BEST Inc. Announces Unaudited Fourth Quarter and Fiscal Year 2023 Financial Results
HANGZHOU, China, March 27, 2024 /PRNewswire/ -- BEST Inc. (NYSE: BEST) ("BEST" or the "Company"), a leading integrated smart supply chain solutions and logistics services provider in China and Southeast Asia ("SEA"), today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2023.
FINANCIAL HIGHLIGHTS( (1)())
For the Fourth Quarter Ended December 31, 2023:((2)())
-- Revenue was RMB2,236.3 million (US$315.0 million), compared to
RMB1,981.4 million in the fourth quarter of 2022. The increase was
primarily due to increased revenue of BEST Freight and BEST Global.
-- Gross Profit was RMB118.3 million (US$16.7 million), compared to gross
loss of RMB58.5 million in the fourth quarter of 2022. The increase was
primarily due to further improvements in operating efficiency across our
business lines. Gross Profit Margin was 5.3% for the fourth quarter of
2023, compared to Gross Loss Margin of 3.0% in the same period of 2022.
-- Net Loss from continuing operations was RMB283.5 million (US$39.9
million), compared to RMB365.8 million in the fourth quarter of 2022.
Non-GAAP Net Loss from continuing operations((3)())((4)() )was RMB177.9
million (US$25.1 million), compared to RMB338.0 million in the fourth
quarter of 2022.
-- Diluted loss per ADS((5)()) from continuing operations was RMB12.41 (US$
1.75), compared to RMB17.96 in the fourth quarter of 2022. Non-GAAP
diluted loss per ADS((3)(4)) from continuing operations was RMB7.10 (US$
1.00), compared to RMB16.52 in the fourth quarter of 2022.
-- EBITDA((6)()) from continuing operations was negative RMB248.6 million
(US$35.0 million), compared to negative RMB324.7 million in the fourth
quarter of 2022. Adjusted EBITDA((6)) from continuing operations was
negative RMB143.0 million (US$20.1 million), compared to negative
RMB296.9 million in the fourth quarter of 2022.
For the Fiscal Year Ended December 31, 2023:
-- Revenue was RMB8,315.8 million (US$1,171.3 million), compared to
RMB7,744.1 million in 2022. The increase was primarily due to increased
revenue for all business lines.
-- Gross Profit was RMB250.4 million (US$35.3 million), compared to gross
loss of RMB263.6 million in 2022. The increase was primarily due to
further improvements for all business lines. Gross Profit Margin was
3.0%, compared to Gross Loss Margin of 3.4% in 2022.
-- Net Loss from continuing operations was RMB908.6 million (US$128.0
million), compared to RMB1,464.8 million in 2022. Non-GAAP Net Loss from
continuing operations((7)())((8)() )was RMB765.6 million (US$107.8
million), compared to RMB1,380.4 million in 2022.
-- Diluted loss per ADS((9)()) from continuing operations was RMB43.60
(US$ 6.20), compared to a loss of RMB72.68 in 2022. Non-GAAP diluted
loss per ADS((3)(4)) from continuing operations was RMB36.10 (US$5.14),
compared to a loss of RMB68.36 in 2022.
-- EBITDA((10)()) from continuing operations was negative RMB756.8 million
(US$106.6 million), compared to negative RMB1,266.2 million in 2022.
Adjusted EBITDA((6)) from continuing operations was negative RMB613.7
million (US$86.4million), compared to negative RMB1,181.8 million in
2022.
BEST Freight - BEST Freight recorded revenue growth of 19.1% in the fourth quarter of 2023, year over year. Freight's gross margin was 5.3%, representing a 6.6 percentage points improvement from the same period of 2022. For the full year of 2023, Freight recorded revenue growth of 10.6% compared to 2022. Freight's gross margin was 3.7%, representing an 8.3 percentage points improvement of 2022 as we continued to reduce operating expenses and improve efficiency.
BEST Supply Chain Management - Driven by its best-in-class service quality and digital capabilities, BEST Supply Chain Management recorded gross margin of 5.8% compared to 4.4% in the same period of 2022. For the full year of 2023, Supply Chain Management recorded gross margin of 8.5% compared to 6.1% in 2022.
BEST Global - In the fourth quarter, BEST Global continued its robust post-COVID recovery. BEST Global's revenue increased by 20.0% and its parcel volumes increased by 60.1%, both year over year, with parcel volumes in Vietnam and Malaysia, increased by 173.0% and 27.3%, respectively. Total volume of the cross-border business in the fourth quarter increased by 55.6% compared with the third quarter of 2023. For the full year of 2023, BEST Global's revenue increased by 3.2% and its parcel volumes increased by 14.6%, both year over year, with parcel volumes in Vietnam and Malaysia, increased by 28.6% and 56.3%, respectively.
