The Board Has Authorized a Share Repurchase
Program
HANGZHOU, China, March 8,
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, today announced its unaudited financial results for
the fourth quarter and fiscal year ended December 31, 2022. The Company also announced
that its board of directors has authorized a share repurchase
program, under which the Company may repurchase up to US$20 million worth of its outstanding American
Depositary Shares over the next 12 months.
Johnny Chou, Founder, Chairman
and CEO of BEST, commented, "2022 was a challenging year. The
COVID-19 pandemic and its related controls seriously impacted
general economy, and was particularly hard for the logistic
industry. However, under such severe challenges, we prevailed. In
the fourth quarter of 2022, both BEST Freight and BEST Supply Chain
Management have significantly improved their gross margins and
narrowed their losses. At the same time, BEST Global began to show
promising operating trends.
After lifting of COVID pandemic-related controls, we have seen a
rapid recovery in general economy and our multiple business
lines. We are confident to deliver a strong growth and
financial results in 2023. In addition, our Board has
authorized an up-to-$20M share
repurchase program."
"During 2022, Best Freight focused heavily on digital
transformation, cost reductions and quality improvement. As a
result, our operating efficiency and service quality have
significantly improved. In the fourth quarter, Freight's
gross margin grew by 10.4 percentage points and its net loss was
narrowed by 69.3% year over year."
"For BEST Supply Chain Management, its strong technical know-how
and superb service capabilities helped us weather the storm.
Despite COVID-related restrictions throughout the year, BEST Supply
Chain Management went above and beyond to make sure we provided our
customers with top quality service. As a result, we were rewarded
with additional business. Supply Chain Management has added 64 new
key account customers in the second half of 2022 and its
distribution volume and revenue increased in the fourth quarter by
82.1% and 2.7%, respectively, and gross margin increased to 4.4%,
from negative 1.9%, year over year."
"For BEST Global, with the lifting of COVID-related controls, we
quickly adjusted our strategy, and realigned our organization in
response to the evolving Southeast
Asia market. We greatly elevated our organization's
capabilities, widening our network coverage and significantly
improved our service quality. We also expanded our coverage
of small- and medium-sized enterprise customers and the revenue
contribution from those customers grew by 13 percentage points to
40.2% in the fourth quarter of 2022, compared with the first
quarter of 2022. In addition, we are accelerating our B2B2C and
cross border business to provide additional product offerings. We
believe this strategic direction will usher in Global's fast
recovery and prompt growth for a much improved gross margin and
better cash flow in 2023."
"We finished 2022 with a much more resilient, streamlined
business infrastructure and improved operating efficiency. Our
strengths in technology, domestic and global supply chain
management as well as logistics services place us in a strong
position to deliver a strong profitable growth in 2023 and beyond."
concluded Mr. Chou.
Gloria Fan, BEST's Chief
Financial Officer, added, "While our revenue for the fourth quarter
was dampened by the COVID-19 pandemic, the cost control measures we
enacted significantly narrowed our Group non-GAAP net loss by 52.4%
year over year. We are actively managing our cash and our balance
sheet remains healthy. At the end of 2022, we had cash, cash
equivalents, restricted cash and short-term investments of
RMB3.2 billion, after we used
RMB1.4 billion during 2022 to
repurchase our Convertible Senior Notes due 2024. Our overarching
goal is to achieve ongoing sustainable and profitable growth. In
2023, we expect Freight and Supply Chain Management to become
profitable in the second quarter and generate positive cash flow
and profitable growth throughout the year, and BEST Global to see
profitability in certain countries."
FINANCIAL HIGHLIGHTS ([1])
For the Fourth Quarter Ended December
31, 2022:([2])
- Revenue was RMB1,981.4
million (US$287.3 million),
compared with RMB2,724.9 million in
the fourth quarter of 2021. The decrease was primarily due to the
wind-down of the BEST UCargo business line and lower Freight and
Global volume. Revenue generated from UCargo was approximately
RMB952,000 (US$0.1 million), compared with RMB350 million in the same quarter of 2021.
- Gross Loss was RMB58.5
million (US$8.5 million),
compared with RMB228.4 million in the
fourth quarter of 2021. The decrease in gross loss was primarily
due to improved gross margin from BEST Freight and BEST Supply
Chain business lines. Gross Loss Margin was 3.0% for the
fourth quarter of 2022, compared with a Gross Loss Margin of 8.4%
in the same period of 2021.
- Net Loss from continuing operations was
RMB365.8 million (US$53.0 million), compared with RMB734.1 million in the fourth quarter of 2021.
Non-GAAP Net Loss from continuing
operations([3])([4]) was
RMB338.0 million (US$49.0 million), compared with RMB710.4 million in the fourth quarter of
2021.
- Diluted loss per ADS([5]) from continuing
operations was RMB4.49
(US$0.65), compared with RMB9.07 in the fourth quarter of 2021.
Non-GAAP diluted loss per ADS(3)(4) from continuing
operations was RMB4.13
(US$0.60), compared with RMB8.77 in the fourth quarter of 2021.
- EBITDA([6]) from continuing operations
was negative RMB324.7 million
(US$47.1million), compared with
negative RMB658.9 million in the
fourth quarter of 2021. Adjusted EBITDA(6) from
continuing operations was negative RMB296.9 million (US$43.0
million), compared with negative RMB635.2 million in the fourth quarter of
2021.
For the Fiscal Year Ended December 31,
2022:
- Revenue was RMB7,744.1
million (US$1,122.8 million),
compared with RMB11,425.8 million in
2021. The decrease was primarily due to the wind-down of the BEST
UCargo business line and lower Freight and Global volume. Revenue
generated from UCargo was approximately RMB36.0 million (US$5.2
million), compared with RMB2,809.1
million in 2021.
- Gross Loss was RMB263.6
million (US$38.2 million),
compared with RMB199.4 million in
2021. The increase in gross loss was primarily due to lower parcel
volume from BEST Global business line. Gross Loss
Margin was 3.4%, compared with a Gross Loss Margin of 1.7% in
2021.
- Net Loss from continuing operations was
RMB1,464.8 million (US$212.4 million), compared with RMB1,263.9 million in 2021. Non-GAAP Net Loss
from continuing
operations([7])([8]) was
RMB1,380.4 million (US$200.1 million), compared with RMB1,214.8 million in 2021.
