SHANGHAI,Nov. 21,2024 -- Baozun Inc. (Nasdaq: BZUN and HKEX: 9991) ("Baozun",the "Company" or the "Group"),a leading brand e-commerce solution provider and digital commerce enabler in China,today announced its unaudited financial results for the third quarter ended September 30,2024.

Mr. Vincent Qiu,Chairman and Chief Executive Officer of Baozun,commented,"I'm pleased that Baozun is advancing our strategic vision,with robust topline growth driven by transformative initiatives. In the third quarter of 2024,Baozun Group achieved a 12.8% year-over-year revenue increase,powered by solid performances from both Baozun E-Commerce (BEC) and Baozun Brand Management (BBM). For the first time,BBM delivered topline growth in its underlying China business for Gap,underscoring our brand management capability and localization of brand appeal. The third quarter has been a pivotal quarter of growth and progress across our segments,reflecting the resilience and adaptability of our strategies."

Ms. Catherine Zhu,Chief Financial Officer of Baozun Inc.,"Baozun delivered double-digit topline growth in the third quarter of 2024,with E-Commerce revenue up 13.9% and Brand Management revenue increasing by 10.3% year-over-year. Notably,BEC product sales resumed growth following twelve quarters of contraction. Furthermore,our proactive positioning in creative content commerce continued to drive triple-digit annual revenue growth on Douyin,highlighting our agility and leadership in digital commerce. BBM remained focused on strengthening our localization efforts and building a sustainable foundation. With confidence in our long-term growth,we continued to execute our share repurchase program with US$9.9 million worth of ADSs repurchased year-to-date."

Third Quarter 2024 Financial Highlights

Total net revenues were RMB2,057.0 million (US$[1]293.1 million),representing an increase of 12.8% compared with RMB1,823.6 million for the same period of 2023.

Loss from operations was RMB114.5 million (US$16.3 million),an improvement from RMB135.7 million in the same quarter of last year,primarily due to a reduction in losses from E-Commerce. Operating margin was negative 5.6%,an improvement from negative 7.4% for the same period of 2023.

Non-GAAP loss from operation[2] was RMB85.2 million (US$12.1 million),an improvement from RMB90.4 million in the same quarter of last year,primarily due to a reduction in losses from E-Commerce. Non-GAAP operating margin was negative 4.1%,improved from negative 5.0% for the same period of 2023.

Adjusted operating loss of E-Commerce[3] was RMB29.8 million (US$4.2 million),an improvement from RMB40.3 million for the same period of 2023.

Adjusted operating loss of Brand Management[3] was RMB55.3 million (US$7.9 million),compared with RMB50.1 million for the same period of 2023.

Net loss attributable to ordinary shareholders of Baozun Inc. was RMB88.1 million (US$12.6 million),an improvement from RMB126.4 million for the same period of 2023.

Non-GAAP net loss attributable to ordinary shareholders of Baozun Inc.[4] was RMB66.8 million (US$9.5 million),an improvement from RMB76.4 million for the same period of 2023.

Basic and diluted net loss attributable to ordinary shareholders of Baozun Inc. per American Depositary Share ("ADS[5]") were both RMB1.48 (US$0.21),compared with both RMB2.12 for the same period of 2023.

Diluted non-GAAP net loss attributable to ordinary shareholders of Baozun Inc. per ADS[6] was RMB1.12 (US$0.16),compared with RMB1.28 for the same period of 2023.

Cash and cash equivalents,restricted cash,and short-term investments totaled RMB2,655.2 million (US$378.4 million),as of September 30,2024,compared with RMB3,072.8 million as of December 31,2023.

Reconciliations of GAAP measures to non-GAAP measures presented above are included at the end of this results announcement.

Adjusted operating profits/losses by segment are included in the Segments data of Segment Information.

[1] This announcement contains translations of certainRenminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted,the translation of RMB into US$ has been made at RMB7.0176 to US$1.00,the noon buying rate in effect on September 30,as set forth in the H.10 Statistical Release of the Federal Reserve Board.

[2] Non-GAAP income (loss) from operations is a non-GAAP financial measure,which is defined as income (loss) from operations excluding the impact of share-based compensation expenses,amortization of intangible assets resulting from business acquisition,acquisition-related expenses,impairment of goodwill,loss on variance from expected contingent acquisition payment,and cancellation fees of repurchased ADSs and returned ADSs.

