PR Newswire

BEST Inc. Announces Unaudited First Quarter 2021 Financial Results

HANGZHOU, China, June 9, 2021 /PRNewswire/ — BEST Inc. (NYSE: BEST) (“BEST” or the “Company”), a leading integrated smart supply chain solutions and logistics services provider in China, today announced its unaudited financial results for the quarter ended March 31, 2021.

Johnny Chou, Founder, Chairman and Chief Executive Officer of BEST, commented, “Our first quarter results reflected a mix of both the progress brought about by our November 2020 strategic refocusing plan and the ongoing challenges we are still facing. Our execution of the strategic refocusing plan delivered substantial improvement in Freight, Supply Chain Management and Global, as reflected in their top line growth along with strong gross margin expansion. We continued to solidify our leading position in the freight market, while refocusing our efforts on high-margin accounts for Supply Chain Management. We also gained ground in the Southeast Asian market through Global despite the COVID-19 pandemic.”

“For Express, our strategies are on the right track, and the rapidly evolving competitive landscape requires us to quicken the pace of our action. Our accelerated measures will focus on networking stability and service quality by optimizing the structure of products, customers and franchisee partners, in order to create a clear path to sustainable profitability.”

“Although we expect the turnaround of Express to take approximately 6 to 9 months, we have a solid, clear strategic direction targeting sustainable development, supported by the attractive growth prospects of e-commerce and the unique value proposition of our integrated smart supply chain solutions and logistics services. We are fully dedicated to positioning our company for long-term success.”

Gloria Fan, BEST’s Chief Financial Officer, commented, “In the first quarter of 2021, our revenue reached RMB6.5 billion, increasing 29.9% year-over-year while our net loss was RMB604 million as our initiatives for Express need time to materialize at the bottom line. Our focus today continues to be on cost reduction across the entire organization, including unit cost structure optimization for Express and Freight, as well as the streamlining of SG&A expenses. As we navigate through the current environment, we are making various strategic evaluations and are prepared to take appropriate actions to strengthen our balance sheet and liquidity to support our strategic refocusing plan. In particular, we are looking at financing options in relation to certain of our business units, and we will provide details as necessary or appropriate if any definitive step is taken.”

FINANCIAL HIGHLIGHTS([1]) 

For the Quarter Ended March 31, 2021:

Revenue was RMB6,496.6 million (US$991.6 million), an increase of 29.9% year-over-year (“YoY”). The increase was primarily due to a strong increase in Express and Freight volume, partially offset by a decrease in average selling price (“ASP”) in Express and Freight business segments. Gross Loss was RMB193.4 million (US$29.5 million), compared to gross loss of RMB238.0 million in the same period of 2020. Gross Loss Margin was 3.0%, an improvement of 1.8 percentage points (“ppts”) YoY. Net Loss was RMB604.5 million (US$92.3 million), compared to a net loss of RMB666.9 million in the same period of 2020. Non-GAAP Net Loss([2])([3]) was RMB581.1 million (US$88.7 million), compared to non-GAAP net loss of RMB632.3 million in the same period of 2020. Diluted EPS([4]) was negative RMB1.55 (US$0.24), compared to negative RMB1.69 in the same period of 2020. Non-GAAP Diluted EPS(3)(4) was negative RMB1.49 (US$0.23), compared to negative RMB1.60 in the same period of 2020. EBITDA([5]) was negative RMB420.3 million (US$64.2 million), compared to negative RMB536.2 million in the same period of 2020. Adjusted EBITDA(3)(5) was negative RMB396.9 million (US$60.6 million), compared to negative RMB502.6 million in the same period of 2020.

BUSINESS HIGHLIGHTS([6])  

BEST Express – We continued to focus on optimizing product structure, improving network stability and flexibility, as well as enhancing service quality and customer experience during the first quarter. While the results from these actions are not fully visible from our financial results, we believe they have improved the underlying fundamentals of our network and we will further accelerate our actions to target a return to profitability later in the year.

During the quarter, parcel volume increased by 33.6% YoY. Gross margin contracted by 3.2 ppts due to a decline in ASP per parcel of 17.6% YoY, partially offset by a decrease in average cost per parcel of 15.1% YoY.

BEST Freight – Freight once again delivered a strong quarter with a higher-than-industry-average growth rate and improving profitability. The Company continued to emphasize the e-commerce aspect of its freight services, solidify its leadership position and brand recognition, and improve operating efficiency. Freight volume increased by 81.0% YoY in the first quarter of 2021. Average cost per tonne and ASP per tonne decreased by 20.6% YoY and 5.4% YoY, respectively.

