UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 Under
the Securities Exchange Act of 1934
For the month of June 2024
Commission File Number: 001-38198
BEST Inc.
(Registrant’s name)
2nd Floor, Block A, Huaxing Modern Industry
Park
No. 18 Tangmiao Road, Xihu District, Hangzhou
Zhejiang Province 310013
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
Form 20-F x
Form 40-F ¨
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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BEST Inc. |
| |
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|
| |
By: |
/s/ Shao-Ning Johnny Chou |
| |
Name: |
Shao-Ning Johnny Chou |
| |
Title: |
Chairman and Chief Executive Officer |
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| Date: June 12, 2024 |
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EXHIBIT INDEX
Exhibit 99.1
BEST Inc. Announces
Unaudited First Quarter 2024 Financial Results
HANGZHOU, China,
June, 06, 2024 -- BEST Inc. (NYSE: BEST) (“BEST” or the “Company”), a leading integrated smart supply
chain solutions and logistics services provider in China and Southeast Asia (“SEA”), today announced its unaudited financial
results for the first quarter ended March 31, 2024.
FINANCIAL HIGHLIGHTS
(1)
For the First
Quarter Ended March 31, 2024:(2)
| ● | Revenue was RMB1,942.0 million (US$269.0
million), compared to RMB1,715.3 million in the first quarter of 2023. The increase was primarily due to increased revenue of BEST Freight
and BEST Global. |
| ● | Gross Profit was RMB55.2 million (US$7.6
million), compared to gross loss of RMB8.5 million in the first quarter of 2023. The increase was primarily due to increased volume and
further improvements of operating efficiency for both BEST Freight and BEST Global. Gross Profit Margin was 2.8% for the first
quarter of 2024, compared to Gross Loss Margin of 0.5% in the same period of 2023. |
| ● | Net
Loss from continuing operations was RMB172.1 million (US$23.8 million), compared to RMB257.6
million in the first quarter of 2023; which represented approximately 33% improvement year
over year. Non-GAAP Net Loss from continuing operations(3)(4)
was RMB164.9 million
(US$22.8 million), compared to RMB245.5 million in the first quarter of 2023. |
| ● | Diluted
loss per ADS(5) from continuing operations
was RMB8.69 (US$1.20), compared to RMB12.38 in the first quarter of 2023. Non-GAAP
diluted loss per ADS(3)(4) from
continuing operations was RMB8.30 (US$1.15), compared to RMB11.77 in the first quarter
of 2023. |
| ● | EBITDA(6)
from continuing operations was negative RMB133.5 million (US$18.5 million),
compared to negative RMB218.9 million in the first quarter of 2023. Adjusted EBITDA(6) from
continuing operations was negative RMB126.3 million (US$17.5 million), compared to negative
RMB206.8 million in the first quarter of 2023. |
(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.
(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.
BEST Freight
– BEST Freight recorded a revenue growth of 16.3% in the first quarter of 2024, year over year. Freight’s gross margin was
3.4%, representing a 3.6 percentage points improvement from the same period of 2023 as we continued to reduce operating expenses and improve
efficiency.
BEST Supply Chain
Management – BEST Supply Chain Management’s revenue decreased by 6.6% in the first quarter of 2024 compared with
the same period of last year as we discontinued certain not-profitable key account customers.
BEST Global
– In the first quarter of 2024, BEST Global continued its robust e-commerce growth. BEST Global’s first quarter’s revenue
increased by 42.6% while its parcel volumes increased by 39.4% compared with the same quarter of 2023. In additional, for the first quarter
of 2024, parcel volumes in Vietnam and Malaysia increased by 120.0% and 23.8%, respectively and total volume of the cross-border business
increased by 256.4%; year over year.
Key Operational Metrics
| | |
Three Months Ended | | |
% Change YOY | |
| | |
March 31,
2022 | | |
March 31,
2023 | | |
March 31,
2024 | | |
2023 vs
2022 | | |
2024 vs
2023 | |
| Freight Volume (Tonne in ‘000) | |
| 1,683 | | |
| 1,769 | | |
| 1,987 | | |
| 5.1 | % | |
| 12.4 | % |
| Supply Chain Management Volume (Tonne in ‘000) | |
| 330 | | |
| 390 | | |
| 360 | | |
| 97.0 | % | |
| (7.7 | )% |
| Global Parcel Volume in SEA (in ‘000) | |
| 38,390 | | |
| 27,053 | | |
| 37,715 | | |
| (29.5 | )% | |
| 39.4 | % |
FINANCIAL RESULTS
(7)
For the First Quarter Ended March 31,
2024:
Revenue
The following table sets forth a breakdown of
revenue by business segment for the periods indicated.