Key Operational Metrics
Three Months Ended % Change YOY
202 202
2 3
vs
December 31, December 31, December 31, vs
202 202 202 202
1 2
1 2
202
3
Freight Volume (Tonne in '000) 2,408 2,226 2,571 (7.6 %) 15.5 %
Global Parcel Volume in
SEA 43,707 25,421 40,688 (41.8 %) 60.1 %
(in '000)
Fiscal Year Ended % Change YoY
202 202
2
3
vs
December 31, December 31, December 31, vs
202 202 202 202 202
1 2 3
1
2
Freight Volume (Tonne in '000) 9,218 8,659 9,280 (6.1 %) 7.2 %
Global Parcel Volume in
SEA 150,392 121,637 139,415 (19.1 %) 14.6 %
(in '000)
FINANCIAL RESULTS( (11))
For the Fourth Quarter Ended December 31, 2023:
Revenue
The following table sets forth a breakdown of revenue by business segment for the periods indicated.
Table 1 - Breakdown of Revenue by Business Segment
Three Months Ended
December 31, 202 December 31, 202
2 3
(In '000, except for %) RMB % of RMB US$ % of % Change
Revenue Revenue YOY
Freight 1,261,196 63.7 % 1,501,909 211,539 67.2 % 19.1 %
Supply Chain Management 500,602 25.3 % 471,379 66,392 21.1 % (5.8 %)
Global 195,680 9.9 % 234,906 33,086 10.5 % 20.0 %
Others
(12) 23,917 1.1 % 28,057 3,952 1.2 % 17.3 %
Total Revenue 1,981,395 100.0 % 2,236,251 314,969 100.0 % 12.9 %
-- Freight Service Revenue was RMB1,501.9 million (US$211.5 million) for
the fourth quarter of 2023, compared to RMB1,261.2 million in the same
period last year. Freight service revenue increased by 19.1% year over
year, primarily due to increases in both volume and average selling
price per tonne.
-- Supply Chain Management Service Revenue decreased by 5.8% year over year
to RMB471.4 million (US$66.4 million) for the fourth quarter of 2023
from RMB500.6 million in the same period of last year, primarily due to
further optimization of its customer mix.
-- Global Service Revenue increased by 20.0% year over year to RMB234.9
million (US$33.1 million) for the fourth quarter of 2023 from RMB195.7
million in the same period of last year, primarily due to volume growth
in Vietnam, Malaysia and cross-border business.
Cost of Revenue
The following table sets forth a breakdown of cost of revenue by business segment for the periods indicated.
Table 2 - Breakdown of Cost of Revenue by Business Segment
Three Months Ended % of Revenue
Change
YOY
December 31, 202 December 31, 202
2 3
(In '000, except for %) RMB % of RMB US$ % of
Revenue Revenue
Freight (1,277,026) 101.3 % (1,422,351) (200,334) 94.7 % (6.6 %)
Supply Chain Management (478,511) 95.6 % (443,927) (62,526) 94.2 % (1.4 %)
Global (264,014) 134.9 % (270,146) (38,049) 115.0 % (19.9 %)
Others (20,321) 85.0 % 18,500 2,606 (65.9 %) (151.0 %)
Total Cost of Revenue (2,039,872) 103.0 % (2,117,924) (298,303) 94.7 % (8.3 %)
-- Cost of Revenue for Freight was RMB1,422.4 million (US$200.3 million),
or 94.7% of revenue, in the fourth quarter of 2023. The 6.6 percentage
points year-over-year decrease in cost of revenue as a percentage of
revenue was mainly due to reduced unit cost.
-- Cost of Revenue for Supply Chain Management was RMB443.9 million
(US$62.5 million), or 94.2% of revenue, in the fourth quarter of 2023.
The 1.4 percentage points year-over-year decrease in cost of revenue as
a percentage of revenue was primarily due to improved operating
efficiency and optimized customer mix.
-- Cost of Revenue for Global was RMB270.1 million (US$38.0 million), or
115.0% of revenue, in the fourth quarter of 2023. The 19.9 percentage
points year-over-year decrease in cost of revenue as a percentage of
revenue due to increased parcel volume.
Gross Profit was RMB118.3 million (US$16.7 million) in the fourth quarter of 2023, compared to gross loss of RMB58.5 million in the fourth quarter of 2022; Gross Margin was 5.3%, compared to negative 3.0% in the fourth quarter of 2022.
Operating Expenses
Selling, General and Administrative ("SG&A") Expenses were RMB281.5 million (US$39.6 million), or 12.6% of revenue in the fourth quarter of 2023, compared to RMB263.4 million, or 13.3% of revenue in the same quarter of 2022.
Research and Development Expenses were RMB29.4 million (US$4.1 million), or 1.3% of revenue in the fourth quarter of 2023, compared to RMB29.2 million, or 1.5% of revenue in the fourth quarter of 2022.
Share-based Compensation ("SBC") Expenses included in the cost and expense items above were RMB10.9 million (US$1.5 million) in the fourth quarter of 2023, compared to RMB15.6 million in the same period of 2022. Of the total SBC expenses, RMB0.05 million (US$0.01 million) was allocated to cost of revenue, RMB0.5 million (US$0.07 million) was allocated to selling expenses, RMB9.5 million (US$1.3 million) was allocated to general and administrative expenses, and RMB0.8 million (US$0.1 million) was allocated to research and development expenses.
