BEST Inc. Announces Unaudited Fourth Quarter and Fiscal Year 2023 Financial Results

HANGZHOU, China, March 28, 2024 /PRNewswire/ — BEST Inc. (NYSE: BEST) (“BEST” or the “Company”), a leading integrated smart supply chain solutions and logistics services provider in China and Southeast Asia (“SEA”), today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2023.

FINANCIAL HIGHLIGHTS (1) 

For the Fourth Quarter Ended December 31, 2023:(2)

  • Revenue was RMB2,236.3 million (US$315.0 million), compared to RMB1,981.4 million in the fourth quarter of 2022. The increase was primarily due to increased revenue of BEST Freight and BEST Global.
  • Gross Profit was RMB118.3 million (US$16.7 million), compared to gross loss of RMB58.5 million in the fourth quarter of 2022. The increase was primarily due to further improvements in operating efficiency across our business lines. Gross Profit Margin was 5.3% for the fourth quarter of 2023, compared to Gross Loss Margin of 3.0% in the same period of 2022.
  • Net Loss from continuing operations was RMB283.5 million (US$39.9 million), compared to RMB365.8 million in the fourth quarter of 2022. Non-GAAP Net Loss from continuing operations(3)(4was RMB177.9 million (US$25.1 million), compared to RMB338.0 million in the fourth quarter of 2022.
  • Diluted loss per ADS(5) from continuing operations was RMB12.41 (US$ 1.75), compared to RMB17.96 in the fourth quarter of 2022. Non-GAAP diluted loss per ADS(3)(4) from continuing operations was RMB7.10 (US$ 1.00), compared to RMB16.52 in the fourth quarter of 2022.
  • EBITDA(6) from continuing operations was negative RMB248.6 million (US$35.0 million), compared to negative RMB324.7 million in the fourth quarter of 2022. Adjusted EBITDA(6) from continuing operations was negative RMB143.0 million (US$20.1 million), compared to negative RMB296.9 million in the fourth quarter of 2022.

For the Fiscal Year Ended December 31, 2023:

  • Revenue was RMB8,315.8 million (US$1,171.3 million), compared to RMB7,744.1 million in 2022. The increase was primarily due to increased revenue for all business lines.
  • Gross Profit was RMB250.4 million (US$35.3 million), compared to gross loss of RMB263.6 million in 2022. The increase was primarily due to further improvements for all business lines. Gross Profit Margin was 3.0%, compared to Gross Loss Margin of 3.4% in 2022.
  • Net Loss from continuing operations was RMB908.6 million (US$128.0 million), compared to RMB1,464.8 million in 2022. Non-GAAP Net Loss from continuing operations(7)(8was RMB765.6 million (US$107.8 million), compared to RMB1,380.4 million in 2022.
  • Diluted loss per ADS(9) from continuing operations was RMB43.60  (US$ 6.20), compared to a loss of RMB72.68 in 2022. Non-GAAP diluted loss per ADS(3)(4) from continuing operations was RMB36.10 (US$5.14), compared to a loss of RMB68.36 in 2022.
  • EBITDA(10) from continuing operations was negative RMB756.8 million (US$106.6 million), compared to negative RMB1,266.2 million in 2022. Adjusted EBITDA(6) from continuing operations was negative RMB613.7 million (US$86.4million), compared to negative RMB1,181.8 million in 2022. 

BEST Freight – BEST Freight recorded revenue growth of 19.1% in the fourth quarter of 2023, year over year. Freight’s gross margin was 5.3%, representing a 6.6 percentage points improvement from the same period of 2022. For the full year of 2023, Freight recorded revenue growth of 10.6% compared to 2022. Freight’s gross margin was 3.7%, representing an 8.3 percentage points improvement of 2022 as we continued to reduce operating expenses and improve efficiency. 

BEST Supply Chain Management – Driven by its best-in-class service quality and digital capabilities, BEST Supply Chain Management recorded gross margin of 5.8% compared to 4.4% in the same period of 2022. For the full year of 2023, Supply Chain Management recorded gross margin of 8.5% compared to 6.1% in 2022.

BEST Global – In the fourth quarter, BEST Global continued its robust post-COVID recovery. BEST Global’s revenue increased by 20.0% and its parcel volumes increased by 60.1%, both year over year, with parcel volumes in Vietnam and Malaysia, increased by 173.0% and 27.3%, respectively. Total volume of the cross-border business in the fourth quarter increased by 55.6% compared with the third quarter of 2023. For the full year of 2023, BEST Global’s revenue increased by 3.2% and its parcel volumes increased by 14.6%, both year over year, with parcel volumes in Vietnam and Malaysia, increased by 28.6% and 56.3%, respectively.       