[3] Following the acquisition of Gap Shanghai,the Group updated its operating segment structure resulting in two segments,which were (i) E-Commerce; (ii) Brand Management,for more information,please refer to Supplemental Information.

[4] Non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. is a non-GAAP financial measure,which is defined as net income (loss) attributable to ordinary shareholders of Baozun Inc. excluding the impact of share-based compensation expenses,impairment of goodwill and investments,cancellation fees of repurchased ADSs and returned ADSs,fair value loss on derivative liabilities,loss on disposal of subsidiaries and investment in equity investee,and unrealized investment loss.

[5] Each ADS represents three Class A ordinary shares.

[6] Diluted non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS are non-GAAP financial measures,which are respectively defined as non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. divided by weighted average number of shares used in calculating diluted net income (loss)per ordinary share multiplied by three,respectively.

Business Highlights

Baozun e-Commerce,or "BEC"

BEC encompasses our China e-commerce businesses,including brand store operations,customer services,and value-added services in logistics and supply chain management,IT and digital marketing. During the quarter,total revenue from BEC achieved a 13.9% year-over-year increase,with double-digit growth in both product sales and service offerings within Baozun E-Commerce. The growth in product sales was mainly driven by strong performance in the Beauty and Cosmetics categories,while service growth was mainly attributed to higher demand for digital marketing and IT solutions.

Omni-channel expansion remains a key theme for our brand partners. By the end of the third quarter of 2024,approximately 48.2% of our brand partners engaged with us for store operations of at least two channels.

Baozun Brand Management,or "BBM"

BBM engages in holistic brand management,including strategy and tactic positioning,branding and marketing,retail and e-commerce operations,supply chain and logistics,and technology empowerment. We aim to leverage our portfolio of technologies to forge longer and deeper relationships with brands.

Currently,our Brand Management business line includes the Gap and Hunter brands. During the quarter,product sales revenue for Brand Management totaled RMB329.8 million (US$47.0 million),with a gross profit margin of 52.8%. By the end of the third quarter of 2024,Gap and Hunter brands have 146 offline stores under our management.

Third Quarter 2024 Financial Results

Total net revenues were RMB2,057.0 million (US$293.1 million),an increase of12.8% from RMB1,823.6 million in the same quarter of last year. The increase in total net revenues was mainly driven by a 14.2% increase in service revenue.

Total product sales revenue was RMB783.1 million (US$111.6 million),compared with RMB707.9 million in the same quarter of last year,of which:

Product sales revenue of E-Commerce was RMB454.0 million (US$64.7 million),an increase of 10.3% from RMB411.6 million in the same quarter of last year. The increase was primarily attributable to introduction of high-quality new distribution businesses,partially offset by the Company's optimization of its product portfolio in distribution model,especially in the electronics and fast-moving consumer goods sectors.

The following table sets forth a breakdown of product sales revenues of E-Commerce by key categories[7] for the periods indicated:

For the three months ended September 30,

2023

2024

RMB

% of

Net

Revenues

RMB

US$

% of

Net

Revenues

YoY

Change

(In millions,except for percentage)

Product Sales ofE-Commerce

Appliances

179.5

11%

177.1

25.2

9%

-1%

Beauty and cosmetics

76.3

4%

89.7

12.8

4%

18%

Others

155.8

8%

187.2

26.7

9%

20%

Total net revenues from product

sales of E-Commerce

411.6

23%

454.0

64.7

22%

10%

Product sales revenue of Brand Management was RMB329.8 million (US$47.0 million),an increase of 11.3% from RMB296.3 million in the same quarter of last year. The increase was primarily driven by sales increase from the Gap brand,as the Company continued to optimize its merchandising plans and enhance customer experiences.

Services revenue was RMB1,273.9 million (US$181.5 million),an increase of14.2% from RMB1,115.8 million in the same quarter of last year. The increase was primarily attributable to a 40.0% year-over-year growth in digital marketing and IT solutions,driven by content creation and technology monetization.