Table 1 – Breakdown of Revenue by Business
Segment
| | |
Three Months Ended | | |
| |
| | |
March 31, 2023 | | |
March 31, 2024 | | |
| |
| (In ‘000, except for %) | |
RMB | | |
% of Revenue | | |
RMB | | |
US$ | | |
% of Revenue | | |
% Change YOY | |
| Freight | |
| 1,051,873 | | |
| 61.3 | % | |
| 1,223,486 | | |
| 169,451 | | |
| 63.0 | % | |
| 16.3 | % |
| Supply Chain Management | |
| 440,254 | | |
| 25.7 | % | |
| 411,009 | | |
| 56,924 | | |
| 21.2 | % | |
| (6.6 | )% |
| Global | |
| 197,028 | | |
| 11.5 | % | |
| 280,874 | | |
| 38,901 | | |
| 14.4 | % | |
| 42.6 | % |
| Others(8) | |
| 26,107 | | |
| 1.5 | % | |
| 26,666 | | |
| 3,693 | | |
| 1.4 | % | |
| 2.1 | % |
| Total Revenue | |
| 1,715,262 | | |
| 100.0 | % | |
| 1,942,035 | | |
| 268,969 | | |
| 100.0 | % | |
| 13.2 | % |
| · | Freight Service Revenue was RMB1,223.5 million
(US$169.5 million) for the first quarter of 2024, compared to RMB1,051.9 million in the same period of last year. Freight service revenue
increased by 16.3% year over year, primarily due to increase in both volume and average selling price per tonne. |
| · | Supply Chain Management Service Revenue decreased
by 6.6% year over year to RMB411.0 million (US$56.9 million) for the first quarter of 2024 from RMB440.3 million in the same period of
last year as we discontinued certain not-profitable key account customers. |
| · | Global Service Revenue increased by 42.6% year
over year to RMB280.9 million (US$38.9 million) for the first quarter of 2024 from RMB197.0 million in the same period of last year, primarily
due to volume growth in Vietnam, Malaysia and cross-border business. |
(7) All numbers represented the
financial results from continuing operations, unless otherwise stated.
(8) “Others” Segment
primarily represents Capital business units.
Cost of Revenue
The following table sets forth a breakdown of
cost of revenue by business segment for the periods indicated.
Table 2 – Breakdown of Cost of Revenue
by Business Segment
| | |
Three Months Ended | |
|
| |
| | |
March 31, 2023 | | |
March 31, 2024 | |
|
% of Revenue | |
| (In ‘000, except for %) | |
RMB | | |
% of
Revenue | | |
RMB | | |
US$ | | |
% of
Revenue | |
|
Change
YOY | |
| Freight | |
| (1,054,635 | ) | |
| 100.3 | % | |
| (1,182,417 | ) | |
| (163,763 | ) | |
| 96.6 | % |
|
| (3.6 | )% |
| Supply Chain Management | |
| (404,350 | ) | |
| 91.8 | % | |
| (383,345 | ) | |
| (53,093 | ) | |
| 93.3 | % |
|
| 1.4 | % |
| Global | |
| (249,204 | ) | |
| 126.5 | % | |
| (313,793 | ) | |
| (43,460 | ) | |
| 111.7 | % |
|
| (14.8 | )% |
| Others | |
| (15,538 | ) | |
| 59.5 | % | |
| (7,256 | ) | |
| (1,004 | ) | |
| 27.2 | % |
|
| (32.3 | )% |
| Total Cost of Revenue | |
| (1,723,727 | ) | |
| 100.5 | % | |
| (1,886,811 | ) | |
| (261,320 | ) | |
| 97.2 | % |
|
| (3.3 | )% |
| · | Cost of Revenue for Freight was RMB1,182.4 million
(US$163.8 million), or 96.6% of revenue in the first quarter of 2024. The 3.6 percentage points year-over-year decrease in cost of revenue
as a percentage of revenue was mainly due to higher volume and improved efficiency. |
| · | Cost of Revenue for Supply Chain Management was
RMB383.3 million (US$53.1 million), or 93.3% of revenue, in the first quarter of 2024, compared to cost of revenue as a percentage of
revenue of 91.8% in the first quarter of 2023. The increase of cost of revenue was mainly due to new business development with lower growth
margin. |
| · | Cost of Revenue for Global was RMB313.8 million
(US$43.5 million), or 111.7% of revenue, in the first quarter of 2024. The 14.8 percentage points year-over-year decrease in cost of revenue
as a percentage of revenue due to increased parcel volume and operating efficiency. |
Gross Profit
was RMB55.2 million (US$7.6 million) in the first quarter of 2024, compared to gross loss of RMB8.5 million in the first quarter
of 2023; Gross Margin was 2.8%, compared to negative 0.5% in the first quarter of 2023.