Key Operational Metrics 

Three Months Ended

% Change YOY

December 31,
202
1

December 31,
202
2

December 31,

2023

2022 vs
202
1

2023 vs
202
2

Freight Volume (Tonne in ‘000)

2,408

2,226

2,571

(7.6 %)

15.5 %

Global Parcel Volume in SEA
 (in ‘000)

43,707

25,421

40,688

(41.8 %)

60.1 %

 

Fiscal Year Ended

% Change YoY

December 31,
202
1

December 31,
202
2

December 31,
202
3

2022 vs
202
1

2023 vs
202
2

Freight Volume (Tonne in ‘000)

9,218

8,659

9,280

(6.1 %)

7.2 %

Global Parcel Volume in SEA
 (in ‘000)

150,392

121,637

139,415

(19.1 %)

14.6 %

 

FINANCIAL RESULTS (11) 

For the Fourth Quarter Ended December 31, 2023:

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

December 31, 2022

December 31, 2023

(In ‘000, except for %)

RMB

% of
Revenue

RMB

US$

% of
Revenue

% Change
YOY

Freight

1,261,196

63.7 %

1,501,909

211,539

67.2 %

19.1 %

Supply Chain Management

500,602

25.3 %

471,379

66,392

21.1 %

(5.8 %)

Global

195,680

9.9 %

234,906

33,086

10.5 %

20.0 %

Others(12)

23,917

1.1 %

28,057

3,952

1.2 %

17.3 %

Total Revenue

1,981,395

100.0 %

2,236,251

314,969

100.0 %

12.9 %

  • Freight Service Revenue was RMB1,501.9 million (US$211.5 million) for the fourth quarter of 2023, compared to RMB1,261.2 million in the same period last year. Freight service revenue increased by 19.1% year over year, primarily due to increases in both volume and average selling price per tonne.
  • Supply Chain Management Service Revenue decreased by 5.8% year over year to RMB471.4 million (US$66.4 million) for the fourth quarter of 2023 from RMB500.6 million in the same period of last year, primarily due to further optimization of its customer mix.
  • Global Service Revenue increased by 20.0% year over year to RMB234.9 million (US$33.1 million) for the fourth quarter of 2023 from RMB195.7 million in the same period of last year, primarily due to volume growth in Vietnam, Malaysia and cross-border business.

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

December 31, 2022

December 31, 2023

(In ‘000, except for %)

RMB

% of
Revenue

RMB

US$

% of
Revenue

Freight

(1,277,026)

101.3 %

(1,422,351)

(200,334)

94.7 %

(6.6 %)

Supply Chain Management

(478,511)

95.6 %

(443,927)

(62,526)

94.2 %

(1.4 %)

Global

(264,014)

134.9 %

(270,146)

(38,049)

115.0 %

(19.9 %)

Others

(20,321)

85.0 %

18,500

2,606

(65.9 %)

(151.0 %)

Total Cost of Revenue

(2,039,872)

103.0 %

(2,117,924)

(298,303)

94.7 %

(8.3 %)

  • Cost of Revenue for Freight was RMB1,422.4 million (US$200.3 million), or 94.7% of revenue, in the fourth quarter of 2023. The 6.6 percentage points year-over-year decrease in cost of revenue as a percentage of revenue was mainly due to reduced unit cost.
  • Cost of Revenue for Supply Chain Management was RMB443.9 million (US$62.5 million), or 94.2% of revenue, in the fourth quarter of 2023. The 1.4 percentage points year-over-year decrease in cost of revenue as a percentage of revenue was primarily due to improved operating efficiency and optimized customer mix.
  • Cost of Revenue for Global was RMB270.1 million (US$38.0 million), or 115.0% of revenue, in the fourth quarter of 2023. The 19.9 percentage points year-over-year decrease in cost of revenue as a percentage of revenue due to increased parcel volume.

Gross Profit was RMB118.3 million (US$16.7 million) in the fourth quarter of 2023, compared to gross loss of RMB58.5 million in the fourth quarter of 2022; Gross Margin was 5.3%, compared to negative 3.0% in the fourth quarter of 2022.

Operating Expenses

Selling, General and Administrative (“SG&A”) Expenses were RMB281.5 million (US$39.6 million), or 12.6% of revenue in the fourth quarter of 2023, compared to RMB263.4 million, or 13.3% of revenue in the same quarter of 2022.

Research and Development Expenses were RMB29.4 million (US$4.1 million), or 1.3% of revenue in the fourth quarter of 2023, compared to RMB29.2 million, or 1.5% of revenue in the fourth quarter of 2022.