BEST Supply Chain Management – The total number of orders fulfilled by Cloud OFCs increased by 20.6% YoY to 100.8 million in the first quarter of 2021 and the total number of orders fulfilled by franchised Cloud OFCs increased by 30.6% YoY to 52.8 million. The number of franchised OFCs increased by 15.2% YoY to 348 in the first quarter of 2021. In the first quarter of 2021, gross margin for Supply Chain Management was 5.4%, compared with 0.8% in the first quarter of 2020, benefitting from cost reduction efforts and discontinuation of legacy low-margin accounts.

BEST Global – Global continued to expand both cross-border and in Southeast Asia with strong margin improvement. In the first quarter of 2021, parcel volume in Southeast Asia increased by 249% YoY to 30.8 million. Global’s gross margin improved significantly by 22.2 ppts YoY due to better economies of scale.

Others – In respect of UCargo, as of March 31, 2021, the number of registered drivers on the UCargo mobile app increased by 66.2% YoY to 347,854. In the first quarter of 2021, the total number of transactions on the trucking brokerage platform increased by 65.4% YoY to 185,676.  

([1]) All numbers presented have been rounded to the nearest integer, tenth, or hundredth, and year-over-year comparisons are based on figures before rounding.                     

([2]) Non-GAAP net income/loss represents net income/loss excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and fair value change of equity investments (if any).

([3]) See the sections entitled “Use of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures” for more information about the non-GAAP measures referred to within this results announcement.

([4]) Diluted earnings per share, or Diluted EPS, is calculated by dividing net profit attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period.

([5]) EBITDA represents net loss excluding depreciation, amortization, interest expense and income tax expense and minus interest income. Adjusted EBITDA represents EBITDA excluding share-based compensation expenses and fair value change of equity investments (if any).

([6]) All numbers presented have been rounded to the nearest integer, tenth, or hundredth, and year-over-year comparisons are based on figures before rounding.     

Key Operational Metrics

Three Months Ended

% Change YoY

Express Parcel Volume (in ‘000)

March 31,
2019

March 31,

2020

March 31,

2021

2020 vs
2019

2021 vs
2020

1,340,540

1,315,525

1,756,957

(1.9%)

33.6%

Freight Volume (Tonne in ‘000)

1,268

1,074

1,945

(15.3%)

81.0%

Supply Chain Management
Orders Fulfilled (in ‘000)

61,964

83,596

100,784

34.9%

20.6%

Global Parcel Volume in
Southeast Asia (in ‘000)

237

8,840

30,841

3,624%

249%

UCargo Number of
Transactions (in ‘000)

120

112

186

(6.4%)

65.4%

 

Environmental Social and Governance (ESG) Report

On June 8, 2021, the Company released its third ESG report, which can be accessed via the following link: http://www.best-inc.com/2020ESGReportIIvPUB.pdf

FINANCIAL RESULTS

For the Quarter Ended March 31, 2021

Revenue

The following table sets forth a breakdown of revenue by business segment for the periods indicated.

Table 1 – Breakdown of Revenue by Business Segment

Three Months Ended

March 31, 2020

March 31, 2021

(In ‘000, except for %)

RMB

% of
Revenue

RMB

US$

% of
Revenue

% Change
YoY

Express

3,375,612

67.6%

3,713,080

566,727

57.1%

10.0%

Freight

687,247

13.7%

1,174,493

179,263

18.1%

70.9%

Supply Chain
Management

407,592

8.1%

447,661

68,326

6.9%

9.8%

Global

115,788

2.3%

250,422

38,222

3.9%

116.3%

Others([7])

416,382

8.3%

910,983

139,043

14.0%

118.8%

Total Revenue

5,002,621

100.0%

6,496,639

991,581

100.0%

29.9%

 