The following table sets forth a breakdown of services revenues by service type for the periods indicated:

For the three months ended September 30,except for percentage)

Servicesrevenue

Online store operations

340.7

19%

362.6

51.6

18%

6%

Warehousing and fulfillment

431.7

23%

433.8

61.8

21%

0%

Digital marketing and IT

solutions

362.7

20%

507.7

72.4

24%

40%

Inter-segment eliminations[8]

(19.3)

-1%

(30.2)

(4.3)

-1%

56%

Total net revenues from services

1,115.8

61%

1,273.9

181.5

62%

14%

Breakdown of total net revenues of online store operations of services by key categories [9] of services for the periods indicated:

For the three months ended September 30,except for percentage)

Online store operations in

Services revenue

Apparel and accessories

248.4

14%

275.7

39.2

13%

11%

- Luxury

86.3

5%

86.8

12.3

4%

1%

- Sportswear

101.3

6%

100.7

14.3

5%

-1%

- Other apparel

60.8

3%

88.2

12.6

4%

45%

Others

92.3

5%

86.9

12.4

5%

-6%

Inter-segment eliminations[10]

(11.2)

-1%

(20.5)

(2.9)

-1%

83%

Total net revenues from online

store operations in services

329.5

18%

342.1

48.7

17%

4%

[7]Key categories refer to the categories that accounted for no less than 10% of product sales of E-Commerce revenues during the periods indicated.

[8] The inter-segment eliminations mainly consist of revenues from online store operations,warehousing and fulfillment,and digital marketing and IT services provided by E-Commerce to Gap,a brand under Brand Management.

[9] Key categories refer to the categories that accounted for no less than 10% of services revenue of E-Commerce during the periods indicated.

[10] The inter-segment eliminations mainly consist of revenues from store operation services provided by E-Commerce to Gap,a brand under Brand Management.

Totaloperating expenses were RMB2,171.5 million (US$309.4 million),compared with RMB1,959.4 million in the same quarter of last year.

Cost of products was RMB563.1 million (US$80.2 million),compared with RMB491.2 million in the same quarter of last year. The increase was primarily due to an increase in product sales volume.

Fulfillment expenses were RMB519.4 million (US$74.0 million),compared with RMB513.0 million in the same quarter of last year. Fulfillment expenses were remain flat,which is in line with the warehousing and fulfillment service revenue.

Sales and marketing expenses were RMB800.6 million (US$114.1 million),compared with RMB637.5 million in the same quarter of last year. The increase was mainly due to higher revenue contributions from digital marketing services for BEC,as well as increased marketing activities and offline stores for BBM during the quarter.

Technology and content expenses were RMB140.7 million (US$20.1 million),compared with RMB120.4 million in the same quarter of last year. The increase was mainly due to more revenues from IT solutions during the quarter,partially offset by the Company's cost control initiatives and efficiency improvements.

General and administrative expenses were RMB176.6 million (US$25.2 million),compared with RMB214.5 million in the same quarter of last year. The decrease was primarily due to the Company's cost control initiatives and efficiency improvements.

Loss from operations was RMB114.5 million (US$16.3million),an improvement from RMB135.7 million in the same quarter of last year. The operating margin wasnegative 5.6%,an improvement from negative 7.4% in the same quarter of last year.

Non-GAAP loss from operations was RMB85.2 million (US$12.1 million),an improvement from RMB90.4 million in the same quarter of last year. The improvement was mainly due to the narrowed loss in the E-Commerce business. Non-GAAP operating margin was negative 4.1%,an improvement from negative 5.0% in the same quarter of last year.

Adjusted operating loss of E-Commerce was RMB29.8 million (US$4.2 million),an improvement from RMB40.3 million in the same quarter of last year. Adjusted operating loss of Brand Management was RMB55.3 million (US$7.9 million),compared with RMB50.1 million in the same quarter of last year.

Unrealized investment gain was RMB3.9 million (US$0.5 million),compared with an unrealized investment loss of RMB7.8 million in the same quarter of last year. The unrealized investment gain of this quarter was mainly related to the increase in the trading price of iClick Interactive Asia Group Limited,or iClick Interactive,a public company listed on the Nasdaq Global Market that the Company invested in January 2021.

Fair value change on financial instruments was a loss of RMB17.0 million (US$2.4million),compared with nil in the same quarter of last year. The fair value change on financial instruments is primarily due to the losses recognized related to the financial instruments the Company invested in the second quarter of 2024.

Exchange gain was RMB11.9 million (US$1.7 million),due to exchange rate fluctuation between Hong Kong dollars and Japanese Yen in the quarter ended September 30,compared to net exchange loss of RMB1.3 million in the same quarter last year.

Net loss attributable to ordinary shareholders of Baozun Inc. was RMB88.1 million (US$12.6 million),compared with RMB126.4 million in the same quarter of last year.

