HANGZHOU, China, March 8, 2022 /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 fourth quarter and fiscal year
ended December 31, 2021.
Johnny Chou, Founder, Chairman
and Chief Executive Officer of BEST, commented, "Successfully
completing the sale of China
express business in the fourth quarter, we exited the year with a
leaner and more focused organization. We now have a much stronger
capital base and a clear path to support our sustainable growth and
profitability.
"Following a smooth Express handover, BEST Freight rebounded
strongly in December, narrowing its net loss by 50%
month-over-month. Supply Chain Management focused on higher margin
accounts and expanded its franchised Cloud OFCs network in
preparation for new customer acquisition. Global's results remained
encouraging with parcel volume growing 57% YoY for the quarter and
104% YoY for the full year despite the persistent impact of
COVID-19.
"In 2022, our businesses are better aligned for near and
long-term success, with a stronger ability to return value to our
stakeholders and partners," Mr. Chou continued. "By focusing on our
core competencies in freight, integrated supply chain management
and global logistics solutions while maximizing revenue and cost
synergies, we expect to grow the top line of our core segments by
15% to 20%YoY in 2022, and aim to reach profitability in Freight
and Supply Chain Management by second half of the year."
Gloria Fan, BEST's Chief
Financial Officer, added, "Our fourth quarter capped a critical
year of decisive business adjustments. Built on the strength of our
main business pillars, we have paved the way for BEST's future
growth. With a challenging macro environment and the short-term
effects of our strategic recalibration, our fourth quarter revenue
was RMB2.7 billion. We also continued
to streamline our costs and strengthen our operating efficiency
during the quarter. Most importantly, we significantly improved our
balance sheet. We now have a lower debt level and sufficient cash.
We hope to transition to a year of growth in 2022, with an
efficient organization guided by a clear roadmap."
FINANCIAL HIGHLIGHTS([1])
For the Fourth Quarter Ended December
31, 2021([2]):
- Revenue was RMB2,724.9
million (US$427.6 million), a
decrease of 20.3% year-over-year ("YoY"). The revenue decrease was
primarily due to the winding-down of UCargo business and a decrease
in Freight revenue partially offset by the growth of Global's
revenue.
- Gross Loss was RMB228.4
million (US$35.8 million),
compared to gross profit of RMB115.3
million in 2020. Gross Loss Margin was 8.4%, which
decreased by 11.8 percentage points ("ppts") YoY.
- Net Loss from continuing operations was
RMB734.1 million (US$115.2 million), compared to RMB252.2 million in 2020. Non-GAAP Net Loss
from continuing operations
([3])([4]) was RMB710.4 million (US$111.5
million), compared to RMB236.7
million in 2020.
- Net Income was RMB1,945.3
million (US$305.3 million),
compared to Net Loss of RMB630.1
million in 2020. The increase was primarily due to the gain
related to the sale of our China
express business.
- Diluted EPS([5]) from continuing
operations was negative RMB1.81
(US$0.28), compared to negative
RMB0.64 in 2020. Non-GAAP Diluted
EPS(3)(4) from continuing operations was negative
RMB1.75 (US$0.28), compared to negative RMB0.60 in 2020.
- EBITDA([6]) from continuing operations
was negative RMB658.9 million
(US$103.4 million), compared to
negative RMB182.6 million in 2020.
Adjusted EBITDA(3)(5) from continuing
operations was negative RMB635.2
million (US$99.7 million),
compared to negative RMB167.1million
in 2020.
For the Fiscal Year Ended December 31,
2021:
- Revenue was RMB11,425.8
million (US$1,793.0 million),
an increase of 8.5% YoY. The revenue increase was primarily due to
increased volume in Freight and Global, partially offset by a
decrease in Freight average selling price ("ASP").
- Gross Loss was RMB199.4
million (US$31.3 million),
compared to gross profit of RMB242.3
million in 2020. The decrease was primarily due to a steeper
ASP decrease than unit cost reduction in the Freight business.
Gross Margin was negative 1.7%, a decrease of 4.0 ppts
YoY.
- Net Loss from continuing operations was
RMB1,263.9 million (US$198.3 million), compared to RMB1,028.4 million in 2020. Non-GAAP Net
Loss from continuing operations was
RMB1,220.4 million (US$191.5 million), compared to RMB928.9 million in 2020.
- Net Income was RMB209.6
million (US$32.9 million),
compared to net loss of RMB2,051.2
million in 2020. The increase was primarily due to the gain
related to the sale of our China
express business.
- Diluted EPS from continuing operations was negative
RMB3.12 (US$0.49), compared to negative RMB2.59 in 2020. Non-GAAP Diluted EPS
from continuing operations was negative RMB3.01 (US$0.47),
compared to negative RMB2.29 in
2020.
- EBITDA from continuing operations was negative
RMB976.2 million (US$153.2 million), compared to negative
RMB789.7 million in 2020. Adjusted
EBITDA from continuing operations was negative
RMB932.7 million (US$146.4 million), compared to negative
RMB693.0 million in 2020.
BUSINESS HIGHLIGHTS([7])
BEST Express – On December 17,
2021, the Company announced the closing and completion of
the sale of China express business
(the "Business") to J&T Express Co., Ltd. ("J&T Express
China"). The agreement has been approved by relevant regulatory
agencies and the final transaction has been completed pursuant to
the terms of the agreement. The Business has been transferred to
J&T Express China.
BEST Freight – In the fourth quarter of 2021, the Company
remained focused on developing its e-commerce related business,
which contributed 21.8% of total volume during the quarter, up 4.8
ppts YoY. In addition to the challenging macro environment such as
the resurgence of the pandemic, the increasing oil price and power
shortage, Freight's performance was affected by the difficulty in
Express operations, as Express and Freight shared certain
franchisees and suppliers. Freight volume decreased by 8.2% YoY in
the fourth quarter, but the volume for the full year increased by
9.8% YoY.
After the Express handover was largely completed, Freight volume
significantly recovered and the loss was narrowed month-over-month
in December.
BEST Supply Chain Management – During the quarter, the
Company continued to enlarge its franchised Cloud OFCs network for
future growth and prioritize higher margin accounts. As the
result of discontinuing certain low margin legacy customers, the
total number of orders fulfilled by Cloud OFCs decreased 9.4% YoY
to 123.3 million in the fourth quarter, of which the total number
of orders fulfilled by franchised Cloud OFCs increased by 10.9% YoY
to 74.4 million. Its fourth quarter gross margin decreased by 0.6
ppts YoY, primarily due to one-off costs incurred by discontinuing
lower-margin accounts. Full-year gross margin increased by 0.6 ppts
YoY. In fiscal year 2021, the total number of orders fulfilled by
Cloud OFCs increased by 3.5% YoY to 448.2 million and the total
number of orders fulfilled by franchised Cloud OFCs increased by
25.0% YoY to 268.3 million.
