HANGZHOU, China, Aug. 23,
2023 /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 second quarter ended June
30, 2023.
Johnny Chou, Founder, Chairman
and CEO of BEST, commented, "We outperformed in the second quarter
by achieving both top-line growth and bottom-line improvements. At
the Group level, our gross margin turned positive to 4.2% for the
quarter compared with negative 4.6% for the same period of last
year and we narrowed our net loss by 48.7% year over year. BEST
Supply Chain Management achieved its second consecutive quarter of
profitability and reached a record high gross margin of 10.9% while
BEST Freight delivered a non-GAAP profitability in the second
quarter. Both business lines generated positive operating cash flow
for the quarter."
"BEST Freight's growth momentum has quickly accelerated. Its
second-quarter volume and revenue grew by 7.2% and 15.2% year over
year, respectively, with gross margin improving to 5.3%. We will
continue to focus on service quality, operating efficiency, digital
transformation and synergy with BEST Supply Chain Management and we
expect BEST Freight to be profitable in both the third and fourth
quarters, with positive operating cash flow for the year."
"BEST Supply Chain Management continued to benefit from the
market's increased demand for third-party integrated logistics
service partners with higher-level service offerings. With our
capabilities in technology, we are becoming more efficient and are
further differentiating BEST across the market. In the second
quarter, revenue from BEST Supply Chain Management increased by
6.7% and gross margin increased by 2.7%, both year over year. We
expect BEST Supply Chain Management to continue its profitability
in the second half of the year and generate positive operating cash
flow in 2023."
"For BEST Global, as we continue to optimize our organization
and integrated logistics service capabilities, we are improving our
service quality and network coverage, as well as expanding our
reach in cross-border opportunities. In the second quarter, BEST
Global's total volume for the cross-border business increased by
approximately 54.1% quarter-over-quarter. Looking ahead, we expect
Global's parcel volume to continue to increase and its operating
margin and bottom-line to show steady improvements."
"In summary, we saw remarkable improvements across our business
lines in the second quarter. Our primary focus remains on
delivering best-in-class service quality, digital transformation
and synergies among our business units. With this focus, we can
drive sustainable growth and profitability in the near future."
concluded Mr. Chou.
Gloria Fan, BEST's Chief
Financial Officer, added, "As we continue to benefit from our
effective strategic refocusing plan to achieve cost reductions and
better operating efficiency, Group's selling, general and
administrative expenses in the second quarter decreased by 31.4%
year over year. Our balance of cash and cash equivalents,
restricted cash, and short-term investments remained strong at
RMB3.2 billion at end of the second
quarter. As we further strengthen our service capabilities,
optimize our organizational structure and generate synergies among
our business lines, we can capture growth opportunities and create
long-term value."
FINANCIAL HIGHLIGHTS[1]
For the Second Quarter Ended June 30,
2023:[2]
- Revenue was RMB2,137.7
million (US$294.8 million),
compared to RMB1,931.0 million in the
second quarter of 2022. The increase was primarily due to increased
revenue of BEST Freight and BEST Supply Chain Management.
- Gross profit was RMB88.8
million (US$12.2 million),
compared to a gross loss of RMB89.3
million in the second quarter of 2022. The increase was
primarily due to further improvements in operating efficiency for
both Freight and Supply Chain Management. Gross profit
margin was 4.2%, compared to a gross loss margin of 4.6% in the
second quarter of 2022.
- Net Loss from continuing operations was
RMB174.4 million (US$24.1 million), compared to RMB340.1 million in the second quarter of 2022.
Non-GAAP net loss from continuing
operations[3][4] was RMB161.2
million (US$22.2 million),
compared to RMB320.2 million in the
second quarter of 2022.
- Diluted loss per ADS[5] from
continuing operations was RMB8.12
(US$1.12), compared to a loss of
RMB16.57 in the second quarter of
2022. Non-GAAP diluted loss per ADS[3][4] from
continuing operations was RMB7.46
(US$1.03), compared to a loss of
RMB15.56 in the second quarter of
2022.
- EBITDA[6] from continuing
operations was negative RMB138.1
million (US$19.0 million),
compared to negative RMB290.3 million
in the second quarter of 2022. Adjusted EBITDA[6]
from continuing operations was negative RMB124.9 million (US$17.2
million), compared to negative RMB270.3 million in the second quarter of
2022.