Express Service Revenue increased by 10.0% YoY to RMB3,713.1 million (US$566.7 million) from RMB3,375.6 million, primarily due to a 33.6% YoY increase in parcel volume, partially offset by a 17.6% YoY decrease in ASP per parcel. The decrease in ASP per parcel is primarily attributable to competitive market dynamics. Freight Service Revenue increased by 70.9% YoY to RMB1,174.5 million (US$179.3 million) from RMB687.2 million, primarily due to an 81.0% YoY increase in freight volume, partially offset by a 5.4% YoY decrease in ASP per tonne. Supply Chain Management Service Revenue increased by 9.8% YoY to RMB447.7 million (US$68.3 million) from RMB407.6 million, primarily due to a 20.6% YoY increase in the total number of orders fulfilled by Cloud OFCs. Global Service Revenue increased by 116.3% YoY to RMB250.4 million (US$38.2 million) from RMB115.8 million, primarily due to strong growth in parcel volumes in Southeast Asia. Others Services Revenue increased by 118.8% YoY to RMB911.0 million (US$139.0 million) from RMB416.4 million, primarily due to a strong increase in total number of transactions of UCargo business.

([7]) “Others” Segment represents UCargo and Capital business units.                  

Cost of Revenue

The following table sets forth a breakdown of cost of revenue by business segment for the periods indicated.

Table 2 – Breakdown of Cost of Revenue by Business Segment

Three Months Ended

% of
Revenue
Change

YoY

March 31, 2020

March 31, 2021

(In ‘000, except for %)

RMB

% of
Revenue

RMB

US$

% of
Revenue

Express

(3,491,321)

103.4%

(3,958,127)

(604,128)

106.6%

3.2ppts

Freight

(816,435)

118.8%

(1,173,930)

(179,177)

100.0%

(18.8ppts)

Supply Chain Management

(404,446)

99.2%

(423,506)

(64,640)

94.6%

(4.6ppts)

Global

(148,318)

128.1%

(265,102)

(40,462)

105.9%

(22.2ppts)

Others

(380,096)

91.3%

(869,329)

(132,686)

95.4%

4.1ppts

Total Cost of Revenue

(5,240,616)

104.8%

(6,689,994)

(1,021,093)

103.0%

(1.8ppts)

Cost of Revenue was RMB6,690.0 million (US$1,021.1 million) or 103.0% of revenue in the first quarter of 2021, compared to RMB5,240.6 million or 104.8% of revenue in the same quarter of 2021. The decrease of 1.8 ppts in cost of revenue as a percentage of revenue was primarily attributable to a steeper decrease in unit cost than ASP for Freight and Global business units and discontinuation of certain low-margin accounts for Supply Chain business unit.

Table 3 – Breakdown of Average Cost Per Parcel and Average Cost Per Tonne

Three Months Ended

% Change

(in RMB)

March 31, 2020

March 31, 2021

YoY

Express:

Average Cost Per Parcel

2.65

2.25

(15.1%)

Average Transportation Cost Per Parcel

0.69

0.63

(8.7%)

Average Labor Cost Per Parcel

0.26

0.23

(11.5%)

Average Lease Cost Per Parcel

0.15

0.13

(13.3%)

Average Other Cost Per Parcel

0.15

0.09

(40.0%)

Average Last-mile Cost Per Parcel

1.40

1.17

(16.4%)

Freight:

Average Cost Per Tonne

759.9

603.6

(20.6%)

 

Gross Loss was RMB193.4 million (US$29.5 million) in the first quarter of 2021, compared to gross loss of RMB238.0 million in the same period of 2020. Gross Loss Margin was 3.0%, an improvement of 1.8 percentage points (“ppts”) YoY. 

Operating Expenses

The following table sets forth a breakdown of operating expenses and adjusted operating expenses by category for the periods indicated.

Table 4 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category

Three Months Ended

March 31, 2020

March 31, 2021

(In ‘000, except for %)

RMB

% of
Revenue

RMB

US$

% of
Revenue

% of Revenue
Change
YoY

Selling, General and 
    Administrative Expenses

(384,107)

7.7%

(416,435)

(63,561)

6.4%

(1.3ppts)

   Adjusted for
  
SBC Expenses

(31,614)

0.7%

(26,761)

(4,085)

0.4%

(0.3ppts)

Adjusted Selling, General 
   and
   Administrative Expenses

(352,493)

7.0%

(389,674)

(59,476)

6.0%

(1.0ppts)

Research and
   Development Expenses

(50,692)

1.0%

(53,687)

(8,194)

0.8%

(0.2ppts)

   Adjusted for
   SBC Expenses

(1,354)

0.0%

(1,939)

(296)

0.0%

0.0ppts

Adjusted Research and
   Development Expenses

(49,338)

1.0%

(51,748)

(7,898)

0.8%

(0.2ppts)

Total Operating Expenses

(434,799)

8.7%

(470,122)

(71,755)

7.2%

(1.5ppts)

   Adjusted for
   SBC Expenses

(32,968)

0.7%

(28,700)

(4,381)

0.4%

(0.3ppts)

Adjusted Total
   Operating Expenses

(401,831)

8.0%

(441,422)

(67,374)

6.8%

(1.2ppts)

Selling, General and Administrative Expenses were RMB416.4 million (US$63.6 million) or 6.4% of revenue in the first quarter of 2021, compared to RMB384.1 million or 7.7% of revenue in the same quarter of 2020. The decrease in selling, general and administrative expenses as a percentage of revenue was primarily attributable to improved operating efficiencies.