Basic and diluted net loss attributable to ordinary shareholders of Baozun Inc. per ADS were both RMB1.48 (US$0.21),compared with both RMB2.12 for the same period of 2023.

Non-GAAP net loss attributable to ordinary shareholders of Baozun Inc. was RMB66.8 million (US$9.5 million),compared with RMB76.4 million in the same quarter of last year.

Diluted non-GAAP net loss attributable to ordinary shareholders of Baozun Inc. per ADS were RMB1.12 (US$0.16),compared with RMB1.28 for the same period of 2023.

Segment Information

(a) Description of segments

Following the acquisition of Gap Shanghai in February 2023,the Group updated its operating segments structure resulting in two segments,which were (i) E-Commerce and (ii) Brand Management;

The following summary describes the operations in each of the Group's operating segment:

(i) E-Commercefocuses on Baozun traditional e-commerce service business and comprises two business lines,BEC (Baozun E-Commerce) and BZI (Baozun International).

a> BEC includes our mainland China e-commerce businesses,such as brands' store operations,customer services and value-added services in logistics and supply chain management,IT and digital marketing.

b> BZI includes our e-commerce businesses outside of mainland China,including locations such as Hong Kong,Macau,Taiwan,South East Asia and Europe.

(ii) Brand Management engages in holistic brand management,encompassing strategy and tactic positioning,supply chain and logistics and technology empowerment to leverage our portfolio of technologies to forge into longer and deeper relationships with brands. Currently,the Company runs brand management operations for the Gap and Hunter brands in Greater China.

(b) Segments data

The table below provides a summary of the Group's reportable segment results for the three months ended September 30,2023 and 2024,with prior periods' segment information retrospectively recast to conform to current period presentation:

For the three months ended September30,

2023

2024

RMB

RMB

Net revenues:

E-Commerce

1,543,276

1,757,320

Brand Management

299,645

330,605

Inter-segment eliminations *

(19,279)

(30,905)

Total consolidated net revenues

1,823,642

2,057,020

Adjusted OperatingLosses **:

E-Commerce

(40,300)

(29,781)

Brand Management

(50,091)

(55,331)

Inter-segment eliminations *

-

(51)

Total Adjusted Operating Losses

(90,391)

(85,163)

Unallocated expenses:

Share-based compensation expenses

(29,415)

(19,628)

Amortization of intangible assets resulting from business acquisition

(7,911)

(9,529)

Cancellation fees of repurchased ADSs

-

(162)

Acquisition-related expenses

(7,995)

-

Total other income

4,198

4,596

Lossbefore income tax and share of income(loss)in equity method investment

(131,514)

(109,886)

*The inter-segmenteliminationsmainly consist of revenues from services provided byE-Commerceto Brand Management.

**Adjusted Operating Profits (Losses) represent segment profits (losses),which is income (loss) from operations from each segment without

allocating share-based compensation expenses,acquisition-related expenses and amortization of intangible assets resulting from business

acquisition,and cancellation fees of repurchasedADSs.

Update in Share Repurchase Programs

On January 24,the Company's board of directors (the "Board") authorized the management to set up and implement a new share repurchase program under which the Company may repurchase up toUS$20 millionworth of its outstanding (i) American depositary shares ("ADSs"),each representing three Class A ordinary shares,and/or (ii) Class A ordinary shares over the next 12 months starting fromJanuary 24,2024. As of November 21,the Company repurchased approximately 3.6 million of ADSs for approximately US$9.9 million under its share repurchase program through the open market. The remaining amount of Board authorization for our share repurchase program,which is effective through January 2025,was US$10.1 million as of November 21,2024.

Conference Call

The Company will host a conference call to discuss the earnings at 6:30 a.m. Eastern Time on Thursday,November 21,2024 (7:30 p.m. Beijing time on the same day).

Dial-in details for the earnings conference call are as follows:

United States: 1-888-317-6003

Hong Kong: 800-963-976

Singapore: 800-120-5863

Mainland China: 4001-206-115

International: 1-412-317-6061

Passcode: 5542701

A replay of the conference call may be accessible through November 28,2024 by dialing the following numbers:

United States: 1-877-344-7529

International: 1-412-317-0088

Canada: 855-669-9658

Replay Access Code: 8102663

A live webcast of the conference call will be available on the Investor Relations section of Baozun's website at http://ir.baozun.com. An archived webcast will be available through the same link following the call.