Net Loss and Non-GAAP Net Loss from continuing operations
Net Loss from continuing operations in the fourth quarter of 2023 was RMB283.5 million (US$39.9 million), compared to RMB365.8 million in the same period of 2022. Non-GAAP Net Loss from continuing operations in the fourth quarter of 2023 was RMB177.9 million (US$25.1 million), compared to RMB338.0 million in the fourth quarter of 2022.
Diluted loss per ADS and Non-GAAP diluted loss per ADS from continuing operations
Diluted loss per ADS from continuing operations in the fourth quarter of 2023 was RMB12.41 (US$ 1.75), compared to a loss of RMB17.96 in the same period of 2022. Non-GAAP diluted loss per ADS from continuing operations in the fourth quarter of 2023 was RMB 7.10 (US$1.00), compared to a loss of RMB16.52 in the fourth quarter of 2022. A reconciliation of non-GAAP diluted loss per ADS to diluted loss per ADS is included at the end of this results announcement.
Adjusted EBITDA and Adjusted EBITDA Margin from continuing operations
Adjusted EBITDA from continuing operations in the fourth quarter of 2023 was negative RMB143.0 million (US$20.1 million), compared to negative RMB296.9 million in the same period of 2022. Adjusted EBITDA Margin from continuing operations in the fourth quarter of 2023 was negative 6.4%, compared to negative 15.0% in the same period of 2022.
Cash and Cash Equivalents, Restricted Cash and Short-term Investments
As of December 31, 2023, cash and cash equivalents, restricted cash and short-term investments were RMB2.3 billion (US$321.5 million), compared to RMB3.2 billion as of December 31, 2022. In 2023, the Company repurchased approximately US$75 million (RMB542 million) aggregate principal amount of its existing Convertible Senior Notes due 2024.
Net Cash Used In Continuing Operating Activities
Net cash generated from continuing operating activities in the fourth quarter of 2023 was RMB0.9million (US$0.1 million), compared to RMB241.9 million of net cash used in continuing operating activities in the same period of 2022.
For the Fiscal Year Ended December 31, 2023:
Revenue
The following table sets forth a breakdown of revenue by business segment for the periods indicated.
Table 3 - Breakdown of Revenue by Business Segment
Fiscal Year Ended
31-Dec-22 31-Dec-23
(In '000, except for %) RMB % of RMB US$ % of % Change
Revenue Revenue YoY
Freight 4,888,278 63.2 % 5,404,395 761,193 65.0 % 10.6 %
Supply Chain Management 1,822,075 23.5 % 1,858,629 261,782 22.4 % 2.0 %
Global 916,907 11.8 % 946,513 133,314 11.4 % 3.2 %
Others 116,812 1.5 % 106,307 14,973 1.2 % (9.0 %)
Total Revenue 7,744,072 100.0 % 8,315,844 1,171,262 100.0 % 7.4 %
-- Freight Service Revenue was RMB5,404.4 million (US$761.2 million) in
2023, compared to RMB4,888.3 million in 2022. Freight service revenue
increased by 10.6% year over year, primarily resulting from increases in
both freight volume and average selling price per tonne.
-- Supply Chain Management Service Revenue increased by 2% year over year
to RMB1,858.6 million (US$261.8 million) in 2023 from RMB1,822.1 million
in 2022.
-- Global Service Revenue increased by 3.2% year over year to RMB946.5
million (US$133.3 million) in 2023 from RMB916.9 million in 2022
primarily due to volume growth in Vietnam, Malaysia and cross-border
business, partially offset by the decrease of parcel volume in Thailand.
Cost of Revenue
The following table sets forth a breakdown of cost of revenue by business segment for the periods indicated.
Table 4 - Breakdown of Cost of Revenue by Business Segment
Fiscal Year Ended % of
Revenue
Change
YoY
December 31, 20
22 December 31, 202
3
(In '000, except for %) RMB % of RMB US$ % of
Revenue Revenue
Freight (5,114,937) 104.6 % (5,206,967) (733,386) 96.3 % (8.3 %)
Supply Chain Management (1,711,818) 93.9 % (1,700,467) (239,506) 91.5 % (2.4 %)
Global (1,081,587) 118.0 % (1,131,484) (159,366) 119.5 % 1.5 %
Others (99,288) 85.0 % (26,489) (3,731) 24.9 % (60.1 %)
Total Cost of Revenue (8,007,630) 103.4 % (8,065,407) (1,135,989) 97.0 % (6.4 %)
-- Cost of Revenue for Freight was RMB5,207.0 million (US$733.4 million),
or 96.3% of revenue in 2023. The 8.3 percentage points year-over-year
decrease in cost of revenue as a percentage of revenue was mainly due to
reduced unit cost.
-- Cost of Revenue for Supply Chain Management was RMB1,700.5 million
(US$239.5 million), or 91.5% of revenue in 2023. The 2.4 percentage
points year-over-year decrease in cost of revenue as a percentage of
revenue was primarily due to improved operating efficiency and optimized
customer mix.