Share-based Compensation (“SBC”) Expenses included in the cost and expense items above were RMB10.9 million (US$1.5 million) in the fourth quarter of 2023, compared to RMB15.6 million in the same period of 2022. Of the total SBC expenses, RMB0.05 million (US$0.01 million) was allocated to cost of revenue, RMB0.5 million (US$0.07 million) was allocated to selling expenses, RMB9.5 million (US$1.3 million) was allocated to general and administrative expenses, and RMB0.8 million (US$0.1 million) was allocated to research and development expenses.

Net Loss and Non-GAAP Net Loss from continuing operations

Net Loss from continuing operations in the fourth quarter of 2023 was RMB283.5 million (US$39.9 million), compared to RMB365.8 million in the same period of 2022. Non-GAAP Net Loss from continuing operations in the fourth quarter of 2023 was RMB177.9 million (US$25.1 million), compared to RMB338.0 million in the fourth quarter of 2022.

Diluted loss per ADS and Non-GAAP diluted loss per ADS from continuing operations

Diluted loss per ADS from continuing operations in the fourth quarter of 2023 was RMB12.41 (US$ 1.75), compared to a loss of RMB17.96 in the same period of 2022. Non-GAAP diluted loss per ADS from continuing operations in the fourth quarter of 2023 was RMB 7.10 (US$1.00), compared to a loss of RMB16.52 in the fourth quarter of 2022. A reconciliation of non-GAAP diluted loss per ADS to diluted loss per ADS is included at the end of this results announcement.

Adjusted EBITDA and Adjusted EBITDA Margin from continuing operations 

Adjusted EBITDA from continuing operations in the fourth quarter of 2023 was negative RMB143.0 million (US$20.1 million), compared to negative RMB296.9 million in the same period of 2022. Adjusted EBITDA Margin from continuing operations in the fourth quarter of 2023 was negative 6.4%, compared to negative 15.0% in the same period of 2022.

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

As of December 31, 2023, cash and cash equivalents, restricted cash and short-term investments were RMB2.3 billion (US$321.5 million), compared to RMB3.2 billion as of December 31, 2022. In 2023, the Company repurchased approximately US$75 million (RMB542 million) aggregate principal amount of its existing Convertible Senior Notes due 2024.

Net Cash Used In Continuing Operating Activities 

Net cash generated from continuing operating activities in the fourth quarter of 2023 was RMB0.9million (US$0.1 million), compared to RMB241.9 million of net cash used in continuing operating activities in the same period of 2022.

For the Fiscal Year Ended December 31, 2023:

Revenue

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

Table 3 – Breakdown of Revenue by Business Segment

Fiscal Year Ended

31-Dec-22

31-Dec-23

(In ‘000, except for %)

RMB

% of
Revenue

RMB

US$

% of
Revenue

% Change
YoY

Freight

4,888,278

63.2 %

5,404,395

761,193

65.0 %

10.6 %

Supply Chain Management

1,822,075

23.5 %

1,858,629

261,782

22.4 %

2.0 %

Global

916,907

11.8 %

946,513

133,314

11.4 %

3.2 %

Others

116,812

1.5 %

106,307

14,973

1.2 %

(9.0 %)

Total Revenue

7,744,072

100.0 %

8,315,844

1,171,262

100.0 %

7.4 %

  • Freight Service Revenue was RMB5,404.4 million (US$761.2 million) in 2023, compared to RMB4,888.3 million in 2022. Freight service revenue increased by 10.6% year over year, primarily resulting from increases in both freight volume and average selling price per tonne.
  • Supply Chain Management Service Revenue increased by 2% year over year to RMB1,858.6 million (US$261.8 million) in 2023 from RMB1,822.1 million in 2022.
  • Global Service Revenue increased by 3.2% year over year to RMB946.5 million (US$133.3 million) in 2023 from RMB916.9 million in 2022 primarily due to volume growth in Vietnam, Malaysia and cross-border business, partially offset by the decrease of parcel volume in Thailand.

Cost of Revenue 

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

Table 4 – Breakdown of Cost of Revenue by Business Segment

Fiscal Year Ended

% of
Revenue
Change

YoY

December 31, 2022

December 31, 2023

(In ‘000, except for %)

RMB

% of
Revenue

RMB

US$

% of
Revenue

Freight

(5,114,937)

104.6 %

(5,206,967)

(733,386)

96.3 %

(8.3 %)

Supply Chain Management

(1,711,818)

93.9 %

(1,700,467)

(239,506)

91.5 %

(2.4 %)

Global

(1,081,587)

118.0 %

(1,131,484)

(159,366)

119.5 %

1.5 %

Others

(99,288)

85.0 %

(26,489)

(3,731)

24.9 %

(60.1 %)

Total Cost of Revenue

(8,007,630)

103.4 %

(8,065,407)

(1,135,989)

97.0 %

(6.4 %)