BEST Global – Global made solid progress in its
cross-border and local business in Southeast Asia and North America with expanded margin for the
quarter. Despite the continuous impact from COVID-19, parcel volume
in Southeast Asia increased by
56.7% to 43.7 million in the fourth quarter. Global's gross margin
expanded by 3.0 ppts YoY, due to much improved economies of scale
from increased market share and continued improvements in service
quality and cost control. In fiscal year of 2021, total parcel
volume in Southeast Asia increased
by 104.4% compared to the prior year, with YoY growth rates of
87.7%, 87.1%, 609.2%, 336.8% and 522.6% from Thailand, Vietnam, Malaysia, Cambodia, and Singapore, respectively.
Others:
As part of the strategic refocusing plan, the Company started
the process of winding down UCargo and Capital business lines in
the fourth quarter of 2021 to realign BEST's business around our
core competencies.
Key Operational Metrics
|
Three Months
Ended
|
% Change
YoY
|
|
December 31,
2019
|
|
December 31,
2020
|
|
December 31,
2021
|
|
2020 vs
2019
|
|
2021 vs
2020
|
|
|
|
|
|
Freight Volume (Tonne
in '000)
|
2,097
|
2,623
|
2,408
|
|
25.1%
|
(8.2%)
|
Supply Chain
Management
Orders Fulfilled (in '000)
|
121,907
|
136,126
|
123,309
|
|
11.7%
|
(9.4%)
|
Global Parcel Volume
in
Southeast Asia (in '000)
|
5,157
|
|
27,891
|
|
43,707
|
|
440.9%
|
|
56.7%
|
|
Fiscal Year
Ended
|
% Change
YoY
|
|
December 31,
2019
|
|
December 31,
2020
|
|
December 31,
2021
|
|
2020 vs
2019
|
|
2021vs
2020
|
|
|
|
|
|
Freight Volume (Tonne
in '000)
|
6,980
|
8,392
|
9,218
|
|
20.2%
|
9.8%
|
Supply Chain
Management
Orders Fulfilled (in '000)
|
356,905
|
433,224
|
448,202
|
|
21.4%
|
3.5%
|
Global Parcel Volume
in
Southeast Asia (in '000)
|
8,785
|
|
73,585
|
|
150,392
|
|
737.6%
|
|
104.4%
|
FINANCIAL RESULTS([8])
For the Fourth Quarter Ended December
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
|
|
|
December 31,
2020
|
|
December 31,
2021
|
|
|
(In '000, except
for %)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
%
Change YoY
|
Freight
|
1,624,756
|
47.5%
|
|
1,503,995
|
236,010
|
55.2%
|
|
(7.4%)
|
Supply Chain
Management
|
542,332
|
15.9%
|
|
487,337
|
76,474
|
17.9%
|
|
(10.1%)
|
Global
|
253,351
|
7.4%
|
|
330,564
|
51,873
|
12.1%
|
|
30.5%
|
Others(9)
|
1,000,115
|
29.2%
|
|
402,958
|
63,233
|
14.8%
|
|
(59.7%)
|
Total
Revenue
|
3,420,554
|
100.0%
|
|
2,724,854
|
427,590
|
100.0%
|
|
(20.3%)
|
- Freight Service Revenue decreased by 7.4% YoY to RMB1,504.0 million (US$236.0 million) from RMB1,624.8 million, primarily due to an 8.2%
decrease in freight volume, partially offset by a 1.0% increase in
ASP per tonne.
- Supply Chain Management Service Revenue decreased by 10.1% YoY
to RMB487.3 million (US$76.5 million) from RMB542.3million, primarily due to a 9.4% decrease
in the total number of orders fulfilled by Cloud OFCs.
- Global Service Revenue increased by 30.5% YoY to RMB330.6 million (US$51.9
million) from RMB253.4
million, primarily due to strong growth in parcel volumes in
Southeast Asia.
Cost of Revenue
The following table sets forth a breakdown of cost of revenue by
business segment for the periods indicated.
Table 2 –
Breakdown of Cost of Revenue by Business Segment
|
|
|
Three Months
Ended
|
|
% of
Revenue
Change
YoY
|
|
December 31,
2020
|
|
December 31,
2021
|
|
(In '000, except
for %)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
Freight
|
(1,530,702)
|
94.2%
|
|
(1,585,619)
|
(248,819)
|
105.4%
|
|
11.2ppt
|
Supply Chain
Management
|
(549,212)
|
101.3%
|
|
(496,353)
|
(77,889)
|
101.9%
|
|
0.6ppt
|
Global
|
(273,222)
|
107.8%
|
|
(346,392)
|
(54,356)
|
104.8%
|
|
(3.0ppt)
|
Others
|
(952,134)
|
95.2%
|
|
(524,900)
|
(82,368)
|
130.3%
|
|
35.1ppt
|
Total Cost of
Revenue
|
(3,305,270)
|
96.6%
|
|
(2,953,264)
|
(463,432)
|
108.4%
|
|
11.8ppt
|
Cost of Revenue was RMB2,953.3
million (US$463.4 million) or
108.4% of revenue, compared to RMB3,305.3
million or 96.6% of revenue in 2020. The increase of 11.8
ppts in cost of revenue as a percentage of revenue was primarily
attributable to the decreased Freight volume and the winding-down
of the U-Cargo business.
Table 3 –
Breakdown of Average Cost Per Parcel and Average Cost Per
Tonne
|
|
|
Three Months
Ended
|
|
%
Change
|
(in RMB)
|
December 31,
2020
|
December 31,
2021
|
|
YoY
|
Freight:
|
|
|
|
|
Average Cost Per
Tonne
|
583.5
|
658.4
|
|
12.8%
|
Freight Service Average Cost per Tonne increased by 12.8% YoY,
primarily due to lower freight volume and higher costs resulting
from increasing oil price and labor costs.
Gross Loss was RMB228.4
million (US$35.8 million) ,
compared to gross profit of RMB115.3
million in 2020; Gross Margin was negative 8.4%,
compared to 3.4% in 2020.
Operating Expenses
The following table sets forth a breakdown of operating expenses
and adjusted operating expenses by category for the periods
indicated.
