HANGZHOU, China, Nov. 23, 2023 /PRNewswire/ — BEST Inc. (NYSE: BEST) ("BEST" or the "Company"), a leading integrated smart supply chain solutions and logistics services provider in China and Southeast Asia ("SEA"), today announced its unaudited financial results for the third quarter ended September 30, 2023.
FINANCIAL HIGHLIGHTS[1]
For the Third Quarter Ended September 30, 2023:[2]
Revenue was RMB2,226.7 million (US$305.2 million), compared to RMB2,029.1 million in the third quarter of 2022. The increase was primarily due to increased revenue of BEST Freight and BEST Global. Gross profit was RMB51.8 million (US$7.1 million), compared to a gross loss of RMB39.0 million in the third quarter of 2022. The increase was primarily due to further improvements in operating efficiency for both Freight and Supply Chain Management. Gross profit margin was 2.3%, compared to a gross loss margin of 1.9% in the third quarter of 2022. Net Loss from continuing operations was RMB193.0 million (US$26.5 million), compared to RMB378.9 million in the third quarter of 2022. Non-GAAP net loss from continuing operations[3][4] was RMB180.9 million (US$24.8 million), compared to RMB363.0 million in the third quarter of 2022. Diluted loss per ADS[5] from continuing operations was RMB9.46 (US$1.30), compared to a loss of RMB17.60 in the third quarter of 2022. Non-GAAP diluted loss per ADS[3][4] from continuing operations was RMB8.81 (US$1.21), compared to a loss of RMB16.79 in the third quarter of 2022. EBITDA[6] from continuing operations was negative RMB151.2 million (US$20.7 million), compared to negative RMB335.9 million in the third quarter of 2022. Adjusted EBITDA[6] from continuing operations was negative RMB139.1 million (US$19.1 million), compared to negative RMB320.0 million in the third quarter of 2022.
BEST Freight – BEST Freight recorded a revenue growth of 10.0% in the third quarter of 2023, year over year. Freight’s gross margin was 3.2%, representing a 6.2% percentage points improvement from the same period of 2022 as we continued to reduce operating expenses and improve efficiency.
BEST Supply Chain Management – Driven by its best-in-class service quality and digital capabilities, BEST Supply Chain Management recorded a gross margin of 9.1% compared to 7.2% in the same period of 2022.
BEST Global – In the third quarter, BEST Global continued its robust post-COVID recovery. BEST Global’s revenue increased by 30.2% and its parcel volumes increased by 44.9%, both year over year, with parcel volumes in Vietnam and Malaysia, increased by 64.9% and 122.0%, respectively. Total volume of the cross-border business in the third quarter increased by approximately 41.2% quarter-over-quarter.
Others – The Company continued to wind down its Capital business line and expects to complete the wind-down by the end of 2023.
Key Operational Metrics
Three Months Ended
% Change YOY
September 30,
2021
September 30,
2022
September 30,
2023
2022 vs
2021
2023 vs
2022
Freight Volume (Tonne in ‘000)
2,427
2,527
2,557
4.1 %
1.2 %
Supply Chain Management
volume (Tonne in ‘000)
260
480
680
84.6 %
41.7 %
Global Parcel Volume in SEA
(in ‘000)
37,082
27,044
39,194
(27.1 %)
44.9 %
FINANCIAL RESULTS[7]
For the Third Quarter Ended September 30, 2023:
Revenue
The following table sets forth a breakdown of revenue by business segment for the periods indicated.
Table 1 – Breakdown of Revenue by Business Segment
Three Months Ended
September 30, 2022
September 30, 2023
(In ‘000, except for %)
RMB
% of
Revenue
RMB
US$
% of
Revenue
% Change
YOY
Total Freight
1,325,833
65.3 %
1,457,988
199,834
65.5 %
10.0 %
Supply Chain
Management
461,527
22.7 %
465,790
63,842
20.9 %
0.9 %
Global
211,347
10.4 %
275,198
37,719
12.4 %
30.2 %
Others[8]
30,417
1.6 %
27,680
3,794
1.2 %
(9.0 %)
Total Revenue
2,029,124
100.0 %
2,226,656
305,189
100.0 %
9.7 %
Freight Service Revenue was RMB1,458.0 million (US$199.8 million) for the third quarter of 2023, compared to RMB1,325.8 million in the same period last year. Freight service revenue increased by 10.0% year over year, primarily resulting from increases in average selling price per tonne. Supply Chain Management Service Revenue increased by 0.9% year over year to RMB465.8 million (US$63.8 million) for the third quarter of 2023, up from RMB461.5 million in the same period of last year. Global Service Revenue increased by 30.2% year over year to RMB275.2 million (US$37.7 million) for the third quarter of 2023 from RMB211.3 million in the same period last year primarily due to rapid volume growth in Vietnam, Malaysia and cross-border business.