- Diluted loss per ADS([9]) from continuing
operations was RMB18.17
(US$2.63), compared with a loss of
RMB15.61 in 2021. Non-GAAP diluted
loss per ADS(3)(4) from continuing operations was
RMB17.09 (US$2.48), compared with a loss of RMB14.98 in 2021.
- EBITDA([10]) from continuing
operations was negative RMB1,266.2
million (US$183.6 million),
compared with negative RMB976.2
million in 2021. Adjusted EBITDA(6) from
continuing operations was negative RMB1,181.8 million (US$171.3 million), compared with negative
RMB927.2 million in 2021.
BUSINESS HIGHLIGHTS([11])
BEST Freight – In the fourth quarter of 2022, Freight's
volume decreased by 7.6% year over year, and revenue decreased by
32.0% year over year to approximately RMB1.3
billion. The decrease in Freight revenue was primarily due
to the wind-down of UCargo business unit. The Company
remained focused on developing its e-commerce related business,
which contributed 21.2% of total volume in the fourth quarter of
2022. Freight's gross margin was negative 1.3%, representing a 10.4
percentage points improvement from the same period of 2021 as we
continued to reduce operating expenses and improve efficiency. For
the full year of 2022, Freight's volume decreased by 6.1% year over
year to 8.7 million tonnes.
BEST UCargo's operations and financial results are now
consolidated with BEST Freight.
BEST Supply Chain Management – In the fourth quarter of
2022, total revenue for Supply Chain Management increased by 2.7%
to RMB500.6 million year over year,
and gross margin improved by 6.3 percentage points to 4.4%,
narrowing Supply Chain Management's net loss by RMB60.4 million, or 81.3%. Its distribution
volume increased by 82.1% in the fourth quarter, while the total
number of orders fulfilled by Cloud OFCs decreased by 15.6% year
over year. For the full year of 2022, the distribution volume
increased by 53.6% year over year, while the total number of orders
fulfilled by Cloud OFCs decreased by 16.6%. BEST Supply Chain
Management's gross margin for 2022 improved by 2.1 percentage
points to 6.1%.
BEST Global – The market in Southeast Asia remained challenging in the
fourth quarter of 2022. In the wake of relaxed COVID-19 pandemic
control measures in the region, there was a shift in consumer
consumption activities from online to offline, which negatively
impacted the e-commerce logistics industry. As a result, Global's
parcel volume decreased by 41.8% year over year to 25.4 million in
the fourth quarter of 2022. For the full year of 2022, Global's
parcel volume decreased by 19.1% year over year to 121.6
million.
Others
As part of its Strategic Refocusing Program, the Company
substantially completed its wind down of the Capital business line
in the fourth quarter of 2022.
Key Operational Metrics
|
Three Months
Ended
|
% Change
YOY
|
|
December 31,
2020
|
|
December 31,
2021
|
|
December
31,
2022
|
|
2021 vs
2020
|
|
2022 vs
2021
|
|
|
|
|
|
Freight Volume (Tonne
in '000)
|
2,623
|
|
2,408
|
2,226
|
|
(8.2 %)
|
|
(7.6 %)
|
Global Parcel Volume
in Southeast
Asia (in '000)
|
27,891
|
|
43,707
|
|
25,421
|
|
56.7 %
|
|
(41.8 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year
Ended
|
% Change
YoY
|
|
December 31,
2020
|
|
December 31,
2021
|
|
December
31,
2022
|
|
2021 vs
2020
|
|
2022 vs
2021
|
|
|
|
|
|
Freight Volume (Tonne
in '000)
|
8,392
|
9,218
|
8,659
|
|
9.8 %
|
(6.1 %)
|
Global Parcel Volume
in
Southeast Asia (in '000)
|
73,585
|
|
150,392
|
|
121,637
|
|
104.4 %
|
|
(19.1 %)
|
FINANCIAL RESULTS ([12])
For the Fourth Quarter Ended December
31, 2022:
Revenue
The following table sets forth a breakdown of revenue by
business segment for the periods indicated.
Table 1 – Breakdown
of Revenue by Business Segment
|
|
|
|
|
Three Months
Ended
|
|
|
December 31,
2021
|
|
December 31,
2022
|
|
|
(In '000, except for
%)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
% Change
YOY
|
Total
Freight
|
1,854,018
|
68.1 %
|
|
1,261,196
|
182,856
|
63.7 %
|
|
-32.0 %
|
-Freight
|
1,503,995
|
55.3 %
|
|
1,260,244
|
182,718
|
63.6 %
|
|
-16.2 %
|
-Legacy
UCargo
|
350,023
|
12.8 %
|
|
952
|
138
|
0.1 %
|
|
-99.7 %
|
Supply Chain
Management
|
487,337
|
17.9 %
|
|
500,602
|
72,580
|
25.3 %
|
|
2.7 %
|
Global
|
330,564
|
12.1 %
|
|
195,680
|
28,371
|
9.9 %
|
|
-40.8 %
|
Others([13])
|
52,935
|
1.9 %
|
|
23,917
|
3,468
|
1.1 %
|
|
-54.8 %
|
Total
Revenue
|
2,724,854
|
100.0 %
|
|
1,981,395
|
287,275
|
100.0 %
|
|
-27.3 %
|
- Freight Service Revenue was RMB1,261.2
million (US$182.9 million) for
the fourth quarter of 2022, compared with RMB1,854.0 million in the same period last year,
of which, RMB952,000 and RMB350.0 million were from the legacy UCargo
business line, respectively. Freight service revenue, excluding the
legacy UCargo business, decreased by 16.2% year over year,
primarily due to lower volume and decrease in average selling price
per tonne.
- Supply Chain Management Service Revenue increased by 2.7% year
over year to RMB500.6 million
(US$72.6 million) for the fourth
quarter of 2022 from RMB487.3 million
in the same period of 2021, primarily due to newly signed customers
with high unit economics, and improved service capability.
- Global Service Revenue decreased by 40.8% year over year to
RMB195.7 million (US$28.4 million) for the fourth quarter of 2022
from RMB330.6 million in the same
period of 2021, primarily due to decreased parcel volume.
Cost of Revenue
The following table sets forth a breakdown of cost of revenue by
business segment for the periods indicated.