Table 4 –
Breakdown of Operating Expenses and Adjusted Operating Expenses by
Category
|
|
|
Three Months
Ended
|
|
|
|
December 31,
2020
|
|
December 31,
2021
|
|
(In '000, except
for %)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
% of Revenue
Change
YoY
|
Selling, General
and
Administrative Expenses
|
(322,952)
|
9.4%
|
|
(354,793)
|
(55,675)
|
13.0%
|
|
3.6ppt
|
Adjusted for SBC Expenses
|
(22,382)
|
0.6%
|
|
(20,490)
|
(3,215)
|
0.7%
|
|
0.1ppt
|
Adjusted Selling,
General and
Administrative Expenses
|
(300,570)
|
8.8%
|
|
(334,303)
|
(52,460)
|
12.3%
|
|
3.5ppt
|
Research and
Development Expenses
|
(39,813)
|
1.2%
|
|
(50,294)
|
(7,892)
|
1.8%
|
|
0.6ppt
|
Adjusted for SBC Expenses
|
(1,785)
|
0.1%
|
|
(3,159)
|
(496)
|
0.1%
|
|
0.0ppt
|
Adjusted Research
and
Development Expenses
|
(38,028)
|
1.1%
|
|
(47,135)
|
(7,396)
|
1.7%
|
|
0.6ppt
|
Total Operating
Expenses
|
(362,765)
|
10.6%
|
|
(405,087)
|
(63,567)
|
14.8%
|
|
4.2ppt
|
Adjusted
for SBC Expenses
|
(24,167)
|
0.7%
|
|
(23,649)
|
(3,711)
|
0.8%
|
|
0.1ppt
|
Adjusted Total
Operating Expenses
|
(338,598)
|
9.9%
|
|
(381,438)
|
(59,856)
|
14.0%
|
|
4.1ppt
|
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative Expenses were
RMB354.8 million (US$55.7 million) or 13.0% of revenue in 2021,
compared to RMB323.0 million or 9.4%
of revenue in 2020; primarily due to the expenses associated with
winding down the Capital business unit and additional expenses
incurred in transitioning our China express business.
Research and Development Expenses were RMB50.3million (US$7.9
million) or 1.8% of revenue in 2021, compared to
RMB39.8 million, or 1.2% of revenue
in 2020; primarily due to additional expenses incurred in
transitioning our China express
business.
Share-based Compensation ("SBC") Expenses included in the
cost and expense items above were RMB23.7
million (US$3.7 million),
compared to RMB24.4 million in 2020.
In the fourth quarter of 2021, RMB0.09
million (US$0.01 million) was
allocated to cost of revenue, RMB4.6
million (US$0.7 million) was
allocated to selling expenses, RMB15.8
million (US$2.5 million) was
allocated to general and administrative expenses, and RMB3.2 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 was RMB734.1 million (US$115.2
million), compared to RMB252.2
million in 2020. Excluding SBC expenses, amortization of
intangible assets resulting from business acquisitions and gain
from appreciation of investment, Non-GAAP Net Loss from
continuing operations was RMB710.4
million (US$111.5 million),
compared to RMB236.7 million in
2020.
The following table sets forth a breakdown of non-GAAP net loss
for the three months ended December 31,
2021 by segment.
Table
5 – Breakdown of non-GAAP Net Loss by
Segment
|
|
|
Three Months Ended
December 31, 2021
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([1])
|
Total
|
Non-GAAP Net
Loss
|
(263,630)
|
(72,413)
|
(83,452)
|
(239,945)
|
(50,971)
|
(710,411)
|
Diluted EPS and Non-GAAP Diluted EPS from continuing
operations
Diluted EPS from continuing operations was negative
RMB1.81 (US$0.28), based on 388.8 million weighted
average diluted shares outstanding during the quarter. This
compares to negative RMB0.64 on 385.6
million weighted average 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, Non-GAAP Diluted EPS from continuing
operations was negative RMB1.75
(US$0.28), compared to negative
RMB0.60 in 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 from continuing
operations
Adjusted EBITDA from continuing operations was negative
RMB635.2 million (US$99.7 million), compared to negative
RMB167.1million in 2020. Adjusted
EBITDA Margin from continuing operations was negative 23.3%,
compared to negative 4.9% in 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 December 31, 2021 by segment.
Table
6 – Breakdown of Adjusted EBITDA and Adjusted
EBITDA Margin by Segment
|
|
|
Three Months Ended
December 31, 2021
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([1])
|
Total
|
Adjusted
EBITDA
|
(248,266)
|
(62,903)
|
(78,756)
|
(211,901)
|
(33,338)
|
(635,164)
|
Adjusted
EBITDA
Margin
|
(16.5%)
|
(12.9%)
|
(23.8%)
|
(52.6%)
|
-
|
(23.3%)
|
Cash and Cash Equivalents, Restricted Cash and Short-term
Investments
As of December 31, 2021, cash and
cash equivalents, restricted cash and short-term investments were
RMB5,457 million (US$856.4 million), compared to RMB3,740.8 million as of December 31, 2020.
Net Cash Used In Continuing Operating Activities
Net cash used in operating activities was RMB555.7 million (US$87.2
million), compared to RMB95.8
million of net cash generated from operating activities in
2020. The decrease in net cash generated from operating activities
was mainly due to catch-up payments to vendors that were made in
December.
Capital Expenditures ("CAPEX")
CAPEX was RMB20.6 million
(US$3.2 million), or 0.8% of total
revenue in the fourth quarter ended December
31, 2021, compared to CAPEX of RMB99.5 million, or 2.9% of total revenue, in the
same period of 2020.
For the Fiscal Year Ended December 31,
2021:
Revenue
The following table sets forth a breakdown of revenue by
business segment for the periods indicated.
Table 7 –
Breakdown of Revenue by Business Segment
|
|
|
Fiscal Year
Ended
|
|
|
December 31,
2020
|
|
December 31,
2021
|
|
|
(In '000, except
for %)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
%
Change YoY
|
Freight
|
5,175,830
|
49.1%
|
|
5,435,354
|
852,926
|
47.6%
|
|
5.0%
|
Supply Chain
Management
|
1,912,323
|
18.2%
|
|
1,815,104
|
284,829
|
15.9%
|
|
(5.1%)
|
Global
|
777,656
|
7.4%
|
|
1,193,855
|
187,342
|
10.4%
|
|
53.5%
|
Others
|
2,662,425
|
25.3%
|
|
2,981,523
|
467,866
|
26.1%
|
|
12.0%
|
Total
Revenue
|
10,528,234
|
100.0%
|
|
11,425,836
|
1,792,963
|
100.0%
|
|
8.5%
|
- Freight Service Revenue increased by 5.0% YoY to RMB5,435.4 million (US$852.9 million) from RMB5,175.8 million, primarily due to a 9.8% YoY
increase in freight volume, partially offset by a 4.2% YoY decrease
in ASP per tonne.
- Supply Chain Management Service Revenue decreased by 5.1% YoY
to RMB1,815.1 million (US$284.8 million) from RMB1,912.3 million, primarily due to
discontinuation of certain legacy key account customers, partially
offset by a 3.5% YoY increase in the total number of orders
fulfilled by Cloud OFCs.
- Global Service Revenue increased by 53.5% YoY to RMB1,193.9 million (US$187.3 million) from RMB777.7 million, primarily due to strong growth
in parcel volumes in Southeast
Asia.
Cost of Revenue
The following table sets forth a breakdown of cost of revenue by
business segment for the periods indicated.