Operating Expenses
Selling, General
and Administrative (“SG&A”) Expenses were RMB220.4 million (US$30.5 million), or 11.3% of revenue in the first
quarter of 2024, compared to RMB247.7 million, or 14.4% of revenue in the same quarter of 2023, as we continued to optimize our organizational
structure.
Research and
Development Expenses were RMB29.3 million (US$4.1 million), or 1.5% of revenue in the first quarter of 2024, compared to RMB28.7
million, or 1.7% of revenue in the first quarter of 2023.
Share-based Compensation
(“SBC”) Expenses included in the cost and expense items above were RMB7.2 million (US$1.0 million) in the first
quarter of 2024, compared to RMB12.1 million in the same period of 2023. Of the total SBC expenses, RMB0.04 million (US$0.01 million)
was allocated to cost of revenue, RMB0.3 million (US$0.03 million) was allocated to selling expenses, RMB6.3 million (US$0.9 million)
was allocated to general and administrative expenses, and RMB0.7 million (US$0.09 million) was allocated to research and development expenses.
Net Loss and Non-GAAP Net Loss from continuing
operations
Net Loss from
continuing operations in the first quarter of 2024 was RMB172.1 million (US$23.8 million), compared to RMB257.6 million in
the same period of 2023. Non-GAAP Net Loss from continuing operations in the first quarter of 2024 was RMB164.9 million (US$22.8
million), compared to RMB245.5 million in the first quarter of 2023.
Diluted loss per ADS and Non-GAAP diluted
loss per ADS from continuing operations
Diluted loss
per ADS from continuing operations in the first quarter of 2024 was RMB8.69 (US$1.20), compared to a loss of RMB12.38 in the
same period of 2023. Non-GAAP diluted loss per ADS from continuing operations in the first quarter of 2024 was RMB8.30 (US$1.15),
compared to a loss of RMB11.77 in the first quarter of 2023. A reconciliation of non-GAAP diluted loss per ADS to diluted loss per ADS
is included at the end of this results announcement.
Adjusted EBITDA and Adjusted EBITDA Margin
from continuing operations
Adjusted EBITDA
from continuing operations in the first quarter of 2024 was negative RMB126.3 million (US$17.5 million), compared to negative
RMB206.8 million in the same period of 2023. Adjusted EBITDA Margin from continuing operations in the first quarter of 2024 was
negative 6.5%, compared to negative 12.1% in the same period of 2023.
Cash and Cash Equivalents, Restricted Cash and Short-term Investments
As of March 31,
2024, cash and cash equivalents, restricted cash and short-term investments were RMB2,095.8 million (US$290.3 million), compared
to RMB3,171.8 million as of March 31, 2023. In July 2023, the Company repurchased approximately US$75 million (RMB542 million)
aggregate principal amount of its existing Convertible Senior Notes due 2024.
Net Cash Used In Continuing Operating Activities
Net cash used in continuing operating activities
in the first quarter of 2024 was RMB138.5 million (US$19.2 million), compared to RMB163.2 million of net cash used in continuing operating
activities in the same period of 2023.
SHARES OUTSTANDING
As of May 17,
2024, the Company had approximately 401.9 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.
Effective
as of September 25, 2023, the Company’s board of directors terminated its previously announced share repurchase program, under
which the Company could repurchase up to US$20 million worth of its outstanding American Depositary Shares over a 12-month period. Prior
to the program’s termination, the Company repurchased a total of 1,265,685 ADSs for a total amount paid of approximately US$3.3
million (excluding commissions) under the program.
ABOUT BEST INC.
BEST Inc. (NYSE:
BEST) is a leading integrated smart supply chain solutions and logistics services provider in China and SEA. Through its proprietary
technology platform and extensive networks, BEST offers a comprehensive set of logistics and value-added services, including freight
delivery, supply chain management, cross-border 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 integrated supply chain management eco-system.
