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BEST Inc. Announces Unaudited First Quarter 2022 Financial Results
hanguyen0409 9-06-2022, 05:05
BEST Inc. Announces Unaudited First Quarter 2022 Financial Results

HANGZHOU, China, June 9, 2022 /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 first quarter ended March 31, 2022.

Johnny Chou, Founder, Chairman and CEO of BEST, commented, "Despite the disruptions caused by the COVID-19 pandemic, we continued to serve our customers with operational resilience. BEST Global continued its strong growth momentum and finished the quarter with 25% year-over-year ("YOY") volume increase in SEA. As we continued with our Strategic Refocusing Program, we are winding down our BEST UCargo and Capital business lines, which gives us a much leaner organization and lower cost structure. At end of the first quarter, we have a net cash position of RMB1.5 billion. 

"During the quarter, BEST Freight maintained its industry-leading position and achieved notable service quality improvements. Freight's on-time delivery rate has improved by 14% YOY. Supply Chain Management remains our key differentiator as it empowers our customers with digitalized end-to-end logistics solutions. It is also the heart of our cross-segment synergies; significantly benefiting Freight and Global by supporting its customer's transportation and global logistics needs. Among SCM's top customers, more than 20% use our Freight service.

"We believe the activities of supply chain and logistics business will pick up quickly in China and SEA as the pandemic eases. Information technology-driven and integrated supply chain and logistics solutions will be in high demand to support such growth. BEST's strengths in technology, domestic and international end-to-end supply chain and logistics capabilities, as well as our broad customer base in China coupled with strong cash position will allow us to capture this growth opportunity and on the path to profitability." concluded Mr. Chou.

Gloria Fan, BEST's Chief Financial Officer, added, "Our first quarter revenue, excluding UCargo and Capital, declined by 4.6% YOY. Given the pandemic-related disruptions and other macro environment uncertainties, our performance is a testament to our strong business resilience. Our balance of cash and cash equivalents, restricted cash, and short-term investments were RMB5.3 billion at the end of the first quarter. Supported by our robust balance sheet, our emphasis on service quality and operational efficiency will strengthen our core competencies in Freight, integrated Supply Chain Management and Global logistics solutions, building a solid foundation for future growth and profitability."

FINANCIAL HIGHLIGHTS(1) 

For the First Quarter Ended March 31, 2022:(2)

  • Revenue was RMB1,802.6 million (US$284.4 million) compared to RMB2,783.6 million in the first quarter of 2021. The revenue decrease was primarily due to the winding-down of the UCargo business line. Revenue generated from UCargo business was approximately RMB19.4 million (US$3.1 million) compared with RMB868.7 million in the same quarter of 2021, a decrease of 97.8%.
  • Gross Loss was RMB76.8 million (US$12.1 million), compared to gross profit of RMB51.7 million in the first quarter of 2021. The decrease was primarily due to winding down of the Capital business line and increased unit cost of Freight business, mainly resulting from higher fuel cost. Gross Loss Margin was 4.3%, compared to a Gross Profit Margin of 1.9% in the first quarter of 2021. 
  • Net Loss from continuing operations was RMB379.9 million (US$59.9 million), compared to RMB191.2 million in the first quarter of 2021. Non-GAAP Net Loss from continuing operations(3)(4) was RMB359.2 million (US$56.7 million), compared to RMB169.7 million in the first quarter of 2021.
  • Diluted loss per ADS(5) from continuing operations was negative RMB4.60 (US$0.73), compared to negative RMB2.40 in the first quarter of 2021. Non-GAAP diluted loss per ADS(3)(4) from continuing operations was negative RMB4.33 (US$0.68), compared to negative RMB2.12 in the first quarter of 2021.
  • EBITDA(6) from continuing operations was negative RMB315.3 million (US$49.7 million), compared to negative RMB120.0 million in the first quarter of 2021. Adjusted EBITDA(3)(5) from continuing operations was negative RMB294.6 million (US$46.5 million), compared to negative RMB98.5 million in the first quarter of 2021.