Table 8 –
Breakdown of Cost of Revenue by Business Segment
|
|
|
Fiscal Year
Ended
|
|
% of
Revenue
Change
YoY
|
|
December 31,
2020
|
|
December 31,
2021
|
|
(In '000, except
for %)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
Freight
|
(5,063,236)
|
97.8%
|
|
(5,557,115)
|
(872,033)
|
102.2%
|
|
4.4ppt
|
Supply Chain
Management
|
(1,846,901)
|
96.6%
|
|
(1,741,832)
|
(273,331)
|
96.0%
|
|
(0.6ppt)
|
Global
|
(875,733)
|
112.6%
|
|
(1,258,511)
|
(197,488)
|
105.4%
|
|
(7.2ppt)
|
Others
|
(2,500,082)
|
93.9%
|
|
(3,067,766)
|
(481,399)
|
102.9%
|
|
9.0ppt
|
Total Cost of
Revenue
|
(10,285,952)
|
97.7%
|
|
(11,625,224)
|
(1,824,251)
|
101.7%
|
|
4.0ppt
|
Cost of Revenue was RMB11,625.2
million (US$1,824.3 million)
or 101.7% of revenue, compared to RMB10,286.0 million or 97.7% of revenue in fiscal
year 2020. The increase of 4.0 ppts in cost of revenue as a
percentage of revenue was primarily attributable to additional
costs resulting from higher oil price and labor costs.
Table 9 –
Breakdown of Average Cost Per Parcel and Average Cost Per
Tonne
|
|
|
Fiscal Year
Ended
|
|
%
Change
|
(in RMB)
|
December 31,
2020
|
December 31,
2021
|
|
YoY
|
Freight:
|
|
|
|
|
Average Cost Per
Tonne
|
603.4
|
602.9
|
|
(0.1%)
|
Freight Service Average Cost per Tonne remained relatively flat,
decreasing by 0.1% YoY.
Gross Loss was RMB199.4
million (US$31.3 million),
compared to gross profit of RMB242.3
million in fiscal year 2020; Gross Margin was
negative1.7%, compared to 2.3% in fiscal year 2020.
Operating Expenses
The following table sets forth a breakdown of operating expenses
and adjusted operating expenses by category for the
periods indicated.
Table 10 –
Breakdown of Operating Expenses and Adjusted Operating Expenses by
Category
|
|
|
Fiscal Year
Ended
|
|
|
|
December 31,
2020
|
|
December 31,
2021
|
|
(In '000, except
for %)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
% of Revenue
Change
YoY
|
Selling, General and
Administrative Expenses
|
(1,102,936)
|
10.5%
|
|
(1,141,717)
|
(179,160)
|
10.0%
|
|
(0.5ppt)
|
Adjusted for
SBC Expenses
|
(106,510)
|
1.0%
|
|
(98,015)
|
(15,381)
|
0.9%
|
|
(0.1ppt)
|
Adjusted Selling,
General
and
Administrative Expenses
|
(996,426)
|
9.5%
|
|
(1,043,702)
|
(163,779)
|
9.1%
|
|
(0.4ppt)
|
Research and
Development Expenses
|
(136,065)
|
1.3%
|
|
(180,204)
|
(28,278)
|
1.6%
|
|
0.3ppt
|
Adjusted for
SBC Expenses
|
(7,763)
|
0.1%
|
|
(9,321)
|
(1,463)
|
0.1%
|
|
0.0ppt
|
Adjusted Research
and Development Expenses
|
(128,302)
|
1.2%
|
|
(170,883)
|
(26,815)
|
1.5%
|
|
0.3ppt
|
Total Operating
Expenses
|
(1,239,001)
|
11.8%
|
|
(1,321,921)
|
(207,438)
|
11.6%
|
|
(0.2ppt)
|
Adjusted for
SBC Expenses
|
(114,273)
|
1.1%
|
|
(107,336)
|
(16,844)
|
1.0%
|
|
(0.1ppt)
|
Adjusted Total
Operating Expenses
|
(1,124,728)
|
10.7%
|
|
(1,214,585)
|
(190,594)
|
10.6%
|
|
(0.1ppt)
|
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative Expenses were
RMB1,141.7 million (US$179.2million) or 10.0% of revenue, compared to
RMB1,102.9 million or 10.5% of
revenue in fiscal year 2020.
Research and Development Expenses were RMB180.2 million (US$28.3
million) or 1.6% of revenue, compared to RMB136.1 million, or 1.3% of revenue in fiscal
year 2020; primarily due to the increasing expenses to support BEST
Global' s business expansion in Southeast
Asia.
Share-based Compensation ("SBC") Expenses included in the
cost and expense items above were RMB107.7
million (US$16.9 million),
compared to RMB115.5 million in
fiscal year 2020. In fiscal year 2021, RMB0.3 million (US$0.05
million) was allocated to cost of revenue, RMB9.7 million (US$1.5
million) was allocated to selling expenses, RMB88.4 million (US$13.9
million) was allocated to general and administrative
expenses, and RMB9.3 million
(US$1.5 million) was allocated to
research and development expenses.
Net Loss and Non-GAAP Net Loss from continuing operations
Net Loss from continuing operations was RMB1,263.9 million (US$198.3 million), compared to RMB1,028.4 million in fiscal year 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 from continuing
operations was RMB1,220.4 million
(US$191.5 million), compared to
RMB928.9 million in fiscal year
2020.
The following table sets forth a breakdown of non-GAAP net loss
for fiscal year 2021 by segment.
Table
11 – Breakdown of non-GAAP Net Loss by
Segment
|
|
|
Fiscal Year Ended
December 31, 2021
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([1])
|
Total
|
Non-GAAP Net
Loss
|
(446,007)
|
(95,036)
|
(259,298)
|
(338,416)
|
(81,628)
|
(1,220,385)
|
Diluted EPS and Non-GAAP Diluted EPS from continuing
operations
Diluted EPS from continuing operations was negative
RMB3.12 (US$0.49), based on a 388.1 million weighted
average diluted shares outstanding during fiscal year 2021. This
compares to negative RMB2.59 on 387.5
million weighted average diluted shares outstanding in fiscal year
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
from continuing operations was negative RMB3.01 (US$0.47),
compared to negative RMB2.29 in
fiscal year 2020. A reconciliation of non-GAAP Diluted EPS to
Diluted EPS is included at the end of this announcement.
Adjusted EBITDA and Adjusted EBITDA Margin from continuing
operations
Adjusted EBITDA from continuing operations was negative
RMB932.7 million (US$146.4 million), compared to negative
RMB693.0 million in fiscal year 2020.
Adjusted EBITDA Margin from continuing operations was
negative 8.2%, compared to negative 6.6% in fiscal year 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 in fiscal year 2021 by
segment.
Table
12 – Breakdown of Adjusted EBITDA and
Adjusted EBITDA Margin by Segment
|
|
|
Fiscal Year Ended
December 31, 2021
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([1])
|
Total
|
Adjusted
EBITDA
|
(377,944)
|
(56,338)
|
(239,771)
|
(295,648)
|
36,972
|
(932,729)
|
Adjusted
EBITDA
Margin
|
(7.0%)
|
(3.1%)
|
(20.1%)
|
(9.9%)
|
-
|
(8.2%)
|
Net Cash Used In Continuing Operating Activities
Net cash used in operating activities was RMB941.3 million (US$147.7
million), compared to RMB96.4
million of net cash generated from operating activities in
fiscal year 2020. The decrease in net cash generated from operating
activities was mainly due to extending the payment term due to the
pandemic in 2020, which gradually became normalized in 2021.
