Baozun Inc. (NASDAQ:BZUN)

Third Quarter 2019 Financial Results

• Total net revenues were RMB1,503.1 million (US$1210.3 million), an increase of 35.3% year-over-year. Services revenue was RMB840.8 million (US$117.6 million), an increase of 38.7% year-over-year.
  
• Basic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS5 were RMB1.01 (US$0.14) and RMB0.99 (US$0.14), respectively, compared with RMB0.90 and RMB0.86, respectively, for the same period of 2018.

“GMV during the quarter continued to grow strongly, increasing 43% year-over-year despite the impact from terminating our service agreement with one electronics brand and a challenging macroeconomic environment,” commented Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. “As e-commerce in China continues to evolve and become more interactive and engaging, we are seeing brands choose to pursue quality-conscious customers by enhancing user engagement and offering a more refined and customized shopping experience. We believe our core value in being a strategic technology enabler for brand partners will continue to create significant growth opportunities for us and build upon our solid foundation for long-term sustainable growth.”

Mr. Robin Lu, Chief Financial Officer of Baozun commented, “We are glad to see incremental contribution to GMV from newly-acquired brands, and more encouragingly, we are capitalizing on a number of emerging opportunities that will drive growth going forward. We believe these solid results validate our strategic decision to both optimize our brand portfolio towards higher-quality growth and reinvest our profits to capture select emerging opportunities. With our strategy opening up capacity and expanding our addressable market, and strong results during Singles Day, we currently expect GMV to grow by 45% to 50% year-over-year for the fourth quarter of 2019. We look forward the eventual conversion of incremental GMV growth into revenue growth over the next few quarters as our service penetrates and new brand partners gradually ramp up operations.”

Business Outlook

The Company expects total net revenues to be between RMB2,700 million and RMB2,750 million for the fourth quarter of 2019, which represents a year-over-year growth rate of 23% to 25%. The Company anticipates that services revenue will grow in-line with total net revenue on a year-over-year basis. 

SHANGHAI, China, Nov. 11, 2019 (GLOBE NEWSWIRE) -- Baozun Inc. (Nasdaq: BZUN) ("Baozun" or the "Company"), the leading brand e-commerce service partner that helps brands execute their e-commerce strategies in China, today announced that the total order value settled through payment gateways on all of the Company’s e-commerce channels reached a record RMB10.06 billion on Singles Day 2019, an increase of 53.6% from last year’s previous high of RMB6.55 billion.

The record Singles Day total order value does not include the contribution from one electronics brand that Baozun stopped servicing during the third quarter of 2019 as part of its strategy to optimize its brand portfolio towards higher-quality growth. To provide a more accurate comparison, if the contribution from the electronics brand was excluded from 2018, the total order value for Singles Day 2019 would have increased by approximately 76% year-over-year.

With Alibaba’s “Tmall Flagship Store 2.0” now deployed, Baozun bolstered its first mover advantage and rapidly upgraded nearly 100 of its brand partners’ flagship stores across a variety of categories, including apparel, electronics, cosmetics, mom & baby and FMCG prior to Singles Day. Tmall Flagship Store 2.0 is constantly evolving and allows Baozun to create highly customized upgrades for brand partners which were integral in helping them actively engage with customers, personalize content, and manage their creative marketing strategies in order to drive sales during the shopping festival.

“I am pleased to see that our focused strategy and execution in preparing for the massive surge in orders generated new corporate records, with total order value increasing 53.6% to RMB10.06 billion and number of orders surging 61% to 29 million orders,” commented Mr. Vincent Qiu, Chief Executive Officer of Baozun. “Breaking through the RMB10 billion mark in order value this year reflects the enormous future growth potential our core business continues to generate. We are excited to see that many leading brands within our portfolio ranked first in terms of total order value within their respective verticals. The combination of our cutting-edge IT infrastructure, integrated marketing capabilities, extensive analysis of big data, sophisticated warehousing and logistics networks, and deep insight into consumers helped brands engage with consumers more effectively and are all essential elements powering our success. As we continue to drive innovation to support future growth, I am confident that our investments in technology will help us solidify our position as the market leading e-commerce service provider.”

First Quarter 2019 Financial Results

• Total net revenues were RMB1,286.8 million (US$1191.7 million), an increase of 39.7% year-over-year. Services revenue was RMB669.2 million (US$99.7 million), an increase of 45.1% year-over-year.
• Basic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS5 were RMB 0.91 (US$0.14) and RMB0.89 (US$0.13), respectively, compared with RMB0.57 and RMB0.54, respectively, for the same period of 2018.

“I’m pleased to announce a strong start to the year where our investments in developing innovative and disruptive technology are paving the way for us to lead the industry into the next phase of the e-commerce revolution,” commented Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. “One of our strategic goals this year is to focus on high-quality growth as we begin to benefit from the additional capacity and expanded addressable market, that our powerful tools and highly-targeted digital marketing solutions are creating. We continue to grow our business in a sustainable and balanced manner, which we believe will better position us to drive growth over the long-term and offer both international and domestic brand partners a unique value proposition.”

Mr. Robin Lu, Chief Financial Officer of Baozun commented, “We delivered another solid quarter with GMV increasing by 58.4% and revenue growing by 39.7% year-over-year. Notably, new brand partners, especially brands in high-quality GMV categories, delivered incremental contribution in GMV growth. Furthermore, we are delighted to see some early-stage operational efficiency improvement generated from our system intelligence and automation, which underscores our commitment to innovations. During the first quarter of 2019, our investments in technology innovation and productization totaled RMB23 million. We are confident with our growth prospects and expect GMV to grow by 50% to 55% year-over-year for the second quarter of 2019.”

Business Outlook

The Company expects total net revenues to be between RMB1,550 million and RMB1,600 million for the second quarter of 2019, which represents a year-over-year growth rate of 34% to 38%, in which services revenue to increase by over 40% on a year-over-year basis.

SHANGHAI, China, April 10, 2019 (GLOBE NEWSWIRE) -- Baozun Inc. (NASDAQ: BZUN), the leading brand e-commerce service partner that helps brands execute their e-commerce strategies in China (“Baozun” or the “Company”), today announced the closing of an offering of American Depositary Shares (“ADSs”), each currently representing three Class A ordinary shares of the Company, par value of US$0.0001 per share, which the Company lent to affiliates of the underwriters (the “ADS Borrowers”).

The Company also closed the concurrent offering of US$225 million in aggregate principal amount of convertible senior notes due 2024 (the “Notes”), and the sale of an additional US$50 million in aggregate principal amount of the Notes pursuant to the exercise by the initial purchasers in full of an option to purchase additional Notes, pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (collectively, the “Notes Offering”). The Company received net proceeds from the Notes Offering of approximately US$269.0 million. The Company plans to use the net proceeds from the Notes Offering for working capital and other general corporate purposes, including repayment of outstanding indebtedness and potential future acquisitions.

Concurrently with the Notes Offering, the Company has entered into the ADS lending agreements with the ADS Borrowers that are affiliates of the initial purchasers in the Notes Offering, pursuant to which the Company lent, in total, 4,230,776 ADSs to the ADS Borrowers, of which 2,250,000 ADSs (the “Initial Borrowed ADSs”) were initially offered at US$40.00 per ADS. The Company did not receive any proceeds from the sale of the Initial Borrowed ADSs, but received a nominal lending fee from the ADS Borrowers.

The ADS Borrowers may subsequently offer the remaining borrowed ADSs for sale on a delayed basis following the Notes Offering at market prices prevailing at the time of sale or at negotiated prices. The Company has been advised by the ADS Borrowers that they expect that, over the same period as their affiliates sell such additional borrowed ADSs, the ADS Borrowers or their affiliates may, in their discretion, purchase a comparable number of ADSs in the open market and use such ADSs to facilitate short sales and/or privately negotiated derivative transactions by investors in the Notes.  The activity described above could affect the market price of the Company’s ADSs or the Notes otherwise prevailing at that time.

The borrowed ADSs are not considered outstanding for purposes of computing and reporting the Company’s earnings per ADS under current U.S. GAAP rules. The Company believes that the registered ADS borrow facility, as described above, helped achieve better terms of the Notes Offering for the Company.

The Company has filed an automatic shelf registration statement on Form F-3 with the U.S. Securities and Exchange Commission (“SEC”). A final prospectus supplement and the related base prospectus describing the terms of the offering of the borrowed ADSs have been filed with the SEC. The offering of borrowed ADSs has been made only by means of the prospectus supplement and accompanying base prospectus. Before you invest, you should read the prospectus supplement and the accompanying base prospectus and other documents that the Company has filed with the SEC for more complete information about the Company and the offering. You may obtain these documents free of charge by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, a copy of the prospectus supplement and the related base prospectus may be obtained from Credit Suisse Securities (USA) LLC, Attention: Prospectus Department at 11 Madison Avenue, New York, NY 10010-3629, United States of America, or by calling 1-800-221-1037, or by email at usa.prospectus@credit-suisse.com or Deutsche Bank Securities Inc., Attention: Prospectus Group, Bank Securities Inc., 60 Wall Street, New York, NY, 10005 by e-mail at prospectus.cpdg@db.com.

SHANGHAI, China, April 03, 2019 (GLOBE NEWSWIRE) --

Dear Shareholders:

We are glad to deliver another solid year, with our Gross Merchandise Value, or GMV, increasing by 54% year over year to RMB29.4 billion in 2018, outpacing the growth of the e-commerce industry in China, while we accelerated our brand acquisition to serve a broader portfolio of 185 brand partners by the end of 2018.

Despite some uncertainties in China’s macro environment, e-commerce is still growing at a healthy rate. In 2018, online retail sales of goods and services in China grew by 23.9% to RMB9.01 trillion, accounting for 23.6% of China’s total retail market, according to China’s National Bureau of Statistics. Already the largest e-commerce market in the world by far, China is poised to become the largest retail market in the world in 2019, edging out the United States. Online shopping is now integrated into the daily lives of China’s consumers, and as China’s leading brand e-commerce service provider, we believe Baozun is well positioned to further penetrate this market and provide best-in-class service to our brand partners.

We are committed to delivering sustainable value to our brand partners through innovative, value-added solutions that meet their evolving needs. In our view, Baozun is setting a precedent for the next phase of the e-commerce revolution, where omni-channel operations, empowered by technology and data-driven digital marketing, work together seamlessly to significantly improve operating efficiencies and drive returns and growth.

Let me offer thanks and congratulations to our brand and business partners, our fantastic software engineers, execution specialists, and our entire Baozun family, and especially to you, our shareholders, for helping make Baozun a winner again this year.

2018 Highlights

Our motto for the coming years is “Technology empowers future success”. We believe our future success rests on technological innovation, and we are increasingly devoting resources towards expanding our technology infrastructure and hiring the best talent in the industry to drive future growth.

Our Technology and Innovation Centers are currently focused on three areas – a Cloud-based System Plus that help brands set up their official brand stores and official brand WeChat Mini Programs; a Retail Operation Support System, or ROSS, with digital tools to improve efficiency and reduce costs; and an upgrade of our core e-commerce systems such as Order Management System, or OMS, and Warehouse Management System, or WMS.

Seamlessly integrated with our e-commerce support systems, our proprietary Cloud-based System Plus enables efficient set-up of official brand stores and comprehensive customization to fulfill brands’ specific needs. We see growing demand for our Cloud-based System Plus as more premium brands leverage this sophisticated platform to establish their customized online presence with highly-customized features, maximum speed and efficiency.