BEST Freight – As the market was gradually recovering and
Freight continued to improve its service quality, its volume
increased by 7.2% in the second quarter of 2023 year over year.
BEST Freight's non-GAAP net income of the quarter was RMB1.4 million, compared with a non-GAAP net loss
of RMB54.6 million in the same period
of 2022, primarily due to increased volume, higher average selling
price per tonne and improved operating efficiency. As service
quality remains the cornerstone of Freight's service, its focus
moving forward will be on further improving its operating
efficiency and ability to provide the key account customers with
high-quality services. In addition, Freight will continue to
synergize with BEST Supply Chain Management to capitalize
additional business opportunities.
BEST Supply Chain Management – Driven by its superb
service quality and enhanced digital transformation capabilities,
BEST Supply Chain Management continued its robust growth momentum
in the second quarter. Its revenue increased by 6.7% while its
distribution volume increased by 52.5% both year over year. BEST
Supply Chain Management's gross margin hit a record high of 10.9%,
which led to a net profit of RMB9.4
million in the second quarter of 2023. Highlighting BEST
Supply Chain Management as the solid foundation of our synergistic
logistics ecosystem, we will continue to invest in and improve BEST
Supply Chain's digital transformation capabilities and drive
synergies across our business lines.
BEST Global – In the second quarter, BEST Global
continued its recovery post COVID. BEST Global's volume increased
by 5.5% year over year, while total volume of the cross-border
business in the second quarter increased by approximately 54.1%
quarter-over-quarter. BEST Global also continued its efforts to
further reduce costs and improve its operating efficiency as well
as expand the coverage for small- and medium-sized enterprises. As
this momentum continues and incremental gains are made, the Company
expects that BEST Global's volume will continue to grow, and its
operating margin and bottom line will continue to improve in the
second half of 2023.
Others – The Company continued to wind down its
Capital business line and expects to complete the wind-down by the
end of 2023.
Key Operational Metrics
|
Three Months
Ended
|
% Change
YOY
|
|
June 30,
2021
|
|
June 30,
2022
|
|
June 30,
2023
|
|
2022 vs
2021
|
|
2023 vs
2022
|
|
|
|
|
|
Freight Volume (Tonne
in '000)
|
2,438
|
|
2,223
|
2,383
|
|
(8.8 %)
|
|
7.2 %
|
Supply Chain
Management
volume (Tonne in '000)
|
310
|
400
|
610
|
|
29.0 %
|
52.5 %
|
Global Parcel Volume
in SEA
(in '000)
|
38,761
|
|
30,782
|
|
32,480
|
|
(20.6 %)
|
|
5.5 %
|
FINANCIAL RESULTS[7]
For the Second Quarter Ended June 30,
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
|
|
|
June 30,
2022
|
|
June 30,
2023
|
|
|
(In '000, except for
%)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
% Change
YOY
|
Total
Freight
|
1,208,435
|
62.6 %
|
|
1,392,625
|
192,052
|
65.2 %
|
|
15.2 %
|
Supply Chain
Management
|
450,984
|
23.4 %
|
|
481,206
|
66,361
|
22.5 %
|
|
6.7 %
|
Global
|
241,171
|
12.5 %
|
|
239,381
|
33,012
|
11.2 %
|
|
(0.7 %)
|
Others[8]
|
30,378
|
1.5 %
|
|
24,463
|
3,374
|
1.1 %
|
|
(19.5 %)
|
Total
Revenue
|
1,930,968
|
100.0 %
|
|
2,137,675
|
294,799
|
100.0 %
|
|
10.7 %
|
- Freight Service Revenue was RMB1,392.6
million (US$192.1 million) for
the second quarter of 2023, compared with RMB1,208.4 million in the same period last year.
Freight service revenue increased by 15.2% year over year,
primarily resulting from increases in both freight volume and
average selling price per tonne.
- Supply Chain Management Service Revenue increased by 6.7% year
over year to RMB481.2 million
(US$66.4 million) for the second
quarter of 2023, up from RMB451.0
million in the same period of last year, primarily
attributable to an expanded customer base and increased volume from
existing customers.