Capital Expenditures ("CAPEX")
CAPEX was RMB145.2 million
(US$22.8 million), or 1.3% of total
revenue, compared to CAPEX of RMB311.3
million, or 3.0% of total revenue in fiscal year 2020.
SHARES OUTSTANDING
As of February 28, 2022, the
Company had approximately 389.6 million ordinary shares
outstanding([13]). Each American Depositary Share
represents one Class A ordinary share.
FINANCIAL GUIDANCE
Based on current operations and market conditions, BEST expects
2022 revenue from its core business; Freight, Supply Chain
Management and Global, to be between RMB 10 billion to RMB 12 billion. This represents BEST's
current and preliminary estimates, which are subject to change.
WEBCAST AND CONFERENCE CALL INFORMATION
The Company will hold a conference call at 8:00 pm U.S. Eastern Time on March 8, 2022 (9:00
am Beijing Time on March 9,
2022), to discuss its financial results and operating
performance for the fourth quarter and fiscal year 2021.
Participants may access the call by dialing the following
numbers:
United
States
: +1-888-317-6003
China Hong
Kong :
800-963976 or +852-5808-1995
Mainland
China
: 4001-206115
International
: +1-412-317-6061
Participant Elite Entry
Number
: 3931702
A replay of the conference call will be accessible through
March 15, 2022 by dialing the
following numbers:
United
States
: +1-877-344-7529
International
: +1-412-317-0088
Replay Access
Code
: 7754372
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. 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
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
December 31,
|
Fiscal Year Ended
December 31,
|
|
2020
|
2021
|
2020
|
2021
|
|
RMB
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
Revenue
|
|
|
|
|
|
|
Freight
|
1,624,756
|
1,503,995
|
236,010
|
5,175,830
|
5,435,354
|
852,926
|
Supply Chain
Management
|
542,332
|
487,337
|
76,474
|
1,912,323
|
1,815,104
|
284,829
|
Global
|
253,351
|
330,564
|
51,873
|
777,656
|
1,193,855
|
187,342
|
Others
|
1,000,115
|
402,958
|
63,233
|
2,662,425
|
2,981,523
|
467,866
|
Total
Revenue
|
3,420,554
|
2,724,854
|
427,590
|
10,528,234
|
11,425,836
|
1,792,963
|
Cost of
Revenue
|
|
|
|
|
|
|
Freight
|
(1,530,702)
|
(1,585,619)
|
(248,819)
|
(5,063,236)
|
(5,557,115)
|
(872,033)
|
Supply Chain
Management
|
(549,212)
|
(496,353)
|
(77,889)
|
(1,846,901)
|
(1,741,832)
|
(273,331)
|
Global
|
(273,222)
|
(346,392)
|
(54,356)
|
(875,733)
|
(1,258,511)
|
(197,488)
|
Others
|
(952,134)
|
(524,900)
|
(82,368)
|
(2,500,082)
|
(3,067,766)
|
(481,399)
|
Total Cost of
Revenue
|
(3,305,270)
|
(2,953,264)
|
(463,432)
|
(10,285,952)
|
(11,625,224)
|
(1,824,251)
|
Gross
Profit/(Loss)
|
115,284
|
(228,410)
|
(35,842)
|
242,282
|
(199,388)
|
(31,288)
|
Selling
Expenses
|
(59,712)
|
(73,021)
|
(11,459)
|
(235,419)
|
(260,219)
|
(40,834)
|
General and
Administrative Expenses
|
(263,240)
|
(281,772)
|
(44,216)
|
(867,517)
|
(881,498)
|
(138,326)
|
Research and
Development Expenses
|
(39,813)
|
(50,294)
|
(7,892)
|
(136,065)
|
(180,204)
|
(28,278)
|
Other operating
income/(expense), net
|
9,287
|
(89,893)
|
(14,106)
|
24,777
|
58,337
|
9,154
|
Loss from
Operations
|
(238,194)
|
(723,390)
|
(113,515)
|
(971,942)
|
(1,462,972)
|
(229,572)
|
Interest
Income
|
11,884
|
17,735
|
2,783
|
55,527
|
49,658
|
7,792
|
Interest
Expense
|
(34,521)
|
(29,310)
|
(4,599)
|
(119,177)
|
(142,751)
|
(22,401)
|
Foreign Exchange
(Loss) / Gain
|
(908)
|
44,186
|
6,934
|
(8,243)
|
44,556
|
6,992
|
Other
Income
|
19,416
|
6,709
|
1,053
|
47,536
|
321,075
|
50,384
|
Other
Expense
|
(4,784)
|
(49,575)
|
(7,779)
|
(14,402)
|
(70,171)
|
(11,011)
|
Loss before Income
Tax
and Share of Net Loss of
Equity Investees
|
(247,107)
|
(733,645)
|
(115,123)
|
(1,010,701)
|
(1,260,605)
|
(197,816)
|
Income Tax
Expense
|
(5,033)
|
(500)
|
(78)
|
(17,553)
|
(3,198)
|
(502)
|
Loss before Share of
Net
loss of Equity Investees
|
(252,140)
|
(734,145)
|
(115,201)
|
(1,028,254)
|
(1,263,803)
|
(198,318)
|
Share of Net Loss of
Equity
Investees
|
(66)
|
-
|
-
|
(180)
|
(58)
|
(9)
|
Net Loss from
continuing
operations
|
(252,206)
|
(734,145)
|
(115,201)
|
(1,028,434)
|
(1,263,861)
|
(198,327)
|
Net (loss)/income
from
discontinued operations
|
(377,858)
|
2,679,400
|
420,456
|
(1,022,790)
|
1,473,489
|
231,223
|
Net
(Loss)/Income
|
(630,064)
|
1,945,255
|
305,255
|
(2,051,224)
|
209,628
|
32,896
|
Net loss attributable
to non-controlling interests
|
(5,326)
|
(28,727)
|
(4,508)
|
(25,716)
|
(52,279)
|
(8,204)
|
Net (Loss)/Income
attributable to Best Inc.