BUSINESS HIGHLIGHTS(7) 

BEST Freight – In the first quarter of 2022, the Company remained focused on developing its e-commerce related business, which contributed 22.2% of total volume during the quarter, up 5.6 ppts YOY. The logistics industry has been significantly affected by the resurgences of the pandemic. Freight's volume decreased by 13.5% YOY, as parts of its operations, particularly some of its transportation fleet, hubs and sortation centers, have been restricted due to the pandemic.

Freight continued to implement measures to strengthen its network coverage and service quality including automation in certain major sortation centers and expansion of franchise network. These efforts have delivered immediate results. In the first quarter, Freight's on-time delivery rate improved by 14.0% YOY. 

BEST UCargo's operations and financial results are now consolidated with BEST Freight.

BEST Supply Chain Management – During the first quarter of 2022, the Company continued to grow its B2B2C fulfillment network and distribution capabilities ("Cloud OFCs") while prioritizing higher-margin accounts. Due to discontinuation of certain low-margin legacy customers, the total number of orders fulfilled by Cloud OFCs decreased 13.3% YOY to 87.3 million in the first quarter, of which the total number of orders fulfilled by franchised Cloud OFCs increased by 2.4% to 54.1 million. Supply Chain Management's gross margin for the first quarter of 2022 was 4.3%, decreased by 1.1 ppts YOY, primarily due to restrictions on certain warehouses caused by the pandemic.

BEST Global – Despite the ongoing pandemic and disruption in its supply chains, Global continued to expand its market share in SEA. Its parcel volume reached 38.4 million in the first quarter of 2022, up 24.5% YOY. Parcel volumes in Vietnam, Malaysia and Singapore, increased by 67.7%, 67.6% and 72.0%, respectively. In addition to the positive development in SEA, U.S. operations reached breakeven last year and continued to be profitable in the first quarter of 2022.

Others

As part of its strategic refocusing plan, the Company continued to wind down its Capital business line in the first quarter of 2022.

Key Operational Metrics


Three Months Ended

% Change YOY


March 31,
2020


March 31,
2021


March 31,
2022


2021 vs
2020


2022 vs

2021






Freight Volume (Tonne in '000)

1,074

1,945

1,683


81.0%

(13.5%)

Supply Chain Management
Orders Fulfilled (in '000)

83,596

100,784

87,347


20.6%

(13.3%)

Global Parcel Volume in SEA
 (in '000)

8,840


30,841


38,390


248.9%


24.5%

 

FINANCIAL RESULTS(8) 

For the First Quarter Ended March 31, 2022:

Revenue

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

Table 1 – Breakdown of Revenue by Business Segment





Three Months Ended



March 31, 2021


March 31, 2022



(In '000, except for %)

RMB

% of
Revenue


RMB

US$

% of
Revenue


% Change
YOY

Total Freight

2,043,186

73.4%


1,092,814

172,387

60.6%


(46.5%)

  -Freight

1,174,493

42.2%


1,073,460

169,334

59.6%


(8.6%)

  -Legacy UCargo

868,693

31.2%


19,354

3,053

1.0%


(97.8%)

Supply Chain
Management

447,661

16.1%


408,962

64,512

22.7%


(8.6%)

Global

250,422

9.0%


268,709

42,388

14.9%


7.3%

Others(9)

42,290

1.5%


32,100

5,064

1.8%


(24.1%)

Total Revenue

2,783,559

100.0%


1,802,585

284,351

100.0%


(35.2%)

 

  • Freight Service Revenue was RMB1,092.8 million (US$172.4million) for the first quarter of 2022, compared with RMB2,043.2 million in the same period of last year; of which, RMB19.4 million and RMB868.7 million were from the legacy UCargo business line.  Freight service revenue excluding legacy UCargo business decreased by 8.6% YOY resulting from a 13.5% decrease in freight volume, partially offset by a 4.5% increase in ASP per tonne.
  • Supply Chain Management Service Revenue decreased by 8.6% YOY to RMB409.0 million (US$64.5 million) for the first quarter of 2022 from RMB447.7million in the same period of last year, primarily due to discontinuation of certain low-margin legacy accounts.
  • Global Service Revenue increased by 7.3% YOY to RMB268.7 million (US$42.4 million) for the first quarter of 2022 from RMB250.4 million in the same period of last year, primarily due to parcel volume growth in SEA.

