Gelonghui, March 21 | Baozun E-Commerce - SW (09991.HK) announced that in the fourth quarter of 2023, the company's total net revenue was RMB 2,780.4 million, an increase of 8.9% over the same period last year of RMB 2,553.2 million. The adjusted operating profit of the e-commerce business was RMB 118.2 million.
In fiscal year 2023, the company's total net revenue was RMB 8,812.0 million, up 4.9% year-on-year from RMB 8,400.6 million in the same period last year. The adjusted operating profit of the e-commerce business was RMB 164.0 million.
As of December 31, 2023, the company served more than 450 brand partners. Omnichannel expansion continues to be a key focus for the company's brand partners. By the end of the fourth quarter, about 44.7% of brand partners cooperated with the company in store operations at least two channels, compared to 41.8% in the same period last year.
In the fourth quarter of 2023, Baozun's brand management business continued to focus on the orderly transition of Gap's Shanghai business, from being driven by past discounts to focusing on consumers' mentality building for brands and products. In the fourth quarter of 2023, Baozun's brand management business achieved product sales revenue of 455.5 million yuan and a gross margin of 52.9%.
Mr. Qiu Wenbin, founder of Baozun e-commerce and chairman and CEO of Baozun Group, said, “In 2023, Baozun Group will embark on a comprehensive transformation journey of the three major business segments. Looking back over the past year, we have not only consolidated our well-known position in the digital commerce field, but also achieved remarkable achievements in improving operational efficiency. I am very pleased with the adaptability and tenacity shown by Baozun Group in a rapidly changing market environment. Additionally, Baozun Group is honored to be the only Asian supplier shortlisted in Gartner's 2024 DOM Market Guide. Looking ahead to 2024, despite macroeconomic uncertainty, we will continue to steadily advance our strategic transformation. Strong business fundamentals give us confidence to enhance our value proposition for our brand partners.”
Mr. Arthur Yu, Chief Financial Officer of Baozun Group and President of Baozun E-commerce, said, “In 2023, we achieved total annual revenue of 8.8 billion yuan, an increase of 5% over the previous year, setting a new record for annual operating cash flow and free cash flow. We are very proud of the remarkable achievements of the Baozun e-commerce business segment in improving customer satisfaction, consolidating omni-channel enablement capabilities and efficiency and cost control. In 2024, we are poised to continue to seize the industry's emerging growth opportunities with keen insight. With a solid business foundation, we are confident of steadily advancing the Group's second growth curve and opening a more brilliant future.”