-- Cost of Revenue for Global was RMB1,131.5 million (US$159.4 million), or
119.5% of revenue in 2023. The 1.5 percentage points year-over-year
increase in cost of revenue as a percentage of revenue was primarily due
to lower parcel volume of Thailand.
Gross Profit was RMB250.4 million (US$35.3 million) in 2023, compared to gross loss of RMB263.6 million in 2022; Gross Margin was 3.0%, compared to negative 3.4% in 2022.
Operating Expenses
Selling, General and Administrative ("SG&A") Expenses were RMB994.4 million (US$140.0 million), or 12.0% of revenue in 2023, compared to RMB1,127.3 million, or 14.6% of revenue in 2022.
Research and Development Expenses were RMB115.9 million (US$16.3 million), or 1.4% of revenue in 2023, compared to RMB144.2 million, or 1.9% of revenue in 2022.
Share-based Compensation ("SBC") Expenses included in the cost and expense items above were RMB48.3 million (US$6.8 million) in 2023, compared to RMB72.1 million in 2022. Of the total SBC expenses, RMB0.2 million (US$0.03 million) was allocated to cost of revenue, RMB2.1 million (US$0.3 million) was allocated to selling expenses, RMB42.5 million (US$6.0 million) was allocated to general and administrative expenses, and RMB3.6 million (US$0.5 million) was allocated to research and development expenses.
Net Loss and Non-GAAP Net Loss from continuing operations
Net Loss from continuing operations in 2023 was RMB908.6 million (US$128.0 million), compared to RMB1,464.8 million in 2022. Non-GAAP Net Loss from continuing operations in 2023 was RMB765.6 million (US$107.8 million), compared to RMB1,380.4 million in 2022.
Diluted loss per ADS and Non-GAAP diluted loss per ADS from continuing operations
Diluted loss per ADS from continuing operations in 2023 was RMB43.60 (US$6.20), compared to a loss of RMB72.68 in 2022. Non-GAAP diluted loss per ADS from continuing operations in 2023 was RMB36.10 (US$5.14), compared to a loss of RMB68.36 in 2022. A reconciliation of non-GAAP diluted loss per ADS to diluted loss per ADS is included at the end of this results announcement.
Adjusted EBITDA and Adjusted EBITDA Margin from continuing operations
Adjusted EBITDA from continuing operations in 2023 was negative RMB613.7 million (US$86.4 million), compared to negative RMB1,181.8 million in 2022. Adjusted EBITDA Margin from continuing operations in 2023 was negative 7.4%, compared to negative 15.3% in 2022.
Cash and Cash Equivalents, Restricted Cash and Short-term Investments
As of December 31, 2023, cash and cash equivalents, restricted cash and short-term investments were RMB2.3 billion (US$321.5 million), compared to RMB3.2 billion as of December 31, 2022. In 2023, the Company repurchased approximately US$75 million (RMB542 million) aggregate principal amount of its existing Convertible Senior Notes due 2024.
Net Cash Used In Continuing Operating Activities
Net cash used in continuing operating activities in 2023 was RMB554.7 million (US$78.1 million), compared to RMB1,051.7 million of net cash used in continuing operating activities in 2022.
SHARES OUTSTANDING
As of March 11, 2024, the Company had approximately 401.9 million ordinary shares outstanding(([13])). Each American Depositary Share represents five (20) Class A ordinary shares.
As previously announced, effective from April 4, 2023, the Company changed the ratio of its American Depositary Shares to its Class A ordinary shares, par value US$0.01 per share, from the original ADS ratio of one (1) ADS to five (5) Class A ordinary share, to a new ADS ratio of one (1) ADS to twenty (20) Class A ordinary shares.
Effective as of September 25, 2023, the Company's board of directors terminated its previously announced share repurchase program, under which the Company could repurchase up to US$20 million worth of its outstanding American Depositary Shares over a 12-month period. Prior to the program's termination, the Company repurchased a total of 1,265,685 ADSs for a total amount paid of approximately US$3.3 million (excluding commissions) under the program.
ABOUT BEST INC.
BEST Inc. (NYSE: BEST) is a leading integrated smart supply chain solutions and logistics services provider in China and SEA. Through its proprietary technology platform and extensive networks, BEST offers a comprehensive set of logistics and value-added services, including freight delivery, supply chain management and global logistics services. BEST's mission is to empower business and enrich life by leveraging technology and business model innovation to create a smarter, more efficient supply chain. For more information, please visit: http://www.best-inc.com/en/.