ROSS encompasses a series of modules that greatly increase the degree of automation and efficiency in online store operations, which helps us improve our own operating efficiency, reduce store maintenance costs, and enhances our ability to serve more brand partners. We demonstrated some of our cutting edge technologies at our third annual Global Brand Commerce Summit in Shanghai, including proprietary tools such as VOC, or “voice of consumers”, that helps our brand partners analyze consumer behavior, and an AI writer that improves labor efficiency.

We continued to upgrade OMS, one of our core e-commerce systems, to OMS version 4.0, with improved functions to support omni-channel synchronization, customer experience optimization, order processing reliability and scalability, as well as integration with our Cloud-based System Plus. OMS4.0 greatly improves efficiencies in end-to-end e-commerce operations, including reducing labor costs. More importantly, our updated OMS is key to our ability to expand our cooperation with more leading brand partners to further penetrate the brand e-commerce market and explore other addressable markets.

Our digital marketing is a strategic, high value-added service that deepens our cooperation with our brand partners and serves as an effective partner acquisition channel. As our industry increasingly recognizes our achievements, we have won awards including the 2018 Greater China Effie Awards, the 9th Tiger Awards and the Golden Mouse Awards, 2018 Marketing ROI Festival, all of which are pre-eminent awards in the industry and serve to increase our visibility in brand e-commerce and 4A level marketing, further helping us attract brand partners.

Leveraging our industry leadership, advanced technology infrastructure and effective digital marketing capabilities, we have been able to accelerate customer acquisition. We added a net of 33 brand partners last year, taking our total to 185 brand partners by the end of 2018. We continue to onboard new brand partners, and we are confident that our long-term investments in technology will further reinforce our long-term competitive advantages and market leading position in China’s brand e-commerce market.
           
Overall, we are glad to close the year with strong growth from existing brands and increasing contribution from newly-added brands, helping us grow our revenue 30% to RMB5.4 billion, of which service revenue grew more than 52% to RMB2.9 billion in 2018. Non-GAAP income from operations totaled RMB433.2 million in 2018, an increase of 37% from 2017, and non-GAAP net income attributable to ordinary shareholders of Baozun Inc. was RMB346.2 million, representing basic and diluted non-GAAP earnings per ADS of RMB6.11 and RMB5.79, respectively, compared with RMB4.95 and RMB4.55, respectively, for 2017.

Key Strategies for 2019

Our proven success and reputation have attracted many brands to come to us.  With our improved operating efficiencies, we now have the capacity to serve more of these brands. I’m excited to say that our pipeline has never been stronger, and we will proactively extend our brand portfolio to achieve more balanced and sustainable growth. To execute our growth strategy, we reorganized our business structure during the first quarter of 2019 to add focus on e-commerce, supply chain logistics, and technology innovation:

E-commerce group: A reorganized structure and precision segmentation

We reorganized our business structure to focus on apparel, cosmetics, FMCG, and mother and baby categories, which we believe have strong growth potential going forward.

In the future, we will emphasize the quality of our GMV by selecting brand categories with higher margin contributions to further strengthen our position as a market leader.

Logistics and supply chain group

We continued to expand our warehouse capacity in 2018 to address increasing demand from our brand partners. We also expanded our cooperation with third parties to broaden our logistics network, leveraging their resources to better serve our partners. We upgraded our WMS to version 4.0, which closely tracks flow of goods to ensure accurate and timely delivery of products and inventory, and is fully integrated with our core e-commerce systems, Cloud-based System Plus, and third-party couriers to support omni-channel synchronization.

During the 2018 Singles Day, we began using customized picking robots in some of our warehouses to improve efficiency and increase fulfillment speed. We plan to further strengthen our value-added services to our brand partners, such as automated storage, intelligent sorting and retrieval, and highly efficient packing and delivery allocation. We also plan to expand our cooperation network with third parties to leverage their resources so that we can serve more customers and optimize our warehouse utilization.

Technology and Innovation Center

Technology is the DNA of our business, and one of our competitive advantages. Since the launch of our Technology and Innovation Center in 2017, we have established a talented team of over 800 IT engineers in Beijing, Shanghai and Chengdu. We expect to harvest some of the innovations in the coming year while we will also continue to optimize our product offerings, pipeline, and monetization strategies. We are looking to improve the experience of our brand partners and customers and achieve breakthroughs in innovation.

We remain committed to being one of China’s best employers while seeking to attract the best talent as we build our team. We remain excited about the market’s opportunities and expect to have a tremendous 2019, with your help and support.

Thank you again for your support of Baozun.

Sincerely,
Vincent Wenbin Qiu
Chairman and Chief Executive Officer
Baozun Inc.

SHANGHAI, China, April 05, 2019 (GLOBE NEWSWIRE) -- Baozun Inc. (NASDAQ: BZUN) (“Baozun” or the “Company”), the leading brand e-commerce service partner that helps brands execute their e-commerce strategies in China, today announced the pricing on April 4, 2019 of its previous announced offering (the “Notes Offering”) of US$225 million in aggregate principal amount of convertible senior notes due 2024 (the “Notes”). The Company granted the initial purchasers in the Notes Offering a 30-day option to purchase up to an additional US$50 million in principal amount of the Notes. The Company estimates that the net proceeds from the Notes Offering will be approximately US$219.8 million (or US$269.0 million if the initial purchasers exercise their option to purchase additional notes in full). The Company plans to use the net proceeds from the Notes Offering for working capital and other general corporate purposes, including repayment of outstanding indebtedness and potential future acquisitions.

The Notes will bear interest at a rate of 1.625% per year, payable on May 1 and November 1 of each year, beginning on November 1, 2019. The Notes will mature on May 1, 2024, unless repurchased, redeemed or converted in accordance with their terms prior to such date. The Notes will be convertible at the option of the holders into the Company’s American Depositary Shares (“ADSs”), each currently representing three Class A ordinary shares of the Company, par value US$0.0001 per share, based on an initial conversion rate of 19.2308 ADSs per US$1,000 principal amount of Notes (representing a conversion premium of approximately 30% to the Initial Borrowed ADS Price, as defined below). The conversion rate is subject to adjustment in certain circumstances. Holders may convert their Notes at their option at any time prior to the close of business on the second business day immediately preceding the maturity date. The Company may not redeem the Notes prior to maturity, unless certain tax-related events occur. Holders of the Notes may require the Company to repurchase all or part of their Notes in cash on May 1, 2022, or in the event of certain fundamental changes.

Concurrently with the Notes Offering, the Company has entered into ADS lending agreements with affiliates of the initial purchasers in the Notes Offering (such affiliates being the “ADS Borrowers”), pursuant to which the Company will lend up to 4,230,776 ADSs (the “borrowed ADSs”) to the ADS Borrowers. 2,250,000 ADSs (the “Initial Borrowed ADSs”) are being initially offered at US$40.00 per ADS (the “Initial Borrowed ADS Price”) pursuant to a separate prospectus supplement and an accompanying base prospectus. The ADS Borrowers may offer additional borrowed ADSs for sale on a delayed basis following the Notes Offering at market prices prevailing at the time of sale or at negotiated prices.  The registered ADS borrow facility is intended to facilitate privately negotiated transactions or short sales by which some investors may hedge their investment in the Notes, and could affect the market price of the Company’s ADSs or the Notes otherwise prevailing at that time.

The offering of the Initial Borrowed ADSs is conditioned on the closing of the Notes Offering. If the Notes Offering is not consummated, the offering of the borrowed ADSs will terminate and all borrowed ADSs (or ADSs fungible with borrowed ADSs) must be returned to the Company.

The Company will not receive any proceeds from the offering of the borrowed ADSs. The borrowed ADSs will not be considered outstanding for purposes of computing and reporting the Company’s earnings per ADS under current U.S. GAAP rules.

The Notes have been offered in the United States to qualified institutional buyers pursuant to Rule 144A and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Notes, the ADSs issuable upon conversion of the Notes and the Class A ordinary shares represented thereby have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the Securities Act.

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, nor shall there be a sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

This press release contains information about the pending Notes Offering, and there can be no assurance that the Notes Offering will be completed.

SHANGHAI, China, April 04, 2019 (GLOBE NEWSWIRE) -- Baozun Inc. (BZUN) (“Baozun” or the “Company”), the leading brand e-commerce service partner that helps brands execute their e-commerce strategies in China, today announced the proposed offering (the “Notes Offering”) of up to US$225 million in aggregate principal amount of convertible senior notes due 2024 (the “Notes”), subject to market and other conditions. The Company intends to grant the initial purchasers in the Notes Offering a 30-day option to purchase up to an additional US$50 million in principal amount of the Notes. The Company plans to use the net proceeds from the Notes Offering for working capital and other general corporate purposes, including repayment of outstanding indebtedness and potential future acquisitions.

The Notes will be convertible into the Company’s American Depositary Shares (“ADSs”), each currently representing three Class A ordinary shares of the Company, par value US$0.0001 per share, and will mature on May 1, 2024. Holders may convert their Notes at their option at any time prior to the close of business on the second business day immediately preceding the maturity date. The Company may not redeem the Notes prior to maturity, unless certain tax-related events occur. It is contemplated that holders of the Notes may require the Company to repurchase all or part of their Notes in cash on May 1, 2022, or in the event of certain fundamental changes. The conversion rate and other terms of the Notes will be determined at the time of pricing of the Notes Offering.

Concurrently with the Notes Offering, the Company intends to enter into ADS lending agreements with affiliates of the initial purchasers in the Notes Offering (such affiliates being the “ADS Borrowers”), pursuant to which the Company will lend a certain number of ADSs (the “borrowed ADSs”) to the ADS Borrowers. The ADS Borrowers will offer the borrowed ADSs in a separate SEC-registered offering pursuant to a prospectus supplement and an accompanying base prospectus (the “ADS Offering”). The number of the borrowed ADSs to be sold by the ADS Borrowers or their affiliates concurrently with the Notes Offering (the “Initial Borrowed ADSs”) will depend on the portion of the investors in the Notes that desire to hedge their investment. It is currently expected that the short position established by the ADS Borrowers in selling the Initial Borrowed ADSs will be used to facilitate transactions by which such investors in the Notes may hedge their investment in the Notes. The ADS Borrowers may offer additional borrowed ADSs for sale on a delayed basis following the Notes Offering at market prices prevailing at the time of sale or at negotiated prices. We have been advised by the ADS Borrowers that they expect that, over the same period as their affiliates sell such additional borrowed ADSs, the ADS Borrowers or their affiliates may, in their discretion, purchase a comparable number of ADSs in the open market and use such ADSs to facilitate short sales and/or privately negotiated derivative transactions by investors in the Notes.  The activity described above could affect the market price of the Company’s ADSs or the Notes otherwise prevailing at that time. 

The offering of the Initial Borrowed ADSs is conditioned on the closing of the Notes Offering. If the Notes Offering is not consummated, the ADS Offering will terminate and all borrowed ADSs (or ADSs fungible with borrowed ADSs) must be returned to the Company.

The Company will not receive any proceeds from the offering of the borrowed ADSs. The borrowed ADSs will not be considered outstanding for purposes of computing and reporting the Company’s earnings per ADS under current U.S. GAAP rules. The Company believes that the registered ADS borrow facility, as described above, would help achieve better terms of the Notes Offering for the Company.