|
(624,738)
|
1,973,982
|
309,763
|
(2,025,508)
|
261,907
|
41,100
|
Summary of
Unaudited Condensed Consolidated Balance Sheets
|
(in
thousands)
|
|
|
As of December 31,
2020
|
|
As of December 31,
2021
|
|
|
RMB
|
|
RMB
|
US$
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and Cash
Equivalents
|
1,180,787
|
|
3,565,732
|
559,541
|
Restricted
Cash
|
1,998,323
|
|
675,159
|
105,947
|
Accounts and Notes
Receivables
|
825,700
|
|
798,749
|
125,338
|
Inventories
|
28,269
|
|
25,622
|
4,021
|
Prepayments and Other
Current Assets
|
1,603,447
|
|
1,174,404
|
184,290
|
Short–term
Investments
|
228,371
|
|
147,359
|
23,124
|
Amounts Due from
Related Parties
|
182,409
|
|
125,198
|
19,646
|
Lease Rental
Receivables
|
497,127
|
|
298,364
|
46,820
|
Assets held for
sale
|
8,718,603
|
|
-
|
-
|
Total Current
Assets
|
15,263,036
|
|
6,810,587
|
1,068,727
|
Non–current
Assets
|
|
|
|
|
Property and
Equipment, Net
|
822,114
|
|
762,642
|
119,675
|
Intangible Assets,
Net
|
43,897
|
|
55,684
|
8,738
|
Long–term
Investments
|
221,426
|
|
219,171
|
34,393
|
Goodwill
|
54,135
|
|
54,135
|
8,495
|
Non–current
Deposits
|
97,889
|
|
92,866
|
14,573
|
Other Non–current
Assets
|
509,023
|
|
111,640
|
17,519
|
Restricted
Cash
|
333,313
|
|
1,069,244
|
167,788
|
Lease Rental
Receivables
|
647,678
|
|
235,429
|
36,944
|
Operating Lease
Right-of-use Assets
|
1,878,312
|
|
1,899,522
|
298,076
|
Total non–current
Assets
|
4,607,787
|
|
4,500,333
|
706,201
|
Total
Assets
|
19,870,823
|
|
11,310,920
|
1,774,928
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Long-term
borrowings-current
|
95,149
|
|
287,814
|
45,164
|
Convertible Senior
Notes held by
related parties
|
-
|
|
633,475
|
99,406
|
Convertible Senior
Notes held by third
parties
|
-
|
|
633,475
|
99,406
|
Short–term Bank
Loans
|
2,133,287
|
|
530,495
|
83,246
|
Accounts and Notes
Payable
|
1,509,894
|
|
1,326,200
|
208,110
|
Income Tax
Payable
|
14,550
|
|
587
|
92
|
Customer Advances and
Deposits and
Deferred Revenue
|
281,298
|
|
298,353
|
46,818
|
Accrued Expenses and
Other Liabilities
|
1,407,253
|
|
1,585,626
|
248,819
|
Financing Lease
Liabilities
|
1,581
|
|
1,851
|
290
|
Operating Lease
Liabilities
|
531,736
|
|
518,248
|
81,324
|
Amounts Due to
Related Parties
|
29,247
|
|
2,763
|
434
|
Liabilities held for
sale
|
8,301,730
|
|
-
|
-
|
Total Current
Liabilities
|
14,305,725
|
|
5,818,887
|
913,109
|
Summary of
Unaudited Condensed Consolidated Balance Sheets
(Cont'd)
|
(In
Thousands)
|
|
|
|
As of December 31,
2020
|
|
As of December 31,
2021
|
|
RMB
|
|
RMB
|
US$
|
Non-current
Liabilities
|
|
|
|
|
Convertible senior
notes held by related
parties
|
1,617,846
|
|
955,097
|
149,876
|
Convertible Senior
Notes held by
third parties
|
642,121
|
|
-
|
-
|
Long-term
borrowings
|
-
|
|
67,080
|
10,526
|
Operating Lease
Liabilities
|
1,391,518
|
|
1,456,843
|
228,610
|
Financing Lease
Liabilities
|
2,698
|
|
2,121
|
333
|
Other Non–current
Liabilities
|
107,763
|
|
24,261
|
3,807
|
Long-term Bank
Loans
|
78,548
|
|
769,767
|
120,793
|
Total Non–current
Liabilities
|
3,840,494
|
|
3,275,169
|
513,945
|
Total
Liabilities
|
18,146,219
|
|
9,094,056
|
1,427,054
|
Mezzanine
Equity:
|
|
|
|
|
Convertible
Non-controlling Interests
|
-
|
|
191,865
|
30,108
|
Total mezzanine
equity
|
-
|
|
191,865
|
30,108
|
Shareholders'
Equity
|
|
|
|
|
Ordinary
Shares
|
25,988
|
|
25,988
|
4,078
|
Treasury
Shares
|
(211,352)
|
|
(113,031)
|
(17,737)
|
Additional Paid–In
Capital
|
19,487,232
|
|
19,522,173
|
3,063,455
|
Statutory
reserves
|
8,038
|
|
167
|
26
|
Accumulated
Deficit
|
(17,710,964)
|
|
(17,471,716) ([1])
|
(2,741,694)
|
Accumulated Other
Comprehensive Income
|
151,677
|
|
107,379
|
16,850
|
BEST Inc.
Shareholders' Equity
|
1,750,619
|
|
2,070,960
|
324,978
|
Non-controlling
Interests
|
(26,015)
|
|
(45,961)
|
(7,212)
|
Total
Shareholders' Equity
|
1,724,604
|
|
2,024,999
|
317,766
|
Total Liabilities,
Mezzanine Equity and Shareholders' Equity
|
19,870,823
|
|
11,310,920
|
1,774,928
|
Summary of
Unaudited Condensed Consolidated Statements of Cash
Flows
(In
Thousands)
|
|
|
Three Months Ended
December 31,
|
|
Fiscal Year Ended
December 31,
|
|
2020
|
2021
|
|
2020
|
2021
|
|
RMB
|
RMB
|
US$
|
|
RMB
|
RMB
|
US$
|
Net cash generated
from/(used in)
continuing operating activities
|
95,780
|
(555,740)
|
(87,207)
|
|
96,433
|
(941,323)
|
(147,715)
|
Net cash generated
from/(used in)
discontinued operating activities
|
128,541
|
(387,540)
|
(60,814)
|
|
(327,668)
|
(1,909,746)
|
(299,681)
|
Net cash generated
from/(used in)
operating activities
|
224,321
|
(943,280)
|
(148,021)
|
|
(231,235)
|
(2,851,069)
|
(447,396)
|
Net cash generated
from continuing
Investing Activities
|
118,606
|
3,235,312
|
507,691
|
|
242,568
|
4,991,472
|
783,271
|
Net cash used in
discontinued
Investing activities
|
(282,713)
|
(97,328)
|
(15,273)
|
|
(1,115,501)
|
(450,424)
|
(70,681)
|
Net cash (used
in)/generated from
investing activities
|
(164,107)
|
3,137,984
|
492,418
|
|
(872,933)
|
4,541,048
|
712,590
|
Net cash generated
from/(used in)
continuing financing activities
|
25,191
|
(703,646)
|
(110,417)
|
|
1,558,713
|
(194,911)
|
(30,586)
|
Net cash (used
in)/generated from
discontinued financing activities
|
(215,290)