Research and Development Expenses were RMB53.7 million (US$8.2 million) or 0.8% of revenue in the first quarter of 2021, compared to RMB50.7 million, or 1.0% of revenue in the same quarter of 2020.

Share-based Compensation (“SBC”) Expenses included in the cost and expense items above in the first quarter of 2021 were RMB29.0 million (US$4.4 million), compared to RMB33.6 million in the same quarter of 2020. In the first quarter of 2021, RMB0.3 million (US$0.04 million) was allocated to cost of revenue, RMB1.5 million (US$0.2 million) was allocated to selling expenses, RMB25.3 million (US$3.9 million) was allocated to general and administrative expenses, and RMB1.9 million (US$0.3 million) was allocated to research and development expenses.

Net Loss and Non-GAAP Net Loss 

Net Loss in the first quarter of 2021 was RMB604.5 million (US$92.3 million), compared to a net loss of RMB666.9 million in the same period of 2020. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment (if any for a given period), Non-GAAP Net Loss in the first quarter of 2021 was RMB581.1 million (US$88.7 million), compared to non-GAAP net loss of RMB632.3 million in the same quarter of 2020.

The following table sets forth a breakdown of non-GAAP net loss for the three months ended March 31, 2021 by segment.

Table 5 – Breakdown of non-GAAP Net Loss by Segment

Three Months Ended March 31, 2021

(In RMB’000)

Express

Freight

Supply Chain

Global

Others

Unallocated([8])

Total

Non-GAAP Net Loss

(419,035)

(44,144)

(10,069)

(56,094)

(4,881)

(46,843)

(581,066)

 

Diluted EPS and Non-GAAP Diluted EPS

Diluted EPS in the first quarter of 2021 was negative RMB1.55 (US$0.24), based on a weighted average of 386.8 million diluted shares outstanding during the quarter. This is compared to negative RMB1.69 on a weighted average of 389.8 million diluted shares outstanding in the same period of 2020. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment (if any for a given period), Non-GAAP Diluted EPS in the first quarter of 2021 was negative RMB1.49 (US$0.23), compared to negative RMB1.60 in the same period of 2020. A reconciliation of non-GAAP diluted EPS to diluted EPS is included at the end of this results announcement.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA in the first quarter of 2021 was negative RMB396.9 million (US$60.6 million), compared to negative RMB502.6 million in same quarter of 2020. Adjusted EBITDA Margin was negative 6.1% in the first quarter of 2021, compared to negative 10.0% in the same quarter of 2020.

Adjusted EBITDA and Adjusted EBITDA Margin by Segment

The following table sets forth a breakdown of adjusted EBITDA and adjusted EBITDA margin for the three months ended March 31, 2021 by segment.

Table 6 – Breakdown of Adjusted EBITDA and Adjusted EBITDA Margin by Segment

Three Months Ended March 31, 2021

(In RMB’000)

Express

Freight

Supply Chain

Global

Others

Unallocated([9])

Total

Adjusted EBITDA

(311,398)

(25,887)

167

(51,920)

3,083

(10,947)

(396,902)

Adjusted EBITDA
Margin

(8.4%)

(2.2%)

0.0%

(20.7%)

0.3%

(6.1%)

 

([8]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

([9]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

Cash and Cash Equivalents, Restricted Cash and Short-term Investments

As of March 31, 2021, cash and cash equivalents, restricted cash and short-term investments were RMB3,976.8 million (US$607.0 million), compared to RMB4,464.2 million as of December 31, 2020. The decrease in cash and cash equivalents, restricted cash and short-term investments was primarily due to net cash used in operating activities.

Net Cash Used in Operating Activities

Net cash used in continuing operating activities was RMB563.6 million (US$86.0 million), compared to RMB1,230.9 million in the same period of 2020. The improvement in net cash used in continuing operating activities was mainly due to increased volume for the Express and Freight business segments.

