May was a month of compounding momentum for Baozun. GAP China delivered on multiple fronts simultaneously — five new store openings, and a China launch of the Victoria Beckham capsule collection in lockstep with global markets. HUNTER extended its offline footprint into Central China with its first Wuhan MixC store opening, while Baozun advanced its AI capabilities through deepened partnerships with the ecosystem.

We look forward to continuing this journey with you as momentum builds across the portfolio.

Sincerely,

Baozun Group Investor Relations

Following the successful launch of Nike Baozun CDC, Baozun E-Logistics upgraded its facility layout and fulfillment capabilities, formally designating the site as the "Baozun AI Innovation Hub". Nike team recently visited the facility to explore its intelligent infrastructure, automated equipment deployment, and advanced technology applications. The two parties engaged in substantive discussions around warehouse automation, end-to-end operational efficiency, and digitalized system collaboration — deepening their strategic alignment on AI-powered supply chain innovation and reinforcing the long-term partnership between the two organizations.

Baozun hosted the inaugural session of its "AI Empowerment Exchange," bringing together experts from Alibaba Cloud, ByteDance, and Tencent alongside Baozun's own business teams to explore how AI can evolve from a technology concept into a practical growth engine for brands. In parallel, Baozun launched an internal AI Innovation Competition to accelerate real-world adoption across content creation, operations, customer service, and supply chain management — demonstrating the Company's commitment to embedding intelligent capabilities across every dimension of its business.

GAP unveiled its first capsule collection with Victoria Beckham, launching simultaneously in China and global markets. The 38-piece collection reimagines GAP's iconic denim and khaki essentials through Victoria Beckham's signature tailoring and refined design aesthetic, complemented by distinctive details such as red stitching accents. Through the designer's unique creative perspective, the collaboration brings fresh energy to GAP's timeless wardrobe staples, offering consumers a modern blend of everyday versatility and elevated style. The launch reflects the broader global strategy identified by Gap Inc. leadership — cultural collaborations as a driver of brand relevance and Gen Z engagement — and demonstrates Baozun's ability to execute that strategy at pace within the China market.

HUNTER continued to build its fashion presence through growing celebrity visibility and consumer recognition. Artists including Wang He, Zhou Jieqiong, Li Chun, and Wang Heye were seen wearing HUNTER rain boots, outerwear, and functional apparel, further reinforcing the brand's positioning at the intersection of urban outdoor aesthetics and British lifestyle. These appearances continue to broaden HUNTER's appeal across fashion and lifestyle contexts, supporting the brand's evolution as a multi-season wardrobe choice.

Since May, GAP has continued to expand its offline presence with new store openings across several key cities, including Beijing, Zhengzhou, and Chongqing — bringing the month's total new openings to five. The pace and discipline of this expansion reflects the growing confidence in GAP China's operational model: leveraging Baozun's dual-engine capabilities, the brand integrates e-commerce-derived consumer trends and demand insights with local market indicators to sharpen store planning, merchandise allocation, and overall retail efficiency. GAP also utilizes flexible formats such as pop-up stores to test market potential and refine expansion decisions. With the Gap brand now posting its tenth consecutive quarter of positive comparable sales globally, the strategic case for continued China investment has never been stronger.

HUNTER opened its first Central China store at Wuhan MixC, marking an important milestone in the brand's ongoing regional expansion following previous openings in Shanghai and Beijing. The new store brings HUNTER's "Fearless in the Mud" outdoor lifestyle concept to life, showcasing the brand's full range of iconic rain boots, snow boots, and functional apparel. The opening strengthens HUNTER's offline presence across China and introduces its distinctive blend of functionality and fashion to a new generation of consumers in Central China.

Baozun announced its financial results for the first quarter ended March 31, 2026, delivering continued improvement across key operating metrics. Total net revenues increased 15% year-over-year to RMB 2.4 billion, while non-GAAP operating income exceeded RMB 8 million — a significant turnaround from a loss of RMB 67 million in the prior-year period. The E-Commerce (BEC) business returned to a sustainable growth trajectory while the Brand Management (BBM) business continued to accelerate. Notably, GAP China achieved non-GAAP operating profitability for the second consecutive quarter — a result that aligns with the Gap brand's resurgent global performance and validates Baozun's localized management model as a genuine driver of brand value. The results reinforce the ongoing strength of the Company's dual-engine strategy as the foundation for long-term, high-quality growth.

This newsletter contains general business updates for informational purposes only. It does not include or imply any financial performance data, earnings guidance, or material non-public information. Certain statements herein may be forward-looking and are subject to risks and uncertainties described in Baozun’s filings with the U.S. Securities and Exchange Commission.