(Yicai) Aug. 29 -- Baozun's stock soared after the Chinese e-commerce solutions provider’s loss shrank 87 percent in the second quarter and the firm said it is forming a joint venture with Authentic Brands Group to co-own the intellectual property of Hunter Boot, a UK footwear brand, in China and Southeast Asia.

After surging 18.1 percent in the morning, Baozun’s shares [HKG: 9991] closed up 10.5 percent at HKD10.50 (USD1.34) apiece in Hong Kong. Its New York-traded stock [NASDAQ: BZUN] jumped 12.5 percent yesterday to USD4.15.

Its net loss was CNY20 million (USD2.8 million) in the three months ended June 30, compared with CNY77.8 million a year ago, the Shanghai-based company’s financial results showed yesterday. Revenue climbed 9 percent to CNY2.32 billion (USD320 million).

“BEC once again achieved better year-over-year profits and cash flows, benefiting from our consistent efforts in enhancing value and reducing costs,” Chief Financial Officer Arthur Yu said in a press release.

The loss was mainly due to the increased operational fees of Gap Shanghai Commercial, which Baozun acquired last November. Baozun's second-quarter operating costs jumped 10 percent to CNY2.4 billion, but besides those of Gap Shanghai, the rest fell 7.1 percent to CNY151.7 million (USD20.8 million).

“While the macro-environment remains challenging, each of our three business lines is making progress,” Chairman and Chief Executive Vincent Qiu said.

Authentic Deal

Baozun also announced on WeChat yesterday that it and US brand manager Authentic plan to form a joint venture, with the Chinese firm acquiring 51 percent of Hunter's IP in China and SE Asia.

Established in 1856 as North British Rubber, Hunter is famous for its rubber Wellington boots and has expanded into shoes, coats, bags, suitcases, and accessories, designing them for outdoor sports in rural and urban areas. It filed for bankruptcy in June, with Authentic acquiring its global IP that same month.

Authentic, a global brand development, marketing, and recreation platform, owns many iconic and world-renowned brands in the lifestyle, entertainment, and media sectors. It makes about USD29 billion from retail sales in over 150 countries each year. 

“We are full of confidence in this strategic cooperation and look forward to continuing to develop and expand cooperation with Authentic in China and Southeast Asia and create more business opportunities for more brands,” Qiu said.

Editor: Martin Kadiev