- Global Service Revenue decreased by 0.7% year over year to
RMB239.4 million (US$33.0 million) for the second quarter of 2023
from RMB241.2 million in the same
period last year primarily due to lower parcel volume in
Thailand, which was partially
offset by steady increases in parcel volume in Vietnam and Malaysia.
Cost of Revenue
The following table sets forth a breakdown of cost of revenue by
business segment for the periods indicated.
Table 2 – Breakdown
of Cost of Revenue by Business Segment
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
% of Revenue
Change
YOY
|
|
June 30,
2022
|
|
June 30,
2023
|
|
(In '000, except for
%)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
Freight
|
(1,302,523)
|
107.8 %
|
|
(1,319,356)
|
(181,948)
|
94.7 %
|
|
(13.0ppt)
|
Supply Chain
Management
|
(413,910)
|
91.8 %
|
|
(428,870)
|
(59,144)
|
89.1 %
|
|
(2.7ppt)
|
Global
|
(276,554)
|
114.7 %
|
|
(287,726)
|
(39,679)
|
120.2 %
|
|
5.5ppt
|
Others
|
(27,273)
|
89.8 %
|
|
(12,911)
|
(1,781)
|
52.8 %
|
|
(37.0ppt)
|
Total Cost of
Revenue
|
(2,020,260)
|
104.6 %
|
|
(2,048,863)
|
(282,551)
|
95.8 %
|
|
(8.8ppt)
|
- Cost of Revenue for Freight was RMB1,319.4 million (US$181.9 million), or 94.7% of revenue in the
second quarter of 2023. The 13.0 percentage point year-over-year
decrease in cost of revenue as a percentage of revenue was mainly
due to higher volume and reduced unit cost.
- Cost of Revenue for Supply Chain Management was RMB428.9 million (US$59.1
million), or 89.1% of revenue in the second quarter of 2023.
The 2.7 percentage point year-over-year decrease in cost of revenue
as a percentage of revenue was primarily due to improved operating
efficiency and optimized customer structure.
- Cost of Revenue for Global was RMB287.7
million (US$39.7 million), or
120.2% of revenue in the second quarter of 2023. The 5.5%
year-over-year increase in cost of revenue as a percentage of
revenue was primarily due to lower parcel volume in
Thailand.
Gross Profit was RMB88.8
million (US$12.2 million),
compared to a gross loss of RMB89.3
million in the second quarter of 2022; Gross Margin
was positive 4.2%, compared to negative 4.6% in the second quarter
of 2022.
Operating Expenses
Selling, General and Administrative ("SG&A") Expenses
were RMB228.9 million (US$31.6 million), or 10.7% of revenue, in the
second quarter of 2023, compared to RMB333.8
million, or 17.3% of revenue, in the same period of 2022.
SG&A expenses in the second quarter decreased by 31.4% year
over year due to reduced headcount and bad debt expense.
Research and Development Expenses were RMB29.9 million (US$4.1
million) or 1.4% of revenue in the second quarter of 2023,
compared to RMB42.1 million or 2.2%
of revenue in the second quarter of 2022, primarily due to reduced
headcount.
Share-based Compensation ("SBC") Expenses included in the
cost and expense items above were RMB13.2
million (US$1.8 million) in
the second quarter of 2023, compared to RMB19.9 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$0.1 million) was
allocated to selling expenses, RMB11.8
million (US$1.6 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 second quarter
of 2023 was RMB174.4 million
(US$24.1 million), compared to
RMB340.1 million in the same period
of 2022. Excluding SBC expenses, non-GAAP net loss from
continuing operations in the second quarter of 2023 was
RMB161.2 million (US$22.2 million), compared to RMB320.2 million in the second 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
second quarter of 2023 was RMB8.12
(US$1.12), compared to a loss of
RMB16.57 in the same period of 2022.
Excluding SBC expenses non-GAAP diluted loss per ADS from
continuing operations in the second quarter of 2023 was
RMB7.46 (US$1.03), compared to a loss of RMB15.56 in the second 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 second
quarter of 2023 was negative RMB124.9
million (US$17.2 million),
compared to negative RMB270.3 million
in the same period of 2022. Adjusted EBITDA margin from
continuing operations in the second quarter of 2023 was
negative 5.8%, compared to negative 14.0% in the same period of
2022.