Capital Expenditures (“CAPEX”)

CAPEX was RMB254.3 million (US$38.8 million), or 3.9% of total revenue in the first quarter ended March 31, 2021, compared to CAPEX of RMB345.9 million, or 6.9% of total revenue, in the same period of 2020.

SHARES OUTSTANDING

As of the date of this press release, the Company had approximately 388.2 million ordinary shares outstanding([10]). Each American Depositary Share represents one Class A ordinary share.

FINANCIAL GUIDANCE 

Based on current market conditions and current operations, the Company expects its revenue for the full fiscal year of 2021 to be between RMB34 billion and RMB36 billion. This forecast reflects management’s current and preliminary expectation, which is subject to change.

RESIGNATION OF INDEPENDENT DIRECTOR    

Ms. Quan Hao, an independent director and chairman of the audit committee of the Company, has resigned from these positions due to personal reasons, effective July 31, 2021. Ms. Hao’s resignation is not a result of any disagreement with the Company, its board of directors or its management.

Mr. Mark Qiu, an independent director and a member of the Company’s audit committee, will be appointed as the chairman of the audit committee. Meanwhile, the Company will search for a candidate to succeed Ms. Hao’s position as an independent director and a member of the audit committee.

([10]) The total number of shares outstanding excludes shares reserved for future issuances upon exercise or vesting of awards granted under the Company’s share incentive plans.

WEBCAST AND CONFERENCE CALL INFORMATION

The Company will hold a conference call at 9:00 pm U.S. Eastern Time on June 8, 2021 (9:00 am Beijing Time on June 9, 2021), to discuss its financial results and operating performance for the first quarter of 2021.

Participants may access the call by dialing the following numbers:

United States

: +1-888-317-6003

Hong Kong

: 800-963976 or +852-5808-1995

Mainland China

: 4001-206115

International

: +1-412-317-6061

Participant Elite Entry Number

: 0305868

A replay of the conference call will be accessible through June 15, 2021 by dialing the following numbers:

United States 

: +1-877-344-7529

International      

: +1-412-317-0088

Replay Access Code

: 10156760

Please visit the Company’s investor relations website, located at http://ir.best-inc.com/, to view the earnings release prior to the conference call. A live and archived webcast of the conference call and a corporate presentation will be available at the same site.

ABOUT BEST INC.

BEST Inc. (NYSE: BEST) is a leading integrated smart supply chain solutions and logistics services provider in China. Through its proprietary technology platform and extensive networks, BEST offers a comprehensive set of logistics and value-add services, including express and freight delivery, supply chain management and last-mile services, truckload service brokerage, international logistics and financial services. BEST’s mission is to empower business and enrich life by leveraging technology and business model innovation to create a smarter, more efficient supply chain. For more information, please visit: http://www.best-inc.com/en/.  

For investor and media inquiries, please contact:

BEST Inc.
Investor relations team                         
ir@best-inc.com

The Piacente Group, Inc.
Yang Song
Tel: +86-10-6508-0677
E-mail: best@tpg-ir.com

The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail:  best@tpg-ir.com

SAFE HARBOR STATEMENT

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as BEST’s strategic and operational plans, contain forward-looking statements. BEST may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about BEST’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: BEST’s goals and strategies; BEST’s future business development, results of operations and financial condition; BEST ‘s ability to maintain and enhance its ecosystem; BEST ‘s ability to compete effectively; BEST ‘s ability to continue to innovate, meet evolving market trends, adapt to changing customer demands and maintain its culture of innovation; fluctuations in general economic and business conditions in China and other countries in which BEST operates, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in BEST’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and BEST does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

USE OF NON-GAAP FINANCIAL MEASURES

In evaluating its business, BEST considers and uses non-GAAP measures, such as non-GAAP net loss/income, non-GAAP net loss/profit margin, adjusted EBITDA, adjusted EBITDA margin, EBITDA, adjusted selling expenses, adjusted general and administrative expenses, adjusted research and development expenses, and non-GAAP diluted EPS, as supplemental measures in the evaluation of the Company’s operating results and in the Company’s financial and operational decision-making. The Company believes these non-GAAP financial measures that help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of the expenses and gains that the Company includes in loss from operations and net loss. The Company believes that these non-GAAP financial measures provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures” in the results announcement.

