Baozun Inc (BZUN)
Description
Baozun Inc is a leading brand e-commerce solutions provider and digital commerce enabler in China, offering end-to-end services including online store setup, digital marketing, customer service, warehousing & fulfillment, and holistic brand management.
Historical Reports
Financial Information
- Report Date
- 2025-04-24
- Report Period
- Fiscal Year 2024
- Debt
- RMB 1,682,136,000
- Debt History
- Debt increased by approximately 13% year-over-year
- Debt Trend
- Increasing
Profit Information
- Profit
- –RMB 138,384,000 (net loss)
- Profit History
- Net loss narrowed by about 38% year-over-year
- Profit Trend
- Increasing
Detailed Report
Baozun Inc – 20-F Annual Report Analysis
Report Date: 2025-04-24
Period Covered: Fiscal Year 2024 (Jan 1 – Dec 31, 2024)
1. Financial Highlights
| Metric | FY 2023 | FY 2024 | Change |
|---|---|---|---|
| Total Net Revenue | RMB 88.12 billion | RMB 94.22 billion | +7.0% |
| Product Sale Revenue | RMB 33.57 billion | RMB 34.67 billion | +3.3% |
| Service Revenue | RMB 54.54 billion | RMB 59.55 billion | +9.2% |
| Gross Profit Margin | 34.5% | 35.4% | +0.9 pp |
| Operating Income/(Loss) | (RMB 2.06 billion) | (RMB 1.15 billion) | + RMB 0.91 bn |
| Net Income/(Loss) | (RMB 2.23 billion) | (RMB 1.38 billion) | + RMB 0.85 bn |
| Adjusted EBITDA (non-GAAP) | RMB 23.7 million | RMB 10.6 million | – RMB 13.1 m |
| Total Debt | RMB 1.49 bn (2023) | RMB 1.68 bn (2024) | +13% |
| Cash & Equivalents | RMB 2.35 bn | RMB 1.64 bn | –30% |
2. Profit & Loss Analysis
- Revenue Growth Drivers: Service revenues (warehousing, digital marketing, store operations) grew double-digit (9.2%), led by expansion of digital services and international unit. Product sales grew more modestly (+3.3%) as Baozun continued to optimize its distribution-model SKU mix and integrate its acquisitions.
- Margin & Expense Trends: Gross margin expanded slightly to 35.4% in FY 2024 from 34.5% in FY 2023 despite elevated marketing & digital-technology investments. Operating expenses moderated from 102.3% of revenue to 101.2%, as fulfillment costs were contained and administrative spend declined via efficiency initiatives.
- Profitability Improvement: Net loss narrowed by 38% to RMB 1.38 bn in FY 2024 from RMB 2.23 bn in FY 2023, driven by revenue growth, cost control in fulfillment, and one-time impairment losses (‘goodwill’ impairment fell from RMB 352 m in 2023 to RMB 69 m in 2024).
3. Cash Flow & Financial Health
- Operating Cash Flow: Generated RMB 101 m positive OCF in FY 2024 vs. RMB 448 m in FY 2023 and RMB 383 m in FY 2022; working-capital changes (lower receivables, stable payables) helped offset lower net income.
- Liquidity: Cash & equivalents and restricted cash declined to RMB 1.64 bn, reflecting acquisitions and continued investment in tech & fulfillment. Net debt (short-term loans + notes payable less cash) sits at ~RMB 2.46 bn.
- Debt Profile: Group refinanced its 2024 notes entirely in FY 2022 and maintains a revolving credit facility (RMB 38.9 bn limit; ~RMB 9.4 bn drawn). Short-term borrowings (RMB 1.22 bn) and notes payable (RMB 0.46 bn) increased 13% YOY.
4. Key Drivers & Headwinds
Reasons for Loss Reduction:
- Scalability gains in warehousing & fulfillment operations
- Rationalization of brand mix in distribution model
- Declining goodwill impairments and one-off transaction costs
Risks & Challenges:
- Regulatory uncertainty over VIE structure and foreign-investment controls
- Volatility in RMB/USD impacting reported USD revenues
- Dependence on China e-commerce marketplaces (e.g., Tmall) and key brand partners
5. Pros & Cons
Pros:
- Market‐leading omnichannel solutions platform with strong tech stack (ros, hybrid cloud)
- Diversified service lines (store ops, digital marketing, logistics)
- Improving operational leverage; narrowing losses
Cons:
- Continued net losses; low coverage of debt by EBITDA
- Country‐specific VIE and regulatory risks
- FX translation losses in USD reporting currency
Statistics Breakdown
Service Revenue Breakdown (FY 2024)
- Online-store operation & design: RMB 1.77 bn (30%)
- Warehousing & fulfillment: RMB 2.19 bn (37%)
- Digital marketing & CRM: RMB 2.12 bn (36%)
- Intersegment eliminations: –RMB 122 m
Product vs Service (FY 2024)
- Product sales: RMB 34.67 bn (36.8%)
- Service revenues: RMB 59.55 bn (63.2%)
Segment Revenues (FY 2024)
- Ecommerce segment: RMB 80.70 bn (+5.9% YOY)
- Brand management: RMB 14.74 bn (+16% YOY)
Company Direction Insights
- Growth Trajectory: Continuing shift to higher-value services (digital marketing, full-chain logistics) should boost margins and scale profits as Baozun rolls out advanced AI-powered modules (ROD, big-data BI).
- Financial Health: Leverage remains moderate (Net Debt/Equity ~0.63x at Dec 2024), but cash reserves have dipped—operational cash flow recovery will be key.
- Future Challenges: Regulatory scrutiny of the VIE structure and potential RMB volatility pose headwinds. Focus on high-margin brand-management and international expansion can diversify risk.
- Opportunities: Further integration of live-streaming, private-domain CRM, and cross-border e-commerce services can unlock new revenue streams and drive an eventual return to profitability.