Baozun Q2 2026 Earnings Call: Complete Transcript

On Thursday, Baozun (NASDAQ:BZUN) discussed second-quarter financial results during its earnings call. The full transcript is provided below.

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Summary

Baozun Inc reported a 7% year-over-year revenue increase to $2.7 billion for Q2 2026, with non-GAAP operating income improving by 25% to 74 million, demonstrating resilience despite a competitive market.

The company's Brand Management (BBM) segment saw 22% revenue growth, supported by strong brand momentum and effective marketing initiatives, while E-Commerce (BEC) revenue grew by 5%, focusing on high-value growth areas.

Baozun is leveraging AI and automation within its operations, piloting initiatives that showed substantial productivity gains, and raised its 2028 non-GAAP operating profit target from 550 million to 700 million, indicating confidence in long-term growth.

Operational highlights include a strategic pullback from low-margin product sales categories and a focus on building a differentiated product sales business, as well as continued investment in emerging brands like Hunter.

Management expressed confidence in maintaining strong performance through enhanced brand strategies, AI-driven efficiencies, and ongoing market trends, despite macroeconomic challenges.

Full Transcript

B

Good morning ladies and gentlemen and thank you for standing by for Bausen's second quarter 2026 earnings conference call. At this time, all participants are in a listen only mode. After the management's prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded. I will now turn the meeting over to your host for today's call, Ms. Wendy sun, senior Director of Corporate Development and Investor Relations of Bausen. Please proceed. Wendy

C

thank you. Operator hello everyone and thank you for joining us today. Our second quarter 2026 earnings release was distributed earlier before this call and is available on our IR website at ir.baozun.com as well as on PR Newsquare services. They have also posted a PowerPoint presentation that accompanies our comments to the same IR website where they are available for your download. On the call today from Baozan, we have Mr. Minson Chu, Chairman and Chief Executive Officer, Ms. Catherine Zhu, Chief Financial Officer, Mr. Junhua Wu, Director and Chief Strategy Officer of Baozan Group, and Mr. Ken Huang, Chief Financial Officer of Baozan Brand Management. Ms. Zhu will first share our business strategy and company highlights. Ms. Zhu will then discuss our financials, followed by Mr. Wu and Mr. Huang who will share more regarding our E Commerce and Brand management segments respectively. They will all be available to answer your questions during the Q and A session that follows.

Before we begin, I would like to remind you that this conference call contains forward looking statements within the meaning of the US Security act of 1933 as a mandate, the US Security Exchange act of 1934 as a mandate and the US Private Security Litigation Reform act as of 1995. These forward looking statements are based upon management current expectations and current market and operating conditions and relates to events that involve known or unknown risk, uncertainties or other factors, all of which are difficult to predict and many of which are beyond the Company's control which may cause the Company's actual results to differ materially from those in the forward looking statements.

Further information regarding these and other risk uncertainties or factors is included in the Company's filings with the United States securities and Exchange Commission and its announcement notice or other documents published on the website of the Stock Exchange of Hong Kong Limited. All information provided in this call is as of the date here and is based on assumptions the Company believes to be reasonable as of this date and the Company does not take any obligation to update any forward looking statements except as required in the applicable law. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in rmb.

In addition, we may elect to use adjusted in place of non General Accepted Accounting Principles or non GAAP in order to reduce order confusion that may arise from our discussions regarding about financial related to the Gap brand. You may now turn to slide number two for the executive highlights for the quarter. It is now my pleasure to introduce our Chairman and Chief Executive Officer, Mr. Vincent Chu. Vincent, please go ahead.

D

Thank you Wendy hello everyone and thank you for joining us. We delivered another solid second quarter with earnings quality continuing to improve. Group revenue grew 7% to $2.7 billion while non GAAP operating income reached 74 million a year over year improvement of 25% compared with adjusted base of 59 million in the same period of last year. Both BBM and BEC have contributed solid results demonstrating the strength and resilience of our business in a competitive market. Bec achieved resilient 5% year over year revenue growth. More importantly, BEC improved its efficiency and profitability with expanded non GAAP operating profit margin against a weak E commerce industry backdrop. We view this performance as a clear demonstration of BEC improving business quality.