Cash and Cash Equivalents, Restricted Cash and Short-term
Investments
As of June 30, 2023, cash and cash
equivalents, restricted cash and short-term investments were
RMB3,177.5 million (US$438.2 million), compared to RMB4,413.0 million as of June 30, 2022. In 2022, the Company bought back
approximately US$200 million
(RMB1.4 billion) 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 the second
quarter of 2023 was RMB158.0 million
(US$21.8 million), compared to
RMB304.8 million of net cash used in
continuing operating activities in the same period of 2022. The
decrease in net cash used in operating activities was mainly due to
the decreased net loss in the second quarter of 2023.
SHARES OUTSTANDING
As of August 11, 2023, the Company
had approximately 397.6 million ordinary shares outstanding
[9]. Each American Depositary Share represents twenty
(20) Class A ordinary shares.
As previously announced, effective from April 4, 2023, the Company has 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.
FINANCIAL GUIDANCE
The Company confirms its guidance for total revenue between
RMB8.5 billion and RMB9.5 billion for the full year of 2023.
This forecast reflects the Company's current and preliminary
view based on its current business situation and market conditions,
which are subject to change.
WEBCAST AND CONFERENCE CALL INFORMATION
The Company will hold a conference call at 9:00 pm U.S. Eastern Time on August 23, 2023 (9:00
am Beijing Time on August 24,
2023), to discuss its financial results and operating
performance for the second quarter of 2023.
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
: 5464411
A replay of the conference call will be accessible through
August 31, 2023 by dialing the
following numbers:
United
States
: +1-877-344-7529
International
: +1-412-317-0088
Replay Access Code
:
9570777
Please visit the Company's investor relations website 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 and Southeast
Asia. 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
June 30,
|
Six Months Ended
June 30,
|
|
2022
|
2023
|
2022
|
2023
|
|
|
RMB
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
|
Revenue
|
|
|
|
|
|
|
|
Freight
|
1,208,435
|
1,392,625
|
192,052
|
2,301,249
|
2,444,498
|
337,112
|
|
Supply Chain
Management
|
450,984
|
481,206
|
66,361
|
859,946
|
921,460
|
127,075
|
|
Global
|
241,171
|
239,381
|
33,012
|
509,880
|
436,409
|
60,184
|
|
Others
|
30,378
|
24,463
|
3,374
|
62,478
|
50,570
|
6,974
|
|
Total
Revenue
|
1,930,968
|
2,137,675
|
294,799
|
3,733,553
|
3,852,937
|
531,344
|
|
Cost of
Revenue
|
|
|
|
|
|
|
|
Freight
|
(1,302,523)
|
(1,319,356)
|
(181,948)
|
(2,472,837)
|
(2,373,991)
|
(327,388)
|
|
Supply Chain
Management
|
(413,910)
|
(428,870)
|
(59,144)
|
(805,117)
|
(833,220)
|
(114,906)
|
|
Global
|
(276,554)
|
(287,726)
|
(39,679)
|
(562,232)
|
(536,930)
|
(74,046)
|
|
Others
|
(27,273)
|
(12,911)
|
(1,781)
|
(59,498)
|
(28,449)
|
(3,923)
|
|
Total Cost of
Revenue
|
(2,020,260)
|
(2,048,863)
|
(282,551)
|
(3,899,684)
|
(3,772,590)
|
(520,264)
|
|
Gross
(Loss)/Profit
|
(89,292)
|
88,812
|
12,248
|
(166,131)
|
80,347
|
11,080
|
|
Selling
Expenses
|
(66,130)
|
(62,670)