SAFE HARBOR STATEMENT
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as BEST's strategic and operational plans, contain forward-looking statements. BEST may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about BEST's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: BEST's goals and strategies; BEST's future business development, results of operations and financial condition; BEST's ability to maintain and enhance its ecosystem; BEST's ability to compete effectively; BEST's ability to continue to innovate, meet evolving market trends, adapt to changing customer demands and maintain its culture of innovation; fluctuations in general economic and business conditions in China and other countries in which BEST operates, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in BEST's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and BEST does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
USE OF NON-GAAP FINANCIAL MEASURES
In evaluating its business, BEST considers and uses non-GAAP measures, such as non-GAAP net loss/income, non-GAAP net loss/income margin, adjusted EBITDA, adjusted EBITDA margin, EBITDA, and non-GAAP Diluted earnings/loss per ADS, as supplemental measures in the evaluation of the Company's operating results and in the Company's financial and operational decision-making. The Company believes these non-GAAP financial measures that help identify underlying trends in the Company's business that could otherwise be distorted by the effect of the expenses and gains that the Company includes in loss from operations and net loss. The Company believes that these non-GAAP financial measures provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures" in the results announcement.
The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company's calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.
Summary of Unaudited Condensed Consolidated Income Statements
(In Thousands)
Three Months Ended December 31, Fiscal Year Ended December 31,
2022 2023 2022 2023
RMB RMB US$ RMB RMB US$
Revenue
Freight 1,261,196 1,501,909 211,539 4,888,278 5,404,395 761,193
Supply Chain Management 500,602 471,379 66,392 1,822,075 1,858,629 261,782
Global 195,680 234,906 33,086 916,907 946,513 133,314
Others 23,917 28,057 3,952 116,812 106,307 14,973
Total Revenue 1,981,395 2,236,251 314,969 7,744,072 8,315,844 1,171,262
Cost of Revenue
Freight (1,277,026) (1,422,351) (200,334) (5,114,937) (5,206,967) (733,386)
Supply Chain Management (478,511) (443,927) (62,526) (1,711,818) (1,700,467) (239,506)
Global (264,014) (270,146) (38,049) (1,081,587) (1,131,484) (159,366)
Others (20,321) 18,500 2,606 (99,288) (26,489) (3,731)
Total Cost of Revenue (2,039,872) (2,117,924) (298,303) (8,007,630) (8,065,407) (1,135,989)
Gross (Loss)/
Profit (58,477) 118,327 16,666 (263,558) 250,437 35,273
Selling Expenses (54,621) (72,080) (10,152) (237,918) (256,621) (36,144)
General and Administrative Expenses (208,738) (209,400) (29,493) (889,345) (737,775) (103,913)
Research and Development Expenses (29,247) (29,449) (4,148) (144,181) (115,917) (16,327)
Impairment of long-lived assets (94,699) (13,338) - (94,699) (13,338)
Other operating income, net 3,387 2,575 363 108,817 2,658 374
Loss from Operations (347,696) (284,726) (40,102) (1,426,185) (951,917) (134,075)
Interest Income 19,208 17,848 2,514 80,361 83,810 11,805
Interest Expense (16,329) (13,864) (1,953) (89,058) (64,283) (9,055)
Foreign Exchange Gain/(loss) 68,318 11,750 1,655 (132,730) (14,010) (1,974)
Other Income 2,149 469 66 25,914 11,067 1,559
Other Expense (13,815) (635) (89) 5,763 (4,454) (628)
(Loss)/Gain on changes in the fair value of (77,577) (14,114) (1,988) 71,619 32,322 4,553
derivative assets/liabilities
Loss before Income Tax and Share of (365,742) (283,272) (39,897) (1,464,316) (907,465) (127,815)
Net Loss of Equity Investees
Income Tax Expense (106) (249) (35) (511) (1,141) (161)
Loss before Share of Net loss of Equity (365,848) (283,521) (39,932) (1,464,827) (908,606) (127,976)
Investees
Share of Net Loss of Equity Investees -
Net Loss from continuing operations (365,848) (283,521) (39,932) (1,464,827) (908,606) (127,976)
Net (loss)/gain from discontinued operations (31,787) (38,464) 15,222 2,144
Net Loss (397,635) (283,521) (39,932) (1,503,291) (893,384) (125,832)
Net Loss from continuing operations attributable (13,055) (36,811) (5,185) (39,980) (78,982) (11,124)
to non-controlling interests
Net Loss attributable to BEST Inc. (384,580) (246,710) (34,747) (1,463,311) (814,402) (114,708)
Summary of Unaudited Condensed Consolidated Balance Sheets
(In Thousands)
As of December As of December 31,
31,2022 2023
RMB RMB US$
Assets
Current Assets