  • Cost of Revenue for Freight was RMB5,207.0 million (US$733.4 million), or 96.3% of revenue in 2023. The 8.3 percentage points year-over-year decrease in cost of revenue as a percentage of revenue was mainly due to reduced unit cost.
  • Cost of Revenue for Supply Chain Management was RMB1,700.5 million (US$239.5 million), or 91.5% of revenue in 2023. The 2.4 percentage points year-over-year decrease in cost of revenue as a percentage of revenue was primarily due to improved operating efficiency and optimized customer mix.
  • Cost of Revenue for Global was RMB1,131.5 million (US$159.4 million), or 119.5% of revenue in 2023. The 1.5 percentage points year-over-year increase in cost of revenue as a percentage of revenue was primarily due to lower parcel volume of Thailand.  

Gross Profit was RMB250.4 million (US$35.3 million) in 2023, compared to gross loss of RMB263.6 million in 2022; Gross Margin was 3.0%, compared to negative 3.4% in 2022.

Operating Expenses

Selling, General and Administrative (“SG&A”) Expenses were RMB994.4 million (US$140.0 million), or 12.0% of revenue in 2023, compared to RMB1,127.3 million, or 14.6% of revenue in 2022.

Research and Development Expenses were RMB115.9 million (US$16.3 million), or 1.4% of revenue in 2023, compared to RMB144.2 million, or 1.9% of revenue in 2022.

Share-based Compensation (“SBC”) Expenses included in the cost and expense items above were RMB48.3 million (US$6.8 million) in 2023, compared to RMB72.1 million in 2022. Of the total SBC expenses, RMB0.2 million (US$0.03 million) was allocated to cost of revenue, RMB2.1 million (US$0.3 million) was allocated to selling expenses, RMB42.5 million (US$6.0 million) was allocated to general and administrative expenses, and RMB3.6 million (US$0.5 million) was allocated to research and development expenses.

Net Loss and Non-GAAP Net Loss from continuing operations

Net Loss from continuing operations in 2023 was RMB908.6 million (US$128.0 million), compared to RMB1,464.8 million in 2022. Non-GAAP Net Loss from continuing operations in 2023 was RMB765.6 million (US$107.8 million), compared to RMB1,380.4 million in 2022.

Diluted loss per ADS and Non-GAAP diluted loss per ADS from continuing operations

Diluted loss per ADS from continuing operations in 2023 was RMB43.60 (US$6.20), compared to a loss of RMB72.68 in 2022. Non-GAAP diluted loss per ADS from continuing operations in 2023 was RMB36.10 (US$5.14), compared to a loss of RMB68.36 in 2022. A reconciliation of non-GAAP diluted loss per ADS to diluted loss per ADS is included at the end of this results announcement.

Adjusted EBITDA and Adjusted EBITDA Margin from continuing operations 

Adjusted EBITDA from continuing operations in 2023 was negative RMB613.7 million (US$86.4 million), compared to negative RMB1,181.8 million in 2022. Adjusted EBITDA Margin from continuing operations in 2023 was negative 7.4%, compared to negative 15.3% in 2022.

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

As of December 31, 2023, cash and cash equivalents, restricted cash and short-term investments were RMB2.3 billion (US$321.5 million), compared to RMB3.2 billion as of December 31, 2022. In 2023, the Company repurchased approximately US$75 million (RMB542 million) aggregate principal amount of its existing Convertible Senior Notes due 2024.

Net Cash Used In Continuing Operating Activities 

Net cash used in continuing operating activities in 2023 was RMB554.7 million (US$78.1 million), compared to RMB1,051.7 million of net cash used in continuing operating activities in 2022.

SHARES OUTSTANDING

As of March 11, 2024, the Company had approximately 401.9 million ordinary shares outstanding([13]). Each American Depositary Share represents five (20) Class A ordinary shares.

As previously announced, effective from April 4, 2023, the Company changed the ratio of its American Depositary Shares to its Class A ordinary shares, par value US$0.01 per share, from the original ADS ratio of one (1) ADS to five (5) Class A ordinary share, to a new ADS ratio of one (1) ADS to twenty (20) Class A ordinary shares.

Effective as of September 25, 2023, the Company’s board of directors terminated its previously announced share repurchase program, under which the Company could repurchase up to US$20 million worth of its outstanding American Depositary Shares over a 12-month period. Prior to the program’s termination, the Company repurchased a total of 1,265,685 ADSs for a total amount paid of approximately US$3.3 million (excluding commissions) under the program. 

ABOUT BEST INC.

BEST Inc. (NYSE: BEST) is a leading integrated smart supply chain solutions and logistics services provider in China and SEA. Through its proprietary technology platform and extensive networks, BEST offers a comprehensive set of logistics and value-added services, including freight delivery, supply chain management and global logistics 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/.  

