Net income (loss) per share

12 Months Ended

Dec. 31, 2016

Net income (loss) per share [Abstract]

12. Net income (loss) per share

Basic and diluted net income (loss) per share for each of the years presented are calculated as follows:

	For Year Ended December 31,
	2014		2015		2016
	RMB		RMB		RMB

Numerator:
Net income (loss)		(59,814)		22,621		85,424
Change in redemption value of preferred shares		(79,169)		(25,332)		-
Deemed dividend from issuance of preferred share		(16,666)		-		-
Net loss attributable to noncontrolling interests		-		-		1,209
Net income (loss) attributable to ordinary shareholders of Baozun Inc.		(155,649)		(2,711)		86,633

Net income (loss) per share attributable to ordinary shareholders of Baozun Inc.
Basic		(5.31)		(0.03)		0.58
Diluted		(5.31)		(0.03)		0.53

Net loss per ADS attributable to ordinary shareholders of Baozun Inc.
Basic		(15.93)		(0.08)		1.74
Diluted		(15.93)		(0.08)		1.59

Shares (Denominator):
Weighted average number of ordinary shares
Basic		29,314,067		102,987,119		149,935,100
Diluted		29,314,067		102,987,119		163,926,674

The Group has determined that its convertible redeemable preferred shares are participating securities as the preferred shares participate in undistributed earnings on an as-if-converted basis. The holders of the preferred shares are entitled to receive dividends on a pro rata basis, as if their shares had been converted into ordinary shares. Accordingly, the Group uses the two-class method of computing net income per share, for ordinary and preferred shares according to participation rights in undistributed earnings. However, undistributed net loss is only allocated to ordinary shareholders because holders of preferred shares are not contractually obligated to share losses. Upon IPO, all of the Group's convertible redeemable preferred shares have been converted to ordinary shares. The two-class method ceased to apply upon conversion.

As a result of the Group’s net loss for the years ended December 31, 2014 and 2015, Series A, B, C1, C2 and D preferred shares, share options and restricted share units outstanding in the respective periods were excluded from the calculation of diluted loss per share as their inclusion would have been anti-dilutive.

	For Year Ended December 31,
	2014		2015
	RMB		RMB

Number of Series A Shares outstanding		19,622,241		-
Number of Series B Shares outstanding		26,532,203		-
Number of Series C1 Shares outstanding		29,056,332		-
Number of Series C2 Shares outstanding		1,925,063		-
Number of Series D Shares outstanding		7,504,324		-
Share options		15,153,023		16,574,854
Restricted share unit		-		3,976,311

For the year ended December 31, 2016, the Group had 2,802,810 outstanding share options which were excluded from the computation of diluted earnings per share because the exercise price was greater than the average market price of the ordinary shares and the inclusion of these shares in the EPS calculation would have been anti-dilutive.