Our deep brand know how has been instrumental in understanding and anticipating market trends, consumer behaviors and brand needs. This expertise enables us to engage with our brand partners more strategically while keeping value creation at the heart of our approach. BBM sustained strong brand momentum delivering 22% year over year top line growth, double digit same store growth, solid gross margin expansion and the further improvement in operating profitability. GAAP remains the primary drive of this performance supported by our effective MMC initiatives and increased consumer engagements from our seasonal Brands Ambassador program.

At the same time, our emerging brands are progressing according to plan and are beginning to make more contribution to the top line as we start to invest in building their long term presence. We also are very excited to share our advancements in technology innovation and the AI employment. We recently began piloting AI and automation initiatives within our GAP E Commerce operations to streamline selected processes. The initial results have demonstrated substantial productivity gains highlighting the potential to extend these capabilities across the broader BEC ecosystem. We are glad that the success of our strategic transformation over the past three years have laid a strong foundation for a more flexible and scalable business model leveraging AI and our established technology infrastructure.

BBM provides an environment where we can develop and improve new operating capabilities while BEC provides a scale to deploy them across a broader portfolio of brands. With continued AI driven empowerment and the deeper Synergies between our two business segments, we are raising our 2028 non GAAP operating profit target from 550 million to 700 million, reflecting our increased confidence in long term growth potential. Now I will hand over the call to our team for a deeper dive into our financials and performances.

A

Thanks Vincent and hello everyone. Now let me provide a more detailed overview of financial results for the second quarter of 2026. Please turn to slide number three. Baozun Group's total net revenues for the second quarter of 2026 increased by 7% year over year to 2.7 billion. Of this total E commerce revenue grew by 5% to $2.3 billion, while brand management revenue grew by 22% to 486 million. Breaking down E Commerce revenue by business model, services revenue increased 10% year over year to 1.8 billion, while BC product sales revenue decreased by 10% year over year to 541 million. As we prioritize business quality,

C

please turn

A

to slide number four. From a profitability perspective, gross profit for product sales increased by 21.3% year over year to 343 million. For the quarter. Our group level blended gross margin for product sales was 33%, representing an expansion of 499 basis points year over year. Within this gross margin for E Commerce product sales was 13% compared with 12.8% in the same period of the last year and the gross margin for BVM was 56.1% for the quarter compared with 52% in the same period of last year. Now please turn to slide number five. For a walkthrough of our OPEX and marketing expenses increased by 239 million to 1.2 billion. This included an increase of 188 million for BEC, which was mainly due to higher spending on creative content and marketing initiatives on Douyin and Rednode. Consistent with the growth in digital marketing revenue, BBM sales and marketing expenses increased by 46 million, mainly driven by the expansion of offline stores and marketing activities in the quarter.

Fulfillment costs for the quarter decreased by 9% to 549 million. Technology and content expenses decreased by 0.4% to 140 million. GNA expenses decreased by 22% to 175 million. The reduction in these three Opex items reflected our focus on cost control and operational efficiency. Turning to bottom line items, please refer to slide number 6. During the quarter, our non GAAP income from operations was 74 million compared to 6 million in the same period of last year or 59 million in the rebased same period of last year. If we exclude one time write off cost. BEC's adjusted non GAAP income from operations was 107 million, a record level for the second quarter. Since 2022, DBM reported a non GAAP operating loss of 33 million compared with a loss of 35 million a year ago.

For the second quarter of 2026, our working capital turnover improved to one hundred and seven days compared with one hundred and forty eight days a year ago. Within this, inventory, turnover shortened to 112 days from 134 days a year ago. This improvement was driven by both VC and BBM segments. As of June 30, 2026, our cash cash equivalents restricted cash and short term investments total 2.9 billion. Let me now pass the call over to Junhua to update Run BEC our E Commerce business.

Tim

Thanks, Catherine, and hello everyone. For BEC, we have been focused on quality of growth with greater emphasis on business where we can deliver high-value results. We believe this approach better aligns the interests of our brand partners with our own, which will ultimately translate into improved productivity and margin expansion for BEC. During the second quarter, BEC's revenue grew by 5% year over year and non-GAAP operating income reached 107 million, the highest second-quarter level since 2022.