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/income margin, adjusted EBITDA, adjusted EBITDA margin, EBITDA, and non-GAAP Diluted earnings/loss per ADS, 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 December 31,

Fiscal Year Ended December 31,

2022

2023

2022

2023

RMB

RMB

US$

RMB

RMB

US$

Revenue

Freight

1,261,196

1,501,909

211,539

4,888,278

5,404,395

761,193

Supply Chain Management

500,602

471,379

66,392

1,822,075

1,858,629

261,782

Global

195,680

234,906

33,086

916,907

946,513

133,314

Others

23,917

28,057

3,952

116,812

106,307

14,973

Total Revenue

1,981,395

2,236,251

314,969

7,744,072

8,315,844

1,171,262

Cost of Revenue

Freight

(1,277,026)

(1,422,351)

(200,334)

(5,114,937)

(5,206,967)

(733,386)

Supply Chain Management

(478,511)

(443,927)

(62,526)

(1,711,818)

(1,700,467)

(239,506)

Global

(264,014)

(270,146)

(38,049)

(1,081,587)

(1,131,484)

(159,366)

Others

(20,321)

18,500

2,606

(99,288)

(26,489)

(3,731)

Total Cost of Revenue

(2,039,872)

(2,117,924)

(298,303)

(8,007,630)

(8,065,407)

(1,135,989)

Gross (Loss)/Profit

(58,477)

118,327

16,666

(263,558)

250,437

35,273

Selling Expenses

(54,621)

(72,080)

(10,152)

(237,918)

(256,621)

(36,144)

General and Administrative Expenses

(208,738)

(209,400)

(29,493)

(889,345)

(737,775)

(103,913)

Research and Development Expenses

(29,247)

(29,449)

(4,148)

(144,181)

(115,917)

(16,327)

Impairment of long-lived assets

(94,699)

(13,338)

(94,699)

(13,338)

Other operating income, net

3,387

2,575

363

108,817

2,658

374

Loss from Operations

(347,696)

(284,726)

(40,102)

(1,426,185)

(951,917)

(134,075)

Interest Income

19,208

17,848

2,514

80,361

83,810

11,805

Interest Expense

(16,329)

(13,864)

(1,953)

(89,058)

(64,283)

(9,055)

Foreign Exchange Gain/(loss)

68,318

11,750

1,655

(132,730)

(14,010)

(1,974)

Other Income

2,149

469

66

25,914

11,067

1,559

Other Expense

(13,815)

(635)

(89)

5,763

(4,454)

(628)

(Loss)/Gain on changes in the fair value of
    derivative assets/liabilities

(77,577)

(14,114)

(1,988)

71,619

32,322

4,553

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

(365,742)

(283,272)

(39,897)

(1,464,316)

(907,465)

(127,815)

Income Tax Expense

(106)

(249)

(35)

(511)

(1,141)

(161)

Loss before Share of Net loss of Equity
    Investees

(365,848)

(283,521)

(39,932)

(1,464,827)

(908,606)

(127,976)

Share of Net Loss of Equity Investees

Net Loss from continuing operations

(365,848)

(283,521)

(39,932)

(1,464,827)

(908,606)

(127,976)

Net (loss)/gain from discontinued operations

(31,787)

(38,464)

15,222

2,144

Net Loss

(397,635)

(283,521)

(39,932)

(1,503,291)

(893,384)

(125,832)

Net Loss from continuing operations attributable
    to non-controlling interests

(13,055)

(36,811)

(5,185)

(39,980)

(78,982)

(11,124)

Net Loss attributable to BEST Inc.

(384,580)

(246,710)

(34,747)

(1,463,311)

(814,402)

(114,708)

 

 

 

Summary of Unaudited Condensed Consolidated Balance Sheets

(In Thousands)