The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors’ overall understanding of the Company’s current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company’s calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

 

 

Summary of Unaudited Condensed Consolidated Income Statements

(In Thousands)

Three Months Ended March 31,

2020

2021

RMB

RMB

US$

Revenue

Express

3,375,612

3,713,080

566,727

Freight

687,247

1,174,493

179,263

Supply Chain Management

407,592

447,661

68,326

Global

115,788

250,422

38,222

Others

416,382

910,983

139,043

Total Revenue

5,002,621

6,496,639

991,581

Cost of Revenue

Express

(3,491,321)

(3,958,127)

(604,128)

Freight

(816,435)

(1,173,930)

(179,177)

Supply Chain Management

(404,446)

(423,506)

(64,640)

Global

(148,318)

(265,102)

(40,462)

Others

(380,096)

(869,329)

(132,686)

Total Cost of Revenue

(5,240,616)

(6,689,994)

(1,021,093)

Gross Loss

(237,995)

(193,355)

(29,512)

Selling Expenses

(118,115)

(107,205)

(16,363)

General and Administrative Expenses

(265,992)

(309,230)

(47,198)

Research and  Development Expenses

(50,692)

(53,687)

(8,194)

Total Operating Expenses

(434,799)

(470,122)

(71,755)

Loss from Operations

(672,794)

(663,477)

(101,267)

Interest Income

21,585

16,878

2,576

Interest Expense

(33,172)

(46,007)

(7,022)

Foreign Exchange Gain

390

800

122

Other Income

32,793

109,444

16,704

Other Expense

(11,110)

(17,817)

(2,719)

Loss before Income Tax and Share of
   Net Loss of Equity Investees

(662,308)

(600,179)

(91,606)

Income Tax Expense

(4,535)

(4,290)

(655)

Loss before Share of Net loss of Equity
   Investees

(666,843)

(604,469)

(92,261)

Share of Net Loss of Equity Investees

(30)

Net Loss from continuing operations

(666,873)

(604,469)

(92,261)

Net loss from discontinued operations

(83,879)

(13,836)

(2,113)

Net Loss

(750,752)

(618,305)

(94,374)

Net Loss from continuing operations
   attributable to non-controlling interests

(7,860)

(5,410)

(826)

Net Loss attributable to Best Inc.

(742,892)

(612,895)

(93,548)

 

 

 

Summary of Unaudited Condensed Consolidated Balance Sheets
(in thousands)

As of December 31, 2020

As of March 31, 2021

RMB

RMB

US$

Assets

Current Assets

Cash and Cash Equivalents

1,383,317

1,011,247

154,347

Restricted Cash

2,102,426

2,136,791

326,138

Accounts and Notes Receivables

983,601

885,032

135,082

Inventories

44,133

34,434

5,256

Prepayments and Other Current Assets

3,304,670

3,258,700

497,378

Short–term Investments

268,647

296,612

45,272

Amounts Due from Related Parties

274,395

153,502

23,429

Lease Rental Receivables

497,127

479,123

73,128

Assets held for sale

509,395

481,893

73,551

Total Current Assets

9,367,711

8,737,334

1,333,581

Non–current Assets

Property and Equipment, Net

4,079,235

4,131,122

630,532

Intangible Assets, Net

12,198

12,980

1,981

Long–term Investments

221,426

202,645

30,930

Goodwill

295,758

295,758

45,141

Non–current Deposits

129,645

127,901

19,522

Other Non–current Assets

543,949

423,971

64,711

Restricted Cash

709,848

532,136

81,220

Lease Rental Receivables

647,678

556,003

84,863

Operating Lease Right-of-use Assets

3,863,375

3,724,220

568,427

Total non–current Assets

10,503,112

10,006,736

1,527,327

Total Assets

19,870,823

18,744,070

2,860,908

Liabilities and Shareholders’ Equity

Current Liabilities 

Securitization Debt

95,149

382,917

58,445

Short–term Bank Loans

3,082,537

2,806,006

428,280

Accounts and Notes Payable

4,144,948

3,902,061

595,571

Income Tax Payable

14,550

11,677

1,782

Customer Advances and Deposits and
   Deferred Revenue

1,526,051

1,354,629

206,757

Accrued Expenses and Other Liabilities

2,507,917

2,392,147

365,113

Financing Lease Liabilities

1,581

1,462

223

Operating Lease Liabilities

1,032,461

1,099,371

167,797

Amounts Due to Related Parties

35,623

12,865

1,964

Liabilities held for sale

193,432

176,298

26,908

Total Current Liabilities

12,634,249

12,139,433

1,852,840

 