Table 2 – Breakdown
of Cost of Revenue by Business Segment
|
|
|
Three Months
Ended
|
|
% of Revenue
Change
YOY
|
|
December 31,
2021
|
|
December 31,
2022
|
|
(In '000, except for
%)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
Freight
|
(2,070,840)
|
111.7 %
|
|
(1,277,026)
|
(185,151)
|
101.3 %
|
|
-10.4 %
|
Supply Chain
Management
|
(496,353)
|
101.9 %
|
|
(478,511)
|
(69,378)
|
95.6 %
|
|
-6.3 %
|
Global
|
(346,392)
|
104.8 %
|
|
(264,014)
|
(38,278)
|
134.9 %
|
|
30.1 %
|
Others
|
(39,679)
|
75.0 %
|
|
(20,321)
|
(2,946)
|
85.0 %
|
|
10.0 %
|
Total Cost of
Revenue
|
(2,953,264)
|
108.4 %
|
|
(2,039,872)
|
(295,753)
|
103.0 %
|
|
-5.4 %
|
- Cost of Revenue for Freight was RMB1,277.0 million (US$185.2 million), or 101.3% of revenue, in the
fourth quarter of 2022. The 10.4% year-over-year decrease in cost
of revenue as a percentage of revenue was mainly due to improved
operating efficiency and effective cost control measures.
- Cost of Revenue for Supply Chain Management was RMB478.5 million (US$69.4
million), or 95.6% of revenue, in the fourth quarter of
2022. The 6.3% year-over-year decrease in cost of revenue as a
percentage of revenue was primarily due to effective cost control
measures and customer structure optimization.
- Cost of Revenue for Global was RMB264.0
million (US$38.3 million), or
134.9% of revenue, in the fourth quarter of 2022. The 30.1%
year-over-year increase in cost of revenue as a percentage of
revenue was primarily due to lower parcel volume.
- Cost of Revenue for Others was RMB20.3
million (US$2.9 million), or
85.0% of revenue, in the fourth quarter of 2022, representing a
10.0% year-over-year increase.
Gross loss was RMB58.5
million (US$8.5 million) in
the fourth quarter of 2022, compared with a gross loss of
RMB228.4 million in the fourth
quarter of 2021; Gross Margin was negative 3.0%, compared
with negative 8.4% in the fourth quarter of 2021.
Operating Expenses
Selling, General and Administrative ("SG&A") Expenses
were RMB263.4 million (US$38.2 million), or 13.3% of revenue in the
fourth quarter of 2022, compared with RMB354.8 million, or 13.0% of revenue in the same
quarter of 2021. The decrease in the SG&A expenses was
primarily due to reduced employee headcount.
Research and Development Expenses were RMB29.2 million (US$4.2
million), or 1.5% of revenue in the fourth quarter of 2022,
compared with RMB50.3 million, or
1.8% of revenue in the fourth quarter of 2021, primarily due to
reduced employee headcount.
Share-based Compensation ("SBC") Expenses included in the
cost and expense items above were RMB15.6
million (US$2.3 million) in
the fourth quarter of 2022, compared with RMB23.7 million in the same period of 2021. Of
the total SBC expenses, RMB0.08
million (US$0.01 million) was
allocated to cost of revenue, RMB0.7
million (US$0.1 million) was
allocated to selling expenses, RMB13.6
million (US$2.0 million) was
allocated to general and administrative expenses, and RMB1.2 million (US$0.2
million) was allocated to research and development
expenses.
Net Loss and Non-GAAP Net Loss from continuing
operations
Net Loss from continuing operations in the fourth quarter
of 2022 was RMB365.8 million
(US$53.0 million), compared with
RMB734.1 million in the same period
of 2021. Excluding SBC expenses and fair value change of equity
investments, Non-GAAP Net Loss from continuing operations in
the fourth quarter of 2022 was RMB338.0
million (US$49.0 million),
compared with RMB710.4 million in the
fourth quarter of 2021.
Diluted loss per ADS and Non-GAAP diluted loss per ADS from
continuing operations
Diluted loss per ADS from continuing operations in
the fourth quarter of 2022 was RMB4.49 (US$0.65),
compared with a loss of RMB9.07 in
the same period of 2021. Excluding SBC expenses, amortization of
intangible assets resulting from business acquisitions and fair
value change of equity investments, Non-GAAP diluted loss per
ADS from continuing operations in the fourth quarter of 2022
was RMB4.13 (US$0.60), compared with a loss of RMB8.77 in the fourth quarter of 2021. A
reconciliation of non-GAAP diluted loss per ADS to diluted loss per
ADS is included at the end of this results announcement.
Adjusted EBITDA and Adjusted EBITDA Margin from continuing
operations
Adjusted EBITDA from continuing operations in the fourth
quarter of 2022 was negative RMB296.9
million (US$43.0 million),
compared with negative RMB635.2
million in the same period of 2021. Adjusted EBITDA
Margin from continuing operations in the fourth quarter of 2022
was negative 15.0%, compared with negative 23.3% in the same period
of 2021.
Capital Expenditures ("CAPEX")
CAPEX was RMB11.1 million
(US$1.6 million) or 0.6% of total
revenue in the fourth quarter of 2022, compared with CAPEX of
RMB20.6 million, or 0.8% of total
revenue in the same period of 2021.
Cash and Cash Equivalents, Restricted Cash and Short-term
Investments
As of December 31, 2022, cash and
cash equivalents, restricted cash and short-term investments
were RMB3.2 billion (US$464.5
million), compared with RMB5.5
billion as of December 31,
2021. In 2022, the Company bought back approximately
US$200 million (RMB1.4 billion) aggregate principal amount of its
existing Convertible Senior Notes due 2024.
For the Fiscal Year Ended December 31,
2022:
Revenue
The following table sets forth a breakdown of revenue by
business segment for the periods indicated.
