Baozun Inc (ADR)(NASDAQ:BZUN) posted its unaudited financial report for the fourth quarter closed December 31, 2017. Total net revenues came at RMB1,565.4 million, a jump of 23% year-over-year. Services revenue came at RMB782.6 million, an increase of 56% YoY. Income from operations came at RMB175.7 million, a jump of 179.1% year-over-year.
Mr. Vincent Qiu, the CEO and Chairman of Baozun, expressed that they closed the year with another strong quarter demonstrating remarkable operational and financial results which were mainly led by growth from their existing web stores, the expansion of their portfolio of brand associates, and the expanding array of unique technologies they offer their brand partners.
Qiu added that they continue to record growth momentum and are remarkably benefiting from their competitive strengths and ability to fast adapt and develop their technology as the market scenario changes. They intend to continue investing in state-of-the-art technology to further strengthen their leadership position and grow the array of services they are able to offer so as to create enhanced value for their shareholders.
Mr. Beck Chen, the CFO of Baozun, expressed that they recorded another exceptional quarter of growth with GMV surging by 75.5% YoY. During Q4 2017, services revenue surged considerably, growing by 56% YoY, while net income increased by 139% year-over-year, led mainly by their continuous focus on improving their business model mix and enhancing operational efficiency. They remain confident in their plan and the effectiveness of their services and operations, and expect GMV to surge to more than RMB30 billion.
Product sales revenue came at RMB782.8 million compared to RMB771.0 million in the comparable quarter of last year. The jump was mainly attributable to the growing popularity of brand associates’ products and Baozun’s progressively effective promotional and marketing campaigns, which were partly offset by a decline in product sales revenue leading from the transition of a major electronics brand associate’s business from the distribution setup to the consignment model.