Cost of Revenue

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

Table 2 – Breakdown of Cost of Revenue by Business Segment






Three Months Ended


% of
Revenue
Change

YOY


March 31, 2021


March 31, 2022


(In '000, except for %)

RMB

% of
Revenue


RMB

US$

% of
Revenue


Total Freight

(2,029,952)

99.4%


(1,170,314)

(184,612)

107.1%


7.7ppt

-Freight

(1,173,930)

100.0%


(1,144,613)

(180,558)

106.6%


6.6ppt

-Legacy UCargo

(856,022)

98.5%


(25,701)

(4,054)

132.8%


34.3ppt

Supply Chain
Management

(423,506)

94.6%


(391,207)

(61,711)

95.7%


1.1ppt

Global

(265,102)

105.9%


(285,678)

(45,065)

106.3%


0.4ppt

Others

(13,307)

31.5%


(32,225)

(5,083)

100.4%


68.9ppt

Total Cost of Revenue

(2,731,867)

98.1%


(1,879,424)

(296,471)

104.3%


6.2ppt

 

  • Cost of Revenue for Freight excluding legacy UCargo business was RMB1,144.6 million or 106.6% of revenue in the first quarter of 2022. The 6.6 ppts increase YOY in cost of revenue as a percentage of revenue was mainly due to higher fuel cost and additional costs caused by the pandemic.
  • Cost of Revenue for Supply Chain Management was RMB391.2 million or 95.7% of revenue in the first quarter of 2022. The 1.1 ppts increase YOY in cost of revenue as a percentage of revenue was primarily due to restrictions on certain warehouses caused by the pandemic.
  • Cost of Revenue for Global was RMB285.7 million or 106.3% of revenue in the first quarter of 2022. The 0.4 ppts increase YOY in cost of revenue as a percentage of revenue was primarily due to additional costs caused by the pandemic and higher fuel cost; partially offset by increased parcel volume.
  • Cost of Revenue for Others was RMB 32.2 million or 100.4% of revenue in the first quarter of 2022. The 68.9 ppts increase YOY in cost revenue as percentage of revenue was primarily due to winding down of BEST Capital business line.

Gross Loss was RMB76.8 million (US$12.1 million) in the first quarter of 2022, compared to gross profit of RMB51.7 million in the first quarter of 2021; Gross Margin was negative 4.3%, compared to positive 1.9% in the first quarter of 2021.

Operating Expenses

Selling, General and Administrative Expenses were RMB255.0 million (US$40.2 million) or 14.1% of revenue in the first quarter of 2022, compared to RMB249.8 million or 9.0% of revenue in the first quarter of 2021, primarily due to the expenses associated with winding down the Capital business.

Research and Development Expenses were RMB33.2million (US$5.2 million) or 1.8% of revenue in the first quarter of 2022, compared to RMB40.1 million, or 1.4% of revenue in the first quarter of 2021, primarily due to reduced headcount. 

Share-based Compensation ("SBC") Expenses included in the cost and expense items above were RMB20.7 million (US$3.3 million) in the first quarter of 2022, compared to RMB27.1 million in the first quarter of 2021. In the first quarter of 2022, RMB0.05 million (US$0.01 million) was allocated to cost of revenue, RMB1.2 million (US$0.2 million) was allocated to selling expenses, RMB18.2 million (US$2.9 million) was allocated to general and administrative expenses, and RMB1.3 million (US$0.2 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 first quarter of 2022 was RMB379.9 million (US$59.9 million), compared to RMB191.2 million in the first quarter of 2021. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment, Non-GAAP Net Loss from continuing operations in the first quarter of 2022 was RMB359.2 million (US$56.7 million), compared to RMB169.7 million in the first quarter of 2021.