Table 3 – Breakdown
of Revenue by Business Segment
|
|
|
|
|
Fiscal Year
Ended
|
|
|
December 31,
2021
|
|
December 31,
2022
|
|
|
(In '000, except for
%)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
% Change
YoY
|
Total
Freight
|
8,244,435
|
72.2 %
|
|
4,888,278
|
708,734
|
63.2 %
|
|
-40.7 %
|
-Freight
|
5,435,354
|
47.6 %
|
|
4,852,299
|
703,518
|
62.8 %
|
|
-10.7 %
|
-Legacy
UCargo
|
2,809,081
|
24.6 %
|
|
35,979
|
5,216
|
0.4 %
|
|
-98.7 %
|
Supply Chain
Management
|
1,815,104
|
15.9 %
|
|
1,822,075
|
264,176
|
23.5 %
|
|
0.4 %
|
Global
|
1,193,855
|
10.4 %
|
|
916,907
|
132,939
|
11.8 %
|
|
-23.2 %
|
Others
|
172,442
|
1.5 %
|
|
116,812
|
16,936
|
1.5 %
|
|
-32.3 %
|
Total
Revenue
|
11,425,836
|
100.0 %
|
|
7,744,072
|
1,122,785
|
100.0 %
|
|
-32.2 %
|
- Freight Service Revenue was RMB4,888.3
million (US$708.7 million) in
2022 compared with RMB8,244.4 million
in 2021, of which, RMB36.0 million
and RMB2,809.1 million were from the
legacy UCargo business line in 2022 and 2021, respectively. Freight
service revenue, excluding the legacy UCargo business, decreased by
10.7% year over year, primarily due to lower volume.
- Supply Chain Management Service Revenue increased by 0.4% year
over year to RMB1,822.1 million
(US$264.2 million) in 2022 from
RMB1,815.1 million in 2021, primarily
due to newly signed customers with high unit economics following
discontinuation of certain low margin legacy accounts, as well as
improved service capability.
- Global Service Revenue decreased by 23.2% year over year to
RMB916.9 million (US$132.9 million) in 2022 from RMB1,193.9 million in 2021, primarily due to
decreased parcel volume.
Cost of Revenue
The following table sets forth a breakdown of cost of revenue by
business segment for the periods indicated.
Table 4 – Breakdown
of Cost of Revenue by Business Segment
|
|
|
Fiscal Year
Ended
|
|
% of Revenue
Change
YoY
|
|
December 31,
2021
|
|
December 31,
2022
|
|
(In '000, except for
%)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
Freight
|
(8,506,738)
|
103.2 %
|
|
(5,114,937)
|
(741,596)
|
104.6 %
|
|
1.4 %
|
Supply Chain
Management
|
(1,741,832)
|
96.0 %
|
|
(1,711,818)
|
(248,190)
|
93.9 %
|
|
-2.1 %
|
Global
|
(1,258,511)
|
105.4 %
|
|
(1,081,587)
|
(156,815)
|
118.0 %
|
|
12.6 %
|
Others
|
(118,143)
|
68.5 %
|
|
(99,288)
|
(14,395)
|
85.0 %
|
|
16.5 %
|
Total Cost of
Revenue
|
(11,625,224)
|
101.7 %
|
|
(8,007,630)
|
(1,160,996)
|
103.4 %
|
|
1.7 %
|
- Cost of Revenue for Freight was RMB5,114.9 million (US$741.6 million), or 104.6% of revenue in 2022.
The 1.4% year-over-year increase in cost of revenue as a percentage
of revenue was mainly due to lower volume.
- Cost of Revenue for Supply Chain Management was RMB1,711.8 million (US$248.2 million), or 93.9% of revenue in
2022. The 2.1% year-over-year decrease in cost of revenue as a
percentage of revenue was primarily due to effective cost control
measures and customer structure optimization.
- Cost of Revenue for Global was RMB1,081.6 million (US$156.8 million), or 118.0% of revenue in 2022.
The 12.6% year-over-year increase in cost of revenue as a
percentage of revenue was primarily due to lower parcel volume.
- Cost of Revenue for Others was RMB99.3
million (US$14.4 million), or
85.0% of revenue in 2022, representing a 16.5% year-over-year
increase.
Gross loss was RMB263.6
million (US$38.2 million) in
2022, compared with a gross loss of RMB199.4
million in 2021; Gross Margin was negative 3.4%,
compared with negative 1.7% in 2021.
Operating Expenses
Selling, General and Administrative ("SG&A") Expenses
were RMB1,127.3 million (US$163.4 million), or 14.6% of revenue in 2022,
compared with RMB1,141.7 million, or
10.0% of revenue in 2021 due to reduced employee headcount.
Research and Development Expenses were RMB144.2 million (US$20.9
million), or 1.9% of revenue in 2022, compared with
RMB180.2 million, or 1.6% of revenue
in 2021 due to reduced employee headcount.
Share-based Compensation ("SBC") Expenses included in the
cost and expense items above were RMB72.1
million (US$10.5 million) in
2022, compared with RMB107.7 million
in 2021. Of the total SBC expenses, RMB0.32
million (US$0.05 million) was
allocated to cost of revenue, RMB3.5
million (US$0.5 million) was
allocated to selling expenses, RMB63.3
million (US$9.2 million) was
allocated to general and administrative expenses, and RMB5.0 million (US$0.7
million) was allocated to research and development
expenses.
Net Loss and Non-GAAP Net Loss from continuing
operations
Net Loss from continuing operations in 2022 was
RMB1,464.8 million (US$212.4 million), compared with RMB1,263.9 million in 2021. Excluding SBC
expenses and fair value change of equity investments, Non-GAAP
Net Loss from continuing operations in 2022 was RMB1,380.4 million (US$200.1 million), compared with RMB1,214.8 million in 2021.
Diluted loss per ADS and Non-GAAP diluted loss per ADS from
continuing operations
Diluted loss per ADS from continuing operations in
2022 was RMB18.17 (US$2.63), compared with a loss of RMB15.61 in 2021. Excluding SBC expenses,
amortization of intangible assets resulting from business
acquisitions and fair value change of equity investments,
Non-GAAP diluted loss per ADS from continuing operations in
2022 was RMB17.09 (US$2.48), compared with a loss of RMB14.98 in 2021. A reconciliation of
non-GAAP diluted loss per ADS to diluted loss per ADS is included
at the end of this results announcement.
Adjusted EBITDA and Adjusted EBITDA Margin from continuing
operations
Adjusted EBITDA from continuing operations in 2022 was
negative RMB1,181.8 million
(US$171.3 million), compared with
negative RMB927.2 million in 2021.
Adjusted EBITDA Margin from continuing operations in 2022
was negative 15.3%, compared with negative 8.1% in 2021.
Capital Expenditures ("CAPEX")
CAPEX was RMB143.3 million
(US$20.8 million) or 1.9% of total
revenue in 2022, compared with CAPEX of RMB160.0 million, or 1.4% of total revenue in
2021.
SHARES OUTSTANDING
As of February 28, 2023, the
Company had approximately 393.9 million ordinary shares
outstanding([14]). Each American Depositary Share
represents five (5) Class A ordinary shares.
FINANCIAL GUIDANCE
The Company confirms its guidance for total revenue between
RMB 9.0 billion and RMB 9.5 billion for the full year of 2023.
This forecast reflects the Company's current and preliminary
view based on its current business situation and market conditions,
which are subject to change.
WEBCAST AND CONFERENCE CALL INFORMATION
The Company will hold a conference call at 8:00 pm U.S. Eastern Time on March 8, 2023 (9:00
am Beijing Time on March 9,
2023), to discuss its financial results and operating
performance for the fourth quarter and fiscal year 2022.
Participants may access the call by dialing the following
numbers:
United
States
: +1-888-317-6003
Hong
Kong
: 800-963976 or +852-5808-1995
Mainland
China
: 4001-206115
International
: +1-412-317-6061
Participant Elite Entry
Number
: 1659917
A replay of the conference call will be accessible through
March 15, 2023 by dialing the
following numbers:
United
States
: +1-877-344-7529
International
: +1-412-317-0088
Replay Access
Code
: 1608887
Please visit the Company's investor relations website to view
the earnings release prior to the conference call. A live and
archived webcast of the conference call and a corporate
presentation will be available at the same site.
ABOUT BEST INC.
BEST Inc. (NYSE: BEST) is a leading integrated smart supply
chain solutions and logistics services provider in China and 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/.
For investor and media inquiries, please contact:
BEST Inc.
Investor relations
team
ir@best-inc.com
The Piacente Group, Inc.
Helen
Wu
Tel: +86-10-6508-0677
E-mail: best@tpg-ir.com
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: best@tpg-ir.com
SAFE HARBOR STATEMENT
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the business outlook and quotations from management in this
announcement, as well as BEST's strategic and operational plans,
contain forward-looking statements. BEST may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the "SEC"), in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about BEST's beliefs and expectations,
are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: BEST's goals and strategies; BEST's future business
development, results of operations and financial condition; BEST's
ability to maintain and enhance its ecosystem; BEST's ability to
compete effectively; BEST's ability to continue to innovate, meet
evolving market trends, adapt to changing customer demands and
maintain its culture of innovation; fluctuations in general
economic and business conditions in China and other countries in which BEST
operates, and assumptions underlying or related to any of the
foregoing. Further information regarding these and other risks is
included in BEST's filings with the SEC. All information provided
in this press release and in the attachments is as of the date of
this press release, and BEST does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
USE OF NON-GAAP FINANCIAL MEASURES
In evaluating its business, BEST considers and uses non-GAAP
measures, such as non-GAAP net loss/income, non-GAAP net
loss/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,
|
|
2021
|
2022
|
2021
|
2022
|
|
|
RMB
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
|
Revenue
|
|
|
|
|
|
|
|
Freight
|
1,854,018
|
1,261,196
|
182,856
|
8,244,435
|
4,888,278
|
708,734
|
|
-Freight
|
1,503,995
|
1,260,244
|
182,718
|
5,435,354
|
4852,299
|
705,696
|
|
-Legacy
UCargo
|
350,023
|
952
|
138
|
2,809,081
|
35,979
|
3,038
|
|
Supply Chain
Management
|
487,337
|
500,602
|
72,580
|
1,815,104
|
1,822,075
|
264,176
|
|
Global
|
330,564
|
195,680
|
28,371
|
1,193,855
|
916,907
|
132,939
|
|
Others
|
52,935
|
23,917
|
3,468
|
172,442
|
116,812
|
16,936
|
|
Total
Revenue
|
2,724,854
|
1,981,395
|
287,275
|
11,425,836
|
7,744,072
|
1,122,785
|
|
Cost of
Revenue
|
|
|
|
|
|
|
|
Freight
|
(2,070,840)
|
(1,277,026)
|
(185,151)
|
(8,506,738)
|
(5,114,937)
|
(741,596)
|
|
Supply Chain
Management
|
(496,353)
|
(478,511)
|
(69,378)
|
(1,741,832)
|
(1,711,818)
|
(248,190)
|
|
Global
|
(346,392)
|
(264,014)
|
(38,278)
|
(1,258,511)
|
(1,081,587)
|
(156,815)
|
|
Others
|
(39,679)
|
(20,321)
|
(2,946)
|
(118,143)
|
(99,288)
|
(14,395)
|
|
Total Cost of
Revenue
|
(2,953,264)
|
(2,039,872)
|
(295,753)
|
(11,625,224)
|
(8,007,630)
|
(1,160,996)
|
|
Gross
Loss
|
(228,410)
|
(58,477)
|
(8,478)
|
(199,388)
|
(263,558)
|
(38,211)
|
|
Selling
Expenses
|
(73,021)
|
(54,621)
|
(7,919)
|
(260,219)
|
(237,918)
|
(34,495)
|
|
General and
Administrative
Expenses
|
(281,772)
|
(208,738)
|
(30,264)
|
(881,498)
|
(889,345)
|
(128,943)
|
|
Research and
Development
Expenses
|
(50,294)
|
(29,247)
|
(4,240)
|
(180,204)
|
(144,181)
|
(20,904)
|
|
Other operating
(loss)/income, net
|
(89,893)
|
3,387
|
491
|
58,337
|
108,817
|
15,777
|
|
Loss from
Operations
|
(723,390)
|
(347,696)
|
(50,410)
|
(1,462,972)
|
(1,426,185)
|
(206,776)
|
|
Interest
Income
|
17,735
|
19,208
|
2,785
|
49,658
|
80,361
|
11,651
|
|
Interest
Expense
|
(29,310)
|
(16,329)
|
(2,367)
|
(142,751)
|
(89,058)
|
(12,912)
|
|
Foreign Exchange
Gain/(loss)
|
44,186
|
68,318
|
9,905
|
44,556
|
(132,730)
|
(19,244)
|
|
Other Income
|
6,709
|
2,149
|
312
|
321,075
|
25,914
|
3,757
|
|
Other
Expense
|
(34,657)
|
(13,815)
|
(2,003)
|
(55,253)
|
5,763
|
836
|
|
(Loss)/Gain on changes
in the fair
value of derivative assets/liabilities
|
(14,918)
|
(77,577)
|
(11,248)
|
(14,918)
|
71,619
|
10,384
|
|
Loss before Income
Tax and
Share of Net Loss of Equity
Investees
|
(733,645)
|
(365,742)
|
(53,026)
|
(1,260,605)
|
(1,464,316)
|
(212,304)
|
|
Income Tax
Expense
|
(500)
|
(106)
|
(15)
|
(3,198)
|
(511)
|
(74)
|
|
Loss before Share of
Net loss of
Equity Investees
|
(734,145)
|
(365,848)
|
(53,041)
|
(1,263,803)
|
(1,464,827)
|
(212,378)
|
|
Share of Net Loss of
Equity
Investees
|
-
|
-
|
-
|
(58)
|
-
|
-
|
|
Net Loss from
continuing
operations
|
(734,145)
|
(365,848)
|
(53,041)
|
(1,263,861)
|
(1,464,827)
|
(212,378)
|
|
Net gain/(loss) from
discontinued
operations
|
2,679,400
|
(31,787)
|
(4,609)
|
1,473,489
|
(38,464)
|
(5,577)
|
|
Net
Gain/(Loss)
|
1,945,255
|
(397,635)
|
(57,650)
|
209,628
|
(1,503,291)
|
(217,955)
|
|
Net Loss from
continuing operations
attributable to non-controlling
interests
|
(28,727)
|
(13,055)
|
(1,893)
|
(52,279)
|
(39,980)
|
(5,797)
|
|
Net Gain/(Loss)
attributable to
BEST Inc.
