Alicia Yap: Yes. Thank you, Arthur. Thank you, Tracy.
Arthur Yu: Okay, thank you, Alicia.
Operator: Thank you. We will take our next question. Our next question comes from the line of Charlie Chen from China Renaissance. Please go ahead. You line is open.
Charlie Chen: Thanks, management for taking my questions. I got two questions here. The first one is regarding the GMV combination. So I can see in this quarter, the GMV contribution from non-Tmall channel seems to be a little bit lower than last year, 4Q 2021. So can you explain what’s the rationale and background behind this? And what’s the long-term goal of this GMV growth between Tmall and non-Tmall channel? That’s the first question. And the second question is regarding the GAAP acquisition as well as the whole restructuring. So can you give us more color about the progress after you acquired announced the acquisition of GAAP. And also, I can see Baozun seems to be transforming from a pure marketing agency to a more comprehensive service company. So how do you expect the length of this transition period? When do you see the synergies or integration should be completed and we can see some results or impact going forward? Thank you.
Wendy Sun: Hello. Hey, operator, can you hear me?
Operator: Yes. I can hear you, loud and clear.
Wendy Sun: Okay, I assume the line was just
Operator: Please continue to stand by your conference will resume shortly.
Wendy Sun: Hey, operator.
Operator: Hi, there. I can hear you.
Wendy Sun: Okay,
Operator: Yes. But your commentary loud and clear.
Wendy Sun: Actually, how about Charlie, do you have to talk about the brand management for the second question? Maybe Sandrine, can you take this one when we tie together this is ready.
Arthur Yu: Yes, sure. Hello, Charlie. This is Sandrine. Thank you for your question. So it’s about 3 weeks, we have signed with , we have not the acquisition happen and generally, if everything goes smoothly on the approval procedure. So we are very mobilized in the corporation, which now focuses on really taking a deep dive with a different GAAP function to enable a deeper understanding of the operation today and . And then based on this we will be able to pretty much more detail. But still I understand you want to have it bit of color. So for the time being, what we are learning from the feedback confirming what we were seeing in the €“ what we’re seeing here in the . That the one hand, there will be some quick wins in terms of a bit of a restructuring and cost cutting, mainly can the fact that we are now managing from Chinese company.
And then going forward, as we mentioned earlier, we see some real around product that can be relevant way. And as you may remember, we have full freedom on the supply chain. The supply chain is ours, so we can really improve the speed market reactivity to trends and also bring some elements that are more locally relevant to in the product design and development. That’s one aspect. The other aspect is ready to work and actually, the first one, we’re also trending to date, to work on the gross margin and reduce the discount level, which are in our view, too high today. And we believe that by differentiating products by channels, which is not really done today, we can really improve the . The third aspect, which would be is for us to revamp the current portfolio of stores.
So it’s not a about opening many more stores going to be really to make the current stores both in terms of and in terms of operations much better than what we have today. So this is pretty as much cover I can give to the based. With all this, financially, we think that it can translate into a very significant reduction of the loss in €˜23. We consider that loss can be reduced by it be in €˜22. Then we will see a further reduction of loss in €˜24 in order to reach breakeven point in €˜25 and profit in €˜26. So that is for GAAP. And I would leave it to Wendy to allocate the other questions to add some other people.