This highlights the improvement in our financial performance and a successful execution of our strategy. Underlying these impressive results, we have taken a proactive approach to refining our service model. We expanded market share in key categories including luxury, sports and outdoor, driving 10% year over year growth in service revenue. Enhanced consumer engagement through content creation, digital marketing and the Douyin initiative has also helped strengthen consumer awareness.

For example, this June we produced a large-scale live broadcast of a women's night run for one of our sportswear brand partners. More than just a race, the event was designed to empower women and foster a sense of community. Our live broadcast enabled millions of viewers to join the excitement virtually, amplifying the brand's value while creating a memorable experience that resonates with its target audience. This event set a new benchmark for how we can leverage digital platforms to amplify business opportunities while driving both brand value and sales.

We are proud to have once again been awarded Douyin E-commerce Diamond Service Provider Certification for the second quarter. These achievements validate our strategy of prioritizing high-quality revenue streams and expanding margins and reinforced our confidence in growth momentum of our service business. We also made a strategic decision to scale back our participation in certain product sales categories where intense price competition and lower margins limit their attractiveness.

Particularly during the 618 campaign, this was most evident in standardized categories such as home and furnishing, beauty and cosmetics, and appliances. As a result, product sales declined 10% year over year for the quarter. For the first half of the year, total product sales reached 1 billion, up slightly by 3% year over year and in line with our plans. What is strategic, however, is our investment in infrastructure and capabilities needed to build on a paraproduct sales business.

While this business requires a longer preparation period, we have made solid progress in supply chain management, advanced data analytics and product development. We believe this model can leverage our deep brand know-how to build a differentiated and scalable product sales business, contributing to both the top line and the bottom line from 2027 onward. Turning to profitability, we remain focused on driving greater operating leverage through disciplined cost management and structural efficiency improvements.

This significant improvement in BEC's operating performance this quarter reflects the benefits of those efforts, while our increased use of automation provides an additional opportunity to improve productivity over time. As Vincent just highlighted, our trials of AI-enabled systems position us well to re-engineer our operation process and unlock significant productivity gains over the next 18 months. We expect to accelerate the development of these initiatives across our operations, with a particular focus on optimizing resources and aligning them with streamlined workflows.

Over time, we believe BEC can evolve into a linear operation model, allowing us to improve margins while also increasing our capacity to serve a broader range of addressable markets. Now I'll pass to Ken for an update on BBM.

Ken Huang (Chief Financial Officer)

Thank you, Tim, and hello everyone. Please turn to slide number nine for BBM's performance in second quarter of 2026. BBM sustained its strong momentum into the second quarter with revenue growing 22% year over year and the non-GAAP operating loss further narrowing despite increased investment in emerging brands. For the Gap brand alone, our non-GAAP operating loss improved by more than 40% year over year. Solid top-line growth was driven by improvements across key operating metrics including traffic, offline store productivity per square meter and the blended gross margin.

Leveraging our omnichannel capabilities and the Igel integration, Gap delivered another same-store sales growth in the 20s. Our performance continues to validate the competitive advantage of our brand management model. By combining Baozun's local operating capabilities with Gap's global brand, we are able to develop products faster, localize assortments more effectively, execute integrated marketing campaigns and respond more quickly to changing consumer demand.

Overall, BBM gross margin expanded to 56.1%, an improvement of 383 basis points year over year. Now let me share our key initiatives around merchandising, marketing and the channel for Gap during the quarter. Merchandising remained a key strength during the quarter. By optimizing our product assortments and leveraging data-driven insights, we are better able to meet consumer demand and drive sales growth. We are pleased to have achieved double-digit growth across all three categories of women, men and kids.

An improved product mix, tactical pricing initiatives and better supply chain management drove healthy gross margin expansion. Inventory also remained healthy with Gap inventory turnover days at 128, reflecting disciplined inventory management and a healthy sales role. Our marketing efforts focused on building strong brand equity and deepening customer loyalty. Our Chengyi Brand Advicent campaign together with the Victoria Beckham collaboration and other global partnerships generated strong consumer engagement during the second quarter.

These campaigns, combined with strong execution around the Spring Break, Labor Day, 618 and some sales, also drove excellent sales momentum. Turning to our store network, we opened eight new stores during the quarter, bringing our total network to 167 stores. We remained disciplined in our site selection, and we are glad that new store productivity has consistently outperformed, reinforcing our confidence in the strength of our expansion strategy and the long-term productivity opportunity across our store base.