Cost of Revenue
The following table sets forth a breakdown of cost of revenue by business segment for the periods indicated.
Table 2 – Breakdown of Cost of Revenue by Business Segment
Three Months Ended
% of Revenue
Change
YOY
September 30, 2022
September 30, 2023
(In ‘000, except for %)
RMB
% of
Revenue
RMB
US$
% of
Revenue
Freight
(1,365,074)
103.0 %
(1,410,625)
(193,342)
96.8 %
（6.2ppt）
Supply Chain
Management
(428,190)
92.8 %
(423,320)
(58,021)
90.9 %
（1.9ppt）
Global
(255,341)
120.8 %
(324,408)
(44,464)
117.9 %
(2.9ppt)
Others
(19,469)
64.0 %
(16,540)
(2,267)
59.8 %
（4.2ppt）
Total Cost of Revenue
(2,068,074)
101.9 %
(2,174,893)
(298,094)
97.7 %
（4.2ppt）
Cost of Revenue for Freight was RMB1,410.6 million (US$193.3 million), or 96.8% of revenue in the third quarter of 2023. The 6.2 percentage points year-over-year decrease in cost of revenue as a percentage of revenue was mainly due to higher price and reduced unit cost. Cost of Revenue for Supply Chain Management was RMB423.3 million (US$58.0 million), or 90.9% of revenue in the third quarter of 2023. The 1.9 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 RMB324.4 million (US$44.5 million), or 117.9% of revenue in the third quarter of 2023. The 2.9% year-over-year decrease in cost of revenue as a percentage of revenue was primarily due to higher gross margin in cross-border business and Vietnam.
Gross Profit was RMB51.8 million (US$7.1 million), compared to a gross loss of RMB39.0 million in the third quarter of 2022; Gross Margin was positive 2.3%, compared to negative 1.9% in the third quarter of 2022.
Operating Expenses
Selling, General and Administrative ("SG&A") Expenses were RMB236.3 million (US$32.4 million), or 10.6% of revenue, in the third quarter of 2023, compared to RMB275.2 million, or 13.6% of revenue, in the same period of 2022. SG&A expenses in the third quarter decreased by 14.1% year over year due to reduced headcount and bad debt expense.
Research and Development Expenses were RMB27.8 million (US$3.8 million) or 1.3% of revenue in the third quarter of 2023, compared to RMB39.6 million or 2.0% of revenue in the third quarter of 2022, primarily due to reduced headcount.
Share-based Compensation ("SBC") Expenses included in the cost and expense items above were RMB12.2 million (US$1.7 million) in the third quarter of 2023, compared to RMB15.9 million in the same period of 2022. Of the total SBC expenses, RMB0.05 million (US$0.01 million) was allocated to cost of revenue, RMB0.5 million (US$0.1 million) was allocated to selling expenses, RMB10.7 million (US$1.5 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 third quarter of 2023 was RMB193.0 million (US$26.5 million), compared to RMB378.9 million in the same period of 2022. Excluding SBC expenses, non-GAAP net loss from continuing operations in the third quarter of 2023 was RMB180.9 million (US$24.8 million), compared to RMB363.0 million in the third 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 third quarter of 2023 was RMB9.46 (US$1.30), compared to a loss of RMB17.60 in the same period of 2022. Excluding SBC expenses non-GAAP diluted loss per ADS from continuing operations in the third quarter of 2023 was RMB8.81 (US$1.21), compared to a loss of RMB16.79 in the third 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 third quarter of 2023 was negative RMB139.1 million (US$19.1 million), compared to negative RMB320.0 million in the same period of 2022. Adjusted EBITDA margin from continuing operations in the third quarter of 2023 was negative 6.2%, compared to negative 15.8% in the same period of 2022.