Use of Non-GAAP Financial Measures

The Company also uses certain non-GAAP financial measures in evaluating its business. For example,the Company uses non-GAAP income (loss) from operations,non-GAAP operating margin,non-GAAP net income (loss),non-GAAP net margin,non-GAAP net income (loss) attributable to ordinary shareholders ofBaozun Inc.and diluted non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS,as supplemental measures to review and assess its financial and operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation,or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

The Company defines non-GAAP income (loss) from operations as income (loss) from operations excluding the impact of share-based compensation expenses,and cancellation fees of repurchased ADSs and returned ADSs. The Company defines non-GAAP operating margin as non-GAAP income (loss) from operations as a percentage of total net revenues. The Company defines non-GAAP net income (loss) as net income (loss) excluding the impact of share-based compensation expenses,and unrealized investment loss. The Company defines non-GAAP net margin as non-GAAP net income (loss) as a percentage of total net revenues. The Company defines non-GAAP net income (loss) attributable to ordinary shareholders ofBaozun Inc.as net income (loss) attributable to ordinary shareholders ofBaozun Inc.excluding the impact of share-based compensation expenses,and unrealized investment loss. The Company defines diluted non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS as non-GAAP net income (loss) attributable to ordinary shareholders ofBaozun Inc. divided by weighted average number of shares used in calculating net income (loss) per ordinary share multiplied by three.

The Company presents the non-GAAP financial measures because they are used by the Company's management to evaluate the Company's financial and operating performance and formulate business plans. Non-GAAP income (loss) from operations,non-GAAP net income (loss) attributable to ordinary shareholders ofBaozun Inc.and diluted non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS reflect the Company's ongoing business operations in a manner that allows more meaningful period-to-period comparisons. The Company believes that the use of the non-GAAP financial measures facilitates investors to understand and evaluate the Company's current operating performance and future prospects in the same manner as management does,if they so choose. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses,gain/loss and other items that are not expected to result in future cash payments or that are non-recurring in nature or may not be indicative of the Company's core operating results and business outlook.

The non-GAAP financial measures are not defined underU.S.GAAP and are not presented in accordance withU.S.GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP income (loss) from operations,non-GAAP net income (loss) attributable to ordinary shareholders ofBaozun Inc.,and diluted non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS is that they do not reflect all items of income and expense that affect the Company's operations. Further,the non-GAAP measures may differ from the non-GAAP measures used by other companies,including peer companies,potentially limiting the comparability of their financial results to the Company's. In light of the foregoing limitations,the non-GAAP income (loss) from operations,non-GAAP net income (loss) attributable to ordinary shareholders ofBaozun Inc.and diluted non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS for the period should not be considered in isolation from or as an alternative to income (loss) from operations,operating margin,net income (loss),net margin,net income (loss) attributable to ordinary shareholders ofBaozun Inc.and net income (loss) attributable to ordinary shareholders ofBaozun Inc. per ADS,or other financial measures prepared in accordance with U.S. GAAP.

The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearestU.S.GAAP performance measures,which should be considered when evaluating the Company's performance. The company encourages you to review the company's financial information in its entirety and not rely on a single financial measure. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures,please see the section of the accompanying tables titled,"Reconciliations of GAAP and Non-GAAP Results."

Safe Harbor Statements

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continues," "ongoing," "targets," "guidance," "going forward," "looking forward," "outlook" or other similar expressions. Statements that are not historical facts,including but not limited to statements about Baozun's beliefs and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement,including but not limited to Baozun's filings with the United States Securities and Exchange Commission and its announcements,notices or other documents published on the website of The Stock Exchange of Hong Kong Limited. All information provided in this announcement is as of the date hereof and is based on assumptions that Baozun believes to be reasonable as of this date,and Baozun undertakes no obligation to update such information,except as required under applicable law.

AboutBaozun Inc.

Founded in 2007,Baozun Inc. is a leader in brand e-commerce service,brand management,and digital commerce service. It serves more than 450 brands from various industries and sectors around the world,including East and Southeast Asia,Europe and North America.

Baozun Inc. comprises three major business lines - Baozun e-Commerce (BEC),Baozun Brand Management (BBM) and Baozun International (BZI) and is committed to accelerating high-quality and sustainable growth. Driven by the principle that "Technology Empowers the Future Success",Baozun's business lines are devoted to empowering their clients' business and navigating their new phase of development.

For more information,please visit http://ir.baozun.com.

For investor and media inquiries,please contact:

Baozun Inc.