Cash and Cash Equivalents 533,481 425,976 59,997
Restricted Cash 399,337 1,008,318 142,019
Accounts and Notes Receivables 691,324 829,802 116,875
Inventories 16,480 7,794 1,098
Prepayments and Other Current Assets 777,842 674,100 94,945
Short?term Investments 725,043 35,888 5,055
Amounts Due from Related Parties 76,368 60,394 8,506
Lease Rental Receivables 43,067 47,925 6,750
Total Current Assets 3,262,942 3,090,197 435,245
Non?current Assets
Property and Equipment, Net 784,732 624,205 87,917
Intangible Assets, Net 75,553 93,173 13,123
Long?term Investments 156,859 156,859 22,093
Goodwill 54,135 54,135 7,625
Non?current Deposits 50,767 81,869 11,531
Other Non?current Assets 75,666 46,913 6,608
Restricted Cash 1,545,605 812,371 114,420
Lease Rental Receivables 40,188 314 44
Operating Lease Right-of-use Assets 1,743,798 1,293,526 182,189
Total non?current Assets 4,527,303 3,163,365 445,550
Total Assets 7,790,245 6,253,562 880,795
Liabilities and Shareholders' Equity
Current Liabilities
Long-term borrowings-current 79,148 721 102
Long-term
Bank Loans-current - 794,679 111,928
Convertible Senior Notes held by related parties 522,744 531,202 74,818
Convertible Senior Notes held by third parties 77 78 11
Short?term Bank Loans 183,270 401,755 56,586
Accounts and Notes Payable 1,430,004 1,640,864 231,111
Income Tax Payable 1,563 2,777 391
Customer Advances and Deposits and 277,737 288,184 40,590
Deferred Revenue
Accrued Expenses and Other Liabilities 1,145,654 1,091,573 153,745
Financing Lease Liabilities 11,873 418 59
Operating Lease Liabilities 544,262 509,450 71,755
Amounts Due to Related Parties 1,315 1,119 158
Total Current Liabilities 4,197,647 5,262,820 741,254
Summary of Unaudited Condensed Consolidated Balance Sheets (Cont'd)
(In Thousands)
As of December 31, As of December 31,
2022 2023
RMB RMB US$
Non-current Liabilities
Convertible senior notes held by related parties 522,744
Long-term borrowings 381
Operating Lease Liabilities 1,292,057 876,854 123,502
Financing Lease Liabilities 26,024 1,231 173
Other Non?current Liabilities 18,752 22,837 3,216
Long-term Bank Loans 928,894 159,729 22,497
Total Non?current Liabilities 2,788,852 1,060,651 149,388
Total Liabilities 6,986,499 6,323,471 890,642
Mezzanine Equity:
Convertible Non-controlling Interests 191,865 191,865 27,024
Total mezzanine equity 191,865 191,865 27,024
Shareholders' Equity
Ordinary Shares 25,988 25,988 3,660
Treasury Shares - (23,853) (3,360)
Additional Paid?In Capital 19,481,417 19,529,806 2,750,715
Accumulated Deficit (18,934,860) (19,749,262) (2,781,625)
Accumulated Other Comprehensive Income 124,464 119,169 16,785
BEST Inc. Shareholders' Equity 697,009 (98,152) (13,825)
Non-controlling Interests (85,128) (163,622) (23,046)
Total Shareholders' Equity/(Deficit) 611,881 (261,774) (36,871)
Total Liabilities, Mezzanine Equity and 7,790,245 6,253,562 880,795
Shareholders' Equity/(Deficit)
Summary of Unaudited Condensed Consolidated Statements of Cash Flows
(In Thousands)
Three Months Ended Fiscal Year Ended December 31
December 31
, ,
2022 2023 2022 2023
RMB RMB US$ RMB RMB US$
Net cash
(
used in
)/generated from (241,890) 884 125 (1,051,662) (554,725) (78,131)
continuing operating activities
Net cash used in discontinued operating - (66,174)
activities
Net cash
(
used in
)/generated from
operating (241,890) 884 125 (1,117,836) (554,725) (78,131)
activities
Net cash generated from
/
(
used in
) 239,536 (3,460) (487) 150,756 698,238 98,345
continuing
i
nvesting
a
ctivities
Net cash generated from
/
(
used in
) 239,536 (3,460) (487) 150,756 698,238 98,345
investing activities
Net cash
generated from/
(
used in
) 481 (1,752) (247) (1,948,367) (377,114) (53,115)
continuing financing
activities
Net cash generated from/ (used in) 481 (1,752) (247) (1,948,367) (377,114) (53,115)
financing activities
Exchange Rate Effect on Cash
and
Cash (14,864) (73,490) (10,352) 77,722 1,843 258
Equivalents, and Restricted Cash
Net
d
ecrease in Cash and Cash Equivalents, (16,737) (77,818) (10,961) (2,837,725) (231,758) (32,643)
and Restricted Cash
Cash and Cash Equivalents, and 2,495,160 2,324,483 327,397 5,316,148 2,478,423 349,079
Restricted Cash at Beginning of Period
Cash and Cash Equivalents, and 2,478,423 2,246,665 316,436 2,478,423 2,246,665 316,436
Restricted Cash at End of Period
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES
For the Company's continuing operations, the table below sets forth a reconciliation of the Company's net loss to EBITDA, adjusted EBITDA and adjusted EBITDA margin for the periods indicated:
Table 5 -
Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended
December 31
, 202
3
(In RMB'000) Freight Supply Chain Global Others Unallocated
(14) Total
Net Loss (3,519) (12,501) (202,039) (11,296) (54,166) (283,521)
Add
Depreciation & Amortization 19,060 8,423 7,857 124 3,213 38,677
Interest Expense 13,864 13,864
Income Tax Expense/(Benefit) 32 (4) 221 249
Subtract
Interest Income (17,848) (17,848)
EBITDA 15,573 (4,082) (194,182) (10,951) (54,937) (248,579)
Add
Share-based 1,535 849 493 9 8,038 10,924
Compensation Expenses
Impairment of long-lived assets 94,699 94,699
Adjusted EBITDA 17,108 (3,233) (98,990) (10,942) (46,899) (142,956)
Adjusted EBITDA Margin 1.1 % (0.7 %) (42.1 %) (39.0 %) (6.4 %)
Three Months Ended December 31, 202
2
(In RMB'000) Freight Supply Chain Global Others Unallocated Total
Net Loss (137,133) (13,939) (134,200) (25,378) (55,198) (365,848)
Add
Depreciation & Amortization 19,411 7,492 11,682 847 4,448 43,880
Interest Expense 16,329 16,329
Income Tax (Benefit) /Expense (12) (5) 123 106
Subtract
Interest Income (19,208) (19,208)
EBITDA (117,722) (6,459) (122,523) (24,408) (53,629) (324,741)
Add
Share-based 2,237 1,259 (235) 25 12,291 15,577
Compensation Expenses
Fair value change of equity 12,312 12,312
Investments
Adjusted EBITDA (115,485) (5,200) (122,758) (24,383) (29,026) (296,852)
Adjusted EBITDA Margin (9.2 %) (1.0 %) (62.7 %) (101.9 %) (15.0 %)
Fiscal Year Ended December 31, 202
3
(In RMB'000) Freight Supply Chain Global Others Unallocated
(15) Total
Net Loss (121,828) (3,239) (541,602) (59,653) (182,284) (908,606)
Add
Depreciation & Amortization 76,672 34,070 40,977 1,333 17,172 170,224
Interest Expense 64,283 64,283
Income Tax Expense/(Benefit) 54 36 (11) 1,074 (12) 1,141
Subtract
Interest Income (83,810) (83,810)
EBITDA (45,102) 30,867 (500,636) (57,246) (184,651) (756,768)
Add
Share-based 6,817 3,374 2,175 42 35,935 48,343
Compensation Expenses
Impairment of long-lived assets 94,699 94,699
Adjusted EBITDA (38,285) 34,241 (403,762) (57,204) (148,716) (613,726)
Adjusted EBITDA Margin (0.7 %) 1.8 % (42.7 %) (53.8 %) (7.4 %)
Fiscal Year Ended December 31, 202
2
(In RMB'000) Freight Supply Chain Global Others Unallocated
(16) Total
Net Loss (506,411) (32,277) (420,687) (213,794) (291,658) (1,464,827)
Add
Depreciation & Amortization 79,273 35,789 29,300 22,846 22,179 189,387
Interest Expense 89,058 89,058
Income Tax Expense/(Benefit) 23 25 451 12 511
Subtract
Interest Income (80,361) (80,361)
EBITDA (427,138) 3,535 (391,362) (190,497) (260,770) (1,266,232)
Add
Share-based 10,478 6,081 4,962 319 50,256 72,096
Compensation Expenses
Fair value change of equity 12,312 12,312
Investments
Adjusted EBITDA (416,660) 9,616 (386,400) (190,178) (198,202) (1,181,824)
Adjusted EBITDA Margin (8.5 %) 0.5 % (42.1 %) (162.8 %) (15.3 %)
For the Company's continuing operations, the table below sets forth a reconciliation of the Company's net loss to non-GAAP net loss, non-GAAP net loss margin for the periods indicated:
Table 6 -
Reconciliation of Non-GAAP Net Loss and Non-GAAP Net Loss Margin
Three Months Ended
December 31
,
202
3
(In RMB'000) Freight Supply Chain Global Others Unallocated
(17
) Total
Net Loss (3,519) (12,501) (202,039) (11,296) (54,166) (283,521)
Add
Share-based 1,535 849 493 9 8,038 10,924
Compensation Expenses
Impairment of long-lived assets - 94,699 94,699
Non-GAAP Net Loss (1,984) (11,652) (106,847) (11,287) (46,128) (177,898)
Non-GAAP Net Loss
Margin (0.1 %) (2.5 %) (45.5 %) (40.2 %) (8.0 %)
Three Months Ended December 31, 202
2
(In RMB'000) Freight Supply Chain Global Others Unallocated
(18) Total
Net Loss (137,133) (13,939) (134,200) (25,378) (55,198) (365,848)
Add
Share-based 2,237 1,259 (235) 25 12,291 15,577
Compensation Expenses
Fair value change of equity 12,312 12,312
Investments
Non-GAAP Net Loss (134,896) (12,680) (134,435) (25,353) (30,595) (337,959)
Non-GAAP Net Loss Margin (10.7 %) (2.5 %) (68.7 %) (106.0 %) (17.1 %)
Fiscal Year Ended December 31, 202
3
(In RMB'000) Freight Supply Chain Global Others Unallocated
(19) Total
Net Loss (121,828) (3,239) (541,602) (59,653) (182,284) (908,606)
Add
Share-based 6,817 3,374 2,175 43 35,935 48,343
Compensation Expenses
Impairment of long-lived assets 94,699 94,699
Non-GAAP Net
Gain (115,011) 135 (444,728) (59,611) (146,349) (765,564)
Non-GAAP Net Loss Margin (2.1 %) 0.01 % (47.0 %) (56.1 %) (9.2 %)
Fiscal Year Ended December 31, 202
2
(In RMB'000) Freight Supply Chain Global Others Unallocated
(20) Total
Net Loss (506,411) (32,277) (420,687) (213,794) (291,658) (1,464,827)
Add
Share-based 10,478 6,081 4,962 319 50,256 72,096
Compensation Expenses
Fair value change of equity 12,312 12,312
Investments
Non-GAAP Net Loss (495,933) (26,196) (415,725) (213,475) (229,090) (1,380,419)
Non-GAAP Net Loss Margin (10.1 %) (1.4 %) (45.3 %) (182.8 %) (17.8 %)
For the Company's continuing operations, the table below sets forth a reconciliation of the Company's diluted loss per ADS to Non-GAAP diluted loss per ADS for the periods indicated:
Table 7 - Reconciliation of diluted loss per ADS and Non-GAAP diluted loss per ADS
Three Months Ended Fiscal Year Ended December
December 31
, 31,
2023 2023
(In '000) RMB US$ RMB US$
Net Loss Attributable to Ordinary Shareholders (34,747) (829,624) (116,852)
(246,710)
Add
Share-based Compensation Expenses 10,924 1,539 48,343 6,809
Impairment of long-lived assets 94,699 13,338 94,699 13,338
Non-GAAP Net Loss Attributable to Ordinary (141,087) (19,870) (686,582) (96,705)
Shareholders
Weighted Average
Diluted O
rdinary
S
hare
s
Outstanding During the Quarter
Diluted 397,643,268 397,643,268 381,429,237 381,429,237
Diluted (Non-GAAP) 381,429,237 381,429,237
397,643,268 397,643,268
Diluted
loss per ordinary share (0.62) (0.09) (2.18) (0.31)
Add
Non-GAAP adjustment to net loss per 0.27 0.04 0.38 0.05
ordinary
share
Non-GAAP diluted loss per ordinary share (0.35) (0.05) (1.80) (0.25)
Diluted
loss per ADS (12.41) (1.75) (43.60) (6.20)
Add
Non-GAAP adjustment to net loss per
ADS 5.31 0.75 7.50 1.06
Non-GAAP diluted loss per ADS (7.10) (1.00) (36.10) (5.14)
(1)
All numbers presented have been rounded to the nearest integer, tenth, or hundredth, and year over year comparisons are based on figures before rounding.
(2)
In December 2021, BEST sold its China express business, the principal terms of which were previously announced. As a result, China express business has been deconsolidated from the Company and its historical financial results are reflected in the Company's consolidated financial statements as discontinued operations accordingly. The financial information and non-GAAP financial information disclosed in
this press release is presented on a continuing operations basis, unless otherwise specifically stated.
(3)
Non-GAAP net income/loss represents net income/loss excluding share-based compensation expenses, impairment of long-lived assets, amortization of intangible assets resulting from business acquisitions, and fair value change of equity investments (if any).
(4)
See the sections entitled "Use of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures" for more information about the non-GAAP measures referred to within this results announcement.
(5)
Diluted earnings/loss per ADS, is calculated by dividing net income/loss attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares expressed in ADS outstanding during the period.
(6)
EBITDA represents net income/loss excluding depreciation, amortization, interest expense and income tax expense and minus interest income. Adjusted EBITDA represents EBITDA excluding share-based compensation expenses, impairment of long-lived assets and fair value change of equity investments (if any).
(7)
Non-GAAP net income/loss represents net income/loss excluding share-based compensation expenses, impairment of long-lived assets, amortization of intangible assets resulting from business acquisitions, and fair value change of equity investments (if any).
(8)
See the sections entitled "Use of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures" for more information about the non-GAAP measures referred to within this results announcement.
(9)
Diluted earnings/loss per ADS, is calculated by dividing net income/loss attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares expressed in ADS outstanding during the period.
(10)
EBITDA represents net income/loss excluding depreciation, amortization, interest expense and income tax expense and minus interest income. Adjusted EBITDA represents EBITDA excluding share-based compensation expenses, impairment of long-lived assets and fair value change of equity investments (if any).
(11)
All numbers represented the financial results from continuing operations, unless otherwise stated.
(12)
"Others" Segment primarily represents SaaS software service and Capital business units.
(13)
The total number of shares outstanding excludes shares reserved for future issuances upon exercise or vesting of awards granted under the Company's share incentive plans.
(14
)
Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
(15)
Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
(16)
Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
(17)
Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
(18)
Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
(19)
Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
(20)
Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
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SOURCE BEST Inc.