 

 

Summary of Unaudited Condensed Consolidated Balance Sheets (Cont’d)
(In Thousands)

As of December 31, 2020

As of March 31, 2021

RMB

RMB

US$

Non-current Liabilities

Convertible senior notes held by
   related parties

1,617,846

1,631,167

248,965

Securitization Debt

10,085

1,539

Secured Borrowings

110,179

16,817

Convertible Senior Notes held by third
   parties

642,121

648,241

98,941

Operating Lease Liabilities

2,995,173

2,845,499

434,308

Financing Lease Liabilities

2,698

2,396

366

Other Non–current Liabilities

175,584

151,540

23,130

Long-term Bank Loans

78,548

78,587

11,995

Total Non–current Liabilities

5,511,970

5,477,694

836,061

Total Liabilities

18,146,219

17,617,127

2,688,901

Shareholders’ Equity

Ordinary Shares

25,988

25,988

3,967

Treasury Shares

(211,352)

(152,377)

(23,257)

Additional Paid–In Capital

19,487,232

19,458,353

2,969,925

Statutory reserves

8,038

8,334

1,272

Accumulated Deficit

(17,710,964)

(18,324,155) ([11])

(2,796,812)

Accumulated Other
   Comprehensive Income

151,677

142,225

21,708

BEST Inc. Shareholders’ Equity

1,750,619

1,158,368

176,803

Non-controlling Interests

(26,015)

(31,425)

(4,796)

Total Shareholders’ Equity

1,724,604

1,126,943

172,007

Total Liabilities and
   Shareholders’ Equity

19,870,823

18,744,070

2,860,908

 

([11]) Including accumulated accretion to redemption value and deemed dividend in relation to redeemable convertible preferred shares of RMB9,493,807, and accumulated loss from operations of RMB8,830,348                    

 

 

Summary of Unaudited Condensed Consolidated Statements of Cash Flows
(In Thousands) 

Three Months Ended March 31,

2020

2021

RMB

RMB

US$

Net cash used in continuing
  
operating activities

(1,230,925)

(563,648)

(86,029)

Net cash used in discontinued
  
operating activities

(62,588)

(94,303)

(14,393)

Net cash used in operating activities

(1,293,513)

(657,951)

(100,422)

Net cash generated from continuing
   investing activities

114,157

22,829

3,484

Net cash used in discontinued Investing
   activities

(240)

(33)

(5)

Net cash generated from investing
   activities

113,917

22,796

3,479

Net cash generated from continuing
   financing activities

754,985

193,947

29,602

Net cash used in discontinued
   financing activities

(150,000)

(92,500)

(14,118)

Net cash generated from financing
   activities

604,985

101,447

15,484

Exchange Rate Effect on Cash, Cash
   Equivalents, and Restricted Cash

24,166

6,716

1,025

Net Decrease in Cash and Cash
   Equivalents, and Restricted Cash

(550,445)

(526,992)

(80,434)

Cash and Cash Equivalents, and Restricted
   Cash at Beginning of Period

3,957,215

4,209,121

642,437

Cash and Cash Equivalents, and Restricted
   Cash at End of Period

3,406,770

3,682,129

562,003

Less: Cash and Cash Equivalents, and
   Restricted Cash held for sales at end of the
   Period

3,413

1,955

298

Cash and Cash Equivalents, and Restricted
   Cash from continuing operations at End
   of Period

3,403,357

3,680,174

561,705

 

                       

RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES

The table below sets forth a reconciliation of the Company’s net loss to EBITDA, adjusted EBITDA and adjusted EBITDA margin for the periods indicated:

Table 7 – Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

Three Months Ended March 31, 2021

(In RMB’000)

Express

Freight

Supply Chain

Global

Others

Unallocated([12])

Total

Net Loss

(420,942)

(46,808)

(11,965)

(58,244)

(5,525)

(60,985)

(604,469)

Add:

Depreciation & 
 Amortization

107,637

18,257

10,227

4,174

3,683

6,767

150,745

Interest Expense

46,007

46,007

Income Tax Expense

9

4,281

4,290

Subtract:

Interest Income

(16,878)

(16,878)

EBITDA

(313,305)

(28,551)

(1,729)

(54,070)

2,439

(25,089)

(420,305)

Add:

   Share-based
  
Compensation
   Expenses

1,907

2,664

1,896

2,150

644

19,704

28,965

Subtract:

Gain from
appreciation of
investments

(5,562)

(5,562)

Adjusted EBITDA

(311,398)

(25,887)

167

(51,920)

3,083

(10,947)

(396,902)

Adjusted EBITDA
Margin

(8.4%)

(2.2%)

0.0%

(20.7%)

0.3%

(6.1%)

 

Three Months  Ended March 31, 2020

(In RMB’000)

Express

Freight

Supply Chain

Global

Others

Unallocated([13])

Total

Net Loss

(272,316)

(203,042)

(48,350)

(69,940)

(20,358)

(52,867)

(666,873)

Add:

Depreciation &
Amortization

77,217

15,030

10,970

3,731

618

6,973

114,539

Interest Expense

33,172

33,172

Income Tax
Expense/(Benefit)

484

138

(276)

4,189

4,535

Subtract:

Interest Income

(21,585)

(21,585)

EBITDA

(194,615)

(188,012)

(37,242)

(66,485)

(15,551)

(34,307)

(536,212)

Add:

   Share-based
  
Compensation
   Expenses

4,371

3,327

3,394

2,086

1,002

19,419

33,599

Adjusted EBITDA

(190,244)

(184,685)

(33,848)

(64,399)

(14,549)

(14,888)

(502,613)

Adjusted EBITDA
Margin

(5.6%)

(26.9%)

(8.3%)

(55.6%)

(3.5%)

(10.0%)

 

([12]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

([13]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

 

 

The table below sets forth a reconciliation of the Company’s net loss to non-GAAP net loss, non-GAAP net loss margin for the periods indicated:

Table 8 – Reconciliation of Non-GAAP Net Loss and Non-GAAP Net Loss Margin

Three Months Ended March 31, 2021

(In RMB’000)

Express

Freight

Supply Chain

Global

Others

Unallocated([14])

Total

Net Loss

(420,942)

(46,808)

(11,965)

(58,244)

(5,525)

(60,985)

(604,469)

Add:

   Share-based
   Compensation
   Expenses

1,907

2,664

1,896

2,150

644

19,704

28,965

Subtract:

Gain from 
appreciation of
investments

(5,562)

(5,562)

Non-GAAP Net Loss

(419,035)

(44,144)

(10,069)

(56,094)

(4,881)

(46,843)

(581,066)

Non-GAAP Net Loss

Margin

(11.3%)

(3.8%)

(2.2%)

(22.4%)

(0.5%)

(8.9%)

 

Three Months Ended March 31, 2020

(In RMB’000)

Express

Freight

Supply Chain

Global

Others

Unallocated([15])

Total

Net Loss

(272,316)

(203,042)

(48,350)

(69,940)

(20,358)

(52,867)

(666,873)

Add:

   Share-based
  
Compensation
   Expenses

4,371

3,327

3,394

2,086

1,002

19,419

33,599

   Amortization of
  
Intangible Assets
  
Resulting from
  
Business

926

926

Non-GAAP Net Loss

(267,945)

(199,715)

(44,956)

(66,928)

(19,356)

(33,448)

(632,348) 

Non-GAAP Net Loss

Margin

(7.9%)

(29.1%)

(11.0%)

(57.8%)

(4.6%)

(12.6%)

 

([14]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

([15]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

 

 

The table below sets forth a reconciliation of the Company’s Diluted EPS to non-GAAP Diluted EPS for the periods indicated:

Table 9 – Reconciliation of Diluted EPS and Non-GAAP Diluted EPS

Three Months Ended March 31, 2021

(In ‘000)

        RMB

US$

Net Loss Attributable to Ordinary Shareholders

(599,059)

(91,435)

Add:

Share-based Compensation Expenses

28,965

4,422

Subtract:

Gain from appreciation of investments

(5,562)

(849)

Non-GAAP Net Loss Attributable to Ordinary
    Shareholders for Computing Non-GAAP Diluted EPS

(575,656)

(87,862)

Weighted Average Diluted Shares Outstanding
    During the Period

Diluted

386,809,534

386,809,534

Diluted (Non-GAAP)

386,809,534

386,809,534

Diluted EPS

(1.55)

(0.24)

Add:

Non-GAAP adjustment to net loss per share

0.06

0.01

Non-GAAP Diluted EPS

(1.49)

(0.23)

 

Related Links :

https://www.best-inc.com/

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