Cash and Cash Equivalents, Restricted Cash and Short-term Investments
As of September 30, 2023, cash and cash equivalents, restricted cash and short-term investments were RMB2,360.9 million (US$323.6 million), compared to RMB3,332.0 million as of September 30, 2022. In the third quarter, the Company repurchased approximately US$75 million (RMB 542 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 the third quarter of 2023 was RMB234.4 million (US$32.13 million), compared to RMB250.4 million of net cash used in continuing operating activities in the same period of 2022. The decrease in net cash used in operating activities was mainly due to the decreased net loss in the third quarter of 2023.
SHARES OUTSTANDING
As of November 09, 2023, the Company had approximately 397.6 million ordinary shares outstanding [9]. Each American Depositary Share represents twenty (20) Class A ordinary shares.
As previously announced, effective from April 4, 2023, the Company 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.
As previously announced, the Company’s board of directors authorized a 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. The Company’s board of directors has terminated the share repurchase program, effective as of September 25, 2023. Prior to the program’s termination, the Company repurchased a total of 1,265,685 ADSs for a total amount paid of US$3,311,134.95 (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 Southeast Asia. Through its proprietary technology platform and extensive networks, BEST offers a comprehensive set of logistics and value-added services, including freight delivery, supply chain management and global logistics services. BEST’s mission is to empower business and enrich life by leveraging technology and business model innovation to create a smarter, more efficient supply chain. For more information, please visit: http://www.best-inc.com/en/.
SAFE HARBOR STATEMENT
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as BEST’s strategic and operational plans, contain forward-looking statements. BEST may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about BEST’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: BEST’s goals and strategies; BEST’s future business development, results of operations and financial condition; BEST’s ability to maintain and enhance its ecosystem; BEST’s ability to compete effectively; BEST’s ability to continue to innovate, meet evolving market trends, adapt to changing customer demands and maintain its culture of innovation; fluctuations in general economic and business conditions in China and other countries in which BEST operates, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in BEST’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and BEST does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
USE OF NON-GAAP FINANCIAL MEASURES
In evaluating its business, BEST considers and uses non-GAAP measures, such as non-GAAP net loss/income, non-GAAP net loss/income margin, adjusted EBITDA, adjusted EBITDA margin, EBITDA, and non-GAAP Diluted earnings/loss per ADS, as supplemental measures in the evaluation of the Company’s operating results and in the Company’s financial and operational decision-making. The Company believes these non-GAAP financial measures that help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of the expenses and gains that the Company includes in loss from operations and net loss. The Company believes that these non-GAAP financial measures provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures" in the results announcement.
The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors’ overall understanding of the Company’s current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company’s calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.
Summary of Unaudited Condensed Consolidated Income Statements
(In Thousands)
Three Months Ended September 30,
Nine Months Ended September 30,
2022
2023
2022
2023
RMB
RMB
US$
RMB
RMB
US$
Revenue
Freight
1,325,833
1,457,988
199,834
3,627,082
3,902,486
534,880
Supply Chain Management
461,527
465,790
63,842
1,321,473
1,387,250
190,138
Global
211,347
275,198
37,719
721,227
711,607
97,534
Others
30,417
27,680
3,794
92,895
78,250
10,725
Total Revenue
2,029,124
2,226,656
305,189
5,762,677
6,079,593
833,277
Cost of Revenue
Freight
(1,365,074)
(1,410,625)
(193,342)
(3,837,911)
(3,784,616)
(518,725)
Supply Chain Management
(428,190)
(423,320)
(58,021)
(1,233,307)
(1,256,540)
(172,223)
Global
(255,341)
(324,408)
(44,464)
(817,573)
(861,338)
(118,056)
Others
(19,469)
(16,540)
(2,267)
(78,967)
(44,989)
(6,166)
Total Cost of Revenue
(2,068,074)
(2,174,893)
(298,094)
(5,967,758)
(5,947,483)
(815,170)
Gross (Loss)/Profit
(38,950)
51,763
7,095
(205,081)
132,110
18,107
Selling Expenses
(62,241)
(68,054)
(9,328)
(183,297)
(184,541)
(25,293)
General and Administrative
Expenses
(212,921)
(168,286)
(23,066)
(680,607)
(528,375)
(72,420)
Research and Development
Expenses
(39,632)
(27,843)
(3,816)
(114,934)
(86,468)
(11,851)
Other operating
(expense)/income, net
(14,185)
973
133
105,430
83
11
Loss from Operations
(367,929)
(211,447)
(28,982)
(1,078,489)
(667,191)
(91,446)
Interest Income
19,981
18,283
2,506
61,153
65,962
9,041
Interest Expense
(20,569)
(15,800)
(2,166)
(72,729)
(50,419)
(6,911)
Foreign Exchange (loss)/gain
(98,628)
6,177
847
(201,048)
(25,760)
(3,531)
Other Income
2,657
131
18
23,765
10,598
1,453
Other Expense
(464)
(103)
(14)
19,578
(3,819)
(524)
Gain on changes in the fair value
of derivative assets/liabilities
86,108
10,279
1,409
149,196
46,436
6,365
Loss before Income Tax and
Share of Net Loss of Equity
Investees
(378,844)
(192,480)
(26,382)
(1,098,574)
(624,193)
(85,553)
Income Tax Expense
(93)
(568)
(77)
(405)
(892)
(122)
Loss before Share of Net loss
of Equity Investees
(378,937)
(193,048)
(26,459)
(1,098,979)
(625,085)
(85,675)
Net Loss from continuing
operations
(378,937)
(193,048)
(26,459)
(1,098,979)
(625,085)
(85,675)
Net (Loss)/income from
discontinued operations
(8,904)
–
–
(6,677)
15,222
2,086
Net Loss
(387,841)
(193,048)
(26,459)
(1,105,656)
(609,863)
(83,589)
Net Loss from continuing
operations attributable to non-
controlling interests
(9,976)
(14,942)
(2,048)
(26,925)
(42,171)
(5,780)
Net Loss attributable to BEST
Inc.
(377,865)
(178,106)
(24,411)
(1,078,731)
(567,692)
(77,809)
Summary of Unaudited Condensed Consolidated Balance Sheets
(In Thousands)
As of December 31,2022
As of September 30, 2023
RMB
RMB
US$
Assets
Current Assets
Cash and Cash Equivalents
533,481
482,817
66,175
Restricted Cash
399,337
227,113
31,128
Accounts and Notes Receivables
691,324
869,922
119,233
Inventories
16,480
10,213
1,400
Prepayments and Other Current Assets
777,842
687,850
94,278
Short‑term Investments
725,043
36,377
4,986
Amounts Due from Related Parties
76,368
41,732
5,720
Lease Rental Receivables
43,067
40,326
5,527
Total Current Assets
3,262,942
2,396,350
328,447
Non‑current Assets
Property and Equipment, Net
784,732
731,424
100,250
Intangible Assets, Net
75,553
88,541
12,136
Long‑term Investments
156,859
156,859
21,499
Goodwill
54,135
54,135
7,420
Non‑current Deposits
50,767
42,907
5,881
Other Non‑current Assets
75,666
113,360
15,537
Restricted Cash
1,545,605
1,614,553
221,293
Lease Rental Receivables
40,188
3,817
523
Operating Lease Right-of-use Assets
1,743,798
1,413,430
193,727
Total non‑current Assets
4,527,303
4,219,026
578,266
Total Assets
7,790,245
6,615,376
906,713
Liabilities and Shareholders’ Equity
Current Liabilities
Long-term borrowings-current
79,148
19,801
2,714
Convertible Senior Notes held by related parties
522,744
538,485
73,806
Convertible Senior Notes held by third parties
77
79
11
Short‑term Bank Loans
183,270
442,845
60,697
Accounts and Notes Payable
1,430,004
1,597,125
218,904
Income Tax Payable
1,563
2,538
348
Customer Advances and Deposits and Deferred
Revenue
277,737
279,771
38,346
Accrued Expenses and Other Liabilities
1,145,654
1,051,736
144,152
Financing Lease Liabilities
11,873
1,267
174
Operating Lease Liabilities
544,262
538,255
73,774
Amounts Due to Related Parties
1,315
1,436
196
Total Current Liabilities
4,197,647
4,473,338
613,122
Summary of Unaudited Condensed Consolidated Balance Sheets (Cont’d)
(In Thousands)
As of December 31, 2022
As of September 30, 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
1,138
156
Financing Lease Liabilities
26,024
21,368
2,929
Other Non‑current Liabilities
18,752
956,243
131,064
Long-term Bank Loans
928,894
963,976
132,124
Total Non‑current Liabilities
2,788,852
1,942,725
266,273
Total Liabilities
6,986,499
6,416,063
879,395
Mezzanine Equity:
Convertible Non-controlling Interests
191,865
191,865
26,297
Total mezzanine equity
191,865
191,865
26,297
Shareholders’ Equity
Ordinary Shares
25,988
25,988
3,562
Treasury Shares
–
(23,853)
(3,269)
Additional Paid‑In Capital
19,481,417
19,518,882
2,675,285
Accumulated Deficit
(18,934,860)
(19,502,552)
(2,673,047)
Accumulated Other
Comprehensive Income
124,464
115,794
15,871
BEST Inc. Shareholders’ Equity
697,009
134,259
18,402
Non-controlling Interests
(85,128)
(126,811)
(17,381)
Total Shareholders’ Equity
611,881
7,448
1,021
Total Liabilities, Mezzanine Equity
and Shareholders’ Equity
7,790,245
6,615,376
906,713
Summary of Unaudited Condensed Consolidated Statements of Cash Flows
(In Thousands)
Three Months Ended September 30,
Nine Months Ended September 30,
2022
2023
2022
2023
RMB
RMB
US$
RMB
RMB
US$
Net cash used in continuing operating
activities
(250,375)
(234,429)
(32,131)
(809,772)
(555,609)
(76,153)
Net cash used in discontinued
operating activities
(7,917)
–
–
(66,174)
–
–
Net cash used in operating activities
(258,292)
(234,429)
(32,131)
(875,946)
(555,609)
(76,153)
Net cash generated from/(used in)
from continuing investing activities
891,756
65,212
8,938
(88,780)
701,698
96,176
Net cash generated from/(used in)
investing activities
891,756
65,212
8,938
(88,780)
701,698
96,176
Net cash used in from continuing
financing activities
(982,052)
(602,297)
(82,552)
(1,948,848)
(375,362)
(51,448)
Net cash used in from financing
activities
(982,052)
(602,297)
(82,552)
(1,948,848)
(375,362)
(51,448)
Exchange Rate Effect on Cash and
Cash Equivalents, and Restricted
Cash
44,482
27,416
3,758
92,586
75,333
10,325
Net decrease in Cash and Cash
Equivalents, and Restricted Cash
(304,106)
(744,098)
(101,987)
(2,820,988)
(153,940)
(21,099)
Cash and Cash Equivalents, and
Restricted Cash at Beginning of
Period
2,799,266
3,068,581
420,584
5,316,148
2,478,423
339,696
Cash and Cash Equivalents, and
Restricted Cash at End of Period
2,495,160
2,324,483
318,597
2,495,160
2,324,483
318,597
Cash and Cash Equivalents, and
Restricted Cash from continuing
operations at End of Period
2,495,160
2,324,483
318,597
2,495,160
2,324,483
318,597
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES
For the Company’s continuing operations, the table below sets forth a reconciliation of the Company’s net (loss)/income to EBITDA, adjusted EBITDA and adjusted EBITDA margin for the periods indicated:
Table 3 – Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended September 30, 2023
(In RMB’000)
Freight
Supply Chain
Global
Others
Unallocated[10]
Total
Net Loss
(37,702)
(477)
(114,597)
(16,993)
(23,279)
(193,048)
Add
Depreciation &
Amortization
19,330
8,558
11,278
283
4,287
43,736
Interest Expense
–
–
–
–
15,800
15,800
Income Tax Expense
2
1
–
565
–
568
Subtract
Interest Income
–
–
–
–
(18,283)
(18,283)
EBITDA
(18,370)
8,082
(103,319)
(16,145)
(21,475)
(151,227)
Add
Share-based
Compensation
Expenses
1,680
865
510
9
9,089
