Baozun Inc. (BAOZUN-W) reported an 11.0% year-on-year increase in total net revenue to RMB5.12 billion (USD0.76 billion) for the six months ended 30 June 2026, driven by growth in both product sales and service income.

Key financials • Revenue: RMB5.12 billion, up 11.0% from RMB4.62 billion in 1H25. - Product sales rose 14.8% to RMB2.07 billion. - Service revenue gained 8.5% to RMB3.05 billion, lifted by digital marketing and IT solutions.

• Profitability: - Operating result swung to a profit of RMB63.66 million from a RMB93.37 million loss a year earlier; operating margin improved to 1.2% from –2.0%. - Non-GAAP operating profit reached RMB82.37 million versus a RMB60.78 million loss in 1H25; non-GAAP margin advanced to 1.6%. - Net income attributable to ordinary shareholders stood at RMB9.56 million (USD1.41 million), reversing a RMB97.04 million loss in the prior-year period. - Diluted EPS turned positive at RMB0.16 per ADS compared with a RMB1.68 loss. - Diluted non-GAAP EPS was RMB0.45 per ADS, versus a RMB1.30 loss.

Segment performance • E-Commerce: Service revenue increased to RMB3.14 billion, supported by higher digital marketing demand. Segment non-GAAP operating profit reached RMB120.0 million, reflecting sharper execution and cost controls. • Brand Management (BBM): Revenue surged 30.3% to RMB1.02 billion, aided by merchandising and channel expansion for Gap Greater China and emerging lifestyle labels. The unit achieved its first quarterly breakeven in 4Q25 and is positioned for operating leverage as store count rose to 184, including 167 Gap stores.

Cost dynamics • Cost of products increased 9.5% to RMB1.38 billion in line with stronger sales. • Fulfilment expenses fell 5.5% to RMB1.07 billion, benefiting from logistics efficiencies. • Sales & marketing expenses rose 19.1% to RMB2.07 billion, tracking heavier digital marketing activity and offline store expansion. • General & administrative costs dropped 14.1% to RMB339.27 million, reflecting lower bad-debt provisions and ongoing cost-control measures.

Balance sheet and liquidity • Cash, cash equivalents, restricted cash and short-term investments totalled RMB2.90 billion (USD0.43 billion) at 30 June 2026, little changed from year-end 2025. • Short-term borrowings were RMB1.24 billion; gearing ratio edged down to 0.74 from 0.77. • Current ratio remained stable at 1.9x. • No interim dividend was declared; no material acquisitions, disposals or new investment commitments were announced.

Management outlook Baozun plans to transition from rebuilding to scaling over the next three years, targeting further margin expansion in E-Commerce, greater scale in Brand Management, and enhanced synergies between the two lines. Continued investment in AI and automation is expected to support efficiency gains. The board affirmed compliance with Hong Kong’s Corporate Governance Code and reported no material subsequent events after the period end.