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

Diluted loss per ADS from continuing operations in the first quarter of 2022 was negative RMB4.60 (US$0.73), compared to negative RMB2.4 in the same period of 2021. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment, Non-GAAP diluted loss per ADS from continuing operations in the first quarter of 2022 was negative RMB4.33 (US$0.68), compared to negative RMB2.12 in the first quarter of 2021. 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 first quarter of 2022 was negative RMB294.6 million (US$46.5million), compared to negative RMB98.5million in the same period of 2021. Adjusted EBITDA Margin from continuing operations in the first quarter of 2022 was negative 16.3%, compared to negative 3.5% in the same period of 2021.

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

As of March 31, 2022, cash and cash equivalents, restricted cash and short-term investments were RMB5,261.1 million (US$829.9 million), compared to RMB3,389.0 million as of March 31, 2021.

Net Cash Used In Continuing Operating Activities

Net cash used in continuing operating activities in the first quarter of 2022 was RMB304.1 million (US$48.0 million), compared to RMB47.9 million of net cash generated from continuing operating activities in the same period of 2021. The increase in net cash used in operating activities was mainly due to the increased net loss and catch-up payments to vendors in the first quarter of 2022. 

Capital Expenditures ("CAPEX")

CAPEX was RMB49.1 million (US$7.7 million), or 2.7% of total revenue in the first quarter ended March 31, 2022, compared to CAPEX of RMB74.7 million, or 2.7% of total revenue, in the same period of 2021. 

SHARES OUTSTANDING

As of May 31, 2022, the Company had approximately 392.5 million ordinary shares outstanding(10). Each American Depositary Share represents five (5) Class A ordinary shares.

As previously announced, effective from May 20, 2022, 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 one (1) Class A ordinary share, to a new ADS ratio of one (1) ADS to five (5) Class A ordinary shares.

FINANCIAL GUIDANCE

Due to the uncertainties relating to the COVID-19 pandemic, the Company renounces, and does not affirm, its previous financial guidance given in its results announcement dated March 8, 2022.  Accordingly, the Company is not providing any financial guidance or revenue outlook at this time. We are driving each of our business units toward a speedy recovery as the COVID-19 pandemic eases.

WEBCAST AND CONFERENCE CALL INFORMATION

The Company will hold a conference call at 9:00 pm U.S. Eastern Time on June 8, 2022 (9:00 am Beijing Time on June 9, 2022), to discuss its financial results and operating performance for the first quarter of 2022.

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:           6408443

A replay of the conference call will be accessible through June 15, 2022 by dialing the following numbers:

United States:                                       +1-877-344-7529
International:                                         +1-412-317-0088
Replay Access Code:                            2605618

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 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/.  

For investor and media inquiries, please contact:

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

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

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

SAFE HARBOR STATEMENT

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

USE OF NON-GAAP FINANCIAL MEASURES

In evaluating its business, BEST considers and uses non-GAAP measures, such as non-GAAP net loss/income, non-GAAP net loss/profit margin, adjusted EBITDA, adjusted EBITDA margin, EBITDA, 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 March 31,


2021

2022


RMB

RMB

US$

Revenue




Freight

2,043,186

1,092,814

172,387

  -Freight

1,174,493

1,073,460

169,334

  -Legacy UCargo

868,693

19,354

3,053

Supply Chain Management

447,661

408,962

64,512

Global

250,422

268,709

42,388

Others

42,290

32,100

5,064

Total Revenue

2,783,559

1,802,585

284,351

Cost of Revenue




Freight

(2,029,952)

(1,170,314)

(184,612)

Supply Chain Management

(423,506)

(391,207)

(61,711)

Global

(265,102)

(285,678)

(45,065)