The Notes will be offered in the United States to qualified institutional buyers pursuant to Rule 144A and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Notes, the ADSs issuable upon conversion of the Notes and the Class A ordinary shares represented thereby have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the Securities Act.

SHANGHAI, China, April 04, 2019 (GLOBE NEWSWIRE) -- Baozun Inc. (NASDAQ: BZUN) (“Baozun” or the “Company”), the leading brand e-commerce service partner that helps brands execute their e-commerce strategies in China, today announced the proposed offering (the “Notes Offering”) of up to US$225 million in aggregate principal amount of convertible senior notes due 2024 (the “Notes”), subject to market and other conditions. The Company intends to grant the initial purchasers in the Notes Offering a 30-day option to purchase up to an additional US$50 million in principal amount of the Notes. The Company plans to use the net proceeds from the Notes Offering for working capital and other general corporate purposes, including repayment of outstanding indebtedness and potential future acquisitions.

The Notes will be convertible into the Company’s American Depositary Shares (“ADSs”), each currently representing three Class A ordinary shares of the Company, par value US$0.0001 per share, and will mature on May 1, 2024. Holders may convert their Notes at their option at any time prior to the close of business on the second business day immediately preceding the maturity date. The Company may not redeem the Notes prior to maturity, unless certain tax-related events occur. It is contemplated that holders of the Notes may require the Company to repurchase all or part of their Notes in cash on May 1, 2022, or in the event of certain fundamental changes. The conversion rate and other terms of the Notes will be determined at the time of pricing of the Notes Offering.

Concurrently with the Notes Offering, the Company intends to enter into ADS lending agreements with affiliates of the initial purchasers in the Notes Offering (such affiliates being the “ADS Borrowers”), pursuant to which the Company will lend a certain number of ADSs (the “borrowed ADSs”) to the ADS Borrowers. The ADS Borrowers will offer the borrowed ADSs in a separate SEC-registered offering pursuant to a prospectus supplement and an accompanying base prospectus (the “ADS Offering”). The number of the borrowed ADSs to be sold by the ADS Borrowers or their affiliates concurrently with the Notes Offering (the “Initial Borrowed ADSs”) will depend on the portion of the investors in the Notes that desire to hedge their investment. It is currently expected that the short position established by the ADS Borrowers in selling the Initial Borrowed ADSs will be used to facilitate transactions by which such investors in the Notes may hedge their investment in the Notes. The ADS Borrowers may offer additional borrowed ADSs for sale on a delayed basis following the Notes Offering at market prices prevailing at the time of sale or at negotiated prices. We have been advised by the ADS Borrowers that they expect that, over the same period as their affiliates sell such additional borrowed ADSs, the ADS Borrowers or their affiliates may, in their discretion, purchase a comparable number of ADSs in the open market and use such ADSs to facilitate short sales and/or privately negotiated derivative transactions by investors in the Notes.  The activity described above could affect the market price of the Company’s ADSs or the Notes otherwise prevailing at that time. 

The offering of the Initial Borrowed ADSs is conditioned on the closing of the Notes Offering. If the Notes Offering is not consummated, the ADS Offering will terminate and all borrowed ADSs (or ADSs fungible with borrowed ADSs) must be returned to the Company.

The Company will not receive any proceeds from the offering of the borrowed ADSs. The borrowed ADSs will not be considered outstanding for purposes of computing and reporting the Company’s earnings per ADS under current U.S. GAAP rules. The Company believes that the registered ADS borrow facility, as described above, would help achieve better terms of the Notes Offering for the Company.

The Notes will be offered in the United States to qualified institutional buyers pursuant to Rule 144A and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Notes, the ADSs issuable upon conversion of the Notes and the Class A ordinary shares represented thereby have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the Securities Act.

The Company has filed an automatic shelf registration statement on Form F-3 with the U.S. Securities and Exchange Commission (“SEC”). The F-3 registration statement becomes effective upon filing as the Company is a “well-known seasoned issuer”. A prospectus supplement and the accompanying base prospectus describing the terms of the ADS Offering have been filed with the SEC. When available, the final prospectus supplement for the ADS Offering will be filed with the SEC. The ADS Offering is being made only by means of the prospectus supplement and accompanying base prospectus. Investors are advised to read the prospectus supplement and the accompanying base prospectus and other documents that the Company has filed with the SEC for more complete information about the Company and the ADS Offering.

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, nor shall there be a sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

This press release contains information about the pending Notes Offering, and there can be no assurance that the Notes Offering will be completed.

BEIJING, Feb. 28, 2019 (GLOBE NEWSWIRE) -- 21Vianet Group, Inc. (VNET) ("21Vianet" or the "Company"), a leading carrier- and cloud-neutral Internet data center services provider in China, today announced that it will provide integrated hybrid cloud solutions to Baozun Inc. (“Baozun”) based on OpenShift container platform technology provided by Red Hat Inc. Such solutions will contribute to the further implementation of Baozun’s e-commerce strategy in China.

Baozun Inc. (BZUN) is a leading brand e-commerce service partner that helps brands execute their e-commerce strategies in China by selling their goods directly to customers online or by providing services to assist with their e-commerce operations. Baozun’s integrated end-to-end brand e-commerce capabilities encompass all aspects of the e-commerce value chain, covering IT solutions, store operations, digital marketing, customer services, warehousing and fulfillment.

Having witnessed the increasing prevalence of cloud computing, many enterprises understand the importance of the digital transition to cloud-based services. Baozun has helped hundreds of partners implement their e-commerce strategies successfully by leveraging its advanced IT infrastructure, extensive data analysis, and superior insight. Advancements in science and technology fuel Baozun’s continuous upgrades and transformations. The cooperation on cloud computing, big data, and artificial intelligence will enable brand partners to embrace the future of technology.

21Vianet has more than 20 years of experience in building and operating internet data centers. Utilizing the most cutting-edge technologies, such as container solutions, the Company has helped numerous customers with the deployment of their hybrid cloud architecture. Meanwhile, 21Vianet has assisted multiple SaaS companies to successfully localize their cloud services in China. This extensive experience in cloud operations enables 21Vianet to offer Baozun a comprehensive hybrid cloud-based container solution ranging from the design stage to full-fledged operations.

Mr. Alvin Wang, Chief Executive Officer and President of 21Vianet, said, “It is our corporate culture to provide high-quality services and innovative solutions to our customers to propel them to further success. This project again demonstrates 21Vianet’s professional service capability in cooperation with the world's leading providers of open-source solutions. We are pleased to support Baozun’s growth by providing comprehensive hybrid cloud solutions that will eventually help Baozun win and serve more brand partners in China.”

Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun, said, “21Vianet has advanced solutions and professional services which help Baozun build our hybrid cloud-based container platform, improving our capabilities to fulfill a large amount of concurrent requests and to quickly upgrade our applications to address the market's ever-evolving needs. This customized hybrid cloud service solution from 21Vianet brings rapid deployment and elastic scalability to Baozun’s cloud platform and provides a strong foundation for the future development of our business.”

Third Quarter 2018 Financial Results

• Total net revenues were RMB1,110.8 million (US$1161.7 million), an increase of 24.8% year-over-year. Services revenue was RMB606.2 million (US$88.3 million), an increase of 45.1% year-over-year.
• Basic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS5 were RMB0.90 (US$0.13) and RMB0.86 (US$0.13), respectively, compared with RMB0.64 and RMB0.59, respectively, for the same period of 2017.

“We are pleased to report another quarter of solid growth across the board, driven primarily by growth from our existing online stores and improving operational efficiency as we invest further in developing new and innovative products and tools,” commented Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. “I am proud of the experience and capabilities we have accumulated from participating in the Singles Day shopping festival over the past decade. This year total order value settled through payment gateways on all of our e-commerce channels reached a new record high of RMB6.55 billion on Singles Day 2018, an increase of approximately 31% compared to last year. Investing in R&D plays a critical role in our strategy which we strongly believe will lay a solid foundation for our long-term sustainable growth. We will continue to refine, update, commercialize, and expand the omni-channel matrix of solutions we are able to offer brand partners to drive future growth and strengthen our leading position in China’s brand e-commerce market.”   

Mr. Beck Chen, Chief Financial Officer of Baozun commented, “We had another strong quarter, with total GMV increasing 55.0% year-over-year and non-distribution GMV growing even faster at 62.4% year-over-year. We invested RMB20.1 million in technological innovation and productization during the quarter, which will strengthen our position as the leading brand e-commerce business partner and technology solutions services provider. Our daily sales momentum during the fourth quarter of 2018 continues to remain strong and outpace the growth on Singles Day this year. As such, we expect our GMV for the fourth quarter of 2018 to grow 40-45% on a year-over-year basis while our services revenue during the fourth quarter of 2018 will grow faster than the GMV growth.”

Business Outlook

The Company expects total net revenues to be between RMB2,200 million and RMB2,250 million for the fourth quarter of 2018.

SHANGHAI, China, Nov. 21, 2018 (GLOBE NEWSWIRE) -- Baozun Inc. (BZUN) ("Baozun" or the "Company"), the leading brand e-commerce service partner that helps brands execute their e-commerce strategies in China, today announced that Mr. Robin Lu has been appointed as Chief Financial Officer, effective November 30, 2018. Mr. Lu will succeed Mr. Beck Chen, who will leave the Company to pursue other opportunities. Mr. Chen will continue to work until November 30, 2018 to ensure a smooth transition.

Before joining Baozun, Mr. Lu served as Chief Financial Officer of LightInTheBox Holding Co., Ltd. (LITB) from 2014 to 2018. Prior to that, Mr. Lu was Chief Financial Officer and an Executive Director of A8 Digital Music Holdings Ltd (00800.HK) from 2011 to 2014. Mr. Lu also served as a Director of Duomi Music Corporation from 2011 to 2014. From 2008 to 2010, Mr. Lu worked for Anaren, Inc as a division controller. Prior to Anaren, Mr. Lu was an Executive Director at Janney & Lee Investment LLC. Robin has also held various financial management positions at China Network Communication Co., Ltd. (which was acquired by China Unicom), Dell Inc., and China International Trust and Investment Corporation (currently known as CITIC Group). Mr. Lu received his bachelor’s degree in automotive engineering from Tsinghua University in 1992 and his MBA degree in operations and finance from Ohio State University in 2000.

“I would like to thank Beck for his many years of dedication to Baozun,” commented Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. “His financial expertise was instrumental in building Baozun into what it is today. I wish him all the best in his future endeavors. I would also like to warmly welcome Robin on board. Robin has extensive leadership experience in financial management and capital markets. I look forward to working closely together and am confident he will greatly benefit Baozun.”

Second Quarter 2018 Financial Results

• Total net revenues were RMB1,159.1 million (US$1175.2 million), an increase of 30.5% year-over-year. Services revenue was RMB582.1 million (US$88.0 million), an increase of 51.6% year-over-year.
• Basic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS5 were RMB1.01 (US$0.15) and RMB0.96 (US$0.15), respectively, compared with basic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS of RMB0.80 and RMB0.73, respectively, for the same period of 2017.

“We delivered another outstanding quarter in which we generated strong growth from our existing online stores and enhanced efficiency by deploying new and innovative tools,” commented Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. “Our ability to rapidly adapt to changing market environment and develop new technology remains the key to our success. By enhancing our IT capabilities and expanding the breadth and depth of our technology services, we are able to create more value for our brand partners and drive future sustainable growth. We will continue to invest in building our long-term technological competitive advantage to further reinforce our market leading position in China’s brand e-commerce market.”