|
(8,643)
|
(121,056)
|
(116,487)
|
(16,064)
|
|
General and
Administrative
Expenses
|
(267,632)
|
(166,199)
|
(22,920)
|
(467,686)
|
(360,089)
|
(49,659)
|
|
Research and
Development
Expenses
|
(42,127)
|
(29,928)
|
(4,127)
|
(75,302)
|
(58,625)
|
(8,085)
|
|
Other operating
income/(expense), net
|
116,975
|
476
|
66
|
119,615
|
(890)
|
(123)
|
|
Loss from
Operations
|
(348,206)
|
(169,509)
|
(23,376)
|
(710,560)
|
(455,744)
|
(62,850)
|
|
Interest
Income
|
25,554
|
26,001
|
3,586
|
41,172
|
47,679
|
6,575
|
|
Interest
Expense
|
(25,738)
|
(16,998)
|
(2,344)
|
(52,160)
|
(34,619)
|
(4,774)
|
|
Foreign Exchange
Loss
|
(107,265)
|
(46,661)
|
(6,435)
|
(102,420)
|
(31,937)
|
(4,404)
|
|
Other Income
|
19,426
|
5,243
|
723
|
21,108
|
10,467
|
1,443
|
|
Other
Expense
|
20,422
|
(3,065)
|
(423)
|
20,042
|
(3,716)
|
(512)
|
|
Gain on changes in the
fair value
of
derivative assets/liabilities
|
75,757
|
30,765
|
4,243
|
63,088
|
36,157
|
4,986
|
|
Loss before Income
Tax and
Share of Net Loss of Equity
Investees
|
(340,050)
|
(174,224)
|
(24,027)
|
(719,730)
|
(431,713)
|
(59,536)
|
|
Income Tax
Expense
|
(93)
|
(186)
|
(26)
|
(312)
|
(324)
|
(45)
|
|
Loss before Share of
Net loss
of Equity Investees
|
(340,143)
|
(174,410)
|
(24,052)
|
(720,042)
|
(432,037)
|
(59,581)
|
|
Net Loss from
continuing
operations
|
(340,143)
|
(174,410)
|
(24,052)
|
(720,042)
|
(432,037)
|
(59,581)
|
|
Net income from
discontinued
operations
|
2,511
|
15,222
|
2,099
|
2,227
|
15,222
|
2,099
|
|
Net
Loss
|
(337,632)
|
(159,188)
|
(21,953)
|
(717,815)
|
(416,815)
|
(57,481)
|
|
Net Loss from
continuing
operations attributable to non-
controlling interests
|
(8,929)
|
(13,801)
|
(1,903)
|
(16,949)
|
(27,229)
|
(3,755)
|
|
Net Loss
attributable to BEST Inc.
|
(328,703)
|
(145,387)
|
(20,050)
|
(700,866)
|
(389,586)
|
(53,726)
|
|
|
|
|
|
|
|
|
|
|
Summary of Unaudited
Condensed Consolidated Balance Sheets
|
(In
Thousands)
|
|
|
|
|
|
|
|
|
|
As of December
31,2022
|
As of June 30,
2023
|
|
|
RMB
|
|
RMB
|
US$
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and Cash
Equivalents
|
533,481
|
|
1,228,532
|
169,422
|
Restricted
Cash
|
399,337
|
|
250,002
|
34,477
|
Accounts and Notes
Receivables
|
691,324
|
|
786,753
|
108,498
|
Inventories
|
16,480
|
|
12,093
|
1,668
|
Prepayments and Other
Current Assets
|
777,842
|
|
686,845
|
94,720
|
Short–term
Investments
|
725,043
|
|
108,883
|
15,016
|
Amounts Due from
Related Parties
|
76,368
|
|
61,721
|
8,512
|
Lease Rental
Receivables
|
43,067
|
|
55,815
|
7,697
|
Total Current
Assets
|
3,262,942
|
|
3,190,644
|
440,010
|
Non–current
Assets
|
|
|
|
|
Property and Equipment,
Net
|
784,732
|
|
735,465
|
101,425
|
Intangible Assets,
Net
|
75,553
|
|
85,836
|
11,837
|
Long–term
Investments
|
156,859
|
|
156,859
|
21,632
|
Goodwill
|
54,135
|
|
54,135
|
7,466
|
Non–current
Deposits
|
50,767
|
|
69,712
|
9,614
|
Other Non–current
Assets
|
75,666
|
|
91,474
|
12,615
|
Restricted
Cash
|
1,545,605
|
|
1,590,047
|
219,278
|
Lease Rental
Receivables
|
40,188
|
|
1,700
|
234
|
Operating Lease
Right-of-use Assets
|
1,743,798
|
|
1,493,970
|
206,028
|
Total non–current
Assets
|
4,527,303
|
|
4,279,198
|
590,128
|