Others

(13,307)

(32,225)

(5,083)

Total Cost of Revenue

(2,731,867)

(1,879,424)

(296,471)

Gross Profit/(Loss)

51,692

(76,839)

(12,120)

Selling Expenses

(55,081)

(54,926)

(8,664)

General and Administrative
   Expenses

(194,680)

(200,054) (11)

(31,558)

Research and

   Development Expenses

(40,065)

(33,175)

(5,233)

Other operating
   income/(expense), net

41,718

2,640

416

Loss from Operations

(196,416)

(362,354)

(57,159)

Interest Income

11,707

15,618

2,464

Interest Expense

(35,512)

(26,422)

(4,168)

Foreign Exchange Gain

800

4,845

764

Other Income

40,735

16,109

2,541

Other Expense

(8,242)

(27,476)

(4,334)

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

(186,928)

(379,680)

(59,892)

Income Tax Expense

(4,290)

(219)

(35)

Loss before Share of Net
   loss of Equity Investees

(191,218)

(379,899)

(59,927)

Share of Net Loss of Equity
   Investees

-

-

-

Net Loss from continuing
   operations

(191,218)

(379,899)

(59,927)

Net loss from discontinued
   operations

(427,087)

(284)

(45)

Net Loss

(618,305)

(380,183)

(59,972)

Net loss attributable to non-
   controlling interests

(5,410)

(20,878)

(3,293)

Net Loss attributable to
    BEST Inc.

(612,895)

(359,305)

(56,679)

 

 

 

Summary of Unaudited Condensed Consolidated Balance Sheets

(in thousands)




As of December 31,2021

              As of March 31, 2022


      RMB

           RMB      

  US$         

Assets





Current Assets





Cash and Cash Equivalents

3,571,745


2,053,610

323,949

Restricted Cash

675,159


599,920

94,635

Accounts and Notes Receivables

827,631


752,397

118,690

Inventories

25,622


24,295

3,832

Prepayments and Other Current
   Assets

1,172,472


1,013,868

159,933

Short‑term Investments

147,359


1,297,440

204,666

Amounts Due from Related Parties

125,198


97,585

15,394

Lease Rental Receivables

298,364


223,073

35,189

Total Current Assets

6,843,550


6,062,188

956,288

Non‑current Assets





Property and Equipment, Net

762,642


748,443

118,064

Intangible Assets, Net

55,684


59,273

9,350

Long‑term Investments

219,171


189,171

29,841

Goodwill

54,135


54,135

8,540

Non‑current Deposits

92,866


83,257

13,133

Other Non‑current Assets

111,640


83,478

13,168

Restricted Cash

1,069,244


1,310,141

206,670

Lease Rental Receivables

235,429


168,478

26,577

Operating Lease Right-of-use
Assets

1,899,522


1,785,192

281,607

Total non‑current Assets

4,500,333


4,481,568

706,950

Total Assets

11,343,883


10,543,756

1,663,238

Liabilities and Shareholders'
   Equity





Current Liabilities





Long-term borrowings-current

287,814


239,382

37,762

Convertible Senior Notes held by
   related parties

633,475


632,259

99,736

Convertible Senior Notes held by
   third parties

633,475


632,259

99,736

Short‑term Bank Loans

530,495


410,156

64,701

Accounts and Notes Payable

1,353,150


1,373,396

216,648

Income Tax Payable

587


350

55

Customer Advances and Deposits
   and Deferred Revenue

298,353


292,141

46,084

Accrued Expenses and Other
   Liabilities

1,591,639


1,387,461

218,867

Financing Lease Liabilities

1,851


1,699

268

Operating Lease Liabilities

518,248


493,438

77,838

Amounts Due to Related Parties

2,763


11,430

1,803

Total Current Liabilities

5,851,850


5,473,971

863,498








 

 

 

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

(In Thousands)