Mr. Beck Chen, Chief Financial Officer of Baozun commented, “We are pleased to deliver another strong quarter of growth with GMV increasing by 68.8% year-over-year. Investments in technological innovation and productization during the quarter amounted to RMB18.1 million, which we believe will enable us to expand our addressable market and strengthen our long-term competitiveness. With confidence in our strategy and operation, we expect GMV to grow to over RMB20 billion and services revenue to grow faster than 50% year-over-year during the second half of 2018.”

Business Outlook

The Company expects total net revenues to be between RMB1,090 million and RMB1,120 million for the third quarter of 2018.

First Quarter 2018 Financial Results

• Total net revenues were RMB921.2 million (US$1146.9 million), an increase of 14.5% year-over-year. Services revenue was RMB461.3 million (US$73.5 million), an increase of 50.3% year-over-year.
• Basic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS5 were RMB0.57 (US$0.09) and RMB0.54 (US$0.09), respectively, compared with basic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS of RMB0.54 and RMB0.50 , respectively, for the same period of 2017.

“We are pleased to report another outstanding quarter, which was primarily driven by growth in our existing online stores,” commented Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. “On May 11, 2018, we held our third annual Global Brand E-commerce Summit in Shanghai. This year’s theme was ‘Eyes on The Data’ and featured talks on big data, artificial intelligence, and cloud computing. We are firmly focused on becoming the leading brand e-commerce business partner and technology development and solution services provider. We plan to continue investing in innovation to further strengthen our industry leading position and create greater value for our shareholders.”

Mr. Beck Chen, Chief Financial Officer of Baozun commented, “We delivered another strong quarter of growth with GMV increasing by 66.2% year-over-year. During this quarter, additional investments in innovation and productization were for RMB13.5 million. We believe the investments we are now making in innovation will enable us to expand our addressable market, further strengthen our long-term competitiveness, and provide more value to our brand partners over the long run.”

Business Outlook

The Company expects total net revenues to be between RMB1,060 million and RMB1,100 million for the second quarter of 2018.

While the Company is transitioning more of its business from the distribution model towards the non-distribution model, Baozun is providing quarterly guidance on services revenues. The Company expects services revenue to increase by over 50% on a year-over-year basis for the second quarter of 2018.

SHANGHAI, China, April 11, 2018 (GLOBE NEWSWIRE) --

Dear Shareholders:

We have just had another great year! Before I go into details, let me offer my thanks and appreciation to all of my colleagues at Baozun, and to our brand partners, customers, board of directors, and investors. Thank you all for your support and recognition.

2017 marked the start of Baozun’s second decade in business. It also marked a tipping point for online retail in China. While the rapid pace of development in the branded e-commerce market continued throughout the year, online shopping began to have a dramatic impact on offline retail. This impact could be seen across the entire industry, including market surveys, product development, brand creation, market promotions, supply chain reorganization, and technology. This transformation creates both a huge opportunity and a challenge for brands, the industry and Baozun.

The Market Opportunities

China’s Internet industry had a hyper-active year in 2017. Among the top 10 Internet companies globally, five come from China. China’s internet giants have established vast ecosystems and are acting as bellwethers as they break ground across multiple verticals. At the same time, second-tier players continued to develop rapidly with new business models and innovative technologies. On February 27, 2018, the Tech Crunch Unicorn Leaderboard reported that of the 279 global unicorns – startups valued at US$1 billion or more – 94 were Chinese, more than one-third of the total and a higher share than in 2016. Most of China’s unicorns are in the Internet and e-commerce industries, reflecting the enormous potential of the market. Within the Internet universe, e-commerce is clearly one of the fastest developing sectors and is profoundly impacting the entire retail industry.

Sustained rapid growth of e-commerce

Online retail grew by 28% to RMB5.48 trillion in 2017, accounting for approximately 15% of China’s total retail market, according to the China National Bureau of Statistics. Within online retail, brand e-commerce grew fastest at 37.6%. Baozun grew its Gross Merchandise Volume (GMV) by 70% to RMB19.1 billion in 2017 as we further strengthened our reputation as the leader of brand e-commerce services and solutions in China. We expect to see GMV continue to grow at fast pace in the coming years.

One of the biggest tail winds is the long-term high-speed growth of the overall market. In the short term, it strengthens our ability to generate revenue and profit growth, and creates a supportive environment for us to improve the efficiency and quality of our management and technology deployment. In the longer term, with this growth, we expect we will have more resources to dedicate to new business models and technology, while creating a sustainable and solid base for future development. 

Observations on the market dynamics

If we take a closer look, there are fascinating changes and dynamics taking place behind the scenes in this rapidly developing market.

The entire e-commerce market in China comprises of a number of online channels and platforms, such as Alibaba and JD.com. At the same time, the boundaries between e-commerce and social media are blurring, as Tencent continues to expand its footprint into e-commerce.

Average Internet usage by consumers in China was 5.8 hours a day in 2017, which means that many people are almost “always online”. Users accept and share new products and services at light speed. E-commerce has become the most important market channel for big global brands. It has become central to their strategies and is reshaping the way they think about brand equity, marketing strategies, organizations, supply chains and IT systems. As the scale of e-commerce grows and user growth gradually plateaus, brands are seeking lower cost and higher-efficiency ways to reach the market. As an example, more and more brands are using shared-inventory networks to improve the efficiency of their warehouses, and have begun employing this across the distribution chain.

For smaller brands and merchants, mature infrastructure makes it much easier for them to do business online. Opening an online store is no longer very difficult. Most of them have the ability to operate online stores and provide value to their customers. They are both cost-sensitive and flexible, and they are keen for traffic. They can move quickly to fulfill consumer needs and will contribute to the rapid growth of the market in the future.

We firmly believe that big data and advanced technologies and systems are the future of the offline retail industry. We continue to invest in developing cutting-edge technologies so that our brand partners will always be able to rapidly benefit from their roll out. Big data and customer relationships are playing increasingly important roles in e-commerce, and their combination with artificial intelligence (AI) can help reduce much of the cumbersome work needed to maintain the back end of e-commerce platforms, and help brands create value for their customers and increase competitiveness.

Double 11 Shopping Day

China’s e-commerce has become a huge marketing and promotional platform which heavily influences market trends. For us, despite the many challenges, this era brings an opportunity to quickly organize and deploy resources to benefit from the growing volume of transactions.

Among China’s promotional sales periods, the biggest of all is Double 11, which has taken place every November 11 over the past nine years. Our total order value settled through payment gateways on all of our e-commerce channels hit another record high of RMB4.99 billion during 2017’s Double 11, which is twice what we generated during Double 11 last year and roughly half of our total GMV for 2016. We processed 12 million orders during 2017's Double 11, 87% more than 2016.

In just eight minutes, total order value exceeded the Double 11 number for 2015, which was over RMB1.1 billion. In less than two hours, total order value surpassed RMB2.5 billion, which was equal to the figure for 2016.

Our edge and value come from our revolutionary end-to-end solutions

Leading brands today expect much more from their e-commerce partners than what Business Process Outsourcing (BPO) providers and pure e-retailers can offer. They expect their partners to provide omni-channel solutions that include the establishment of independent brand online stores; fulfillment services; Online to Offline (O2O) services; connected marketing and retail strategies; supply chain restructuring, optimization, and operations; new generation digital operation platforms; online sales forecasts and replenishment; and technologies such as data analytics and AI. These needs require solution providers to step up their game. In this rapidly developing and fast-changing market, we need to always be conscious of the future and take preemptive action, both for ourselves and for our clients. The brands that work with us expect world-class retail technologies and capabilities.

Since day one, we have dedicated ourselves to the needs of our brand partners. We work closely with them to ensure our direction and thought processes are tightly aligned with their needs, and we continuously invest in supply chain technologies, IT systems, and innovation. In recent years, our investments have focused on in-store IT systems for next generation brands; O2O strategies; inventory integration and digital marketing. These services have proven to be visionary and effective. Our efforts not only ensure the success of our brand partners, but also provide benefits and showcase brand e-commerce to our industry peers. 

Small and Medium-sized Enterprises (SMEs) have very different requirements. When it comes to making investments, we carefully assess our ability to provide adaptable, quality and cost-effective services

Fourth Quarter 2017 Financial Results

• Total net revenues were RMB1,565.4 million (US$1240.6 million), an increase of 23.0%  year-over-year. Services revenue was RMB782.6 million (US$120.3 million), an increase of 56.0% year-over-year.
• Basic and diluted non-GAAP net income attributable to Baozun ordinary shareholders per ADS5 were RMB2.93 (US$0.45) and RMB2.72 (US$0.42), respectively, compared with basic and diluted non-GAAP net income attributable to Baozun ordinary shareholders per ADS of RMB1.38 and RMB1.26, respectively, for the same period of 2016.

“We closed out the year with another quarter of outstanding financial and operational results which were primarily driven by growth from our existing online stores, the expansion of our portfolio of brand partners, and the expanding array of innovative technologies we offer our brand partners.” commented Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. “We continue to gain growth momentum and are increasingly benefiting from our competitive strengths and ability to rapidly develop and adapt our technology as the market environment changes. We plan to continue investing in technology to further strengthen our leadership position and expand the array of services we are able to offer in order to create greater value for our shareholders.”

Mr. Beck Chen, Chief Financial Officer of Baozun commented, “We delivered another strong quarter of growth with GMV increasing by 75.5% year-over-year. During the fourth quarter, services revenue increased significantly, growing by 56.0% year-over-year, while net income attributable to Baozun ordinary shareholders increased by 139.0% year-over-year, driven primarily by our continuous focus on improving our business model mix and increasing operational efficiency. We remain confident in our strategy and the effectiveness of our operations and services, and expect GMV to grow to over RMB30 billion and total net revenues to increase to over RMB5.1 billion during fiscal year 2018.”

Second Quarter 2017 Financial Results

• Total revenue increased 4.7% to RMB555.1 million ($81.9 million[1]) from RMB530.4 million in the second quarter of 2016.
• Basic and diluted earnings per American Depositary Share ("ADS") were RMB0.66 ($0.10) for the quarter ended June 30, 2017. Each ADS represents one of the Company's ordinary shares. 

Mr. Jinmiao Wang, Chairman and Chief Executive Officer of Borun, commented on the results, "We are pleased with our solid results for second quarter of 2017, as revenue expanded by 4.7% year-over-year, gross profit by 19.3% year-over-year, and net income by 14.5% year-over-year. We also generated outstanding cash flows from operations totaling RMB333.4 million ($49.2 million), driven by the deployment of our pre-purchased corn inventory.

Driven by the strong sale volumes across major product categories, our facilities were practically running at maximum output, with effective utilization rate of 97%. Sales volume of edible alcohol and DDGS Feed reached a new five-year high to 95,196 tons and 83,586 tons, respectively.

We continue to witness solid demand from a healthy baijiu industry, with prices rising for the top baijiu brands. Corn prices are also rising in the current non-harvest season, which favors our corn sourcing advantage, and we are confident that despite the rising corn prices at the spot market, our corn cost during the third quarter will remain stable. With adequate corn reserves, healthy cash flows, and a strong cash balance of more than RMB1.2 billion to support our corn sourcing arrangement in the next harvest season, we are reassured with our competitive position for the second half of 2017," Mr. Wang concluded.