|
1,973,982
|
(384,580)
|
(55,757)
|
261,907
|
(1,463,311)
|
(212,158)
|
|
Summary of
Unaudited Condensed Consolidated Balance Sheets
(In
Thousands)
|
|
|
|
|
As of December
31,2021
|
|
As of December 31,
2022
|
|
RMB
|
|
RMB
|
US$
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and Cash
Equivalents
|
3,571,745
|
|
533,481
|
77,347
|
Restricted
Cash
|
675,159
|
|
399,337
|
57,898
|
Accounts and Notes
Receivables
|
827,631
|
|
691,324
|
100,237
|
Inventories
|
25,622
|
|
16,480
|
2,389
|
Prepayments and Other
Current
Assets
|
1,172,472
|
|
795,401
|
115,322
|
Short–term
Investments
|
147,359
|
|
725,043
|
105,121
|
Amounts Due from
Related Parties
|
125,198
|
|
76,368
|
11,072
|
Lease Rental
Receivables
|
298,364
|
|
43,067
|
6,244
|
Total Current
Assets
|
6,843,550
|
|
3,280,501
|
475,630
|
Non–current
Assets
|
|
|
|
|
Property and Equipment,
Net
|
762,642
|
|
784,732
|
113,775
|
Intangible Assets,
Net
|
55,684
|
|
75,553
|
10,954
|
Long–term
Investments
|
219,171
|
|
156,859
|
22,742
|
Goodwill
|
54,135
|
|
54,135
|
7,849
|
Non–current
Deposits
|
92,866
|
|
50,767
|
7,361
|
Other Non–current
Assets
|
111,640
|
|
75,666
|
10,971
|
Restricted
Cash
|
1,069,244
|
|
1,545,605
|
224,092
|
Lease Rental
Receivables
|
235,429
|
|
40,188
|
5,827
|
Operating Lease
Right-of-use
Assets
|
1,899,522
|
|
1,743,798
|
252,827
|
Total non–current
Assets
|
4,500,333
|
|
4,527,303
|
656,398
|
Total
Assets
|
11,343,883
|
|
7,807,804
|
1,132,028
|
Liabilities and
Shareholders'
Equity
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Long-term
borrowings-current
|
287,814
|
|
79,148
|
11,475
|
Convertible Senior
Notes held by
related parties
|
633,475
|
|
1,045,488
|
151,582
|
Convertible Senior
Notes held by
third parties
|
633,475
|
|
77
|
11
|
Short–term Bank
Loans
|
530,495
|
|
183,270
|
26,572
|
Accounts and Notes
Payable
|
1,353,150
|
|
1,430,004
|
207,331
|
Income Tax
Payable
|
587
|
|
1,563
|
227
|
Customer Advances and
Deposits
and Deferred Revenue
|
298,353
|
|
277,737
|
40,268
|
Accrued Expenses and
Other
Liabilities
|
1,591,639
|
|
1,198,228
|
173,727
|
Financing Lease
Liabilities
|
1,851
|
|
1,490
|
216
|
Operating Lease
Liabilities
|
518,248
|
|
544,262
|
78,911
|
Amounts Due to Related
Parties
|
2,763
|
|
1,315
|
191
|
Total Current
Liabilities
|
5,851,850
|
|
4,762,582
|
690,511
|
Summary of
Unaudited Condensed Consolidated Balance Sheets
(Cont'd)
(In
Thousands)
|
|
|
As of December 31,
2021
|
|
As of December 31,
2022
|
|
RMB
|
|
RMB
|
US$
|
Non-current
Liabilities
|
|
|
|
|
Convertible senior
notes held by
related
parties
|
955,097
|
|
-
|
-
|
Long-term
borrowings
|
67,080
|
|
381
|
55
|
Operating Lease
Liabilities
|
1,456,843
|
|
1,292,057
|
187,331
|
Financing Lease
Liabilities
|
2,121
|
|
1,392
|
202
|
Other Non–current
Liabilities
|
24,261
|
|
18,752
|
2,719
|
Long-term Bank
Loans
|
769,767
|
|
928,894
|
134,677
|
Total Non–current
Liabilities
|
3,275,169
|
|
2,241,476
|
324,984
|
Total
Liabilities
|
9,127,019
|
|
7,004,058
|
1,015,495
|
Mezzanine
Equity:
|
|
|
|
|
Convertible
Non-controlling Interests
|
191,865
|
|
191,865
|
27,818
|
Total mezzanine
equity
|
191,865
|
|
191,865
|
27,818
|
Shareholders'
Equity
|
|
|
|
|
Ordinary
Shares
|
25,988
|
|
25,988
|
3,768
|
Treasury
Shares
|
(113,031)
|
|
-
|
-
|
Additional Paid–In
Capital
|
19,522,173
|
|
19,481,417
|
2,824,540
|
Statutory
reserves
|
167
|
|
-
|
-
|
Accumulated
Deficit
|
(17,471,716)
|
|
(18,934,860)([15])
|
(2,745,297)
|
Accumulated Other
Comprehensive Income
|
107,379
|
|
124,464
|
18,046
|
BEST Inc.
