The Latest: E-commerce and brand management services provider Baozun Inc. (BZ.US; 9991.HK) reported Wednesday its net loss in the first half of this year narrowed slightly to 97.26 million yuan ($13.7 million) from 103 million yuan a year earlier.
Looking Up: The company’s revenue rose by 4% to 4.37 billion yuan, mainly due to a 7% increase in services revenue to 2.79 billion yuan, while its product sales revenue edged down by 1% to 1.58 billion yuan.
Take Note: The company’s brand management business recorded an adjusted operating loss of 79.3 million yuan for the period, more than offsetting an adjusted operating profit of 72.0 million yuan for its e-commerce business.
Digging Deeper: Headquartered in Shanghai, Baozun listed in New York in 2015 and made a secondary listing in Hong Kong in September 2020. The company was originally focused on providing products and services for e-commerce store operators. In a bid to transform its business, it acquired the Greater China operations of apparel retailer Gap (GPS.US) last year, and established a joint venture to sell Authentic Brands’ Hunter’s Wellington boots in Greater China. Looking ahead, Baozun’s management said it remains cautious about macro uncertainties, but is confident that its continued transformation has strengthened its business foundations.
Market Reaction: Baozun’s Hong Kong shares fell on Thursday, closing down 1.7% to HK$5.87 by the midday break. The stock now trades near the lower end of its 52-week range.
Translation by A. Au
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