Financial Outlook

For the third quarter of 2017, the Company's Shandong facility will halt production for approximately two weeks, and the Daqing facility will halt production for up to four weeks for annual maintenance.  Comparatively, in the third quarter of 2016, the Company's Shandong and Daqing facilities did not halt production, as the Company had already completed annual maintenance in the second quarter of 2016.  Reflecting the comparatively shorter year-over-year production period, the Company estimates that its revenue for the third quarter of 2017 will be in the range of RMB380 million ($56.1 million) to RMB420 million ($62.0 million), a decrease of approximately 36.9% to approximately 30.3%, respectively, over the same quarter of 2016.

First Quarter 2017 Unaudited Financial Results

• Total net revenues were RMB804.9 million (US$1116.9 million), an increase of 20.5% year-over-year.
• Basic and diluted non-GAAP net income attributable to Baozun ordinary shareholders per ADS were RMB0.54 (US$0.08) and RMB0.50 (US$0.07), respectively, compared with basic and diluted non-GAAP net income attributable to Baozun ordinary shareholders per ADS of RMB0.29 and RMB0.27, respectively, for the same period of 2016.

“Our business continued to gain growth momentum with another strong quarter,” commented Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. “On May 11, 2017, we held the second Global Brand E-commerce Summit in Shanghai with more than five hundred participants in attendance to discuss the future of the brand e-commerce industry. The theme of this year’s conference was Bounded but Boundless Omni-marketing.  We remain committed to finding more innovative ways to provide our brand partners with best-in-class e-commerce solutions to further reinforce our market leading position.”

Mr. Beck Chen, Chief Financial Officer of Baozun commented, “We are pleased to deliver another strong quarter of growth with GMV increasing by 60.5% year-over-year. We also saw our margins significantly improve along with non-GAAP net income which more than doubled when compared to the same period last year. We began migrating a portion of our media-related services business towards a more asset-light model during this quarter, which is expected to decrease risk and increase our working capital efficiency.”

Business Outlook

For the second quarter of 2017, the Company expects total net revenues to be between RMB870 million and RMB890 million, representing year-over-year growth of approximately 24% to 27%.

SHANGHAI, China, April 12, 2017 (GLOBE NEWSWIRE) -- 

Dear Shareholders:

As 2016 ended, we had a great deal to celebrate. It�s been less than two years since our Initial Public Offering of American Depository Shares (ADSs) on Nasdaq in May 2015, when we raised US$113.7 million. Since then we also had a successful follow-on offering raising US$33.1 million in December 2016. The positive response to both the IPO and the follow-on offering was a testament to the faith investors have in us, and to the extraordinary opportunities in the Chinese brand e-commerce space. We plan to use the funds raised to create more shareholder value as we look to benefit from the opportunities created by the dramatic changes taking place in the digital retail sector.

We were delighted to finish off the year on a strong note, with another quarter of solid financial and operational results. Our strong performance was driven both by sales growth of our existing online stores, as well as the expansion of our portfolio of brand partners. 2016 marked our third straight year of profitability on a non-GAAP basis. I believe this was a direct result of our improving operational capabilities, the sustainability and quality of our topline growth and the steady improvement in our margins due to both increasing economies of scale and enhanced execution. Looking ahead, we plan to continue to strengthen our leading position in the market by continuously providing best in class e-commerce solutions to our brand partners.

As China�s leading brand e-commerce player, we are not only riding the digital commerce wave but also shaping it. As the digital retail market transitions from the �first-round� transactional phase of e-commerce to a more holistic model, involving omni-channel sales, digital marketing, Customer Relationship Management (CRM), data warehousing and analytics, we are leading the market by integrating all these services and providing holistic solutions to our brand partners.

As such, we believe that we are well-positioned as a leader in one of the largest e-commerce market in the world. China�s total online shopping market represents 14.8% of China�s retail sales of consumer goods and grew by 30.7% from 2015 to RMB 5 trillion in 2016, according to iResearch. This market is expected to grow to RMB 7.5 trillion, according to iResearch, by 2018. Within the overall Chinese e-commerce space, brand e-commerce, which connects brands and consumers through official online stores and authorized marketplace stores, is among the most exciting sectors and we are the clear market leader with a market share of 22% by transaction value in 2015, according to iResearch.  

2016 Highlights

Let me share with you some of the key highlights from 2016, which was also our 10^th anniversary since we started operation.

Performance

This year, we generated RMB11.3 billion (US$1.62 billion)¹ in Gross Merchandise Value (GMV), representing year-over-year growth of 67%, which marks out first year with GMV generated more than RMB 10 billion. Our non-GAAP net income attributable to ordinary shareholders of Baozun Inc. was RMB 121 million (US$17.4 million), representing a year-over-year increase of 437%. We expect GMV during fiscal year 2017 to grow by over 50% compared with fiscal year 2016.

Over the course of 2016, Baozun�s portfolio of e-commerce brand partners grew to 133, up from 113 as of December 31, 2015. These brand partners are also diverse, covering product categories ranging from apparel, appliances, electronics, home and furnishings, food and health products, cosmetics, fast moving consumer goods, insurance and automobiles. Beyond mainland China, we provide end-to-end e-commerce solutions to brand partners in Hong Kong and, from April 2016, we began to provide e-commerce solutions to our brand partners in Taiwan.

Baozun was the only brand e-commerce player consecutively named a 6-star Tmall service partner in both 2015 and 2016. Underlining our strong performance on Tmall, on the November 11 �Single�s Day� in 2016, our total order value was RMB 2.5 billion (US$367.7 million)² over twice the amount achieved in 2015. Single�s Day is the world�s biggest online shopping day, and we were very pleased with our performance.

Professional Services

• Logistics: We set up a wholly-owned warehouse and logistics subsidiary, Baotong E-logistics, to expand the scale of our diversified range of logistics services. As a partner of Cainiao, a leading logistics data platform operator associated with Alibaba Group, Baotong has strengthened and expanded the scale of our warehousing and fulfillment services and improved our ability to serve a larger number of brand partners and other merchants. 
   
• Information Technology (IT): On top of our core brand e-commerce system, we expanded our e-store system, comprising Nebula+, Business Intelligence (BI), and Omni-Channel. 
   
• Digital Marketing: We upgraded the digital marketing team to a business group in 2016, and have made major improvements through hiring more skilled team members in Customer Relationship Management (CRM) and Customer Experience Management (CEM), as well as winning a number of marketing project awards along the way. 
   
• Restructuring for Greater Focus: We expanded the number of business groups from four to six, supporting greater mission focus on the part of each business group as well as greater professionalism in management and operations.  

¹ Exchange rate of RMB1:US$0.144 as of 12/30/2016.
² Exchange rate of RMB1:US$0.147 as of November 10, 2016.

Expansion in Greater China

We started offering our brand partners end-to-end solutions in Hong Kong in 2013 and, since then, have added several more stores. In October 2015, we received approval from the Investment Commission of Taiwan�s Ministry of Economic Affairs and started to provide our brand partners with end-to-end e-commerce solutions in Taiwan in April 2016. We can now offer end-to-end e-commerce solutions to our brand partners in mainland China, Hong Kong and Taiwan, and plan to follow demand from our partners to other countries and regional markets.

Corporate Governance Improvements

2016 was the first year we were audited based on Sarbanes-Oxley Act requirements. We obtained an �Unqualified Opinion Report� with respect to our disclosure controls and procedures and internal controls over financial reporting, which was reflected in our annual report filed with the U.S. Securities and Exchange Commission. We plan to continue to adhere to best practices as we conduct future audits and prepare reports.

Industry Recognition

Last May, Baozun hosted the first Global Brand E-Commerce Summit (BECS). We had more than 400 participants, including our brand partners, Alibaba and McKinsey. The conference theme was the �rise of omni-channel e-commerce� and what it means for brands and brand e-commerce partners. Omni-channel e-commerce will offer a major opportunity in the domestic retail market over the next decade, and Baozun intends to be a key player in providing added value to brands and consumers by offering robust omni-channel e-commerce solutions.

Team Building

We believe that an essential part of building our brand is to foster a creative, collaborative, and enthusiastic corporate culture. Working in teams is one of our strengths, and we try to give our employees the opportunity to develop themselves as well as work with each other. The benchmarks we use for our Employee Net Promoter System, eNPS, increased by 206% this year. This system tracks the introduction of friends and family members to Baozun by existing employees. Over the past year, our employee satisfaction surveys have shown remarkable gains. We think these measures show that we are making headway towards becoming one of the most respected Chinese internet companies as well as one of the most coveted places to work in China.

Business Strategies

We endeavor to create a seamless workflow and experience for our brand e-commerce partners. We are cognizant of the need to anticipate the requirements of potential clients as well as support our existing clients for services ranging from �transactional� to �integrated�, from single channel to omni-channel, and from China to global. Key areas of focus are:

• Existing brand partners: Our objectives are to improve brand satisfaction, realize GMV growth, reduce operational costs, and provide value-added services including digital marketing tools and solutions, BI, CRM, CEM and Artificial Intelligence (AI). We believe our professional management and customized brand e-commerce strategies will help us to achieve these goals.
   
• Potential clients: We rely on our best-of-kind premium service capability to attract new brand partners. As we strengthen our capabilities and expand the array of our services, we expect to see our brand customer base grow.
   
• Asset-light business model: We are transitioning towards an asset-light model to further decrease inventory risk and increase margin profile.
   
• Omni-channel solutions: In addition to the continuous investment into software development, we are increasingly investing in omni-channel solutions by allocating more resources as we provide services to more brands.

The Next Three Years

Over the next three years we plan to underpin our growth in four key ways, which are:

Vertical Deepening

For our existing e-commerce brand partners, we plan to extend our value proposition both upstream and downstream. On the upstream side, we will use longer-term contracts, strategic alliances, joint ventures and investments to develop a closer relationship with our brand partners. On the downstream side, we will work more closely with e-commerce platforms and develop solutions based on our insight into consumer markets, to build a new generation of brand e-commerce value chains and ecosystems.

Global Expansion

As the China brand e-commerce universe expands, we are facing new demands to take our brand partners beyond China. We plan to develop our capacity to meet the needs of our brand partners so that they can succeed not only in China, but also internationally.

Human Resources

As our business grows, we expect to become ever more dependent on our ability to recruit and train talent for our business development and operations. We plan to continually strengthen our talent pool by using incentive programs, programs for professional development and management trainee programs. We are also constantly looking for ways to recruit talent from the off-line retail market and train them in e-commerce.

Building a Creative and Entrepreneurial Culture

Our core values are based on integrity, ownership, collaboration, initiative, and innovation, and maintaining a creative, entrepreneurial, and innovative spirit is critically important to us. Every year, we hold a Creativity and Innovation Competition, which has attracted more and more attention as well as new recruits.

2017 marks the beginning of our second decade of operation. The first ten years laid the foundation. Over the next decade, we will harvest our hard work in an ever more exciting and fast-paced future. As we look back and look ahead, let me extend a heartfelt thanks to Baozun�s investors, brand partners, management and employees.  With your continued and most welcomed support, our future is assured.

Sincere regards,

Vincent Wenbin Qiu
Chairman and Chief Executive Officer
Baozun Inc.

