ShanghaiApril 23, 2026 /PRNewswire/ —
Dear Shareholders:
First and foremost, this letter was not created with the involvement of AI; it comes entirely from me (even though I frequently use AI in my daily work). As a company, we are very proactive in applying AI across various business operations to enhance efficiency and intelligence, but when it comes to communicating with customers, colleagues, and shareholders, we choose to put people first. Thank you for your continued trust, and we ask that you keep placing that trust in us in the future!
Three years ago, as Baozun took over GAP’s China business, we began executing a new strategy—extending our brand e-commerce capabilities into brand management. This was a significant and bold step, as our experience at the time was still limited. Along the way, we faced many challenges and made some mistakes. But ultimately, we are pleased to see that we have successfully completed the first phase of this transformation.
Looking back at 2025: The First Phase of Strategic Transformation Successfully Concluded
From a financial perspective, full-year total revenue grew by 6% to RMB 9.9 billion; non-GAAP operating profit surged from RMB 11 million in the previous fiscal year to RMB 126 million; and annual operating cash flow more than tripled to RMB 420 million. Day-to-day management efforts have played a crucial role, but more importantly, the formation, evolution, and continuous optimization of the strategy itself have begun to unleash increasing momentum. This has opened up room for the company’s upward growth in the coming years and reflects the true potential of the new business model post-transformation.
Over the past year, Baozun e-Commerce (BEC) maintained a steady performance in sales, profitability, and cash flow, thanks to outstanding execution and refined cost control. Why has a business that has been operating for so many years remained so healthy? Because we proactively adjusted our focus—no longer prioritizing scale above all else, but instead concentrating efforts on improving profit margins, generating cash, and fostering synergy with the BBM segment.
Baozun Brand Management (BBM) showed even stronger growth momentum in 2025, with full-year revenue increasing 25% year-over-year to RMB 1.8 billion, underscoring the power and long-term value of brand management. Notably, after three years of brand revitalization and localized deep cultivation, GAP China achieved its first quarterly profitability in the fourth quarter of 2025, and this positive momentum has continued into 2026. This achievement is highly significant, demonstrating that our strategic direction is correct and our execution is strong and effective. These accomplishments have given us greater courage and confidence to face the next phase.
Based on our established strategic framework and business model, the next step is to accelerate: continuously expand Baozun e-Commerce’s profit margins and build scale and leverage in brand management. Our goal is clear: by 2028, the Group’s non-GAAP operating profit will reach RMB 550 million. Here’s how we plan to achieve it:
BEC will focus on quality, profit, and efficiency. Everything revolves around customers, enhancing service quality and profit margins. At the same time, we will continue to leverage new advancements in technology and AI to significantly improve operational efficiency and process effectiveness. Learning from external experiences, practices, and skills will also serve this goal.
BBM will focus on accelerating the scale of existing brands. For new brands, we will remain attentive but apply very strict selection criteria. Therefore, for the foreseeable future, BBM’s growth will primarily come from internal drivers.
Now that BEC and BBM are each in their respective positions, the synergy between them holds even greater opportunities for us.
By combining BEC’s professional capabilities with BBM’s brand experience, we have the opportunity to help more brand partners turn their businesses around or go further. To succeed in the brand business in China today, one must manage both online and offline channels, achieve true localization in product design, production, and supply, and employ efficient marketing methods. Yes, it’s not easy, but over the past few years, this is exactly what we have been thinking about, experimenting with, and putting into practice.
The Role of Technology
“Technology Empowers the Future of Business” is a vision I proposed in 2018. It is not only the company’s long-standing mission but also reflects the critical role technology plays in brand success. Over the past two decades, we have consistently invested in foundational capabilities such as software, data, and security. These accumulations are now solidly supporting the operations of both the BEC and BBM business segments. At the same time, we are actively integrating new advancements in AI into our existing technology framework. Currently, a range of AI tools are already deployed on the front lines of daily operations, covering areas such as consumer data analysis, supply chain management, customer interaction, demand forecasting, creative content generation, and marketing automation. By organically combining the business foundation framework built over nearly 20 years with cutting-edge models, intelligent agents, and practices, we are confident in establishing a differentiated advantage, becoming true beneficiaries of technological change, and maintaining a leading edge in industry competition.
Sustainable Development
As our business continues to grow, we uphold our commitment to responsible and sustainable development. In 2025, we advanced environmental initiatives in our operations, reduced carbon emissions, and strengthened sustainability standards in our logistics and supply chain networks. Compared to our 2021 baseline year, we have reduced Scope 1 and Scope 2 carbon emissions by 36%, steadily progressing toward our 2030 target of a 50% reduction.
Equally important to us are our people. Baozun’s success to date is driven by a team of individuals who are both visionary and hardworking. We will always be committed to two things: ensuring that the products and services we deliver to customers and consumers are of high quality, and striving to ensure that every employee’s career at Baozun is a journey of growth. We firmly believe that by doing these two things well, the company’s long-term value growth can be guaranteed.
Finally, on behalf of the Board of Directors, I extend my sincere gratitude to all colleagues, customers, and shareholders. The progress over the past three years belongs to you and to us. Please continue to trust and support us. Looking ahead, we are full of confidence.
Founder of Baozun
Chairman and Chief Executive Officer of Baozun Group
Wenbin Qiu
About Baozun Inc.
Founded in 2007, Baozun Group is a leader, pioneer, and digital commerce enabler in China’s brand e-commerce service industry. Baozun Group operates three main business lines: Baozun e-Commerce (BEC), Baozun Brand Management (BBM), and Baozun International (BZI). These three business lines advance in tandem, pursuing the Group’s goal of high-quality, sustainable business development. Upholding the vision of “Technology Empowers the Future of Business,” we continuously empower brand partners and help Baozun move toward another new stage of development.
For more information, please visit http://ir.baozun.com.
For investor and media inquiries, please contact: