HANGZHOU, China, Nov. 19, 2020 /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 quarter ended September 30,
2020.
Johnny Chou, Founder, Chairman
and Chief Executive Officer of BEST, commented, "We had a
challenging third quarter amid intensified industry competition.
Our Express segment execution did not meet the fast-changing market
dynamics in both operation and pricing strategy, which led to lower
volume growth and margin. Facing strong industry headwinds, we are
taking steps to make major strategic adjustments and organizational
changes to our business, focusing on our core logistics and supply
chain management businesses, emphasizing service quality, enhancing
operating efficiency, with the goal of putting us back on a path to
profitability."
Gloria Fan, BEST's Chief
Financial Officer, commented, "Our third-quarter performance
reflects both the challenges and resiliency of our business.
Revenue was RMB8.7 billion,
relatively stable compared with the same period last year, while
our gross margin contracted 5.4 percentage points year-over-year
due to a challenging pricing environment that offset our volume
growth across multiple business units, resulting in a net loss of
RMB640 million. Despite the net loss,
we generated net operating cash inflow of RMB115 million during the third quarter and
maintained a healthy balance of cash and cash equivalents,
restricted cash and short-term investments of RMB4.8 billion."
FINANCIAL HIGHLIGHTS[1]
For the Quarter Ended September 30,
2020:
- Revenue was RMB8,693.3
million (US$1,280.4 million),
a decrease of 0.6% year-over-year ("YoY"). The decrease was
primarily due to a decrease in average selling price ("ASP") of
Express business, partially offset by an increase in Express
volume.
- Gross Profit was RMB37.6
million (US$5.5 million), a
decrease of 92.6% YoY compared to gross profit of RMB507.1 million in the same period of 2019. The
decrease was primarily due to decreased ASP and increased costs of
Express and Freight units. Gross Margin was 0.4%, a decrease
of 5.4 percentage points ("ppts") YoY.
- Net Loss was RMB639.5
million (US$94.2 million),
compared to a net loss of RMB6.7
million in the same period of 2019. Non-GAAP Net
Loss[2] [3] was RMB612.0
million (US$90.1 million),
compared to non-GAAP Net Income of RMB16.7
million in the same period of 2019.
- Diluted EPS[4] was negative RMB1.64 (US$0.24),
compared to negative RMB0.01 in the
same period of 2019. Non-GAAP diluted EPS[3]
[5] was negative RMB1.57
(US$0.23), compared to RMB0.05 in the same period of 2019.
- EBITDA[3] [6] was negative
RMB462.9 million (US$68.2 million), compared to RMB93.4 million in the same period of 2019.
Adjusted EBITDA[3] [6] was negative
RMB437.7 million (US$64.5 million), compared to RMB114.3 million in the same period of 2019.
Strategic Refocusing Plan
Following a comprehensive review of the Company's business
operations, BEST plans to implement extensive strategic adjustments
to refocus its core businesses with a view to driving long-term
growth and profitability.
1. Core businesses: The Company will
focus on its core logistics and supply chain management
businesses.
a)
Express: BEST will refocus its Express business on
sustainable long-term growth and profitability by focusing on
optimizing its product structure, improving operating efficiency,
enhancing service quality and customer experience, and gaining
market share.
b)
Freight: BEST will continue to emphasize the e-commerce
aspect of its freight services and solidify the Company's
competitive position by expanding its market share, improving
operating efficiency and increasing profitability.
c)
Supply Chain Management: BEST will focus on quality growth
and profitability, continue to implement an improved asset-light
model and grow the Company's franchised Cloud OFC business.
2. Non-core businesses: The
Company announced the winding down of Store+ on
November 15, 2020. The Company
believes that by phasing out Store+, it can eliminate
the significant cash-flow requirements associated with this
early-stage business, allowing the Company to further prioritize
capital allocation towards its core businesses. For its other
non-core businesses, including UCargo, Capital and Global, the
Company is considering all available strategic options with the
goal of improving the Company's profitability to maximize
shareholder value.
3. Management: BEST took
significant steps to realign its management team to support the
refocusing plan for its core businesses. As announced on
November 15, 2020, and effective the
same day, Mr. Xiaoqing Wang, former
general manager of BEST's Jiangsu
province branch, assumed the position of vice president, general
manager of Express, replacing Mr. Shaohua
Zhou, who took up a new role in the Company.
4. Cost measures: As part of the
company-wide strategic refocusing plan, the Company intends to
optimize its SG&A and R&D expenses to focus its resources
on core businesses, anticipating estimated cost savings of
approximately RMB200 million by the
end of 2021. The savings will create a leaner and more focused
organization by prioritizing expense control as well as optimizing
efficiencies across the organization.
Johnny Chou, Founder, Chairman
and Chief Executive Officer of BEST, commented, "After a
comprehensive review, we decided to take steps to refocus and
streamline our operations, creating a leaner organization with
greater financial flexibility. With a continued emphasis on our
core capabilities, including Express, Freight and Supply Chain
Management, we are evaluating strategic options available for our
non-core businesses to eliminate or significantly reduce their
capital requirements and capital losses. As we prioritize and
deploy capital towards our core businesses, the goal is to improve
our business fundamentals and competitive position. We believe with
appropriate adjustments to our organization and cost structure, we
can be on a path to profitability in the near future.
"As we look ahead, we remain confident in the strength of demand
driven by e-commerce for integrated smart supply chain solutions
and logistics services. We aim to achieve strong growth for Express
and Freight, while seeking to further integrate our core business
units. We expect this integration to create more cross-selling
opportunities and maximize revenue and cost synergies, while also
allowing us to focus on enhancing our product structure, stability
and flexibility of our network, quality of services and overall
operating efficiencies, which, taken as a whole, will enable BEST
to deliver long-term value for our shareholders," concluded Mr.
Chou.
BUSINESS HIGHLIGHTS[7]
Core Logistics and Supply Chain
BEST Express – The Express segment execution did not meet
the fast-changing market dynamics in both operation and pricing
strategy, which led to lower volume growth and margin. Parcel
volume increased by 24.8% YoY, representing market share of 10.6%
during the quarter, which was 0.1 ppt lower compared with the
second quarter. Gross margin contracted by 7.2 ppts due to an ASP
decline of 21.9% YoY, partially offset by a decrease in average
cost per parcel of 15.9% YoY.
BEST Freight – Freight continued its strong growth and
achieved a growth rate higher than the industry average. Freight
volume increased by 30.7% YoY in the third quarter of 2020. Its
gross margin declined 5.3 ppts YoY, primarily due to a pricing lag
after the government reinstated highway tolls in the second
quarter. Average cost per tonne decreased by 12.6% YoY while ASP
declined by 17.3% YoY.
BEST Supply Chain Management – Supply Chain Management
focused on expanding the franchised Cloud OFC business, while
targeting projects with higher margins and clients with strong
credit profiles. Its gross margin decreased by 4.0 ppts YoY to
4.4%, primarily due to high cost structures associated with legacy
key account customers, which are in the process of being
terminated. The total number of orders fulfilled by Cloud OFCs
increased by 18.3% YoY to 102.2 million in the third quarter of
2020, of which the total number of orders fulfilled by franchised
Cloud OFCs increased by 32.0% YoY to 53.5 million. The number of
franchised OFCs increased by 23.2% YoY to 345.
BEST UCargo – The number of registered drivers on the
UCargo mobile app increased by 84.5% YoY to 288,322. The total
number of transactions on the trucking brokerage platform increased
by 37.2% YoY to 233,480.
BEST Capital – As of September 30,
2020, BEST Capital had provided financing solutions to
13,607 trucks in total, a quarter-over-quarter ("QoQ") increase of
10.0% compared to June 30, 2020.
BEST Store+
The Store+ business continued to execute on its
strategy of partnership model and enhancing order quality, allowing
it to improve gross margin and reduce losses. Gross margin
increased by 2.9 ppts YoY to 13.4%, while adjusted EBITDA margin
improved by 1.8 ppts YoY to negative 9.5%. Despite these improving
results, we decided to wind down Store+ operations by the end of
2020, except for self-operated WoWo stores, which the Company plans
to continue running while evaluating various strategic options.
BEST Global
Global continued its strong momentum in Southeast Asia. In the third quarter, parcel
volume in Thailand increased by
513.5% YoY to approximately 10 million, while parcel volume in
Vietnam increased by 932.4% YoY to
10.3 million. The Company also made progress in expanding its
express delivery services in Malaysia, Cambodia and Singapore.
Key Operational Metrics
|
Three Months
Ended
|
% Change
YoY
|
Express Parcel Volume
(in '000)
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2020
|
|
2019 vs
2018
|
|
2020 vs
2019
|
1,371,055
|
1,890,842
|
2,359,773
|
37.9%
|
24.8%
|
Freight Volume (Tonne
in '000)
|
1,474
|
1,885
|
2,464
|
|
27.9%
|
30.7%
|
Supply Chain
Management
Orders Fulfilled (in '000)
|
56,572
|
86,371
|
102,171
|
|
52.7%
|
18.3%
|
UCargo Number of
Transactions (in '000)
|
136
|
|
170
|
|
233
|
|
25.3%
|
|
37.2%
|
Store+
Total Number of Orders
Fulfilled (in '000)
|
935
|
|
903
|
|
820
|
|
(3.4%)
|
|
(9.2%)
|
Global Parcel Volume
in
Southeast Asia (in '000)
|
-
|
|
2,607
|
|
20,754
|
|
-
|
|
696.0%
|
FINANCIAL RESULTS
For the Quarter Ended September 30,
2020:
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
|
|
|
September 30,
2019
|
|
September 30,
2020
|
|
|
(In '000, except
for %)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
% Change
YoY
|
Core logistics and
supply chain:
|
Express
|
5,209,139
|
59.5%
|
|
5,076,101
|
747,629
|
58.5%
|
|
(2.6%)
|
Freight
|
1,375,411
|
15.7%
|
|
1,487,654
|
219,108
|
17.1%
|
|
8.2%
|
Supply Chain
Management
|
452,328
|
5.2%
|
|
452,691
|
66,674
|
5.2%
|
|
0.1%
|
UCargo
|
702,150
|
8.0%
|
|
688,951
|
101,472
|
7.9%
|
|
(1.9%)
|
Capital
|
48,672
|
0.6%
|
|
54,725
|
8,060
|
0.6%
|
|
12.4%
|
Total for core
logistics
and supply chain
|
7,787,700
|
89.0%
|
|
7,760,122
|
1,142,943
|
89.3%
|
|
(0.4%)
|
Store+
|
861,964
|
9.9%
|
|
717,115
|
105,620
|
8.2%
|
|
(16.8%)
|
Global
|
95,632
|
1.1%
|
|
216,017
|
31,816
|
2.5%
|
|
125.9%
|
Total
Revenue
|
8,745,296
|
100%
|
|
8,693,254
|
1,280,379
|
100%
|
|
(0.6%)
|
Core Logistics and Supply Chain
- Express Service Revenue decreased by 2.6% YoY to RMB5,076.1 million (US$747.6 million) from RMB5,209.1 million, primarily due to a 21.9% YoY
decrease in ASP per parcel, partially offset by a 24.8% YoY
increase in parcel volume. The decrease in ASP is primarily
attributable to competitive market dynamics.
- Freight Service Revenue increased by 8.2% YoY to RMB1,487.7 million (US$219.1 million) from RMB1,375.4 million, primarily due to a 30.7% YoY
increase in freight volume, partially offset by a 17.3% YoY
decrease in ASP per tonne.
- Supply Chain Management Service Revenue increased by 0.1% YoY
to RMB452.7 million (US$66.7 million) from RMB452.3 million.
- UCargo Service
Revenue decreased by 1.9% YoY to RMB689.0 million (US$101.5
million) from RMB702.2
million, primarily due to discontinuation of several key
account customers to minimize credit exposure.
- Capital Service
Revenue increased by 12.4% YoY to RMB54.7 million (US$8.1
million) from RMB48.7
million.
BEST Store+ – Revenue decreased by
16.8% YoY to RMB717.1 million
(US$105.6 million) from RMB862.0 million, primarily due to efforts to
enhance order quality to improve margins.
BEST Global – Revenue increased by 125.9% YoY to
RMB216.0 million (US$31.8 million) from RMB95.6 million, primarily due to strong growth
in parcel volumes in Southeast
Asia.
Cost of Revenue
The following table sets forth a breakdown of cost of revenue by
business segment for the periods indicated.
Table 2 –
Breakdown of Cost of Revenue by Business Segment
|
|
|
Three Months
Ended
|
|
% of
Revenue
Change
YoY
|
|
September 30,
2019
|
|
September 30,
2020
|
|
(In '000, except
for %)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
Core logistics and
supply chain:
|
Express
|
(4,962,151)
|
95.3%
|
|
(5,205,390)
|
(766,671)
|
102.5%
|
|
7.2 ppt
|
Freight
|
(1,289,098)
|
93.7%
|
|
(1,473,252)
|
(216,987)
|
99.0%
|
|
5.3 ppt
|
Supply Chain
Management
|
(414,197)
|
91.6%
|
|
(432,945)
|
(63,766)
|
95.6%
|
|
4.0 ppt
|
UCargo
|
(688,305)
|
98.0%
|
|
(675,295)
|
(99,460)
|
98.0%
|
|
0.0 ppt
|
Capital
|
(16,522)
|
33.9%
|
|
(8,066)
|
(1,188)
|
14.7%
|
|
(19.2 ppt)
|
Total for core
logistics
and supply chain
|
(7,370,273)
|
94.6%
|
|
(7,794,948)
|
(1,148,072)
|
100.4%
|
|
5.8
ppt
|
Store+
|
(771,078)
|
89.5%
|
|
(621,059)
|
(91,472)
|
86.6%
|
|
(2.9 ppt)
|
Global
|
(96,889)
|
101.3%
|
|
(239,653)
|
(35,297)
|
110.9%
|
|
9.6 ppt
|
Total Cost of
Revenue
|
(8,238,240)
|
94.2%
|
|
(8,655,660)
|
(1,274,841)
|
99.6%
|
|
5.4
ppt
|
Cost of Revenue was RMB8,655.7
million (US$1,274.8 million)
or 99.6% of revenue in the quarter ended September 30, 2020, compared to RMB8,238.2 million or 94.2% of revenue in the
same quarter of 2019. The increase of 5.4 ppts in cost of revenue
as a percentage of revenue was primarily attributable to increased
costs of Express and Freight businesses.
Table 3 –
Breakdown of Average Cost Per Parcel and Average Cost Per
Tonne
|
|
|
Three Months
Ended
|
|
%
Change
|
(in RMB)
|
September 30,
2019
|
September 30,
2020
|
|
YoY
|
Express:
|
|
|
|
|
Average Cost Per
Parcel
|
2.62
|
2.21
|
|
(15.9%)
|
Average Transportation
Cost Per Parcel
|
0.75
|
0.65
|
|
(13.3%)
|
Average Labor Cost Per
Parcel
|
0.23
|
0.18
|
|
(21.7%)
|
Average Lease Cost Per
Parcel
|
0.10
|
0.10
|
|
(0.0%)
|
Average Other Cost Per
Parcel
|
0.11
|
0.10
|
|
(9.1%)
|
Average Last-mile Cost
Per Parcel
|
1.43
|
1.18
|
|
(17.5%)
|
Freight:
|
|
|
|
|
Average Cost Per
Tonne
|
683.9
|
597.8
|
|
(12.6%)
|
- Express Service Average Cost per Parcel decreased by 15.9%,
primarily due to improved operating efficiency and economies of
scale.
- Freight Service Average Cost per Tonne decreased by 12.6% YoY,
primarily due to improved operating efficiency, network
optimization and economies of scale.
Gross Profit was RMB37.6
million (US$5.5 million),
compared to gross profit of RMB507.1
million in the same quarter of 2019; Gross Margin was
0.4%, compared to 5.8% in the same quarter of 2019.
Operating Expenses
The following table sets forth a breakdown of operating expenses
and adjusted operating expenses by category for the
periods indicated.
Table 4 –
Breakdown of Operating Expenses and Adjusted Operating Expenses by
Category
|
|
|
Three Months
Ended
|
|
|
|
September 30,
2019
|
|
September 30,
2020
|
|
(In '000, except
for %)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
% of Revenue
Change
YoY
|
Selling, General
and
Administrative Expenses
|
(488,381)
|
5.6%
|
|
(612,849)
|
(90,263)
|
7.0%
|
|
1.4 ppt
|
Adjusted for SBC
Expenses
|
(18,166)
|
0.2%
|
|
(32,256)
|
(4,751)
|
0.3%
|
|
0.1 ppt
|
Adjusted Selling,
General
and
Administrative Expenses
|
(470,215)
|
5.4%
|
|
(580,593)
|
(85,512)
|
6.7%
|
|
1.3
ppt
|
Research and
Development Expenses
|
(64,522)
|
0.7%
|
|
(53,361)
|
(7,859)
|
0.6%
|
|
(0.1 ppt)
|
Adjusted for
SBC Expenses
|
(2,291)
|
0.0%
|
|
(2,135)
|
(314)
|
0.0%
|
|
0.0 ppt
|
Adjusted Research
and
Development Expenses
|
(62,231)
|
0.7%
|
|
(51,226)
|
(7,545)
|
0.6%
|
|
(0.1
ppt)
|
Total Operating
Expenses
|
(552,903)
|
6.3%
|
|
(666,210)
|
(98,122)
|
7.6%
|
|
1.3 ppt
|
Adjusted
for
SBC Expenses
|
(20,457)
|
0.2%
|
|
(34,391)
|
(5,065)
|
0.3%
|
|
0.1 ppt
|
Adjusted Total
Operating Expenses
|
(532,446)
|
6.1%
|
|
(631,819)
|
(93,057)
|
7.3%
|
|
1.2
ppt
|
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative Expenses were
RMB612.8 million (US$90.3 million) or 7.0% of revenue in the
quarter ended September 30, 2020,
compared to RMB488.4 million or 5.6%
of revenue in the same quarter of 2019. The increase in selling,
general and administrative expenses was primarily attributable to
an accrued provision for certain trade receivables and losses on
disposal of fixed assets due to an upgrade of Express's
equipment.
Research and Development Expenses were RMB53.4 million (US$7.9
million) or 0.6% of revenue in the quarter ended
September 30, 2020, compared to
RMB64.5 million, or 0.7% of revenue
in the same quarter of 2019. The decrease in research and
development expenses was primarily attributable to capitalization
of certain research and development expenditure to intangible
assets, as well as reduction in travel expenses.
Share-based Compensation ("SBC") Expenses included in the
cost and expense items above in the quarter ended September 30, 2020 were RMB35.0 million (US$5.2
million), compared to RMB21.0
million in the same quarter of 2019. In the third quarter of
2020, RMB0.6 million (US$0.1 million) was allocated to cost of revenue,
RMB1.5 million (US$0.2 million) was allocated to selling
expenses, RMB30.8 million
(US$4.6 million) was allocated to
general and administrative expenses, and RMB2.1 million (US$0.3
million) was allocated to research and development
expenses.
Net Loss and Non-GAAP Net Income
Net Loss in the quarter ended September 30, 2020 was RMB639.5 million (US$94.2
million), compared to Net Loss of RMB6.7 million in the same period of 2019.
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 in the
quarter ended September 30, 2020 was
RMB612.0 million (US$90.1 million), compared to non-GAAP Net Income
of RMB16.7 million in the same
quarter of 2019.
The following table sets forth a breakdown of non-GAAP net loss
for the three months ended September 30,
2020 by segment.
Table
5 – Breakdown of non-GAAP Net Loss by
Segment
|
|
|
Three Months Ended
September 30, 2020
|
|
|
|
Core logistics and
supply chain
|
|
|
|
|
|
|
(In
RMB'000)
|
Express
|
Freight
|
Supply
Chain
|
UCargo
|
Capital
|
|
Store+
|
Global
|
Unallocated[8]
|
Total
|
|
|
Non-GAAP Net
Income/(Loss)
|
(311,199)
|
(61,000)
|
(36,781)
|
(31,368)
|
28,447
|
|
(70,013)
|
(63,830)
|
(66,209)
|
(611,953)
|
|
Diluted EPS and non-GAAP diluted EPS
Diluted EPS in the quarter ended September 30, 2020 was negative RMB1.64 (US$0.24),
based on a weighted average of 385.4 million diluted shares
outstanding during the quarter. This is compared to negative
RMB0.01 on a weighted average of
388.8 million diluted shares outstanding in the same period of
2019. 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
in the quarter ended September 30,
2020 was negative RMB1.57
(US$0.23), compared to RMB0.05 in the same period of 2019. 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
Adjusted EBITDA was negative RMB437.7 million (US$64.5
million), compared to RMB114.3
million in the quarter ended September 30, 2019. Adjusted EBITDA Margin
was negative 5.0%, compared to 1.3% in the quarter September 30, 2019.
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 September 30, 2020 by segment.
Table
6 – Breakdown of Adjusted EBITDA and Adjusted
EBITDA Margin by Segment
|
|
|
|
Three Months Ended
September 30, 2020
|
|
|
|
Core logistics and
supply chain
|
|
|
|
|
|
|
(In
RMB'000)
|
Express
|
Freight
|
Supply
Chain
|
UCargo
|
Capital
|
|
Store+
|
Global
|
Unallocated[9]
|
Total
|
|
|
Adjusted
EBITDA
|
(211,289)
|
(44,643)
|
(26,661)
|
(29,976)
|
34,482
|
|
(68,213)
|
(60,699)
|
(30,727)
|
(437,726)
|
|
Adjusted
EBITDA
Margin
|
(4.2%)
|
(3.0%)
|
(5.9%)
|
(4.4%)
|
63.0%
|
|
(9.5%)
|
(28.1%)
|
-
|
(5.0%)
|
|
Core Logistics and Supply Chain - Adjusted EBITDA was
negative RMB278.1 million
(US$41.0 million), compared to
RMB266.9 million in the quarter ended
September 30, 2019. Adjusted
EBITDA Margin was negative 3.6%, compared to 3.4% in the
quarter ended September 30, 2019.
Store+ - Adjusted EBITDA was negative
RMB68.2 million (US$10.0 million), compared to negative
RMB97.6 million in the quarter ended
September 30, 2019. Adjusted
EBITDA Margin was negative 9.5%, compared to negative 11.3% in
the quarter ended September 30,
2019.
Global - Adjusted EBITDA was negative RMB60.7 million (US$8.9
million), compared to negative RMB30.9 million in the quarter ended September 30, 2019. Adjusted EBITDA Margin
was negative 28.1%, compared to negative 32.3% in the quarter ended
September 30, 2019.
Cash and Cash Equivalents, Restricted Cash and Short-term
Investments
As of September 30, 2020, cash and
cash equivalents, restricted cash and short-term investments were
RMB4,756.3 million (US$700.5 million), compared to RMB5,141.9 million as of June 30, 2020.
Net Cash Generated from Operating Activities
Net cash generated from operating activities was RMB115.4 million (US$17.0
million), compared to RMB237.3
million in the same period of 2019. The decrease in net cash
generated from operating activities was mainly due to decreasing
ASP in Express and Freight businesses.
Capital Expenditures ("CAPEX")
CAPEX was RMB486.6 million
(US$71.7 million), or 5.6% of total
revenue in the quarter ended September 30,
2020, compared to CAPEX of RMB523.0
million, or 6.0% of total revenue, in the same period of
2019. The decrease in CAPEX was primarily due to payment timing
differences.
SHARES OUTSTANDING
As of the date of this press release, the Company had
approximately 385.4 million ordinary shares
outstanding[10]. Each American Depositary Share
represents one Class A ordinary share.
FINANCIAL GUIDANCE
Due to its ongoing strategic refocusing plan, BEST is unable to
provide financial guidance at this time. The Company currently
plans to resume providing financial guidance in 2021.
WEBCAST AND CONFERENCE CALL INFORMATION
The Company will hold a conference call at 9:00 pm U.S. Eastern Time on November 19, 2020 (10:00
am Beijing Time on November
20), to discuss its financial results and operating
performance for the third quarter of 2020.
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
|
: 6127097
|
A replay of the conference call will be accessible through
November 26, 2020 by dialing the
following numbers:
United
States
|
:
+1-877-344-7529
|
International
|
:
+1-412-317-0088
|
Replay Access
Code
|
: 10149943
|
Please visit the Company's investor relations website
http://ir.best-inc.com/ on November 19,
2020 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-add services, including express and freight
delivery, supply chain management and last-mile services, truckload
service brokerage, international logistics and financial 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
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
September 30,
|
Nine Months Ended
September 30,
|
|
|
2019
|
2020
|
2019
|
2020
|
|
|
RMB
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
Revenue
|
|
|
|
|
|
|
Express
|
5,209,139
|
5,076,101
|
747,629
|
14,925,574
|
13,594,633
|
2,002,273
|
Freight
|
1,375,411
|
1,487,654
|
219,108
|
3,669,126
|
3,536,163
|
520,821
|
Supply Chain
Management
|
452,328
|
452,691
|
66,674
|
1,587,176
|
1,369,991
|
201,778
|
Store+
|
861,964
|
717,115
|
105,620
|
2,206,044
|
1,837,314
|
270,607
|
Global
|
95,632
|
216,017
|
31,816
|
201,451
|
524,305
|
77,222
|
UCargo
|
702,150
|
688,951
|
101,472
|
1,665,167
|
1,562,054
|
230,066
|
Capital
|
48,672
|
54,725
|
8,060
|
153,462
|
152,524
|
22,464
|
Total
Revenue
|
8,745,296
|
8,693,254
|
1,280,379
|
24,408,000
|
22,576,984
|
3,325,231
|
Cost of
Revenue
|
|
|
|
|
|
|
|
Express
|
(4,962,151)
|
(5,205,390)
|
(766,671)
|
(14,303,701)
|
(13,570,902)
|
(1,998,778)
|
Freight
|
(1,289,098)
|
(1,473,252)
|
(216,987)
|
(3,466,109)
|
(3,532,534)
|
(520,286)
|
Supply Chain
Management
|
(414,197)
|
(432,945)
|
(63,766)
|
(1,474,029)
|
(1,297,689)
|
(191,129)
|
Store+
|
(771,078)
|
(621,059)
|
(91,472)
|
(1,962,020)
|
(1,594,696)
|
(234,873)
|
Global
|
(96,889)
|
(239,653)
|
(35,297)
|
(215,376)
|
(602,511)
|
(88,740)
|
UCargo
|
(688,305)
|
(675,295)
|
(99,460)
|
(1,620,980)
|
(1,528,280)
|
(225,091)
|
Capital
|
(16,522)
|
(8,066)
|
(1,188)
|
(45,956)
|
(19,668)
|
(2,897)
|
Total Cost of
Revenue
|
(8,238,240)
|
(8,655,660)
|
(1,274,841)
|
(23,088,171)
|
(22,146,280)
|
(3,261,794)
|
Gross
Profit
|
507,056
|
37,594
|
5,538
|
1,319,829
|
430,704
|
63,437
|
Selling
Expenses
|
(212,714)
|
(244,925)
|
(36,074)
|
(619,203)
|
(694,135)
|
(102,235)
|
General and
Administrative
Expenses
|
(275,667)
|
(367,924)
|
(54,189)
|
(863,913)
|
(993,627)
|
(146,345)
|
Research and
Development Expenses
|
(64,522)
|
(53,361)
|
(7,859)
|
(181,058)
|
(164,175)
|
(24,180)
|
Total Operating
Expenses
|
(552,903)
|
(666,210)
|
(98,122)
|
(1,664,174)
|
(1,851,937)
|
(272,760)
|
Loss from
Operations
|
(45,847)
|
(628,616)
|
(92,584)
|
(344,345)
|
(1,421,233)
|
(209,323)
|
Interest
Income
|
21,242
|
18,106
|
2,667
|
71,291
|
58,106
|
8,558
|
Interest
Expense
|
(12,023)
|
(46,583)
|
(6,861)
|
(52,767)
|
(121,134)
|
(17,841)
|
Foreign
Exchange
|
|
|
|
|
|
|
Gain/(Loss)
|
661
|
(9,199)
|
(1,355)
|
(3,405)
|
(9,014)
|
(1,328)
|
Other
Income
|
38,225
|
40,700
|
5,994
|
91,860
|
112,569
|
16,580
|
Other
Expense
|
(5,216)
|
(7,244)
|
(1,067)
|
(13,136)
|
(25,605)
|
(3,771)
|
Loss before Income
Tax
and Share of Net Loss
of Equity Investees
|
(2,958)
|
(632,836)
|
(93,206)
|
(250,502)
|
(1,406,311)
|
(207,125)
|
Income Tax
Expense
|
(3,691)
|
(6,633)
|
(977)
|
(11,793)
|
(14,735)
|
(2,170)
|
Loss before Share of
Net
loss of Equity Investees
|
(6,649)
|
(639,469)
|
(94,183)
|
(262,295)
|
(1,421,046)
|
(209,295)
|
Share of Net Loss of
Equity Investees
|
(47)
|
(40)
|
(6)
|
(183)
|
(114)
|
(17)
|
Net
Loss
|
(6,696)
|
(639,509)
|
(94,189)
|
(262,478)
|
(1,421,160)
|
(209,312)
|
Net Loss attributable
to non-
controlling interests
|
(3,214)
|
(5,959)
|
(878)
|
(8,644)
|
(20,390)
|
(3,003)
|
Net loss
attributable to
Best Inc.
|
(3,482)
|
(633,550)
|
(93,311)
|
(253,834)
|
(1,400,770)
|
(206,309)
|
Net loss
attributable to
ordinary shareholders
|
(3,482)
|
(633,550)
|
(93,311)
|
(253,834)
|
(1,400,770)
|
(206,309)
|
Summary of
Unaudited Condensed Consolidated Balance Sheets
|
(in
thousands)
|
|
|
As of December 31,
2019
|
|
As of September
30, 2020
|
|
RMB
|
|
RMB
|
|
US$
|
Assets
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and Cash
Equivalents
|
1,994,683
|
|
1,814,016
|
|
267,176
|
Restricted
Cash
|
1,786,832
|
|
2,008,550
|
|
295,827
|
Accounts and Notes
Receivables
|
1,229,083
|
|
931,411
|
|
137,180
|
Inventories
|
140,006
|
|
166,402
|
|
24,508
|
Prepayments and Other
Current Assets
|
2,750,126
|
|
3,383,635
|
|
498,356
|
Short–term
Investments
|
1,057,598
|
|
306,490
|
|
45,141
|
Lease Rental
Receivables
|
483,363
|
|
528,317
|
|
77,813
|
Amounts Due from
Related Parties
|
246,758
|
|
156,522
|
|
23,053
|
Total Current
Assets
|
9,688,449
|
|
9,295,343
|
|
1,369,054
|
Non–current
Assets
|
|
|
|
|
|
Property and
Equipment, Net
|
2,939,379
|
|
3,836,048
|
|
564,989
|
Intangible Assets,
Net
|
121,587
|
|
111,800
|
|
16,466
|
Goodwill
|
490,986
|
|
499,433
|
|
73,559
|
Long–term
Investments
|
230,855
|
|
240,580
|
|
35,434
|
Non–current
Deposits
|
127,191
|
|
137,525
|
|
20,255
|
Other Non–current
Assets
|
346,645
|
|
584,015
|
|
86,016
|
Operating Lease
Right-of-use Assets
|
4,378,804
|
|
4,123,906
|
|
607,386
|
Lease Rental
Receivables
|
993,260
|
|
784,057
|
|
115,479
|
Restricted
Cash
|
175,700
|
|
627,218
|
|
92,379
|
Total non–current
Assets
|
9,804,407
|
|
10,944,582
|
|
1,611,963
|
Total
Assets
|
19,492,856
|
|
20,239,925
|
|
2,981,017
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Short–term Bank
Loans
|
2,510,500
|
|
3,099,750
|
|
456,544
|
Securitization
Debt
|
104,899
|
|
193,260
|
|
28,464
|
Accounts and Notes
Payable
|
3,391,383
|
|
3,770,913
|
|
555,395
|
Accrued Expenses and
Other Liabilities
|
2,019,634
|
|
2,264,224
|
|
333,484
|
Customer Advances and
Deposits and
Deferred Revenue
|
1,489,510
|
|
1,585,970
|
|
233,588
|
Operating Lease
Liabilities
|
1,035,252
|
|
1,104,411
|
|
162,662
|
Financing Lease
Liabilities
|
1,363
|
|
529
|
|
78
|
Amounts Due to
Related Parties
|
9,769
|
|
21,919
|
|
3,228
|
Income Tax
Payable
|
7,358
|
|
10,662
|
|
1,570
|
Total Current
Liabilities
|
10,569,668
|
|
12,051,638
|
|
1,775,013
|
Non-current
Liabilities
|
|
|
|
|
|
Securitization
Debt
|
-
|
|
23,766
|
|
3,500
|
Convertible senior
notes held by
related
parties
|
680,104
|
|
1,684,166
|
|
248,051
|
Convertible Senior
Notes held by third
parties
|
680,104
|
|
668,630
|
|
98,479
|
Operating Lease
Liabilities
|
3,482,634
|
|
3,167,567
|
|
466,532
|
Financing Lease
Liabilities
|
2,072
|
|
4,366
|
|
643
|
Deferred Tax
Liabilities
|
25,806
|
|
23,857
|
|
3,514
|
Other Non–current
Liabilities
|
137,184
|
|
196,585
|
|
28,954
|
Long-term Bank
Loans
|
-
|
|
79,333
|
|
11,684
|
Total Non–current
Liabilities
|
5,007,904
|
|
5,848,270
|
|
861,357
|
Total
Liabilities
|
15,577,572
|
|
17,899,908
|
|
2,636,370
|
Shareholders'
Equity
|
|
|
|
|
|
Ordinary
Shares
|
25,988
|
|
25,988
|
|
3,828
|
Treasury
Shares
|
-
|
|
(211,352)
|
|
(31,129)
|
Additional Paid–In
Capital
|
19,353,400
|
|
19,458,478
|
|
2,865,924
|
Statutory
reserves
|
7,865
|
|
10,267
|
|
1,512
|
Accumulated
Deficit
|
(15,629,537)
|
|
(17,088,455) [11]
|
|
(2,516,857)
|
Accumulated Other
Comprehensive Income
|
163,196
|
|
165,778
|
|
24,416
|
BEST Inc.
Shareholders' Equity
|
3,920,912
|
|
2,360,704
|
|
347,694
|
Non-controlling
Interests
|
(5,628)
|
|
(20,687)
|
|
(3,047)
|
Total
Shareholders' Equity
|
3,915,284
|
|
2,340,017
|
|
344,647
|
Total Liability
and Shareholders'
Equity
|
19,492,856
|
|
20,239,925
|
|
2,981,017
|
Summary of
Unaudited Condensed Consolidated Statements of Cash
Flows
|
(In
Thousands)
|
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|
2019
|
2020
|
2019
|
2020
|
|
RMB
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
Net Cash Generated
from/
(Used in) Operating Activities
|
237,337
|
115,351
|
16,989
|
366,029
|
(455,556)
|
(67,096)
|
Net Cash
Used in
Investing Activities
|
(556,306)
|
(539,659)
|
(79,483)
|
(1,383,557)
|
(708,826)
|
(104,399)
|
Net Cash
Generated from
Financing Activities
|
897,235
|
371,217
|
54,674
|
1,558,732
|
1,738,283
|
256,021
|
Exchange Rate Effect
on Cash,
Cash Equivalents, and
Restricted Cash
|
41,930
|
(106,521)
|
(15,689)
|
41,860
|
(81,332)
|
(11,979)
|
Net
Increase/(Decrease) in
Cash and Cash Equivalents,
and Restricted Cash
|
620,196
|
(159,612)
|
(23,509)
|
583,064
|
492,569
|
72,547
|
Cash and Cash
Equivalents,
and Restricted Cash at
Beginning of Period
|
2,962,276
|
4,609,396
|
678,891
|
2,999,408
|
3,957,215
|
582,835
|
Cash and Cash
Equivalents,
and Restricted Cash at End
of Period
|
3,582,472
|
4,449,784
|
655,382
|
3,582,472
|
4,449,784
|
655,382
|
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE
GAAP MEASURES
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 7 –
Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA
Margin
|
|
|
|
|
|
|
Three Months Ended
September 30, 2020
|
|
|
|
|
Core logistics and
supply chain
|
|
|
|
|
|
|
|
(In
RMB'000)
|
Express
|
Freight
|
Supply
Chain
|
UCargo
|
Capital
|
|
Store+
|
Global
|
Unallocated[12]
|
Total
|
|
|
|
Net
Income/(Loss)
|
(314,911)
|
(63,702)
|
(39,729)
|
(32,235)
|
28,379
|
|
(73,582)
|
(66,984)
|
(76,745)
|
(639,509)
|
|
|
Add
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation &
Amortization
|
98,294
|
16,357
|
10,120
|
1,392
|
381
|
|
3,622
|
4,320
|
7,005
|
141,491
|
|
|
Interest
Expense
|
-
|
-
|
-
|
-
|
-
|
|
-
|
-
|
46,583
|
46,583
|
|
|
Income Tax
Expense
|
1,616
|
-
|
-
|
-
|
5,654
|
|
(364)
|
(273)
|
-
|
6,633
|
|
|
Subtract
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Income
|
-
|
-
|
-
|
-
|
-
|
|
-
|
-
|
(18,106)
|
(18,106)
|
|
|
EBITDA
|
(215,001)
|
(47,345)
|
(29,609)
|
(30,843)
|
34,414
|
|
(70,324)
|
(62,937)
|
(41,263)
|
(462,908)
|
|
|
Add
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
3,712
|
2,702
|
2,948
|
867
|
68
|
|
2,111
|
2,238
|
20,374
|
35,020
|
|
|
Subtract
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain from
appreciation of
investments
|
-
|
-
|
-
|
-
|
-
|
|
-
|
-
|
(9,838)
|
(9,838)
|
|
|
Adjusted
EBITDA
|
(211,289)
|
(44,643)
|
(26,661)
|
(29,976)
|
34,482
|
|
(68,213)
|
(60,699)
|
(30,727)
|
(437,726)
|
|
|
Adjusted
EBITDA
Margin
|
(4.2%)
|
(3.0%)
|
(5.9%)
|
(4.4%)
|
63.0%
|
|
(9.5%)
|
(28.1%)
|
-
|
(5.0%)
|
|
|
|
|
Three Months Ended
September 30, 2019
|
|
|
|
|
Core logistics and
supply chain
|
|
|
|
|
|
|
|
(In
RMB'000)
|
Express
|
Freight
|
Supply
Chain
|
UCargo
|
Capital
|
|
Store+
|
Global
|
Unallocated[13]
|
Total
|
|
|
|
Net
Income/(Loss)
|
117,440
|
26,579
|
(10,651)
|
(7,033)
|
28,534
|
|
(102,365)
|
(35,275)
|
(23,925)
|
(6,696)
|
|
|
Add
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation &
Amortization
|
63,765
|
13,492
|
13,895
|
72
|
530
|
|
3,570
|
2,373
|
7,904
|
105,601
|
|
|
Interest
Expense
|
-
|
-
|
-
|
-
|
-
|
|
-
|
-
|
12,023
|
12,023
|
|
|
Income Tax
Expense
|
-
|
-
|
9
|
-
|
4,345
|
|
(385)
|
(278)
|
-
|
3,691
|
|
|
Subtract
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Income
|
-
|
-
|
-
|
-
|
-
|
|
-
|
-
|
(21,242)
|
(21,242)
|
|
|
EBITDA
|
181,205
|
40,071
|
3,253
|
(6,961)
|
33,409
|
|
(99,180)
|
(33,180)
|
(25,240)
|
93,377
|
|
|
Add
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
10,363
|
2,332
|
2,474
|
655
|
60
|
|
1,617
|
2,263
|
1,195
|
20,959
|
|
|
Adjusted
EBITDA
|
191,568
|
42,403
|
5,727
|
(6,306)
|
33,469
|
|
(97,563)
|
(30,917)
|
(24,045)
|
114,336
|
|
|
Adjusted
EBITDA
Margin
|
3.7%
|
3.1%
|
1.3%
|
(0.9%)
|
68.8%
|
|
(11.3%)
|
(32.3%)
|
-
|
1.3%
|
|
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 8 –
Reconciliation of Non-GAAP Net Loss and Non-GAAP Net Loss
Margin
|
|
|
|
|
Three Months Ended
September 30, 2020
|
|
|
|
|
Core logistics and
supply chain
|
|
|
|
|
|
|
|
(In
RMB'000)
|
Express
|
Freight
|
Supply
Chain
|
UCargo
|
Capital
|
|
Store+
|
Global
|
Unallocated[14]
|
Total
|
|
|
|
Net
Income/(Loss)
|
(314,911)
|
(63,702)
|
(39,729)
|
(32,235)
|
28,379
|
|
(73,582)
|
(66,984)
|
(76,745)
|
(639,509)
|
|
|
Add
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
3,712
|
2,702
|
2,948
|
867
|
68
|
|
2,111
|
2,238
|
20,374
|
35,020
|
|
|
Amortization of
Intangible Assets
Resulting from
Business
Acquisition
|
-
|
-
|
-
|
-
|
-
|
|
1,458
|
916
|
-
|
2,374
|
|
|
Subtract
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain from
appreciation of
investments
|
-
|
-
|
-
|
-
|
-
|
|
-
|
-
|
(9,838)
|
(9,838)
|
|
|
Non-GAAP Net
Income/(Loss)
|
(311,199)
|
(61,000)
|
(36,781)
|
(31,368)
|
28,447
|
|
(70,013)
|
(63,830)
|
(66,209)
|
(611,953)
|
|
|
Non-GAAP Net
Income/(Loss)
Margin
|
(6.1%)
|
(4.1%)
|
(8.1%)
|
(4.6%)
|
52.0%
|
|
(9.8%)
|
(29.5%)
|
-
|
(7.0%)
|
|
|
|
|
|
|
Three Months Ended
September 30, 2019
|
|
|
|
|
|
|
Core logistics and
supply chain
|
|
|
|
|
|
(In
RMB'000)
|
Express
|
Freight
|
Supply
Chain
|
UCargo
|
Capital
|
|
Store+
|
Global
|
Unallocated
|
Total
|
|
|
Net
Income/(Loss)
|
117,440
|
26,579
|
(10,651)
|
(7,033)
|
28,534
|
|
(102,365)
|
(35,275)
|
(23,925)
|
(6,696)
|
|
|
Add
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
Compensation Expenses
|
10,363
|
2,332
|
2,474
|
655
|
60
|
|
1,617
|
2,263
|
1,195
|
20,959
|
|
|
Amortization of
Intangible Assets Resulting from Business Acquisitions
|
-
|
-
|
-
|
-
|
-
|
|
1,541
|
930
|
-
|
2,471
|
|
|
Non-GAAP Net
Income/(Loss)
|
127,803
|
28,911
|
(8,177)
|
(6,378)
|
28,594
|
|
(99,207)
|
(32,082)
|
(22,730)
|
16,734
|
|
|
Non-GAAP Net Loss
Margin
|
2.5%
|
2.1%
|
(1.8%)
|
(0.9%)
|
58.7%
|
|
(11.5%)
|
(33.5%)
|
-
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below sets forth a reconciliation of the Company's
diluted EPS to non-GAAP diluted EPS for the periods indicated:
Table 9 –
Reconciliation of Diluted EPS and Non-GAAP Diluted
EPS
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2020
|
(In
'000)
|
RMB
|
US$
|
|
RMB
|
US$
|
Net Loss Attributable
to Ordinary
Shareholders
|
(633,550)
|
(93,311)
|
|
(1,400,770)
|
(206,309)
|
Add
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
35,020
|
5,158
|
|
110,954
|
16,342
|
Amortization of
Intangible Assets
Resulting from Business
Acquisitions
|
2,374
|
350
|
|
7,266
|
1,070
|
Subtract
|
|
|
|
|
|
Gain from appreciation
of
investments
|
(9,838)
|
(1,449)
|
|
(9,838)
|
(1,449)
|
Non-GAAP Net Loss
Attributable to
Ordinary Shareholders for
Computing
Non-GAAP Diluted EPS
|
(605,994)
|
(89,252)
|
|
(1,292,388)
|
(190,346)
|
Weighted Average
Diluted Shares
Outstanding During the Quarter
|
|
|
|
|
|
Diluted
|
385,430,134
|
385,430,134
|
|
388,136,651
|
388,136,651
|
Diluted
(Non-GAAP)
|
385,430,134
|
385,430,134
|
|
388,136,651
|
388,136,651
|
Diluted
EPS
|
(1.64)
|
(0.24)
|
|
(3.61)
|
(0.53)
|
Add
|
|
|
|
|
|
Non-GAAP adjustment to
net loss
per share
|
0.07
|
0.01
|
|
0.28
|
0.04
|
Non-GAAP Diluted
EPS
|
(1.57)
|
(0.23)
|
|
(3.33)
|
(0.49)
|
[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] 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).
|
[3] 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.
|
[4] Diluted earnings
per share, or Diluted EPS, is calculated by dividing net profit
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.
|
[5] Non-GAAP diluted
earnings per share, or non-GAAP diluted EPS, represents diluted
earnings per share excluding share-based compensation expenses,
amortization of intangible assets resulting from business
acquisitions, and fair value change of equity investments (if
any).
|
[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] Unallocated
expenses are primarily related to corporate administrative expenses
and other miscellaneous items that are not allocated to individual
segments.
|
[9] Unallocated
expenses are primarily related to corporate administrative expenses
and other miscellaneous items that are not allocated to individual
segments.
|
[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
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
RMB7,594,648
|
[12] Unallocated
expenses are primarily related to corporate administrative expenses
and other miscellaneous items that are not allocated to individual
segments.
|
[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.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/best-inc-announces-unaudited-third-quarter-2020-financial-results-301177470.html
SOURCE BEST Inc.