Fourth Quarter 2016 Financial Results

• Total net revenues were RMB1,272.5 million (US$1183.3 million), an increase of 25.2% year-over-year.
• Basic and diluted non-GAAP net income attributable to Baozun ordinary shareholders per ADS were RMB1.38 (US$0.20) and RMB1.26 (US$0.18), respectively, compared with basic and diluted non-GAAP net income attributable to Baozun ordinary shareholders per ADS of RMB0.41 and RMB0.39, respectively, for the same period of 2015.

“We are excited to finish off the year by reporting another quarter of solid financial and operational results,” commented Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. “Our strong performance continues to be driven by solid growth from our existing online stores and the expansion and further optimization of our portfolio of brand partners. This quarter marks three straight years of profitability on a non-GAAP basis, which I believe is a direct result of our improving operational capabilities, the sustainability and quality of our top line growth, the improvement in margin and our increasing economies of scale. Looking ahead, we will continue to strengthen our market leading position by focusing on enhancing our capabilities to provide best-in-class e-commerce solutions to our brand partners.”

Mr. Beck Chen, Chief Financial Officer of Baozun added, “We delivered another strong quarter of growth with GMV increasing by 62%. We are extremely confident in our strategy and the effectiveness of our operations, and expect GMV during fiscal year 2017 to grow by over 50% from fiscal year 2016. During the quarter, services revenue increased significantly, growing by 94% year-over-year, while net income attributable to Baozun ordinary shareholders increased 359% when compared with the same period last year, driven primarily by our continuous focus on improving our business model mix and operational efficiency.”

Business Outlook

For the first quarter of 2017, the Company expects total net revenues to be between RMB800 million and RMB810 million, representing year-over-year growth of approximately 20% to 21%.

SHANGHAI, China, Dec. 20, 2016 (GLOBE NEWSWIRE) -- Baozun Inc. (BZUN) ("Baozun" or the "Company"), the leading brand e-commerce service partner that helps brands execute their e-commerce strategies in China, today announced that it has increased O2O shipping efficiency through its self-developed intelligent application Shopdog. Shopdog increases efficiency and reduces order fulfilment time and cost by integrating both online and offline inventory, allowing brands to sell offline store inventory online. Shopdog’s first large-scale implementation of its integrated O2O inventory management system was during the December 12, 2016 (“Double 12”) promotional sales day.

Designed for use on tablets, Shopdog was developed to enhance the customer experience and help brand partners closely integrate online sales channels with offline store inventories, allowing offline stores to sell inventory through online stores with an integrated warehouse management system. Shopdog also increases efficiency by utilizing offline stores for returns, exchanges, payment and pickup of online orders and allows consumers to make orders online in offline stores when products are out of stock. Following successful trial runs in a number of offline stores in Hong Kong in the past, Shopdog is currently being rolled out across mainland Chinese Tier 1 and 2 cities for two apparel brand partners.

Mr. Tony Wu, Chief Technology Officer of Baozun, commented, “We are very excited to begin rolling Shopdog out across mainland China where our brand partners are increasingly demanding integrated O2O options for their offline stores. Shopdog is the leading and crucial component in the integration of omni-channel solutions for brand e-commerce in China. The scalability of our system easily allows us to customize O2O solution for various brands. We are able to directly support a growing array of transactions as we add new brand partners, integrate new channels and adjust to fluctuating consumer demand. Shopdog embodies these capabilities and helps our brand partners increase efficiency and lower fulfilment time and cost by integrating offline and online inventories to the great satisfaction of our brand partners. Encouraged by the excellent feedback from consumers and brand partners, we look forward to introducing this exciting new solution to dozens of strong brands we currently have in the pipeline which include apparel, home and furnishing brands. We will continue to explore innovative ways to further provide unique value to our brand partners.”   

SHANGHAI, China, Dec. 08, 2016 (GLOBE NEWSWIRE) -- Baozun Inc. (BZUN) ("Baozun" or the "Company"), the leading brand e-commerce service partner that helps brands execute their e-commerce strategies in China, announced that the follow-on public offering of an aggregate of 6,000,000 American Depositary Shares ("ADSs") by the Company and several selling shareholders (the “Selling Shareholders”) was priced at US$12.25 per ADS. The Company will issue and sell 3,000,000 ADSs and the Selling Shareholders will sell an aggregate of 3,000,000 ADSs. Each ADS represents three Class A ordinary shares of the Company.

In connection with this offering, the Selling Shareholders have granted the underwriters an option, exercisable within 30 days from the date of the final prospectus, to purchase up to an aggregate of 900,000 additional ADSs from the Selling Shareholders at the public offering price of US$12.25 per ADS.

The proceeds to the Company, after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company, will be approximately US$33.1 million. Baozun will not receive any proceeds from the sale of the ADSs by the Selling Shareholders. The underwriters of the offering are Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and China Renaissance Securities (Hong Kong) Limited.

A registration statement relating to this offering has been filed with, and declared effective by, the United States Securities and Exchange Commission on December 7, 2016.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities referred to herein have not been and will not be registered under the applicable securities laws of any jurisdiction outside of the United States of America.

Third Quarter 2016 Financial Results

• Total net revenues were RMB749.3 million (US$1112.4 million), an increase of 27.5% year-over-year.
• Basic and diluted net income attributable to Baozun ordinary shareholders per American Depository Share (“ADS3”) were RMB0.39 (US$0.06) and RMB0.36 (US$0.05), respectively, compared with basic and diluted net income attributable to Baozun ordinary shareholders per ADS of RMB0.15 and RMB0.12, respectively, for the same period of 2015.

“We are pleased to report another quarter of robust financial and operational results driven primarily by strong growth from our existing online stores and the expansion and further optimization of our portfolio of brand partners,” commented Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. “During the quarter, we established Baotong E-Logistics ("Baotong") as a wholly-owned warehousing and logistics solutions subsidiary. As a certified partner of Cainiao, a leading logistics data platform operator affiliated with Alibaba Group, Baotong is further strengthening and expanding the scale of our warehousing and fulfillment services and improving our ability to serve a larger number of brand partners and other merchants. We also just concluded another Singles’ Day Shopping Festival where we successfully achieved total order value of RMB2.5 billion, more than double the amount from last year. We are delighted by our solid performance during this year’s Singles Day, especially with the strong performance of brands under our non-distribution model. We are committed to providing our brand partners with the best-in-class e-commerce solutions to achieve success in brand e-commerce.”

Mr. Beck Chen, Chief Financial Officer of Baozun commented, “We are very proud of our strong financial results during the third quarter of 2016 with GMV increasing by 71.1% and net income attributable to Baozun ordinary shareholders increasing by 172.0% year-over-year. This was mainly driven by the continuous optimization of our business model mix and improvements in our operational efficiency. Our services revenue grew significantly by 83.1% during the quarter. Last quarter, we raised our fiscal year 2016 GMV guidance from an increase of over 50% to an increase of over 60% on a year-over-year basis. With GMV during each of the first three quarters of 2016 exceeding a 60% growth rate, and strong confidence in our strategy and operations, we expect GMV during the fourth quarter of 2016 to grow faster than 60% on a year-over-year basis as services revenue continues to rapidly grow.”

Business Outlook

For the fourth quarter of 2016, the Company expects total net revenues to be between RMB1,260 million and RMB1,280 million, representing year-over-year growth of approximately 24% to 26%.

SHANGHAI, China, Nov. 14, 2016 (GLOBE NEWSWIRE) -- Baozun Inc. (BZUN) ("Baozun" or the "Company"), the leading brand e-commerce service partner that helps brands execute their e-commerce strategies in China, today announced that total order value settled through payment gateways on all of its e-commerce channels more than doubled from 2015 to over RMB2.5 billion during Singles Day 2016.

Leveraging its sophisticated IT infrastructure, big data analysis capabilities and years of experience, Baozun enhanced its operational efficiency to ensure it was adequately prepared to meet the enormous surge in orders. Baozun’s IT team began preparing for Singles Day in May 2016 by upgrading the Company’s integrated IT system infrastructure and operational processes to ensure that it would be capable of processing the significantly larger amount of orders this year. With its big data analysis capabilities and strategic foresight, Baozun was able to predict quantity of orders, traffic patterns and conversion rates throughout the day. Similar to previous years, Baozun hired an additional 1,500 temporary customer service staff who completed an intensive training course to enhance the user experience and ensure the highest levels of customer satisfaction.

To meet the enormous surge in orders expected during Singles Day, Baozun began drafting sales plans, stocking inventory and optimizing shipment and distribution plans in close cooperation with its brand partners in the months leading up to Singles Day. Opened in September 2016, Baotong Cube, the Company’s first premium warehouse, participated in its first Singles Day where the Company’s self-developed highly automated infrastructure enabled it to pre-sort orders for delivery to over 100 cities in China. This saved precious time and reduced the costs of transferring parcels to logistic partners’ distribution centers.

Mr. Vincent Qiu, Chief Executive Officer of Baozun, commented, “Total order value more than doubled from last year’s Singles Day, which I believe not only demonstrates our strategic foresight and management’s capabilities to adequately plan with our brand partners for a massive surge in orders, but also exhibits the strengthened and expanded scale of our logistical capabilities. I believe Baotong’s strategic alliance with our logistic partners greatly improved operational efficiency and enhanced the consumer experience. This is a proof of concept for a new supply chain model we are developing, which will demonstrate to brand partners the value we can provide with our full range of e-commerce solutions. Leveraging these resources, we were able to ship over 1,000,000 orders on Singles Day, an increase of 130% compared with last year. We are committed to investing and further innovating our IT, warehousing and fulfillment infrastructure as well as increasing operational efficiency throughout our entire business. We will continue to partner with international leading brands that benefit from great consumer recognition and demand for high quality authentic products. I am confident in our ability to continue offering more customizable solutions that will support both our long-term growth and strengthen our market leading position.”

SHANGHAI, China, Aug. 23, 2016 (GLOBE NEWSWIRE) -- Baozun Inc. (BZUN) ("Baozun" or the "Company"), the leading brand e-commerce solutions provider in China, today announced the launch of Baotong E-logistics ("Baotong"), a wholly-owned warehousing and logistics solutions subsidiary. Baotong will further strengthen and expand the scale of the Company’s diversified range of warehousing and fulfillment services and improve its ability to serve a larger number of brand partners.

Baotong will serve as a separate logistics entity that will provide warehousing and fulfilment services to brand partners, beginning with the management and operation of Baozun’s seven distribution centers with an aggregate gross floor area of around 180,000 square meters. Final adjustments are currently being made to Baotong’s first premium warehouse, the Baotong Cube, which is expected to officially begin operations in September 2016. The new premium warehouse will be highly automated, significantly improve operational efficiency, provide brand partners with a more customizable solution and support Baozun’s long-term growth by strengthening and expanding the scale of its logistical capabilities.

Baotong will further diversify Baozun’s revenue streams by serving brand partners who are in need of the deep experience in B2C warehousing and fulfillment services. The Company will also be able to provide an enhanced and even more customizable array of logistical services to brand partners across a number of categories as well as improve their operational efficiency. Baotong will directly support the success of brand e-commerce and shape the industry going forward by forming a part of a new generation of intelligent warehousing and fulfillment services.

In addition to the strategic cooperation agreement signed with Alibaba Group Holding Limited's ("Alibaba") (BABA) logistics arm Cainiao Network Technology Co., Ltd. ("Cainiao") last year, Baotong will further deepen its relationship with Cainiao by providing best-in-class services to a wider variety of merchants through Cainiao’s platform.

