develop and improve new operating capabilities, while BEC provides a scale to deploy them across a broader portfolio of brands. With continued AI-driven empowerment and deeper synergies between our two business segments, we are raising our 2028 non-GAAP operating profit target from $550 million to 700 million, reflecting our increased confidence in long-term growth potential. Now I will hand over the call to our team for a deeper dive into our financials and performance.