Shareholders' Equity
|
2,070,960
|
|
697,009
|
101,057
|
Non-controlling
Interests
|
(45,961)
|
|
(85,128)
|
(12,342)
|
Total Shareholders'
Equity
|
2,024,999
|
|
611,881
|
88,715
|
Total Liabilities,
Mezzanine Equity
and Shareholders' Equity
|
11,343,883
|
|
7,807,804
|
1,132,028
|
Summary of Unaudited Condensed Consolidated Statements of
Cash Flows
(In
Thousands)
|
|
|
Three Months
Ended December 31,
|
|
Fiscal Year Ended
December 31,
|
|
2021
|
2022
|
|
2021
|
2022
|
|
RMB
|
RMB
|
US$
|
|
RMB
|
RMB
|
US$
|
Net cash used in
continuing
operating activities
|
(508,632)
|
(241,890)
|
(35,071)
|
|
(891,135)
|
(1,051,662)
|
(152,478)
|
Net cash used in
discontinued
operating activities
|
(387,540)
|
-
|
-
|
|
(1,912,826)
|
(66,174)
|
(9,594)
|
Net cash used in
operating
activities
|
(896,172)
|
(241,890)
|
(35,071)
|
|
(2,803,961)
|
(1,117,836)
|
(162,072)
|
Net cash generated
from
continuing investing
activities
|
3,236,982
|
239,536
|
34,729
|
|
4,990,734
|
150,756
|
21,858
|
Net cash used in
discontinued
Investing activities
|
(97,328)
|
-
|
-
|
|
(448,016)
|
-
|
-
|
Net cash generated
from
investing activities
|
3,139,654
|
239,536
|
34,729
|
|
4,542,718
|
150,756
|
21,858
|
Net cash
(used
in)/generated
from continuing
financing activities
|
(746,656)
|
481
|
70
|
|
(237,922)
|
(1,948,367)
|
(282,487)
|
Net cash
generated from/(used
in)
discontinued financing
activities
|
469,421
|
-
|
-
|
|
(337,838)
|
-
|
-
|
Net
cash (used in)/generated
from financing activities
|
(277,235)
|
481
|
70
|
|
(575,760)
|
(1,948,367)
|
(282,487)
|
Exchange Rate Effect on
Cash
and Cash Equivalents,
and
Restricted Cash
|
(29,450)
|
(14,864)
|
(2,155)
|
|
(55,970)
|
77,722
|
11,269
|
Net
increase/(decrease) in
Cash and Cash Equivalents,
and Restricted Cash
|
1,936,797
|
(16,737)
|
(2,427)
|
|
1,107,027
|
(2,837,725)
|
(411,432)
|
Cash and Cash
Equivalents,
and Restricted Cash at
Beginning of Period
|
3,379,351
|
2,495,160
|
361,764
|
|
4,209,121
|
5,316,148
|
770,769
|
Cash and Cash
Equivalents,
and Restricted Cash at End
of Period
|
5,316,148
|
2,478,423
|
359,337
|
|
5,316,148
|
2,478,423
|
359,337
|
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, 2022
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([16])
|
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
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
Compensation
Expenses
|
2,237
|
1,259
|
(235)
|
25
|
12,291
|
15,577
|
Loss from
depreciation of
investments
|
-
|
-
|
-
|
-
|
12,312
|
12,312
|
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 %)
|
|
|
|
|
|
Three Months Ended
December 31, 2021
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([17])
|
Total
|
Net
Loss
|
(447,057)
|
(74,380)
|
(85,518)
|
(60,046)
|
(67,144)
|
(734,145)
|
Add
|
|
|
|
|
|
|
Depreciation &
Amortization
|
19,730
|
9,431
|
4,696
|
23,257
|
6,058
|
63,172
|
Interest
Expense
|
-
|
-
|
-
|
-
|
29,310
|
29,310
|
Income Tax
Expense
|
-
|
79
|
-
|
421
|
-
|
500
|
Subtract
|
|
|
|
|
|
|
Interest
Income
|
-
|
-
|
-
|
-
|
(17,735)
|
(17,735)
|
EBITDA
|
(427,327)
|
(64,870)
|
(80,822)
|
(36,368)
|
(49,511)
|
(658,898)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
3,404
|
1,967
|
2,066
|
124
|
16,173
|
23,734
|
Adjusted
EBITDA
|
(423,923)
|
(62,903)
|
(78,756)
|
(36,244)
|
(33,338)
|
(635,164)
|
Adjusted
EBITDA
Margin
|
(22.9 %)
|
(12.9 %)
|
(23.8%)
|
(68.5 %)
|
-
|
(23.3 %)
|
|
|
|
|
|
Fiscal Year Ended
December 31, 2022
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([18])
|
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
|
-
|
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
Compensation
Expenses
|
10,478
|
6,081
|
4,962
|
319
|
50,256
|
72,096
|
Loss from
depreciation of
investments
|
-
|
-
|
-
|
-
|
12,312
|
12,312
|
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 %)
|
|
|
|
|
|
Fiscal Year Ended
December 31, 2021
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([19])
|
Total
|
Net
Loss
|
(707,793)
|
(103,387)
|
(267,902)
|
(90,775)
|
(94,004)
|
(1,263,861)
|
Add
|
|
|
|
|
|
|
Depreciation &
Amortization
|
83,425
|
38,525
|
19,506
|
24,396
|
25,513
|
191,365
|
Interest
Expense
|
-
|
-
|
-
|
-
|
142,751
|
142,751
|
Income Tax
Expense/(Benefit)
|
-
|
173
|
21
|
3,010
|
(6)
|
3,198
|
Subtract
|
|
|
|
|
|
|
Interest
Income
|
-
|
-
|
-
|
-
|
(49,658)
|
(49,658)
|
EBITDA
|
(624,368)
|
(64,689)
|
(248,375)
|
(63,369)
|
24,596
|
(976,205)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
13,537
|
8,351
|
8,604
|
608
|
76,581
|
107,681
|
Subtract
|
|
|
|
|
|
|
Gain from
appreciation of
investments
|
-
|
-
|
-
|
-
|
(58,643)
|
(58,643)
|
Adjusted
EBITDA
|
(610,831)
|
(56,338)
|
(239,771)
|
(62,761)
|
42,534
|
(927,167)
|
Adjusted
EBITDA
Margin
|
(7.4 %)
|
(3.1 %)
|
(20.1 %)
|
(36.4 %)
|
-
|
(8.1 %)
|
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, 2022
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([20])
|
Total
|
Net Loss
|
(137,133)
|
(13,939)
|
(134,200)
|
(25,378)
|
(55,198)
|
(365,848)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
2,237
|
1,259
|
(235)
|
25
|
12,291
|
15,577
|
Loss from
depreciation of
investments
|
-
|
-
|
-
|
-
|
12,312
|
12,312
|
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 %)
|