"Creating Baotong as a separate entity is a significant milestone for us in further strengthening our logistical capabilities and another step in providing enhanced warehousing and fulfillment solutions to the e-commerce market as whole,” commented Mr. Vincent Qiu, Chief Executive Officer of Baozun. "As the rapid growth of brand e-commerce continues in China, more and more brands and merchants are seeking experienced and professional B2C warehouse and fulfillment services. By establishing a logistics subsidiary, we will also be able to develop relationships with more brands, starting with logistical services. We are committed to investing in our future as we explore solutions and innovate new services in China’s e-commerce industry.”

Second Quarter 2016 Financial Results

• Total net revenues were RMB700.3 million (US$¹105.4 million), an increase of 35.3% year-over-year.
• Basic and diluted net income attributable to ordinary shareholders per American Depository Share (ADS²) were RMB0.03 (US$0.00), compared with basic and diluted net income attributable to ordinary shareholders per ADS of RMB0.00, for the same period of 2015.

'We are pleased to report another strong quarter of solid growth in which we beat our quarterly revenue guidance, as we did every quarter since our IPO in May 2015,' commented Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. �We recently entered into a strategic cooperation agreement with CJ O Shopping, a division of CJ Group, a Korean culture and lifestyle conglomerate, to establish an e-commerce joint venture. This joint venture is expected to leverage our respective market leading positions and resources in e-commerce operations, online marketing and logistics to introduce highly sought-after Korean brands to Chinese consumers. We remain committed to finding innovative ways to provide our brand partners with the best e-commerce solutions available to further reinforce our market leading position.�

Mr. Beck Chen, Chief Financial Officer of Baozun commented, �We delivered stronger than expected growth during the quarter with GMV increasing by 81.4%. With strong confidence in our strategy and operations, and a better than expected first half of 2016, we expect the fiscal year 2016 GMV to grow by over 60%, which is higher than our prior expectation of over 50%. Our core business saw significant improvement in profitability, mainly driven by the continuous optimization of our business model mix and improvements in our operational efficiency. We continue to review Maikefeng�s operations and strategy. Excluding a one-time inventory write-down due to the restructuring of its direct sales business, Maikefeng�s operating loss this quarter decreased dramatically on a sequential basis. We will continue to adjust Maikefeng�s strategy to the evolving Chinese market and focus on improving its performance.�

Business Outlook

For the third quarter of 2016, the Company expects total net revenues to be between RMB740 million and RMB760 million, representing year-over-year growth of approximately 26% to 29%.

SHANGHAI, China, July 28, 2016 (GLOBE NEWSWIRE) -- Baozun Inc. (BZUN) ("Baozun" or the "Company"), the leading brand e-commerce solutions provider in China, today announced that it has signed a strategic cooperation agreement with CJ O Shopping, a division of CJ Group, a Korean culture and life-style conglomerate, to establish an e-commerce joint-venture (the “JV”). The JV will leverage each company’s respective market leading position and resources in e-commerce operations, online marketing and logistics to introduce highly sought after Korean brands to Chinese consumers.

Baozun will take a controlling 51% stake in the JV and leverage its position as China’s leading brand e-commerce solutions provider to manage the JV’s e-commerce operations and services. Through its division CJ O Shopping, CJ Corporation will be responsible for brand selection and launch in China.

Founded in 1953, CJ Corporation is the largest international comprehensive culture and life-style conglomerate in Korea with a diverse number of brands under management across a variety of industries including a number of brands that have been successfully launched in China such as food and food services, pharmaceuticals and biotechnology, logistics, entertainment and media.

Mr. Min Heoi Heo, Chief Executive Officer of CJ O Shopping, commented, “We are very pleased to begin a relationship with Baozun and look forward to leveraging their market leading position and omni-channel e-commerce solutions. We are currently focused on introducing highly recognized brands to Chinese consumers and are in talks with a number of other well-known Korean apparel, beauty products and fast moving consumer goods brands. Together, we will further expand the categories on offer.”

Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun, commented, “We are excited to begin working with CJ Corporation through this JV which will provide us opportunities to not only cooperate in running the business, but also integrate our respective market leading resources to create more synergies to improve the implementation of our strategy. The JV will act as an important channel for the introduction of Korean products to Chinese consumers and potentially Chinese products to Korean consumers in the future.”

First Quarter 2016 Financial Results

• Total net revenues were RMB668.2 million (US$[1]103.6 million), an increase of 40.0% year-over-year.
• Basic and diluted non-GAAP net income attributable to ordinary shareholders per American Depository Share[3] (“ADS[4]”) were RMB0.29 (US$0.04) and RMB0.27 (US$0.04), respectively, compared with basic and diluted non-GAAP net loss attributable to ordinary shareholders per ADS of RMB1.89 and RMB1.89, respectively, for the same period of 2015.

“Our business continued to gain momentum with another strong quarter of solid growth,” commented Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. “We held the First Global Brand E-commerce Summit earlier this month in Shanghai. The industry was incredibly upbeat and optimistic about the wealth of opportunities that China’s rising consumerism and brand e-commerce are creating. Having just completed our first year as a publicly listed company, we are pleased to  welcome Steve Hsien-Chieng Hsia and Benjamin Changqing Ye as independent directors to our board. I am confident their wealth of leadership experience and business expertise will add significant value to Baozun. We remain focused on enhancing our capabilities and working closely with our brand partners to develop the industry’s best practices and strengthen our leadership in China’s brand e-commerce market.”

Mr. Beck Chen, Chief Financial Officer of Baozun added, “We are pleased to see stronger than expected growth this quarter with GMV increasing by 60%, significant margin improvement and net income more than doubling this quarter compared to the same period last year. As we mentioned last quarter, we expect total GMV for fiscal year 2016 to increase by over 50% from 2015. We continue to focus on improving our business model mix by expanding our non-distribution GMV business, which grew by 76% during the quarter, faster than total GMV growth. As the leading brand e-commerce solutions provider in China, Baozun is benefiting from increased demand by consumers for quality brands and authentic products. We believe these results demonstrate the increasing importance that brand e-commerce is playing in a brand’s strategy in China and our capability to help them benefit from the enormous growth opportunities. We will continue to optimize our business model mix and further increase our profitability.”

Business Outlook

For the second quarter of 2016, the Company expects total net revenues to be between RMB680 million and RMB690 million, representing year-over-year growth of approximately 31% to 33%.

SHANGHAI, China, April 01, 2016 (GLOBE NEWSWIRE) -- Baozun Inc. (BZUN) ("Baozun" or the ""Company"), the leading brand e-commerce solutions provider in China, today announced that it is expanding its e-commerce solutions business into Taiwan starting with the simultaneous launch of a leading global sports organization’s official online store for Taiwan and Hong Kong, in addition to its current multi-channel e-commerce presence in mainland China which includes its official flagship stores on Tmall, JD and WeChat.

Taiwan represents the Company’s second significant geographic expansion following the launch of its e-commerce solutions business in Hong Kong in January 2014. In October 2015, Baozun obtained formal approval from the Investment Commission of Taiwan’s Ministry of Economic Affairs (“MOEA”) to expand the scope of its business in Taiwan. With this approval, Baozun is able to provide its brand partners seeking to expand their online presence into the Taiwan market with the same full range of end-to-end e-commerce solutions it currently offers in mainland China. Leveraging its extensive operating experience and sophisticated IT, warehouse and fulfillment infrastructure, Baozun will continue to seek out and grow its overseas operations in size and scale.

Mr. Vincent Qiu, CEO of Baozun, commented, “We are excited to expand our geographic presence into Taiwan, a market which we believe has great potential. I am very pleased that several of our largest brand partners will be among the first brands we introduce to Taiwanese consumers as we further deepen our relationship with them. Selecting Baozun as their e-commerce partner for the Greater China region demonstrates the trust brands are placing in us and the high standards and quality of services that we provide to our brand partners. We have always taken pride in developing long-term relationships with our brand partners and we look forward to deepening them by seamlessly providing our services across different geographic regions.”

Fourth Quarter 2015 Financial Results

• Total net revenues were RMB1,016.0 million (US1$156.9 million), an increase of 48.9% year-over-year.
• Basic and diluted non-GAAP net income attributable to ordinary shareholders per American Depository Share3 (“ADS4”) were RMB0.41 (US$0.06) and RMB0.39 (US$0.06), respectively, compared with basic and diluted non-GAAP net loss attributable to ordinary shareholders per ADS of RMB1.53 and RMB1.53, respectively, for the same period of 2014.

“We are pleased to report solid fourth quarter and fiscal year 2015 financial and operational results,” commented Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. “Our strong performance this quarter continues to be driven by our commitment to providing brand partners with the best e-commerce solutions available. We have achieved two straight years of positive non-GAAP profitability and completed our first year with GAAP net income. This is a direct result of our improving operational capabilities, quality top line growth, margin improvement and increasing economies of scale. Going forward, we will continue to strengthen our capabilities to provide better solutions to brand partners and reinforce our market leading position.”

Mr. Beck Chen, Chief Financial Officer of Baozun commented, “Our stronger than expected top-line growth and healthy margin improvement during the fourth quarter leave us confident in our outlook for China’s consumer demand going forward. Looking ahead to 2016, we expect total GMV for the full year to increase by over 50% from last year.  We will continue to optimize our business model mix, focus on growing our non-distribution model business, improve working capital efficiency and further increase our profitability. We expect GMV to grow faster than our topline since revenue is recognized on net basis for the non-distribution model business.”

Business Outlook

For the first quarter of 2016, the Company expects total net revenues to be between RMB600 million and RMB610 million, representing year-over-year growth of approximately 26% to 28%.

SHANGHAI, China, Dec. 22, 2015 (GLOBE NEWSWIRE) -- Baozun Inc. (Nasdaq:BZUN) ("Baozun" or the ""Company"), the leading brand e-commerce solutions provider in China, today announced that it has further strengthened its portfolio of omni-channel e-commerce solutions it offers brand partners with the new generation of official brand WeChat store platform.

The new platform is part of the Company�s strategy to further expand the range of mobile-based e-commerce solutions it offers brand partners and allow them to quickly expand their presence on WeChat without the heavy costs associated with creating a new online store. The new official brand WeChat store platform includes a number of customizable options to make it easier for customers to interact directly with the brands and accommodate promotional campaigns. Baozun has constructed a core system that directly integrates the brands� WeChat public account with their back-end systems and third party vendors� systems across all sales channels. Like the stores Baozun operates for its brand partners in other channels, these new WeChat stores offer customers the same safety, convenience, and reliability.

�Our official WeChat stores will make an attractive value-added service for our brand partners by offering them a channel to reach out to WeChat�s massive user base,� commented Mr. Vincent Qiu, Chief Executive Officer of Baozun. �With more and more users using their mobile devices to shop and interact with brands, we built a platform that will allow brands to not only sell their products, but to also promote their brand and communicate with their customers more efficiently. A number of our brand partners have already launched their WeChat stores on this platform with many others already having expressed a strong interest in expanding their presence on WeChat. We will continue to innovate and expand the range of services we offer brands to increase e-commerce sales across different channels.�

Third Quarter 2015 Financial Results

• Total net revenues were RMB587.6 million (US$92.5 million), an increase of 57.9% year-over-year.
• Basic and diluted non-GAAP net income attributable to ordinary shareholders per American Depository Share² (ADS³) were RMB0.24 (US$0.04) and RMB0.22 (US$0.03), respectively, compared with basic and diluted non-GAAP net loss attributable to ordinary shareholders per ADS of RMB3.09 and RMB3.09, respectively, for the same period of 2014.