We remain on track to open more than 50 new stores in 2026 with a focus on expanding to Tier 1 to Tier 2C. This July and August we are seeing further improvements in month-over-month momentum. Our latest autumn launch and the Qixi campaign featuring our brand ambassador have reinforced Gap China's marketing strength, giving us increased confidence in the brand's trajectory for the second half of the year. Now let me also elaborate our key efforts for Hunter branding in the first half of 2026.

Following our MMC philosophy for brand management, we have stepped up our efforts to strengthen Hunter's brand equity. In the first half of 2026, we opened three flagship stores in high-profile shopping malls, bringing Hunter's total store count to 16 by end of June. We also enriched Hunter's product offering beyond the brand's renowned rain boots. We introduced new lines of urban apparel and outdoor wear, enabling us to reach a broader consumer base and address diverse lifestyle needs.

These initiatives are positioning Hunter as an energetic lifestyle brand that resonates with fashion-forward consumers and supports its long-term goals. In summary, the second quarter reinforced the progress we have made throughout 2026. Our differentiated brand management model continues to position our brands for outperformance through faster localization, stronger omnichannel execution and operational excellence. We remain confident in delivering on our full-year objectives.

That concludes our prepared remarks. Thank you, operator. We are now ready to begin the Q and A session.

OPERATOR

We will now begin the question-and-answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question today comes from Alicia Yap with Citigroup.

Please go ahead.

Alicia Yap, Analyst at Citigroup

Hi, good evening management. Thanks for the opportunity to ask questions. Congrats on the solid results. Two questions for me. First is that regarding the revised 2028 annual non-GAAP operating income forecast which obviously increased substantially from 550 million to 700 million. So wonder what gives management the confidence to project this higher profitability and what is the anticipated top-line growth that entropy revised forecast? And then the second question, in light of, you know, the weak macro conditions and also new consumption trends, have you observed any significant shift in the spending budget of your brand partners or their expectations for the China market in the future? And additionally, concerning the adoptions of the AI tools, is there any noticeable divergence in sales growth between brands that have embraced the AI-enhanced tool versus those that have been slower to adopt that? If you could share some examples. Thank you.

Vincent Chu (Chairman and Chief Executive Officer)

Thank you, Alicia. Vincent here. Let me answer this first question and Jinghua will answer the second one. Yes, we are quite excited to announce this updated forward-looking result for 2028. We carefully analyzed all the facts, all the aspects we think can help us to achieve this new goal. The first thing is that we are seeing a stronger trend for BBM, and in the past two, three years we keep strengthening BBM's positioning and also the day-to-day operations and we are seeing good results.

So for a stronger trend for BBM we are much more confident right now. It is the first consideration. Secondly, recently we did a lot of experiments and pioneer, you know, for the AI tools and also along with other infrastructural tools we developed along these years and we see quite, you know, exciting results. So we think given the scale of our BEC business base, our potential, you know, to be released from these tools and automation will be huge.

So that is quite important reason why we just raise that up. And also although despite the consumption is not very strong recently, but still we think combine these two factors and also the potentials we can deploy this kind of tools and AI capabilities into our broad client base, we have quite big potential and this gives us confidence for this new goal.

Jinghua

Okay, thank you, Vincent. So for the second question. So first of all we have not seen any significant shifts in spending budgets of brand partners, but we still see they focus on making solid marketing allocation in terms of the traffic fees and they focus more on the content-driven and they focus more on shifting allocations and of inventory towards the live-stream kind of platform like Douyin and the others from the original shelf-based e-commerce systems.

And the second part is the AI tools, just like Vincent mentioned, we leveraging AI scenarios more focused on driving our operation efficiency rather than just driving the top line. So AI tools also can facilitate a lot of top line providing a lot of tools to facilitate our top line operator, more focused on digital analytics, more focused on how do we analyze all those sales results data. So for sales growth we have not leveraged a lot in terms of AI, but also focus on automation-driven, efficiency-driven, that kind of stuff.

Thank you.

Alicia Yap, Analyst at Citigroup

Thank you.