Ms. Wendy Sun

Email: ir@baozun.com

Baozun Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

Asof

December31,

2023

September 30,

2024

September 30,

2024

RMB

RMB

US$

ASSETS

Current assets

Cash and cash equivalents

2,149,531

1,066,670

151,999

Restricted cash

202,764

325,603

46,398

Short-term investments

720,522

1,262,966

179,971

Accounts receivable,net

2,184,729

1,860,841

265,168

Inventories

1,045,116

1,388,312

197,833

Advances to suppliers

311,111

360,448

51,363

Prepayments and other current assets

590,350

696,139

99,199

Amounts due from related parties

86,661

6,006

856

Total current assets

7,290,784

6,966,985

992,787

Non-current assets

Long term investments

359,129

366,182

52,181

Property and equipment,net

851,151

821,363

117,043

Intangible assets,net

306,420

349,889

49,859

Land use right,net

38,464

37,695

5,371

Operating lease right-of-use assets

1,070,120

832,004

118,560

Goodwill

312,464

369,333

52,630

Other non-current assets

45,316

66,393

9,461

Deferred tax assets

200,628

213,258

30,389

Total non-current assets

3,183,692

3,056,117

435,494

Total assets

10,474,476

10,023,102

1,428,281

LIABILITIES AND SHAREHOLDERS'

EQUITY

Current liabilities

Short-term loan

1,115,721

1,101,172

156,916

Accounts payable

563,562

648,695

92,439

Notes payable

506,629

515,866

73,510

Income tax payables

18,768

-

-

Accrued expenses and other current liabilities

1,188,179

1,028,470

146,556

Derivative liabilities

-

6,063

864

Amounts due to related parties

32,118

3,093

441

Current operating lease liabilities

332,983

267,888

38,174

Total current liabilities

3,960

3,571,247

508,900

Non-current liabilities

Deferred tax liabilities

24,966

34,585

4,928

Long-term operating lease liabilities

799,096

631,252

89,953

Other non-current liabilities

40,718

43,835

6,246

Total non-current liabilities

864,780

709,672

101,127

Total liabilities

4,622,740

4,280,919

610,027

Baozun Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands,except for share and per share data)

Asof

December31,

2024

RMB

RMB

US$

Redeemable non-controlling interests

1,584,858

1,651,946

235,400

Baozun Inc. shareholders' equity:

Class A ordinary shares (US$0.0001 par

value; 470,000,000 shares authorized,

167,901,880 and 175,967,894 shares

issued,167,880 and 171,385,456

shares outstanding,as of December 31,

2023,and September 30,

respectively)

93

95

14

Class B ordinary shares (US$0.0001 par

value; 30,

13,300,738 shares issued and outstanding

as of December 31,2023,and September

30,2024)

8

8

1

Additional paid-in capital

4,439

4,626,123

659,217

Treasury shares (nil and 8,718,300 shares

as of December 31,2023 and September

30,respectively)

-

(52,824)

(7,527)

Accumulated deficit

(506,587)

(691,914)

(98,597)

Accumulated other comprehensive

income

32,251

29,841

4,252

Total Baozun Inc. shareholders' equity

4,097,204

3,911,329

557,360

Non-controlling interests

169,674

178,908

25,494

Total equity

4,266,878

4,090,237

582,854

Totalliabilities,redeemable non-

controlling interests and equity

10,281

BaozunInc.

UNAUDITEDCONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands,except for share and per share data and per ADS data)

For the three months ended September 30,

2023

2024

RMB

RMB

US$

Net revenues

Product sales (1)

707,855

783,132

111,595

Services

1,787

1,273,888

181,529

Total net revenues

1,020

293,124

Operating expenses(2)

Cost of products

(491,160)

(563,110)

(80,243)

Fulfillment(3)

(512,997)

(519,379)

(74,011)

Sales and marketing(3)

(637,488)

(800,562)

(114,079)

Technology and content(3)

(120,382)

(140,725)

(20,053)

General and administrative(3)

(214,487)

(176,611)

(25,167)

Other operating income,net

17,160

28,885

4,116

Total operating expenses

(1,959,354)

(2,171,502)

(309,437)

Lossfrom operations

(135,712)

(114,482)

(16,313)

Other income (expenses)

Interest income

24,466

14,585

2,078

Interest expense

(11,190)

(8,727)

(1,244)

Unrealized investment (loss) gain

(7,805)

3,855

549

Exchange (loss) gain

(1,273)