Total
Assets
|
7,790,245
|
|
7,469,842
|
1,030,138
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Long-term
borrowings-current
|
79,148
|
|
26,738
|
3,687
|
Convertible Senior
Notes held by related parties
|
522,744
|
|
541,935
|
74,736
|
Convertible Senior
Notes held by third parties
|
77
|
|
79
|
11
|
Short–term Bank
Loans
|
183,270
|
|
492,203
|
67,878
|
Accounts and Notes
Payable
|
1,430,004
|
|
1,528,489
|
210,788
|
Income Tax
Payable
|
1,563
|
|
1,985
|
274
|
Customer Advances and
Deposits and Deferred
Revenue
|
277,737
|
|
293,294
|
40,447
|
Accrued Expenses and
Other Liabilities
|
1,145,654
|
|
1,057,385
|
145,820
|
Financing Lease
Liabilities
|
11,873
|
|
1,404
|
194
|
Operating Lease
Liabilities
|
544,262
|
|
529,305
|
72,994
|
Amounts Due to Related
Parties
|
1,315
|
|
1,812
|
250
|
Total Current
Liabilities
|
4,197,647
|
|
4,474,629
|
617,080
|
|
|
|
|
|
|
Summary of Unaudited
Condensed Consolidated Balance Sheets (Cont'd)
|
(In
Thousands)
|
|
|
|
|
|
|
|
|
|
As of December 31,
2022
|
|
As of June 30,
2023
|
|
RMB
|
|
RMB
|
US$
|
Non-current
Liabilities
|
|
|
|
|
Convertible senior
notes held by
related
parties
|
522,744
|
|
541,935
|
74,736
|
Long-term
borrowings
|
381
|
|
-
|
-
|
Operating Lease
Liabilities
|
1,292,057
|
|
1,068,432
|
147,344
|
Financing Lease
Liabilities
|
26,024
|
|
1,431
|
197
|
Other Non–current
Liabilities
|
18,752
|
|
25,329
|
3,493
|
Long-term Bank
Loans
|
928,894
|
|
967,880
|
133,477
|
Total Non–current
Liabilities
|
2,788,852
|
|
2,605,007
|
359,247
|
Total
Liabilities
|
6,986,499
|
|
7,079,636
|
976,327
|
Mezzanine
Equity:
|
|
|
|
|
Convertible
Non-controlling Interests
|
191,865
|
|
191,865
|
26,459
|
Total mezzanine
equity
|
191,865
|
|
191,865
|
26,459
|
Shareholders'
Equity
|
|
|
|
|
Ordinary
Shares
|
25,988
|
|
25,988
|
3,584
|
Treasury
Shares
|
-
|
|
(13,256)
|
(1,828)
|
Additional Paid–In
Capital
|
19,481,417
|
|
19,506,687
|
2,690,095
|
Accumulated
Deficit
|
(18,934,860)
|
|
(19,324,447)
|
(2,664,963)
|
Accumulated Other
Comprehensive Income
|
124,464
|
|
115,238
|
15,892
|
BEST Inc.
Shareholders' Equity
|
697,009
|
|
310,210
|
42,780
|
Non-controlling
Interests
|
(85,128)
|
|
(111,869)
|
(15,427)
|
Total Shareholders'
Equity
|
611,881
|
|
198,341
|
27,352
|
Total Liabilities,
Mezzanine Equity
and Shareholders' Equity
|
7,790,245
|
|
7,469,842
|
1,030,138
|
Summary of Unaudited
Condensed Consolidated Statements of Cash Flows
|
(In
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
|
|
2022
|
2023
|
|
2022
|
2023
|
|
|
RMB
|
RMB
|
US$
|
|
RMB
|
RMB
|
US$
|
Net cash used in
continuing operating
activities
|
(304,799)
|
(157,992)
|
(21,788)
|
|
(559,397)
|
(321,180)
|
(44,293)
|
Net cash used in
discontinued
operating activities
|
(8,759)
|
-
|
-
|
|
(58,257)
|
-
|
-
|
Net cash used in
operating
activities
|
(313,558)
|
(157,992)
|
(21,788)
|
|
(617,654)
|
(321,180)
|
(44,293)
|
Net cash (used
in)/generated from
continuing investing
activities
|
(100,994)
|
(46,514)
|
(6,415)
|
|
(980,536)
|
636,486
|
87,775
|
Net cash (used
in)/generated from
discontinued Investing activities
|
-
|
-
|
-
|
|
-
|
-
|
-
|
Net cash generated
from/(used in)
investing activities