As of December 31,2022

As of December 31, 2023

RMB

RMB

US$

Assets

Current Assets

Cash and Cash Equivalents

533,481

425,976

59,997

Restricted Cash

399,337

1,008,318

142,019

Accounts and Notes Receivables

691,324

829,802

116,875

Inventories

16,480

7,794

1,098

Prepayments and Other Current Assets

777,842

674,100

94,945

Short‑term Investments

725,043

35,888

5,055

Amounts Due from Related Parties

76,368

60,394

8,506

Lease Rental Receivables

43,067

47,925

6,750

Total Current Assets

3,262,942

3,090,197

435,245

Non‑current Assets

Property and Equipment, Net

784,732

624,205

87,917

Intangible Assets, Net

75,553

93,173

13,123

Long‑term Investments

156,859

156,859

22,093

Goodwill

54,135

54,135

7,625

Non‑current Deposits

50,767

81,869

11,531

Other Non‑current Assets

75,666

46,913

6,608

Restricted Cash

1,545,605

812,371

114,420

Lease Rental Receivables

40,188

314

44

Operating Lease Right-of-use Assets

1,743,798

1,293,526

182,189

Total non‑current Assets

4,527,303

3,163,365

445,550

Total Assets

7,790,245

6,253,562

880,795

Liabilities and Shareholders’ Equity

Current Liabilities

Long-term borrowings-current

79,148

721

102

Long-term Bank Loans-current

794,679

111,928

Convertible Senior Notes held by related parties

522,744

531,202

74,818

Convertible Senior Notes held by third parties

77

78

11

Short‑term Bank Loans

183,270

401,755

56,586

Accounts and Notes Payable

1,430,004

1,640,864

231,111

Income Tax Payable

1,563

2,777

391

Customer Advances and Deposits and
    Deferred Revenue

277,737

288,184

40,590

Accrued Expenses and Other Liabilities

1,145,654

1,091,573

153,745

Financing Lease Liabilities

11,873

418

59

Operating Lease Liabilities

544,262

509,450

71,755

Amounts Due to Related Parties

1,315

1,119

158

Total Current Liabilities

4,197,647

5,262,820

741,254

 

 

 

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

(In Thousands)

As of December 31, 2022

As of December 31, 2023

RMB

RMB

US$

Non-current Liabilities

Convertible senior notes held by related parties

522,744

Long-term borrowings

381

Operating Lease Liabilities

1,292,057

876,854

123,502

Financing Lease Liabilities

26,024

1,231

173

Other Non‑current Liabilities

18,752

22,837

3,216

Long-term Bank Loans

928,894

159,729

22,497

Total Non‑current Liabilities

2,788,852

1,060,651

149,388

Total Liabilities

6,986,499

6,323,471

890,642

Mezzanine Equity:

Convertible Non-controlling Interests

191,865

191,865

27,024

Total mezzanine equity

191,865

191,865

27,024

Shareholders’ Equity

Ordinary Shares

25,988

25,988

3,660

Treasury Shares

(23,853)

(3,360)

Additional Paid‑In Capital

19,481,417

19,529,806

2,750,715

Accumulated Deficit

(18,934,860)

(19,749,262)

(2,781,625)

Accumulated Other Comprehensive Income

124,464

119,169

16,785

BEST Inc. Shareholders’ Equity

697,009

(98,152)

(13,825)

Non-controlling Interests

(85,128)

(163,622)

(23,046)

Total Shareholders’ Equity/(Deficit)

611,881

(261,774)

(36,871)

Total Liabilities, Mezzanine Equity and
    Shareholders’ Equity/(Deficit)

7,790,245

6,253,562

880,795

 

 

 

Summary of Unaudited Condensed Consolidated Statements of Cash Flows

(In Thousands)

Three Months Ended December 31,

Fiscal Year Ended December 31,

2022

2023

2022

2023

RMB

RMB

US$

RMB

RMB

US$

Net cash (used in)/generated from
    continuing operating activities

(241,890)

884

125

(1,051,662)

(554,725)

(78,131)

Net cash used in discontinued operating
    activities

(66,174)

Net cash (used in)/generated from operating
    activities

(241,890)

884

125

(1,117,836)

(554,725)

(78,131)

Net cash generated from/(used in)    
continuing investing activities

239,536

(3,460)

(487)

150,756

698,238

98,345

Net cash generated from/(used in)
     investing activities

239,536

(3,460)

(487)

150,756

698,238

98,345

Net cash generated from/(used in)
    continuing financing activities

481

(1,752)

(247)

(1,948,367)

(377,114)

(53,115)

Net cash generated from/ (used in)
    financing activities

481

(1,752)

(247)

(1,948,367)

(377,114)

(53,115)

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

(14,864)

(73,490)

(10,352)

77,722

1,843

258

Net decrease in Cash and Cash Equivalents,
    and Restricted Cash

(16,737)

(77,818)

(10,961)

(2,837,725)

(231,758)

(32,643)

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

2,495,160

2,324,483

327,397

5,316,148

2,478,423

349,079

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

2,478,423

2,246,665

316,436

2,478,423

2,246,665

316,436

 

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

For the Company’s continuing operations, 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 5 – Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

Three Months Ended December 31, 2023

(In RMB’000)

Freight

Supply Chain

Global

Others

Unallocated(14)

Total

Net Loss

(3,519)

(12,501)

(202,039)

(11,296)

(54,166)

(283,521)

Add

Depreciation & Amortization

19,060

8,423

7,857

124

3,213

38,677

Interest Expense

13,864

13,864

Income Tax Expense/(Benefit)