|
469,421
|
73,662
|
|
(10,529)
|
(337,839)
|
(53,014)
|
Net cash (used
in)/generated from
financing activities
|
(190,099)
|
(234,225)
|
(36,755)
|
|
1,548,184
|
(532,750)
|
(83,600)
|
Exchange Rate Effect
on Cash, Cash
Equivalents, and Restricted Cash
|
(110,778)
|
(29,695)
|
(4,660)
|
|
(192,110)
|
(56,215)
|
(8,821)
|
Net
(Decrease)/Increase in Cash and
Cash Equivalents, and Restricted Cash
|
(240,663)
|
1,930,784
|
302,982
|
|
251,906
|
1,101,014
|
172,773
|
Cash and Cash
Equivalents, and
Restricted Cash at Beginning
of Period
|
4,449,784
|
3,379,351
|
530,294
|
|
3,957,215
|
4,209,121
|
660,503
|
Cash and Cash
Equivalents, and
Restricted Cash at End of Period
|
4,209,121
|
5,310,135
|
833,276
|
|
4,209,121
|
5,310,135
|
833,276
|
Less: Cash and Cash
Equivalents,
and Restricted Cash held for sales
at end of the Period
|
696,698
|
-
|
-
|
|
696,698
|
-
|
-
|
Cash and Cash
Equivalents, and
Restricted Cash from continuing
operations at End of Period
|
3,512,423
|
5,310,135
|
833,276
|
|
3,512,423
|
5,310,135
|
833,276
|
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 13 –
Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA
Margin
|
|
|
Three Months
Ended December 31, 2021
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([1])
|
Total
|
Net
Loss
|
(266,493)
|
(74,380)
|
(85,518)
|
(240,610)
|
(67,144)
|
(734,145)
|
Add
|
|
|
|
|
|
|
Depreciation &
Amortization
|
15,364
|
9,431
|
4,696
|
27,623
|
6,058
|
63,172
|
Interest
Expense
|
-
|
-
|
-
|
-
|
29,310
|
29,310
|
Income Tax
Expense
|
-
|
79
|
-
|
421
|
-
|
500
|
Subtract
|
|
|
|
|
|
|
Interest
Income
|
-
|
-
|
-
|
-
|
(17,735)
|
(17,735)
|
EBITDA
|
(251,129)
|
(64,870)
|
(80,822)
|
(212,566)
|
(49,511)
|
(658,898)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
2,863
|
1,967
|
2,066
|
665
|
16,173
|
23,734
|
Adjusted
EBITDA
|
(248,266)
|
(62,903)
|
(78,756)
|
(211,901)
|
(33,338)
|
(635,164)
|
Adjusted EBITDA
Margin
|
(16.5%)
|
(12.9%)
|
(23.8%)
|
(52.6%)
|
|
(23.3%)
|
|
Three Months
Ended December 31, 2020
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([1])
|
Total
|
Net
Income/(Loss)
|
7,019
|
(79,027)
|
(60,688)
|
(34,338)
|
(85,172)
|
(252,206)
|
Add
|
|
|
|
|
|
|
Depreciation &
Amortization
|
18,121
|
10,095
|
3,753
|
2,760
|
7,171
|
41,900
|
Interest
Expense
|
-
|
-
|
-
|
-
|
34,521
|
34,521
|
Income Tax
Expense/(Benefit)
|
-
|
(220)
|
-
|
5,253
|
-
|
5,033
|
Subtract
|
|
|
|
|
|
|
Interest
Income
|
-
|
-
|
-
|
-
|
(11,884)
|
(11,884)
|
EBITDA
|
25,140
|
(69,152)
|
(56,935)
|
(26,325)
|
(55,364)
|
(182,636)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
2,373
|
1,829
|
2,255
|
683
|
17,261
|
24,401
|
Subtract
|
|
|
|
|
|
|
Gain from
appreciation
of investments
|
-
|
-
|
-
|
-
|
(8,850)
|
(8,850)
|
Adjusted
EBITDA
|
27,513
|
(67,323)
|
(54,680)
|
(25,642)
|
(46,953)
|
(167,085)
|
Adjusted EBITDA
Margin
|
1.7%
|
(12.4%)
|
(21.6%)
|
(2.6%)
|
|
(4.9%)
|
|
Fiscal Year Ended
December 31, 2021
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([1])
|
Total
|
Net
Loss
|
(457,451)
|
(103,387)
|
(267,902)
|
(341,117)
|
(94,004)
|
(1,263,861)
|
Add
|
|
|
|
|
|
|
Depreciation &
Amortization
|
68,063
|
38,525
|
19,506
|
39,758
|
25,513
|
191,365
|
Interest
Expense
|
-
|
-
|
-
|
-
|
142,751
|
142,751
|
Income Tax
Expense/(Benefit)
|
-
|
173
|
21
|
3,010
|
(6)
|
3,198
|
Subtract
|
|
|
|
|
|
|
Interest
Income
|
-
|
-
|
-
|
-
|
(49,658)
|
(49,658)
|
EBITDA
|
(389,388)
|
(64,689)
|
(248,375)
|
(298,349)
|
24,596
|
(976,205)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation Expenses
|
11,444
|
8,351
|
8,604
|
2,701
|
76,581
|
107,681
|
Subtract
|
|
|
|
|
|
|
Gain from
appreciation
of investments
|
-
|
-
|
-
|
-
|
(64,205)
|
(64,205)
|
Adjusted
EBITDA
|
(377,944)
|
(56,338)
|
(239,771)
|
(295,648)
|
36,972
|
(932,729)
|
Adjusted EBITDA
Margin
|
(7.0%)
|
(3.1%)
|
(20.1%)
|
(9.9%)
|
|
(8.2%)
|
|
Fiscal Year Ended
December 31, 2020
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([1])
|
Total
|
Net
Loss
|
(188,184)
|
(175,072)
|
(251,511)
|
(103,710)
|
(309,957)
|
(1,028,434)
|
Add
|
|
|
|
|
|
|
Depreciation
& Amortization
|
64,643
|
42,121
|
15,955
|
5,664
|
29,112
|
157,495
|
Interest
Expense
|
-
|
-
|
-
|
-
|
119,177
|
119,177
|
Income Tax
Expense/(Benefit)
|
-
|
(178)
|
(830)
|
18,561
|
-
|
17,553
|
Subtract
|
|
|
|
|
|
|
Interest
Income
|
-
|
-
|
-
|
-
|
(55,527)
|
(55,527)
|
EBITDA
|
(123,541)
|
(133,129)
|
(236,386)
|
(79,485)
|
(217,195)
|
(789,736)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
11,123
|
11,006
|
8,803
|
3,655
|
80,876
|
115,463
|
Subtract
|
|
|
|
|
|
|
Gain from
appreciation
of investments
|
-
|
-
|
-
|
-
|
(18,688)
|
(18,688)
|
Adjusted
EBITDA
|
(112,418)
|
(122,123)
|
(227,583)
|
(75,830)
|
(155,007)
|
(692,961)
|
Adjusted EBITDA
Margin
|
(2.2%)
|
(6.4%)
|
(29.3%)
|
(2.8%)
|
|
(6.6%)
|
For the Company's continuing operations, the table below sets
forth a reconciliation of the Company's net Income/(loss) to
non-GAAP net Income/(loss), non-GAAP net Income/(loss) margin for
the periods indicated:
Table 14 –
Reconciliation of Non-GAAP Net Income/(Loss) and Non-GAAP Net
Income/(Loss) Margin
|
|
|
|
Three Months
Ended December 31, 2021
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([1])
|
Total
|