11,851

1,689

Fair value change on financial instruments

-

(16,968)

(2,418)

Loss before income tax and share of income(loss)in equity

method investment

(131,886)

(15,659)

Income tax (expense) benefit(4)

(1,946)

18,569

2,646

Share of income (loss) in equity method investment,

net of tax of nil

3,861

(1,938)

(276)

Net loss

(129,599)

(93,255)

(13,289)

Net (income) loss attributable to

noncontrolling interests

(4,734)

10,193

1,452

Net loss (income) attributable to

redeemable noncontrolling interests

7,900

(5,008)

(714)

Net loss attributable to ordinary shareholders of Baozun

Inc.

(126,433)

(88,070)

(12,551)

Net loss per share attributable to ordinary shareholders of

Baozun Inc.:

Basic

(0.71)

(0.49)

(0.07)

Diluted

(0.71)

(0.49)

(0.07)

Net loss per ADS attributable to ordinary shareholders of

Baozun Inc.:

Basic

(2.12)

(1.48)

(0.21)

Diluted

(2.12)

(1.48)

(0.21)

Weighted average shares used in calculating net loss per

ordinary share

Basic

178,755,231

178,284,818

178,818

Diluted

178,818

Netloss

(129,289)

Other comprehensive income (loss),net of tax of nil:

Foreign currency translation adjustment

8,630

(20,372)

(2,903)

Comprehensiveloss

(120,969)

(113,627)

(16,192)

(1) Including product sales fromE-Commerce and Brand Management of RMB454.0 million and RMB329.8 million for the three months period ended September 30,respectively,compared with product sales E-Commerce and Brand Management of RMB411.6 million and RMB296.3 million for the three months period ended September 30,2023.

(2) Share-based compensation expenses are allocated in operating expenses items as follows:

For the three months ended September 30,

2023

2024

RMB

RMB

US$

Fulfillment

1,846

733

104

Sales and marketing

10,394

4,617

658

Technology and content

3,448

2,475

353

General and administrative

13,727

11,803

1,682

29,415

19,628

2,797

(3) Including amortization of intangible assets resulting from business acquisition,which amounted to RMB7.9 million and RMB9.5 million for the three months period ended September 30,respectively.

(4) Including income tax benefits of RMB1.5 million and RMB2.0 million related to the reversal of deferred tax liabilities for the three months period ended September 30,which was recognized on business acquisition.

BaozunInc.

Reconciliationsof GAAP and Non-GAAP Results

(In thousands,except for share and per ADS data)

For the three months ended September30,

2023

2024

RMB

RMB

US$

Loss from operations

(135,712)

(114,482)

(16,313)

Add: Share-based compensation expenses

29,415

19,628

2,797

Amortization of intangible assets resulting from

business acquisition

7,911

9,529

1,358

Acquisition-related expenses

7,995

-

-

Cancellation fees of repurchased ADSs

-

162

23

Non-GAAP loss from operations

(90,163)

(12,135)

Net loss

(129,599)

(93,255)

(13,289)

Add: Share-based compensation expenses

29,358

Cancellation fees of repurchased ADSs

-

162

23

Unrealized investment loss (gain)

7,805

(3,855)

(549)

Acquisition-related expenses

7,995

-

Less:Tax effect of amortization of intangible assets

resulting from business acquisition(1)

(1,507)

(2,043)

(291)

Non-GAAP net loss

(77,980)

(69,834)

(9,951)

Net loss attributable to ordinary shareholders of Baozun

Inc.

(126,433)

(88,070)

(12,551)

Add: Share-based compensation expenses

29,797

Amortization of intangible assets resulting from

business acquisition(1)

5,991

6,734

960

Cancellation fees of repurchased ADSs

-

162

23

Unrealized investment loss (gain)

7,995

-

-

Less:Tax effect of amortization of intangible assets

resulting from business acquisition(1)

(1,127)

(1,388)

(198)

Non-GAAP net loss attributable to ordinary

shareholders of Baozun Inc.

(76,354)

(66,789)

(9,518)

Dilutednon-GAAP net loss attributable to ordinary

shareholders of Baozun Inc. per ADS

(1.28)

(1.12)

(0.16)

Weighted average shares used in calculating diluted net

loss per ordinary share

178,818

(1) The Company evaluated the non-GAAP adjustments items and concluded that these items have immaterial

income tax effects except for amortization of intangible assets resulting from business acquisition.