OPERATOR

The next question comes from Chuming Chao with Huikeng Securities. Please go ahead.

Jinghua

Okay, I'll answer the first question, and Vincent or Ken can answer the second one. I apologize that I will not mention a specific brand in terms of their strategy and roadmap, so I'll give you feedback in general. Baozun is a very strong DTC partner of a lot of brand partners, founded back in 2007. As a DTC partner, Baozun definitely has a great advantage in serving them and supporting them in DTC strategy based on their growth strategy. So if any brands are shifting their strategy back to DTC or focusing on investing more resources in driving DTC-based net GMV or growth, Baozun is definitely going to be their top choice.

That's my first answer.

Ken Huang (Chief Financial Officer)

Thank you. For Hunter, yes, as we mentioned, we are continuing investing in our emerging brands, especially this year, and with Gap's improvement of Gap's P&L and also the community experience in Gap's past experience. Now we are trying to strengthen our emerging markets, and your observation of the continuous more voices and investment in the brand equity, especially in Xiaohongshu for Hunter, is happening. Our strategy for Hunter during the second half of the year: firstly, we will continue to open Hunter stores in high-profile shopping malls, especially big city malls.

Second, we are expanding our apparel category as we mentioned, and we do see the sales contribution of apparel in certain stores have exceeded 30% during the second quarter. Third, we are also doing a lot of collaborations with both local and international brands for Hunter. And finally, as the IP owner, we are also actively looking for other category business opportunities to enhance the brand's equity and also the profit performance. Thank you.

OPERATOR

The next question comes from Frank Tao with CMB International. Please go ahead.

Frank Tao, Analyst at CMB International

Hello. Hi, management. Thanks for taking my question, and I'll add my congrats on solid set of operating results. My question is regarding we have seen more international brands exploring strategic alternatives for their China operations, including divestments and other forms of catalyst restructuring. How does Baozun view this trend, and could it create a meaningful pipeline of opportunities for BBM? Would management become more aggressive in pursuing such opportunities?

And what are Baozun's key competitive advantages in winning those deals and creating value after the transaction? Thank you.

Vincent Chu (Chairman and Chief Executive Officer)

Thank you, Frank. Happy to answer your question. Yes, we are seeing that in the market there are more and more of this kind of opportunity, which is just as we expected, because that's one of the reasons that we stepped into the brand management market. So we kept talking to different brands for this. We are quite active in dealing with our portfolio brand partners or some other partners outside of our portfolio, trying to find new opportunities.

That's the truth. Talking about our strategy and the link between our strategy with the new updated 2028 goals, we think there are four important aspects which can make us more confident for the goal. The first one will be the AI efforts we have made. This can contribute a majority of the contribution in the midterm of our plan, and we mentioned this and we counted this sector in. Secondly, there will be a very strong synergy between BEC and BBM.

BBM, along with its efforts, will accumulate a lot of experiences and know-how for the whole group. We can utilize this in talking to potential brands and existing portfolio brands, no matter acquiring new brands or deepening the relationship with the existing ones, and this can also deliver very good contribution to us for the future goals. The third one is about BBM itself. We call this BBM Organic. BBM organically, including the three major brands, Gap, Hunter, and Sweaty Betty, are doing well.

For example, Gap is doing extremely well; the others are following. So we believe this BBM Organic is also a very important factor in the source of our confidence. Number four is what you just talked about, BBM and new opportunities. Yes, we are talking to different brands, but our priority is to make the existing BBM brands better. And we are expecting there are some really, really good opportunities and then we can have this kind of BBM inorganic growth opportunity.

We also hope this can come true. This gives us more, how to say, possibility to deliver a better goal than before. But of course this is not counted yet. Thanks for the question.

Frank Tao, Analyst at CMB International

Thank you, Vincent.

OPERATOR

As a reminder, if you would like to ask a question, please press Star then one to be joined into the question queue. That's Star then one to ask a question. The next question comes from Yin Jiewei with Citics. Please go ahead.

Yin Jiewei, Analyst at CITICS

Good evening, management team. Congratulations on this quarter's strong performance, and thank you for taking my question. My question is, as AI develops rapidly, many service providers are building their own AI SaaS systems. Does the company believe its differentiation versus other e-commerce agency service providers is widening or narrowing? And what impact is AI having on industry concentration at this stage? Thank you.