|
(100,994)
|
(46,514)
|
(6,415)
|
|
(980,536)
|
636,486
|
87,775
|
Net cash
(used
in)/generated from
continuing financing activities
|
(821,512)
|
109,316
|
15,075
|
|
(966,796)
|
226,935
|
31,296
|
Net cash (used
in)/generated from
discontinued financing activities
|
-
|
-
|
-
|
|
-
|
-
|
-
|
Net
cash (used in)/generated from
financing activities
|
(821,512)
|
109,316
|
15,075
|
|
(966,796)
|
226,935
|
31,296
|
Exchange Rate Effect on
Cash and Cash Equivalents, and Restricted
Cash
|
71,659
|
61,139
|
8,431
|
|
48,104
|
47,917
|
6,608
|
Net
(decrease)/increase in Cash
and Cash Equivalents, and
Restricted Cash
|
(1,164,405)
|
(34,051)
|
(4,696)
|
|
(2,516,882)
|
590,158
|
81,387
|
Cash and Cash
Equivalents, and
Restricted Cash at Beginning of
Period
|
3,963,671
|
3,102,633
|
427,873
|
|
5,316,148
|
2,478,423
|
341,790
|
Cash and Cash
Equivalents,
and Restricted Cash
at End of Period
|
2,799,266
|
3,068,582
|
423,177
|
|
2,799,266
|
3,068,581
|
423,177
|
Less: Cash and Cash
Equivalents,
and Restricted Cash held for sales
at end of the Period
|
-
|
-
|
-
|
|
-
|
-
|
-
|
Cash and Cash
Equivalents, and
Restricted Cash from continuing
operations at End of Period
|
2,799,266
|
3,068,582
|
423,177
|
|
2,799,266
|
3,068,581
|
423,177
|
|
|
|
|
|
|
|
|
|
|
|
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)/income to
EBITDA, adjusted EBITDA and adjusted EBITDA margin for the periods
indicated:
Table 3 –
Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA
Margin
|
|
|
|
|
|
Three Months Ended
June 30, 2023
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated[10]
|
Total
|
Net
(Loss)/Income
|
(369)
|
9,363
|
(113,099)
|
(11,002)
|
(59,303)
|
(174,410)
|
Add
|
|
|
|
|
|
|
Depreciation &
Amortization
|
18,966
|
8,441
|
12,610
|
417
|
4,720
|
45,154
|
Interest
Expense
|
-
|
-
|
-
|
-
|
16,998
|
16,998
|
Income Tax
Expense
|
20
|
39
|
-
|
139
|
(12)
|
186
|
Subtract
|
|
|
|
|
|
|
Interest
Income
|
-
|
-
|
-
|
-
|
(26,001)
|
(26,001)
|
EBITDA
|
18,617
|
17,843
|
(100,489)
|
(10,446)
|
(63,598)
|
(138,073)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
1,750
|
872
|
522
|
4
|
10,025
|
13,173
|
Adjusted
EBITDA
|
20,367
|
18,715
|
(99,967)
|
(10,442)
|
(53,573)
|
(124,900)
|
Adjusted
EBITDA
Margin
|
1.5 %
|
3.9 %
|
(41.8 %)
|
(42.7 %)
|
-
|
(5.8 %)
|
|
Three Months Ended
June 30, 2022
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated
|
Total
|
Net
Income/(Loss)
|
(57,418)
|
12,094
|
(105,085)
|
(82,439)
|
(107,295)
|
(340,143)
|
Add
|
|
|
|
|
|
|
Depreciation &
Amortization
|
20,188
|
9,416
|
5,977
|
6,706
|
7,315
|
49,602
|
Interest
Expense
|
-
|
-
|
-
|
-
|
25,738
|
25,738
|
Income Tax
Expense
|
-
|
45
|
12
|
24
|
12
|
93
|
Subtract
|
|
|
|
|
|
|
Interest
Income
|
-
|
-
|
-
|
-
|
(25,554)
|
(25,554)
|
EBITDA
|
(37,230)
|
21,555
|
(99,096)
|
(75,709)
|
(99,784)
|
(290,264)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
2,777
|
1,686
|
1,415
|
128
|
13,934
|
19,940
|
Adjusted
EBITDA
|
(34,453)
|
23,241
|
(97,681)
|
(75,581)
|
(85,850)
|
(270,324)
|
Adjusted
EBITDA
Margin
|
(1.8 %)
|
1.2 %
|
(5.1 %)
|
(3.9 %)
|
-
|
(14.0 %)
|
For the Company's continuing operations, the table below sets