As of December 31, 2021


As of March 31, 2022


    RMB


         RMB

          US$

Non-current Liabilities





Convertible senior notes held by

   related parties

955,097


951,467

150,090

Long-term borrowings

67,080


32,702

5,159

Operating Lease Liabilities

1,456,843


1,374,940

216,891

Financing Lease Liabilities

2,121


2,104

332

Other Non‑current Liabilities

24,261


25,034

3,949

Long-term Bank Loans

769,767


841,231

132,701

Total Non‑current Liabilities

3,275,169


3,227,478

509,122

Total Liabilities

9,127,019


8,701,449

1,372,620

Mezzanine Equity:





Convertible Non-controlling Interests

191,865


191,865

30,266

Total mezzanine equity

191,865


191,865

30,266

Shareholders' Equity





Ordinary Shares

25,988


25,988

4,100

Treasury Shares

(113,031)


(28,824)

(4,547)

Additional Paid‑In Capital

19,522,173


19,457,107

3,069,284

Statutory reserves

167


-

-

Accumulated Deficit

(17,471,716)


(17,843,712) (12)

(2,814,776)

Accumulated Other
   Comprehensive Income

107,379


93,050

14,678

BEST Inc. Shareholders' Equity

2,070,960


1,703,609

268,739

Non-controlling Interests

(45,961)


(53,167)

(8,387)

Total Shareholders' Equity

2,024,999


1,650,442

260,352

Total Liabilities, Mezzanine Equity
   and Shareholders' Equity

11,343,883


10,543,756

1,663,238

 

 

 

Summary of Unaudited Condensed Consolidated Statements of Cash Flows

 (In Thousands)





Three Months Ended March 31,


2021

2022


RMB

RMB

US$

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

47,887

(304,096)

(47,970)

Net cash used in discontinued
   operating activities

(705,838)

-

-

Net cash used in operating
   activities

(657,951)

(304,096)

(47,970)

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

150,074

(879,542)

(138,744)

Net cash used in discontinued
   Investing activities

(127,278)

-

-

Net cash generated from/(used in) 
   investing activities

22,796

(879,542)

(138,744)

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

274,100

(145,284)

(22,918)

Net cash used in discontinued
   financing activities

(172,653)

-

-

Net cash generated from/(used in)
   financing activities

101,447

(145,284)

(22,918)

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

6,716

(23,555)

(3,716)

Net decrease in Cash and Cash
   Equivalents, and Restricted Cash

(526,992)

(1,352,477)

(213,348)

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

4,209,121

5,316,148

838,602

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

3,682,129

3,963,671

625,254

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

588,824

-

-

Cash and Cash Equivalents, and

   Restricted Cash from continuing
   operations at End of
 Period

3,093,305

3,963,671

625,254

 

 

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 4 – Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin















Three Months Ended March31, 2022








(In RMB'000)

Freight

Supply Chain

Global

Others

Unallocated(13)

Total








Net Loss

(173,111)

(20,768)

(70,976)

(57,376)

(57,668)

(379,899)








Add














  Depreciation &
  Amortization

20,257

10,484

5,110

13,317

4,391

53,559








  Interest Expense

-

-

-

-

26,422

26,422








  Income Tax Expense

-

12

18

189

-

219








Subtract














Interest Income

-

-

-

-

(15,618)

(15,618)








EBITDA

(152,854)

(10,272)

(65,848)

(43,870)

(42,473)

(315,317)








Add














 Share-based

2,953

1,822

2,428

143

13,337

20,683








   Compensation
   Expenses








Adjusted EBITDA

(149,901)

(8,450)

(63,420)

(43,727)

(29,136)

(294,634)








Adjusted EBITDA
   Margin

(13.7%)

(2.1%)

(23.6%)

(136.2%)

-

(16.3%)



























Three Months Ended March 31, 2021








(In RMB'000)

Freight

Supply Chain

Global

Others

Unallocated(14)

Total








Net (Loss)/Income

(57,629)

(11,965)

(58,244)

5,296

(68,676)

(191,218)