We are pleased with another quarter of robust financial and operational results, mainly driven by strong growth from our existing online stores and the expansion and optimization of our portfolio of brand partners," commented Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. "The number of our brand partners increased by 10 during the quarter to 109. We are also thrilled to have successfully achieved total order value of RMB1.1 billion during China�s 11.11 shopping festival, more than double the amount from the same day last year. I'm also pleased to announce that Mr. Tony Wu was promoted to Chief Technology Officer. Mr. Wu has been an incredibly valuable part of our team with his outstanding technical abilities and we look forward to seeing him help continue increase our operational efficiency and improve the IT infrastructure that backs up our business. Going forward, we will continue to strengthen our position as leading brand e-commerce solution provider in China."

"Mr. Beck Chen, Chief Financial Officer of Baozun added, "We are very proud of our third quarter 2015 financial results, which saw total GMV and total net revenues grow by 68.8% and 57.9%, year-over-year, respectively. The aggregate gross floor area of all our warehouses exceeded 100,000m² as of September 30, 2015, up from 45,000m² a year ago. We are delighted not only by the solid growth of our core brand e-commerce business, but also by the progress we have achieved in introducing innovative new services. Starting this quarter, we begin disclosing financial results for Maikefeng, our online retail platform. By increasing our financial transparency, we are better able to tell our exciting growth story and demonstrate the exciting opportunities our core brand ecommerce business and new mobile-based platform Maikefeng will provide."

SHANGHAI, China, Nov. 12, 2015 (GLOBE NEWSWIRE) -- Baozun Inc. (Nasdaq:BZUN) ("Baozun" or the ""Company"), the leading e-commerce solutions provider in China, today announced that total order value settled through payment gateways on all of its ecommerce channels exceeded RMB1.1 billion during the 2015 11.11 Shopping Festival, more than doubled the amount on the same day last year.

To meet the enormous surge that takes place during the 11.11 shopping festival, Baozun began drafting sales plans, stocking inventory, and shipment and distribution preparations in close cooperation with its brand partners in July 2015. With warehouse overload a major concern for brand partners, Baozun expanded its regional logistical infrastructure to increase efficiency, lower shipping costs and provide better services during the 11.11 surge. The Company now operates seven warehouses in Suzhou, Beijing, Guangzhou and Hong Kong with an aggregate gross floor area of 100,000 m², a significant increase from 45,000 m² in 2014.

Mr. Vincent Qiu, Chief Executive Officer of Baozun, commented, "This is the seventh year in a row we have participated in the 11.11 shopping festival and every year the challenge of meeting the surge in orders has increased drastically. With years of experience and adequate planning and strategic foresight, I am pleased to announce that we were able to successfully settle total order value of RMB1.1 billion during the 2015 11.11 shopping festival. During each 11.11 shopping festival, our systems and infrastructure are put to the test. To prepare for the stress that would be applied, we completely revamped our supply chain management systems in the months leading up to the 11.11 shopping festival to guarantee peak processing capacity of over 600,000 orders per hour, more than double the amount from last year."

"Leveraging our sophisticated IT infrastructure and years of 11.11 shopping festival data analysis, we were able to predict the quantity of orders that would be made based on changes in traffic during peak hours, conversion rates and popularity of certain product categories. This not only helps us ensure the smooth fulfillment of orders, but also helps us secure shipping capacity with courier services and help our brand partners manage their inventories in a cost-efficient way. In preparation, we teamed up with over 100 of our brand partners this year, hired an additional 1,300 temporary customer service representatives, increased seasonal warehouse staff headcount by 3,000, and expanded our warehouse storage capacity to 100,000m². Using these resources, we were able to ship over 400,000 orders on November 11^th, more than double last year�s total for the same day.

"This year also saw the rise of cross-border ecommerce's participation in the 11.11 shopping festival. We worked with a number of brand partners in managing their presence cross-border ecommerce platforms and establishing their presence in China. Chinese consumers tend to prefer these platforms to purchase high-quality goods."

"I am very proud of our performance during this year�s 11.11 shopping festival. With a number of our brand partners ranked as the top selling brands among different categories in Tmall, we are clearly demonstrating the value we can provide to other potential brand partners when it comes to providing our full range of end-to-end ecommerce solutions and meeting the surge on the most important shopping day in the world. With this year�s shopping festival over, we now begin planning for next year�s by focusing on further enhancing our services and improving efficiency across our entire business."

SHANGHAI, China, Oct. 09, 2015 (GLOBE NEWSWIRE) -- Baozun Inc. (Nasdaq:BZUN) ("Baozun" or the "Company"), the leading e-commerce solutions provider in China, today extended its list of brand partners with the addition of ALDO Group (�ALDO�), a privately held Canadian company that specializes in high-quality fashion shoes and accessories.   

With a globe-trotting design team that keeps up on all trends, the footwear aficionados at ALDO offer up a directional edit of shoes, boots, and handbags. ALDO highly values Baozun�s ability to constantly improve capabilities and provide superior end-to-end e-commerce solutions.

�I am pleased to welcome ALDO to the growing family of global brands that we work with in China�s vibrant e-commerce sector,� commented Mr. Vincent Qiu, Chief Executive Officer of Baozun. �With China�s consumption expected to grow, we look forward to working closely with ALDO as we introduce them and other high-quality international brands to Chinese consumers where I am sure they will flourish. The addition of ALDO to our portfolio of brand partners clearly demonstrates our leading position in China�s brand e-commerce solutions market and our ability to effectively manage their online presence from their stores on China�s leading online marketplaces to order fulfillment and delivery. We will continue to seek out new brand partners as we work to increase shareholder value and support long-term growth.�

SHANGHAI, China, Sept. 25, 2015 (GLOBE NEWSWIRE) -- Baozun Inc. (Nasdaq:BZUN) ("Baozun" or the "Company"), the leading e-commerce solutions provider in China, today announced that operations at the Company's seventh logistics warehouse ("the Beijing warehouse") in Beijing began in September 2015.

The Beijing warehouse is the Company's first warehouse in northern China and is the third opened this year. With the addition of the Beijing warehouse, the Company now operates warehouses with an aggregate gross floor area of close to 100,000 m². In addition to the warehouses in Guangzhou, Suzhou and Hong Kong, the Beijing warehouse will seamlessly fit into the Company's overall e-commerce logistics network in China and strengthen its presence in northern China allowing it to reduce transportation costs and delivery times to provide next day delivery service to core northern cities.

The geographic expansion of the Company's warehouses will provide its brand partners with ample resources to meet the enormous surge that takes place in the days following China's November 11 Singles' Day shopping festival in a timely and efficient manner.

"The opening of our seventh warehouse in Beijing will strengthen our logistical presence in Northern China and allow us to provide a better end-to-end ecommerce solution to our brand partners," commented Mr. Vincent Qiu, Chief Executive Officer of Baozun. "With November 11 rapidly approaching, warehouse overload is a major concern for each of our brand partners. Last year, Baozun delivered over 1 million orders during the shopping festival. With that number expected to surge this year, it is extremely important for us to prepare for this by expanding our regional logistical infrastructure to increase logistical efficiency, lower shipping costs and provide better services. I am confident that we will be able to meet the surge and provide better fulfillment services with the addition of the Beijing warehouse this year. We will continue to expand our logistical infrastructure by establishing new warehouses in strategic locations across China to further improve our fulfillment efficiency and support long-term growth."

Second Quarter 2015 Financial Results

• Total net revenues were RMB517.6 million (US$83.5 million), an increase of 98.0% year-over-year.
• Basic and diluted non-GAAP net loss attributable to ordinary shareholders per ADS of RMB1.25 and RMB1.25, respectively, for the same period of 2014.

"We are very pleased to report robust financial and operational growth in our first earnings results following our listing on NASDAQ in May 2015, which was a significant milestone for us," commented Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. "In the second quarter, total net revenues increased 98.0% year-over-year as we added new brand partners, solidified our relationship with existing ones and expanded our order fulfillment capabilities. We opened our newest warehouse in Guangzhou Cainiao Logistics Park in July 2015. This will strengthen our logistical presence in southern China and allow us to optimize inventory management and improve efficiency across the entire delivery process. We believe this will reinforce our market leading position and enable us to provide a better overall e-commerce solution."

Mr. Beck Chen, Chief Financial Officer of Baozun added, "Our strong performance during the second quarter of 2015 was driven primarily by our focus on growing same store sales. Looking ahead, we will continue to optimize our service offerings and enhance operational efficiency in order to support our long-term growth and provide a continuously improving e-commerce solution to our brand partners."

Business Outlook

For the third quarter of 2015, the Company expects total net revenues to be between RMB520 million and RMB540 million, representing a year-over-year growth rate of approximately 40% to 45%.

SHANGHAI, China, July 22, 2015 (GLOBE NEWSWIRE) -- Baozun Inc. (Nasdaq:BZUN) ("Baozun" or the "Company"), the leading brand e-commerce solutions provider in China, today announced that the Company has signed a cooperation agreement with Alibaba Group Holding Limited's ("Alibaba") (NYSE:BABA) logistics arm Cainiao Network Technology Co., Ltd. ("Cainiao"). The agreement is part of the Company's plan to strengthen its logistics network in southern China by opening its sixth and newest logistics warehouse ("Guangzhou warehouse") in Guangzhou's Alibaba Cainiao Logistics Park.

Cainiao was founded in 2013 by Alibaba and a consortium of logistics companies in China. Cainiao operates a proprietary logistics platform that links third-party warehouses and distribution centers with logistics providers in order to enable greater efficiency across the entire delivery process. Cainiao's platform plugs directly into the back-end of numerous e-commerce platforms, allowing each party to share and integrate confidential information on orders, inventory levels and delivery status.

According to the terms of the agreement, Baozun's Guangzhou warehouse will sync directly with Cainiao's platform, allowing the Company to improve the experience for both its brand e-commerce partners and buyers by closely monitoring and improving each step of the fulfillment process.

Mr. Vincent Qiu, Baozun's CEO, commented, "With the signing of this agreement, we will be able to use Cainiao's platform to provide our brand partners with better overall e-commerce logistics. By leveraging on our Guangzhou warehouse's geographical location and Cainiao's platform, we will be able to reduce transportation costs and inventory levels, shorten delivery times, and increase overall efficiency across southern China. Improving our logistical capabilities through agreements with platforms such as Cainiao's directly supports our long-term growth by providing our clients with a better overall e-commerce solution."

SHANGHAI, China, May 21, 2015 (GLOBE NEWSWIRE) -- Baozun Inc. (Nasdaq:BZUN) ("Baozun" or the "Company"), the leading brand e-commerce solutions provider in China, today announced that it has priced its initial public offering of 11,000,000 American depositary shares ("ADSs") at US$10.00 per ADS for a total offering size of US$110 million, assuming the underwriters do not exercise their option to purchase additional ADSs. Each ADS represents three Class A ordinary shares of the Company. The ADSs will begin trading on the NASDAQ Global Select Market today under the ticker symbol "BZUN."

The Company has granted the underwriters an option, exercisable within 30 days from the date of the final prospectus, to purchase up to 1,650,000 additional ADSs.

Morgan Stanley & Co. International plc, Credit Suisse Securities (USA) LLC and BofA Merrill Lynch are acting as joint bookrunners for the offering.