 Let's talk about Baozun. Baozun is the Shopify of China, even if the business models are not perfectly correlated. However, many, most of the bullish thesis I have seen about Baozun are about relative valuation in comparison to Shopify. If Baozun would be valued as Shopify at the same price earnings ratio, then it should be a five-bagger, blah, blah, blah. However, I prefer the most business-like approach to see whether the company, at what valuation, is it undervalued or overvalued. I don't care what Shopify is doing. I care about the business, about the business potential growth, what the company is doing and what are the devil's details, of course. So, let's start with the company overview. So, they are the market leader in brand e-commerce in China. They have about 160 brands, 162 brand partners for whom they do retail services, e-commerce services. So, they are the end-to-end solution across the e-commerce value chain and they have three different models, service fee models. They are forcing that service fee model, consignment model, and they are trying to avoid the distribution model where they have to enter into inventory ownership. The company has added 22 brands in the last 12 months, so on 162 brands, that's not much. They also lost a few brands here and there. So, that's also a risk somehow to keep in mind. They are not just adding brands, they are also losing brands. Two years ago in the second quarter of 2016 the number of brands was lower, but 120. So, in two years they added 42 brands. Perhaps a bit more, but they also lost some. They don't disclose that. As the growth ratios were very good, the net revenue growth rate in the last quarter was just 12%, but the growth rate over the past five years was 34%. And earnings per share are 0.75 and the forward earnings per share is 0.96, implying a 28% growth rate. Future growth is based on what they have been doing now to quote the CEO. So, in addition, when in the conference call we beat our fierce competition to operate the T-Mall store for a leading global skincare brand. Growth within our cosmetics category is expected to accelerate over the next 12 months. We have a number of leading global brands in our pipeline, which means that they will do business for them and they are expected to come on board in the coming 12 months. Including ones in apparel, sportswear, cosmetics, luxury, kid's toys and home furnishing categories. So, another interesting note, a detail is that management sees no impact from the trade war, but they say that their business is related to the earnings, consumer earnings, consumer potential. If there is a trade war hit to China, consumers will have less money, which will consequently hit Baozun. But that's their short-term thinking, so just my opposite view of how the same thing can be seen from a different perspective. Then there was a great question in the conference call about long-term risks. And they're really the management or they didn't understand the question or they don't even see long-term risks they expect to grow constantly over time. But the answer was really vague. Listen to the conference call to see that detail. So, very interesting here how it will evolve, but let's look more at the growth rates. Nongap income increased 54%, which is very good. Even if it continues to grow at 34% over the next 5 years, my stock price is still at 16%. As the present value for the future value in 5 years stock price at a valuation of 10, of course. That's a very, very low valuation, but that's my absolute return, absolute investing approach. Another note here is that all Chinese companies mention artificial intelligence, also blockchain, especially the lower market cap stocks. They all mention blockchain, blockchain. So artificial intelligence, big data, those are now essentials. Those are not innovative technologies. Those are something that everybody needs to have to compete in China. Now, at a 40% growth rate still with a valuation of 10, it's still undervalued. At a 20% growth rate, it's still undervalued. The present value for me would be 9.28. Now, you might say, Sven, are you crazy? Price of 9 for this stock, which is now traded at what? 53 is very low. Well, it was trading below that just 2 years ago and much below 9. To make the company relatively fairly valued, they should grow at 40% per year earnings over the next 5 years, which is possible, I'm not saying it's not possible, and then also be valued at a valuation of 30%, which is also possible. So this is the relative valuation. 30 is low for such a strong growth stock. So you might see it as undervalued. If you are a relative investor, I see it as a little bit overvalued because I'm an absolute investor. And that's the difference just in perspective from my investment point. Nothing here wrong to say about the company. The company is doing what they are doing. So this was my short view on Baozun. I will compare it to all other Chinese stocks in the market and see whether this is something to expose my portfolio or not. Probably not as the real business returns that should come to shareholders from this company are a little bit stretched. Perhaps somebody will take them over, which is a possibility. But those are not really value investments as the value there is a little bit stretched there here now. Thank you for watching. I'm sure some of you disagree. Add value to the comments by disagreeing, seeing where am I wrong, where am I right. Thank you and I'll see you in the next videos. Many, many more Chinese companies to come.