forth a reconciliation of the Company's net (loss)/income to
non-GAAP net Income/(loss), non-GAAP net Income/(loss) margin for
the periods indicated:
Table 4 –
Reconciliation of Non-GAAP Net (Loss)/Income and Non-GAAP Net
(Loss)/Income Margin
|
|
|
|
|
|
Three Months Ended
June 30, 2023
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated
|
Total
|
Net (Loss)/Income
|
(369)
|
9,363
|
(113,099)
|
(11,002)
|
(59,303)
|
(174,410)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
1,750
|
872
|
522
|
4
|
10,025
|
13,173
|
Non-GAAP Net
(Loss)/Income
|
1,381
|
10,235
|
(112,577)
|
(10,998)
|
(49,278)
|
(161,237)
|
Non-GAAP Net
(Loss)/Income
Margin
|
0.1 %
|
2.1 %
|
(47.0 %)
|
(45.0 %)
|
-
|
(7.5 %)
|
|
Three Months
Ended June 30, 2022
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated
|
Total
|
Net
Income/(Loss)
|
(57,418)
|
12,094
|
(105,085)
|
(82,439)
|
(107,295)
|
(340,143)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
2,777
|
1,686
|
1,415
|
128
|
13,934
|
19,940
|
Non-GAAP
Net
Income/(Loss)
|
(54,641)
|
13,780
|
(103,670)
|
(82,311)
|
(93,361)
|
(320,203)
|
Non-GAAP
Net
Income/(Loss)
Margin
|
(2.8 %)
|
0.7 %
|
(5.4 %)
|
(4.3 %)
|
-
|
(16.6 %)
|
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 5 –
Reconciliation of diluted loss per ADS and Non-GAAP diluted loss
per ADS
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2023
|
(In
'000)
|
RMB
|
US$
|
|
RMB
|
US$
|
Net Loss Attributable
to Ordinary Shareholders
|
(160,609)
|
(22,149)
|
|
(404,808)
|
(55,826)
|
Add
|
|
|
|
|
|
Share-based
Compensation Expenses
|
13,173
|
1,817
|
|
25,266
|
3,484
|
Non-GAAP Net Loss
Attributable to Ordinary
Shareholders
|
(147,436)
|
(20,332)
|
|
(379,542)
|
(52,341)
|
Weighted Average
Diluted Ordinary
Shares
Outstanding During the Quarter
|
|
|
|
|
|
Diluted
|
395,518,481
|
395,518,481
|
|
394,952,425
|
394,952,425
|
Diluted
(Non-GAAP)
|
395,518,481
|
395,518,481
|
|
394,952,425
|
394,952,425
|
Diluted loss
per ordinary share
|
(0.41)
|
(0.06)
|
|
(1.02)
|
(0.14)
|
Add
|
|
|
|
|
|
Non-GAAP adjustment to
net loss per
ordinary share
|
0.04
|
0.01
|
|
0.06
|
0.01
|
Non-GAAP diluted
loss per ordinary share
|
(0.37)
|
(0.05)
|
|
(0.96)
|
(0.13)
|
|
|
|
|
|
|
Diluted loss
per ADS
|
(8.12)
|
(1.12)
|
|
(20.50)
|
(2.83)
|
Add
|
|
|
|
|
|
Non-GAAP adjustment to
net loss per ADS
|
0.66
|
0.09
|
|
1.28
|
0.18
|
Non-GAAP diluted
loss per ADS
|
(7.46)
|
(1.03)
|
|
(19.22)
|
(2.65)
|
[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 2022, 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, 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 and fair value change of equity investments
(if any).
[7] All
numbers represented the financial results from continuing
operations, unless otherwise stated.
[8] "Others" Segment
primarily represents Capital business
unit.
[9] 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.
[10] Unallocated
expenses are primarily related to corporate administrative expenses
and other miscellaneous items that are not allocated to individual
segments.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/best-inc-announces-unaudited-second-quarter-2023-financial-results-301907948.html
SOURCE BEST Inc.