Add














   Depreciation &
   Amortization

21,597

10,227

4,174

343

6,767

43,108








   Interest Expense

-

-

-

-

35,512

35,512








   Income Tax Expense

-

9

-

4,281

-

4,290








Subtract














  Interest Income

-

-

-

-

(11,707)

(11,707)








EBITDA

(36,032)

(1,729)

(54,070)

9,920

(38,104)

(120,015)








Add














 Share-based

3,162

1,896

2,150

146

19,704

27,058








    Compensation
    Expenses








Subtract














   Gain from
   appreciation of
   investments

-

-

-

-

(5,562)

(5,562)








Adjusted EBITDA

(32,870)

167

(51,920)

10,066

(23,962)

(98,519)








Adjusted EBITDA
   Margin

(1.6%)

0.0%

(20.7%)

23.8%

-

(3.5%)






















 

 

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 5 – Reconciliation of Non-GAAP Net (Loss)/Income and Non-GAAP Net (Loss)/Income Margin



Three Months  Ended March 31, 2022

(In RMB'000)

Freight

Supply Chain

Global

Others

Unallocated(15)

Total

Net Loss

(173,111)

(20,768)

(70,976)

(57,376)

(57,668)

(379,899)

Add







 Share-based

 Compensation Expenses

2,953

1,822

2,428

143

13,337

20,683

Non-GAAP Net
   Loss

(170,158)

(18,946)

(68,548)

(57,233)

(44,331)

(359,216)

Non-GAAP Net
   Loss Margin

(15.6%)

(4.6%)

(25.5%)

(178.3%)

-

(19.9%)

 

 


Three Months  Ended March 31, 2021

(In RMB'000)

Freight

Supply Chain

Global

Others

Unallocated(16)

Total

Net (Loss)/Income

(57,629)

(11,965)

(58,244)

5,296

(68,676)

(191,218)

Add







 Share-based

 Compensation Expenses

3,162

1,896

2,150

146

19,704

27,058

Subtract







   Gain from
   appreciation of
   investments

-

-

-

-

(5,562)

(5,562)

Non-GAAP Net
   (Loss)/Income

(54,467)

(10,069)

(56,094)

5,442

(54,534)

(169,722)

Non-GAAP Net
  (Loss)/Income
 Margin

(2.7%)

(2.2%)

(22.4%)

12.9%

-

(6.1%)









 

 

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 6 – Reconciliation of diluted loss per ADS and Non-GAAP diluted loss per ADS



Three Months Ended March 31,


2022

(In '000)

             RMB          

       US$

Net Loss Attributable to Ordinary Shareholders

(359,021)

(56,634)

Add



   Share-based Compensation Expenses

20,683

3,263

Non-GAAP Net Loss Attributable to Ordinary
   Shareholders

(338,338)

(53,371)

Weighted Average Diluted Ordinary Shares
  Outstanding During the Quarter



Diluted

390,274,553

390,274,553

Diluted (Non-GAAP)

390,274,553

390,274,553

Diluted loss per ordinary share

(0.92)

(0.15)

Add



   Non-GAAP adjustment to net loss per
   ordinary share

0.05

0.01

Non-GAAP diluted loss per ordinary share

(0.87)

(0.14)




Diluted loss per ADS

(4.60)

(0.73)

Add



   Non-GAAP adjustment to net loss per ADS

0.27

0.05

Non-GAAP diluted loss per ADS

(4.33)

(0.68)

 

 

 

(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/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 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 Capital business units. Results from UCargo's legacy contracts with external customers are now reported under "Freight" segment and prior period segment information were retrospectively revised to conform to current period presentation.           

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

(11) Including additional expenses associated with winding down the Capital business line of RMB28,005.

(12) Including accumulated accretion to redemption value and deemed dividend in relation to redeemable convertible preferred shares of RMB9,493,807, and accumulated loss from operations of RMB8,349,905.

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

(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.


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Source: BEST Inc. Related Stocks: NYSE:BEST
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