Jinghua

Okay, thank you for the question, Jiawei. This is Junhua. If you have been tracking Baozun for a while, you will know that from day one when Baozun was founded, technology was the key to our success, and our mission is leveraging technology to make our business results more and more successful. During the past 19 years, we've been investing a lot in our IT resources. We still maintain the highest IT resources in terms of the IT payroll and different kinds of investment in technology.

Under the AI age, I am very proud to say that Baozun is definitely taking the leadership among all other competitors in that sector. We have leveraged a lot of our resources to help our existing brand partners, over 480, to successfully deliver a lot of their backbone systems, different kinds of D2C systems, their order systems, among other scenarios and categories. As we have so many resources and foresee a lot of opportunities, Baozun is definitely going to leverage a lot of AI-powered technology to increase our efficiency of operation and facilitate our sales growth in terms of top-line growth.

So during this period, we're still strengthening and widening the distance between us and our competitors. As you can see, AI is really powerful across a lot of industries, so we don't see there is much we will compromise in the foreseeable future. We still focus on a lot of other categories, basically AI data-focused automation, increasing AI knowledge base, and geo consumer behaviors—there are a lot of scenarios we can help. Thank you for the question.

OPERATOR

The next question comes from Thomas Chong with Jefferies. Please go ahead.

Thomas Chong, Analyst at Jefferies

Thanks, Mandy, for taking my question. My question is, as we see BBM top line 22% double-digit same-store growth rate, which is quite impressive compared to many peers in the retail industry, how should we think about the latest trend for third quarter or so when we have a relatively high base for the same period last year? And also could group management provide an update on annual BBM top-line growth guidance of 15 to 20%? Thanks.

Ken Huang (Chief Financial Officer)

Thank you. This is Ken. Yes, Gap BBM, especially Gap, continues to deliver double-digit increases, especially same stores in the 20s for the second quarter, and even for the third quarter quarter-to-date we are seeing the trend of even stronger same-store increase. I would say it will contribute to our MMC strategy. First, in merchandising, after several seasons of product improvement we better understand our customers. When we launched our fall products in August, we saw even better acceptance of the products from our consumers than before, and our merchandising operating capabilities also keep being enhanced.

We have better category and assortment planning; we have better pricing and discounting strategy. All these experiences and initiatives in our merchandising help us improve the productivity of our performance. Second, for marketing, we continue to deliver strong brand ambassador campaigns. In the second quarter it was April, and in the third quarter it is in August. Both of them are exceeding our expectation in sales, and this year we also benefited a lot from Gap's global brand assets.

In the third quarter we have the Haliber collaboration, and today we also just announced the collaboration with Malbon, the golf brand, fashion golf brand. Third is the channel. As we mentioned, we are going to deliver over 50 new stores this year, and in the second quarter we have opened many good stores, including Shanghai New Prism, Beijing APM, Tianjin, Timor we just opened in the third quarter, and also Nanning MixC. We are also going to open our first Macau store in Venetian next month.

With this merchandising, marketing, and channel strategy working well, we are very confident to keep the strong same-store growth and also the increase of the total scale for the full year. We believe we will achieve 20 to 25% increase. Thank you.

OPERATOR

The next question comes from Yin Jiewei with Citics. Please go ahead.

Yin Jiewei, Analyst at CITICS

Hi, management team, thanks for taking my question again. I have another question: the NBS data in July 2026 points to subdued consumption. Does the company observe any changes in sales trends across different platforms and different categories? Thank you.

Jinghua

Okay, thank you for the question, Jiawei. This is Junhua again. We haven't seen a big change in sales trends among different platforms, but we can share with you that shelf-based e-commerce is becoming very stable, especially after the past 6.18. We can foresee and also expect a very strong finish in the coming Double 11. The livestream platform is still growing, for example, like Douyin and different kinds of livestream platforms. For categories, we are still seeing very strong growth in premium luxury, sports and outdoor, fashion, and health and caring.

Thank you.

Yin Jiewei, Analyst at CITICS

Thank you.

OPERATOR

This concludes our question and answer session. I would like to turn the conference back over for any closing remarks. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.