32

(4)

221

249

Subtract

Interest Income

(17,848)

(17,848)

EBITDA

15,573

(4,082)

(194,182)

(10,951)

(54,937)

(248,579)

Add

 Share-based

Compensation Expenses

1,535

849

493

9

8,038

10,924

Impairment of long-lived assets

94,699

94,699

Adjusted EBITDA

17,108

(3,233)

(98,990)

(10,942)

(46,899)

(142,956)

Adjusted EBITDA Margin

1.1 %

(0.7 %)

(42.1 %)

(39.0 %)

(6.4 %)

 

Three Months Ended December 31, 2022

(In RMB’000)

Freight

Supply Chain

Global

Others

Unallocated

Total

Net Loss

(137,133)

(13,939)

(134,200)

(25,378)

(55,198)

(365,848)

Add

Depreciation & Amortization

19,411

7,492

11,682

847

4,448

43,880

Interest Expense

16,329

16,329

Income Tax (Benefit) /Expense

(12)

(5)

123

106

Subtract

Interest Income

(19,208)

(19,208)

EBITDA

(117,722)

(6,459)

(122,523)

(24,408)

(53,629)

(324,741)

Add

 Share-based

Compensation Expenses

2,237

1,259

(235)

25

12,291

15,577

Fair value change of equity
    Investments

12,312

12,312

Adjusted EBITDA

(115,485)

(5,200)

(122,758)

(24,383)

(29,026)

(296,852)

Adjusted EBITDA Margin

(9.2 %)

(1.0 %)

(62.7 %)

(101.9 %)

(15.0 %)

 

Fiscal Year Ended December 31, 2023

(In RMB’000)

Freight

Supply Chain

Global

Others

Unallocated(15)

Total

Net Loss

(121,828)

(3,239)

(541,602)

(59,653)

(182,284)

(908,606)

Add

Depreciation & Amortization

76,672

34,070

40,977

1,333

17,172

170,224

Interest Expense

64,283

64,283

Income Tax Expense/(Benefit)

54

36

(11)

1,074

(12)

1,141

Subtract

Interest Income

(83,810)

(83,810)

EBITDA

(45,102)

30,867

(500,636)

(57,246)

(184,651)

(756,768)

Add

 Share-based

Compensation Expenses

6,817

3,374

2,175

42

35,935

48,343

Impairment of long-lived assets

94,699

94,699

Adjusted EBITDA

(38,285)

34,241

(403,762)

(57,204)

(148,716)

(613,726)

Adjusted EBITDA Margin

(0.7 %)

1.8 %

(42.7 %)

(53.8 %)

(7.4 %)

 

Fiscal Year Ended December 31, 2022

(In RMB’000)

Freight

Supply Chain

Global

Others

Unallocated(16)

Total

Net Loss

(506,411)

(32,277)

(420,687)

(213,794)

(291,658)

(1,464,827)

Add

Depreciation & Amortization

79,273

35,789

29,300

22,846

22,179

189,387

Interest Expense

89,058

89,058

Income Tax Expense/(Benefit)

23

25

451

12

511

Subtract

Interest Income

(80,361)

(80,361)

EBITDA

(427,138)

3,535

(391,362)

(190,497)

(260,770)

(1,266,232)

Add

 Share-based

Compensation Expenses

10,478

6,081

4,962

319

50,256

72,096

Fair value change of equity
    Investments

12,312

12,312

Adjusted EBITDA

(416,660)

9,616

(386,400)

(190,178)

(198,202)

(1,181,824)

Adjusted EBITDA Margin

(8.5 %)

0.5 %

(42.1 %)

(162.8 %)

(15.3 %)

 

For the Company’s continuing operations, 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 6 – Reconciliation of Non-GAAP Net Loss and Non-GAAP Net Loss Margin

Three Months Ended December 31, 2023

(In RMB’000)

Freight

Supply Chain

Global

Others

Unallocated(17)

Total

Net Loss

(3,519)

(12,501)

(202,039)

(11,296)

(54,166)

(283,521)

Add

 Share-based

Compensation Expenses

1,535

849

493

9

8,038

10,924

Impairment of long-lived assets

94,699

94,699

Non-GAAP Net Loss

(1,984)

(11,652)

(106,847)

(11,287)

(46,128)

(177,898)

Non-GAAP Net Loss Margin

(0.1 %)

(2.5 %)

(45.5 %)

(40.2 %)

(8.0 %)

 

Three Months Ended December 31, 2022

(In RMB’000)

Freight

Supply Chain

Global

Others

Unallocated(18)

Total

Net Loss

(137,133)

(13,939)

(134,200)

(25,378)

(55,198)

(365,848)