12,153
Adjusted EBITDA
(16,690)
8,947
(102,809)
(16,136)
(12,386)
(139,074)
Adjusted EBITDA
Margin
(1.1 %)
1.9 %
(37.4 %)
(58.3 %)
–
(6.2 %)
Three Months Ended September 30, 2022
(In RMB’000)
Freight
Supply Chain
Global
Others
Unallocated
Total
Net Loss
(138,749)
(9,664)
(110,426)
(48,601)
(71,497)
(378,937)
Add
Depreciation &
Amortization
19,417
8,397
6,531
1,976
6,025
42,346
Interest Expense
–
–
–
–
20,569
20,569
Income Tax Expense
–
(22)
–
115
–
93
Subtract
Interest Income
–
–
–
–
(19,981)
(19,981)
EBITDA
(119,332)
(1,289)
(103,895)
(46,510)
（64,884）
(335,910)
Add
Share-based
Compensation
Expenses
2,511
1,314
1,354
23
10,694
15,896
Adjusted EBITDA
(116,821)
25
(102,541)
(46,487)
(54,190)
(320,014)
Adjusted EBITDA
Margin
(8.8 %)
0.0 %
(48.5 %)
(152.8 %)
–
(15.8 %)
For the Company’s continuing operations, the table below sets forth a reconciliation of the Company’s net (loss)/income to non-GAAP net Income/(loss), non-GAAP net Income/(loss) margin for the periods indicated:
Table 4 – Reconciliation of Non-GAAP Net (Loss)/Income and Non-GAAP Net (Loss)/Income Margin
Three Months Ended September 30, 2023
(In RMB’000)
Freight
Supply Chain
Global
Others
Unallocated
Total
Net Loss
(37,702)
(477)
(114,597)
(16,993)
(23,279)
(193,048)
Add
Share-based
Compensation Expenses
1,680
865
510
9
9,089
12,153
Non-GAAP Net
(Loss)/Income
(36,022)
388
(114,087)
(16,984)
(14,190)
(180,895)
Non-GAAP Net
(Loss)/Income
Margin
(2.5 %)
0.1 %
(41.5 %)
(61.4 %)
–
(8.1 %)
Three Months Ended September 30, 2022
(In RMB’000)
Freight
Supply Chain
Global
Others
Unallocated
Total
Net Loss
(138,749)
(9,664)
(110,426)
(48,601)
(71,497)
(378,937)
Add
Share-based
Compensation
Expenses
2,511
1,314
1,354
23
10,694
15,896
Non-GAAP Net Loss
(136,238)
(8,350)
(109,072)
(48,578)
(60,803)
(363,041)
Non-GAAP Net
Loss Margin
(10.3 %)
(1.8 %)
(51.6 %)
(159.7 %)
–
(17.9 %)
For the Company’s continuing operations, the table below sets forth a reconciliation of the Company’s diluted loss per ADS to Non-GAAP diluted loss per ADS for the periods indicated:
Table 5 – Reconciliation of diluted loss per ADS and Non-GAAP diluted loss per ADS
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2023
(In ‘000)
RMB
US$
RMB
US$
Net Loss Attributable to Ordinary Shareholders
(178,106)
(24,411)
(582,914)
(79,895)
Add
Share-based Compensation Expenses
12,153
1,666
37,419
5,129
Non-GAAP Net Loss Attributable to Ordinary
Shareholders
(165,953)
(22,746)
(545,495)
(74,766)
Weighted Average Diluted Ordinary Shares
Outstanding During the Quarter
Diluted
376,632,651
376,632,651
385,954,907
385,954,907
Diluted (Non-GAAP)
376,632,651
376,632,651
385,954,907
385,954,907
Diluted loss per ordinary share
(0.47)
(0.06)
(1.51)
(0.21)
Add
Non-GAAP adjustment to net loss per
ordinary share
0.03
0.00
0.10
0.02
Non-GAAP diluted loss per ordinary share
(0.44)
(0.06)
(1.41)
(0.19)
Diluted loss per ADS
(9.46)
(1.30)
(30.21)
(4.14)
Add
Non-GAAP adjustment to net loss per ADS
0.65
0.09
1.94
0.27
Non-GAAP diluted loss per ADS
(8.81)
(1.21)
(28.27)
(3.87)
[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 income/loss excluding depreciation, amortization, interest expense and income tax expense and minus interest income. Adjusted EBITDA represents EBITDA excluding share-based compensation expenses and fair value change of equity investments (if any).
[7] All numbers represented the financial results from continuing operations, unless otherwise stated.
[8] "Others" Segment primarily represents Capital business unit.
[9] The total number of shares outstanding excludes shares reserved for future issuances upon exercise or vesting of awards granted under the Company’s share incentive plans.
[10] Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
Source : BEST Inc. Announces Unaudited Third Quarter 2023 Financial Results
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