#China #Shanghai #financial results #E-Commerce #Baozun Inc.

Baozun Inc. Reports Q2 2025 Financial Results

On August 28, 2025, Baozun Inc. (Nasdaq: BZUN, HKEX: 9991), a prominent provider of brand e-commerce solutions and digital commerce services in China, shared its unaudited financial results for the second quarter of 2025. The company saw a revenue increase of 6.8% year-over-year, reaching total net revenues of RMB 2,552.7 million (approximately $356.3 million).

Key Insights from the Financial Performance

In a statement from Vincent Qiu, Chairman and CEO, he noted, "Baozun delivered another solid quarter, with significant improvement in underlying operating profitability across both our Baozun E-Commerce (BEC) and Baozun Brand Management (BBM) segments. Our focus on refined management and operational efficiency is beginning to bear fruit."

Echoing this sentiment, Catherine Zhu, Chief Financial Officer of Baozun, highlighted the impressive acceleration of revenue growth in both segments, particularly the 35% year-over-year increase in Brand Management revenue. The adjusted operating income for E-commerce was reported at RMB 41.1 million, reflecting a 56% increase when excluding non-recurring impairment impacts compared to last year.

Financial Highlights

• - Total net revenues: Increased to RMB 2,552.7 million (US $356.3 million), a growth of 6.8% compared to RMB 2,391 million last year.
• - Revenue from E-Commerce: Grew by 3%, reaching RMB 1,758 million, while the Brand Management segment saw a substantial 35% increase, totaling RMB 398.3 million.
• - Loss from operations: Decreased to RMB 9.4 million from RMB 18.8 million in the same quarter last year, reflecting an improved operating margin of -0.4%.
• - Diluted net loss attributable to ordinary shareholders per ADS was RMB 0.59 (approx. $0.08), compared to RMB 0.51 for the same period last year.

Business Segmentation Overview

Baozun E-Commerce (BEC)

BEC is responsible for Baozun's operations in China, including brand store management, customer services, and logistics. In Q2, BEC reported a 3.4% increase in total revenue, spurred by robust growth in beauty, cosmetics, and alcohol sales. The service revenue segment grew by 3.5%, driven by demand for online store operations and digital marketing services.

The company’s electronic commerce services benefited from a considerable expansion in omni-channel presence, with 48.5% of brand partners using at least two operational channels, compared to 45.8% in the previous year.

Baozun Brand Management (BBM)

BBM has shown remarkable performance since its launch in 2023, focusing on leveraging technology for holistic brand management. BBM's revenue experienced an impressive 35.4% growth, primarily fueled by optimization strategies in merchandising and marketing efforts, particularly for brands like Gap.

Looking Ahead

Baozun remains committed to their strategic vision, navigating through market complexities while ensuring sustainable growth. The company acknowledges that continuous improvements in operational efficiency and focused growth strategies will be essential for long-term success. As Baozun prepares for future challenges, they remain determined to enhance their revenue streams and strengthen their position in the competitive landscape of e-commerce and brand management.

For investors and stakeholders looking to dive deeper into the numbers, Baozun will host an earnings conference call on August 28, 2025, providing an interactive platform to discuss these results and future prospects.

For more details on their financials, you can visit Baozun’s investor relations page at http://ir.baozun.com.

In conclusion, the overall performance reflects Baozun's adaptability and its efforts to create a sustainable e-commerce ecosystem in China, positioning itself for a promising future.