Net
Loss
|
(266,493)
|
(74,380)
|
(85,518)
|
(240,610)
|
(67,144)
|
(734,145)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
2,863
|
1,967
|
2,066
|
665
|
16,173
|
23,734
|
Non-GAAP Net
Loss
|
(263,630)
|
(72,413)
|
(83,452)
|
(239,945)
|
(50,971)
|
(710,411)
|
Non-GAAP Net
Loss Margin
|
(17.5%)
|
(14.9%)
|
(25.2%)
|
(59.5%)
|
|
(26.1%)
|
|
|
Three Months
Ended December 31, 2020
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([1])
|
Total
|
Net
Income/(Loss)
|
7,019
|
(79,027)
|
(60,688)
|
(34,338)
|
(85,172)
|
(252,206)
|
Add
|
|
|
|
|
|
|
hare-based
Compensation
Expenses
|
2,373
|
1,829
|
2,255
|
683
|
17,261
|
24,401
|
Subtract
|
|
|
|
|
|
|
Gain from
appreciation
of investments
|
-
|
-
|
-
|
-
|
(8,850)
|
(8,850)
|
Non-GAAP Net
Income/(Loss)
|
9,392
|
(77,198)
|
(58,433)
|
(33,655)
|
(76,761)
|
(236,655)
|
Non-GAAP Net
Income/(Loss) Margin
|
0.6%
|
(14.2%)
|
(23.1%)
|
(3.4%)
|
|
(6.9%)
|
|
Fiscal Year
Ended December 31, 2021
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([1])
|
Total
|
Net
Loss
|
(457,451)
|
(103,387)
|
(267,902)
|
(341,117)
|
(94,004)
|
(1,263,861)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
11,444
|
8,351
|
8,604
|
2,701
|
76,581
|
107,681
|
Subtract
|
|
|
|
|
|
|
Gain from
appreciation
of investments
|
-
|
-
|
-
|
-
|
(64,205)
|
(64,205)
|
Non-GAAP Net
Loss
|
(446,007)
|
(95,036)
|
(259,298)
|
(338,416)
|
(81,628)
|
(1,220,385)
|
Non-GAAP Net
Loss Margin
|
(8.2%)
|
(5.2%)
|
(21.7%)
|
(11.4%)
|
|
(10.7%)
|
|
Fiscal Year
Ended December 31, 2020
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([1])
|
Total
|
Net
Loss
|
(188,184)
|
(175,072)
|
(251,511)
|
(103,710)
|
(309,957)
|
(1,028,434)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
11,123
|
11,006
|
8,803
|
3,655
|
80,876
|
115,463
|
Amortization
of Intangible
Assets Resulting
from Business
|
-
|
-
|
2,782
|
-
|
-
|
2,782
|
Subtract
|
|
|
|
|
|
|
Gain from
appreciation
of investments
|
-
|
-
|
-
|
-
|
(18,688)
|
(18,688)
|
Non-GAAP Net
Loss
|
(177,061)
|
(164,066)
|
(239,926)
|
(100,055)
|
(247,769)
|
(928,877)
|
Non-GAAP Net
Loss Margin
|
(3.4%)
|
(8.6%)
|
(30.9%)
|
(3.8%)
|
|
(8.8%)
|
For the Company's continuing operations, the table below sets
forth a reconciliation of the Company's Diluted EPS to non-GAAP
Diluted EPS for the periods indicated:
Table 15 –
Reconciliation of Diluted EPS and Non-GAAP Diluted
EPS
|
|
|
Three Months Ended
December 31,
|
|
Fiscal Year Ended
December 31,
|
|
2021
|
|
2021
|
(In
'000)
|
RMB
|
US$
|
|
RMB
|
US$
|
Net Loss Attributable
to Ordinary Shareholders
|
(705,418)
|
(110,693)
|
|
(1,211,582)
|
(190,123)
|
Add
|
|
|
|
|
|
Share-based
Compensation Expenses
|
23,734
|
3,725
|
|
107,681
|
16,898
|
Subtract
|
|
|
|
|
|
Gain from appreciation
of investments
|
-
|
-
|
|
(64,205)
|
(10,075)
|
Non-GAAP
Net Loss Attributable to Ordinary
Shareholders for Computing
Non-GAAP
Diluted EPS
|
(681,684)
|
(106,968)
|
|
(1,168,106)
|
(183,300)
|
Weighted Average
Diluted Shares
Outstanding During the Quarter
|
|
|
|
|
|
Diluted
|
388,841,762
|
388,841,762
|
|
388,073,411
|
388,073,411
|
Diluted
(Non-GAAP)
|
388,841,762
|
388,841,762
|
|
388,073,411
|
388,073,411
|
Diluted
EPS
|
(1.81)
|
(0.28)
|
|
(3.12)
|
(0.49)
|
Add
|
|
|
|
|
|
Non-GAAP adjustment to
net loss per share
|
0.06
|
0.00
|
|
0.11
|
0.02
|
Non-GAAP Diluted
EPS
|
(1.75)
|
(0.28)
|
|
(3.01)
|
(0.47)
|
([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, 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 per
share, or Diluted EPS, 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
outstanding during the period.
([6]) 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).
([7]) All numbers presented
have been rounded to the nearest integer, tenth, or hundredth, and
year-over-year comparisons are based on figures before
rounding.
([8]) All numbers represented
the financial results from continuing operations, unless otherwise
stated.
(9) "Others" Segment primarily
represents UCargo and Capital business units..
([9]) Unallocated expenses are
primarily related to corporate administrative expenses and other
miscellaneous items that are not allocated to individual
segments.
([10]) Unallocated expenses are
primarily related to corporate administrative expenses and other
miscellaneous items that are not allocated to individual
segments.
([11]) Unallocated expenses are
primarily related to corporate administrative expenses and other
miscellaneous items that are not allocated to individual
segments.
([12]) Unallocated expenses are
primarily related to corporate administrative expenses and other
miscellaneous items that are not allocated to individual
segments.
([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]) 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 RMB7,977,909.
([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.
([21]) Unallocated expenses are
primarily related to corporate administrative expenses and other
miscellaneous items that are not allocated to individual
segments.
([22]) Unallocated expenses are
primarily related to corporate administrative expenses and other
miscellaneous items that are not allocated to individual
segments.
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SOURCE BEST Inc.