|
|
|
|
|
Three Months Ended
December 31, 2021
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([21])
|
Total
|
Net
Loss
|
(447,057)
|
(74,380)
|
(85,518)
|
(60,046)
|
(67,144)
|
(734,145)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
3,404
|
1,967
|
2,066
|
124
|
16,173
|
23,734
|
Non-GAAP
Net
Loss
|
(443,653)
|
(72,413)
|
(83,452)
|
(59,922)
|
(50,971)
|
(710,411)
|
Non-GAAP
Net
Loss
Margin
|
(23.9 %)
|
(14.9 %)
|
(25.2 %)
|
(113.2 %)
|
-
|
(26.1 %)
|
|
|
|
|
|
Fiscal Year Ended
December 31, 2022
|
(In
RMB'000)
|
Freight
|
Supply
Chain
|
Global
|
Others
|
Unallocated([22])
|
Total
|
Net
Loss
|
(506,411)
|
(32,277)
|
(420,687)
|
(213,794)
|
(291,658)
|
(1,464,827)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
10,478
|
6,081
|
4,962
|
319
|
50,256
|
72,096
|
Loss from
depreciation of
investments
|
-
|
-
|
-
|
-
|
12,312
|
12,312
|
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 %)
|
|
|
|
|
|
Fiscal Year Ended December 31,
2021
|
(In RMB'000)
|
Freight
|
Supply Chain
|
Global
|
Others
|
Unallocated([23])
|
Total
|
Net Loss
|
(707,793)
|
(103,387)
|
(267,902)
|
(90,775)
|
(94,004)
|
(1,263,861)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
13,537
|
8,351
|
8,604
|
608
|
76,581
|
107,681
|
Subtract
|
|
|
|
|
|
|
Gain from
appreciation of
investments
|
-
|
-
|
-
|
-
|
(58,643)
|
(58,643)
|
Non-GAAP Net
Loss
|
(694,256)
|
(95,036)
|
(259,298)
|
(90,167)
|
(76,066)
|
(1,214,823)
|
Non-GAAP Net
Loss Margin
|
(8.4 %)
|
(5.2 %)
|
(21.7 %)
|
(52.3 %)
|
-
|
(10.6 %)
|
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 December 31,
|
|
Fiscal Year Ended
December 31,
|
|
2022
|
|
2022
|
(In
'000)
|
RMB
|
US$
|
|
RMB
|
US$
|
Net Loss Attributable
to Ordinary Shareholders
|
(352,793)
|
(51,148)
|
|
(1,424,847)
|
(206,581)
|
Add
|
|
|
|
|
|
Share-based
Compensation Expenses
|
15,577
|
2,258
|
|
72,096
|
10,454
|
Loss from depreciation
of investments
|
12,312
|
1,785
|
|
12,312
|
1,785
|
Non-GAAP Net Loss
Attributable to Ordinary
Shareholders
|
(324,904)
|
(47,105)
|
|
(1,340,439)
|
(194,342)
|
Weighted Average
Diluted Ordinary
Shares
Outstanding During the Quarter
|
|
|
|
|
|
Diluted
|
393,078,084
|
393,078,084
|
|
392,192,648
|
392,192,648
|
Diluted
(Non-GAAP)
|
393,078,084
|
393,078,084
|
|
392,192,648
|
392,192,648
|
Diluted loss
per ordinary share
|
(0.90)
|
(0.13)
|
|
(3.63)
|
(0.53)
|
Add
|
|
|
|
|
|
Non-GAAP adjustment to
net loss per ordinary share
|
0.07
|
0.01
|
|
0.21
|
0.03
|
Non-GAAP diluted
loss per ordinary share
|
(0.83)
|
(0.12)
|
|
(3.42)
|
(0.50)
|
|
|
|
|
|
|
Diluted loss
per ADS
|
(4.49)
|
(0.65)
|
|
(18.17)
|
(2.63)
|
Add
|
|
|
|
|
|
Non-GAAP adjustment to
net loss per ADS
|
0.36
|
0.05
|
|
1.08
|
0.15
|
Non-GAAP diluted
loss per ADS
|
(4.13)
|
(0.60)
|
|
(17.09)
|
(2.48)
|
([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]) 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).
|
([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 and fair value change of equity investments
(if any).
|
([11]) All numbers
presented have been rounded to the nearest integer, tenth, or
hundredth, and year over year comparisons are based on figures
before
rounding.
|
([12]) All numbers
represented the financial results from continuing operations,
unless otherwise
stated.
|
([13]) "Others"
Segment primarily represents Capital business units. Results from
UCargo's legacy contracts with external customers are now reported
under "Freight" segment and prior period segment information were
retrospectively revised to conform to current period
presentation.
|
([14]) 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.
|
([15]) 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
RMB9,441,053.
|
([16])
Unallocated expenses are primarily related to corporate
administrative expenses and other miscellaneous items that are not
allocated to individual segments.
|
([17]) Unallocated
expenses are primarily related to corporate administrative expenses
and other miscellaneous items that are not allocated to individual
segments.
|
([18]) Unallocated
expenses are primarily related to corporate administrative expenses
and other miscellaneous items that are not allocated to individual
segments.
|
([19]) Unallocated
expenses are primarily related to corporate administrative expenses
and other miscellaneous items that are not allocated to individual
segments.
|
([20]) Unallocated
expenses are primarily related to corporate administrative expenses
and other miscellaneous items that are not allocated to individual
segments.
|
([21]) Unallocated
expenses are primarily related to corporate administrative expenses
and other miscellaneous items that are not allocated to individual
segments.
|
([22]) Unallocated
expenses are primarily related to corporate administrative expenses
and other miscellaneous items that are not allocated to individual
segments.
|
([23]) Unallocated
expenses are primarily related to corporate administrative expenses
and other miscellaneous items that are not allocated to individual
segments.
|
View original
content:https://www.prnewswire.com/news-releases/best-inc-announces-unaudited-fourth-quarter-and-fiscal-year-2022-financial-results-301765733.html
SOURCE BEST Inc.