Add

Share-based

Compensation Expenses

2,237

1,259

(235)

25

12,291

15,577

Fair value change of equity
    Investments

12,312

12,312

Non-GAAP Net Loss

(134,896)

(12,680)

(134,435)

(25,353)

(30,595)

(337,959)

Non-GAAP Net Loss Margin

(10.7 %)

(2.5 %)

(68.7 %)

(106.0 %)

(17.1 %)

 

Fiscal Year  Ended December 31, 2023

(In RMB’000)

Freight

Supply Chain

Global

Others

Unallocated(19)

Total

Net Loss

(121,828)

(3,239)

(541,602)

(59,653)

(182,284)

(908,606)

Add

 Share-based

Compensation Expenses

6,817

3,374

2,175

43

35,935

48,343

Impairment of long-lived assets

94,699

94,699

Non-GAAP Net Gain

(115,011)

135

(444,728)

(59,611)

(146,349)

(765,564)

Non-GAAP Net Loss Margin

(2.1 %)

0.01 %

(47.0 %)

(56.1 %)

(9.2 %)

 

Fiscal Year  Ended December 31, 2022

(In RMB’000)

Freight

Supply Chain

Global

Others

Unallocated(20)

Total

Net Loss

(506,411)

(32,277)

(420,687)

(213,794)

(291,658)

(1,464,827)

Add

 Share-based

Compensation Expenses

10,478

6,081

4,962

319

50,256

72,096

Fair value change of equity
    Investments

12,312

12,312

Non-GAAP Net Loss

(495,933)

(26,196)

(415,725)

(213,475)

(229,090)

(1,380,419)

Non-GAAP Net Loss Margin

(10.1 %)

(1.4 %)

(45.3 %)

(182.8 %)

(17.8 %)

 

For the Company’s continuing operations, the table below sets forth a reconciliation of the Company’s diluted loss per ADS to Non-GAAP diluted loss per ADS for the periods indicated:

Table 7 – Reconciliation of diluted loss per ADS and Non-GAAP diluted loss per ADS

Three Months Ended December 31,

Fiscal Year Ended December 31,

2023

2023

(In ‘000)

RMB

US$

RMB

US$

Net Loss Attributable to Ordinary Shareholders

 

(246,710)

(34,747)

(829,624)

(116,852)

Add

Share-based Compensation Expenses

10,924

1,539

48,343

6,809

Impairment of long-lived assets

94,699

13,338

94,699

13,338

Non-GAAP Net Loss Attributable to Ordinary
    Shareholders

(141,087)

(19,870)

(686,582)

(96,705)

Weighted Average Diluted Ordinary Shares
    Outstanding During the Quarter

Diluted

397,643,268

397,643,268

381,429,237

381,429,237

Diluted (Non-GAAP)

 

397,643,268

 

397,643,268

381,429,237

 

381,429,237

 

Diluted loss per ordinary share

(0.62)

(0.09)

(2.18)

(0.31)

Add

Non-GAAP adjustment to net loss per
    ordinary share

0.27

0.04

0.38

0.05

Non-GAAP diluted loss per ordinary share

(0.35)

(0.05)

(1.80)

(0.25)

Diluted loss per ADS

(12.41)

(1.75)

(43.60)

(6.20)

Add

Non-GAAP adjustment to net loss per ADS

5.31

0.75

7.50

1.06

Non-GAAP diluted loss per ADS

(7.10)

(1.00)

(36.10)

(5.14)

 

(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) In December 2021, BEST sold its China express business, the principal terms of which were previously announced. As a result, China express business has been deconsolidated from the Company and its historical financial results are reflected in the Company’s consolidated financial statements as discontinued operations accordingly. The financial information and non-GAAP financial information disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated.

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

(4) 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.

(5) Diluted earnings/loss per ADS, is calculated by dividing net income/loss 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 expressed in ADS outstanding during the period.

(6) EBITDA represents net income/loss excluding depreciation, amortization, interest expense and income tax expense and minus interest income. Adjusted EBITDA represents EBITDA excluding share-based compensation expenses, impairment of long-lived assets and fair value change of equity investments (if any).

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

(8) 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.

(9) Diluted earnings/loss per ADS, is calculated by dividing net income/loss 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 expressed in ADS outstanding during the period.

(10) EBITDA represents net income/loss excluding depreciation, amortization, interest expense and income tax expense and minus interest income. Adjusted EBITDA represents EBITDA excluding share-based compensation expenses, impairment of long-lived assets and fair value change of equity investments (if any).

(11) All numbers represented the financial results from continuing operations, unless otherwise stated.             

(12) Others” Segment primarily represents SaaS software service and Capital business units.  

(13) 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.

(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.

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

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

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

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

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

 

 

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