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
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.
(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.
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 March 31, | |
| | |
2023 | | |
2024 | |
| | |
RMB | | |
RMB | | |
US$ | |
| Revenue | |
| | |
| | |
| |
| Freight | |
| 1,051,873 | | |
| 1,223,486 | | |
| 169,451 | |
| Supply Chain Management | |
| 440,254 | | |
| 411,009 | | |
| 56,924 | |
| Global | |
| 197,028 | | |
| 280,874 | | |
| 38,901 | |
| Others | |
| 26,107 | | |
| 26,666 | | |
| 3,693 | |
| Total Revenue | |
| 1,715,262 | | |
| 1,942,035 | | |
| 268,969 | |
| Cost of Revenue | |
| | | |
| | | |
| | |
| Freight | |
| (1,054,635 | ) | |
| (1,182,417 | ) | |
| (163,763 | ) |
| Supply Chain Management | |
| (404,350 | ) | |
| (383,345 | ) | |
| (53,093 | ) |
| Global | |
| (249,204 | ) | |
| (313,793 | ) | |
| (43,460 | ) |
| Others | |
| (15,538 | ) | |
| (7,256 | ) | |
| (1,004 | ) |
| Total Cost of Revenue | |
| (1,723,727 | ) | |
| (1,886,811 | ) | |
| (261,320 | ) |
| Gross (Loss)/Profit | |
| (8,465 | ) | |
| 55,224 | | |
| 7,649 | |
| Selling Expenses | |
| (53,817 | ) | |
| (68,145 | ) | |
| (9,438 | ) |
| General and Administrative Expenses | |
| (193,890 | ) | |
| (152,225 | ) | |
| (21,083 | ) |
| Research and Development Expenses | |
| (28,697 | ) | |
| (29,284 | ) | |
| (4,056 | ) |
| Other operating expense, net | |
| (1,366 | ) | |
| (3,272 | ) | |
| (453 | ) |
| Loss from Operations | |
| (286,235 | ) | |
| (197,702 | ) | |
| (27,381 | ) |
| Interest Income | |
| 21,678 | | |
| 15,688 | | |
| 2,173 | |
| Interest Expense | |
| (17,621 | ) | |
| (12,445 | ) | |
| (1,724 | ) |
| Foreign Exchange Gain/(loss) | |
| 14,724 | | |
| (314 | ) | |
| (43 | ) |
| Other Income | |
| 5,224 | | |
| 2,285 | | |
| 316 | |
| Other Expense | |
| (651 | ) | |
| (1,875 | ) | |
| (260 | ) |
| Gain on changes in the fair value of derivative assets/liabilities | |
| 5,392 | | |
| 22,365 | | |
| 3,098 | |
| Loss before Income Tax and Share of Net Loss of Equity Investees | |
| (257,489 | ) | |
| (171,998 | ) | |
| (23,821 | ) |
| Income Tax Expense | |
| (138 | ) | |
| (103 | ) | |
| (15 | ) |
| Net Loss from continuing operations | |
| (257,627 | ) | |
| (172,101 | ) | |
| (23,836 | ) |
| Net (loss)/gain from discontinued operations | |
| - | | |
| - | | |
| - | |
| Net Loss | |
| (257,627 | ) | |
| (172,101 | ) | |
| (23,836 | ) |
| Net Loss from continuing operations attributable to
non-controlling interests | |
| (13,428 | ) | |
| (11,169 | ) | |
| (1,547 | ) |
| Net Loss attributable to BEST Inc. | |
| (244,199 | ) | |
| (160,932 | ) | |
| (22,289 | ) |
Summary of Unaudited Condensed Consolidated
Balance Sheets
(In Thousands)
| | |
As of December 31,2023 | | |
As of March 31, 2024 | |
| | |
RMB | | |
RMB | | |
US$ | |
| Assets | |
| | |
| | |
| |
| Current Assets | |
| | | |
| | | |
| | |
| Cash and Cash Equivalents | |
| 425,976 | | |
| 232,923 | | |
| 32,259 | |
| Restricted Cash | |
| 1,008,318 | | |
| 1,349,705 | | |
| 186,932 | |
| Accounts and Notes Receivables | |
| 829,802 | | |
| 750,916 | | |
| 104,001 | |
| Inventories | |
| 7,794 | | |
| 8,116 | | |
| 1,124 | |
| Prepayments and Other Current Assets | |
| 674,100 | | |
| 757,848 | | |
| 104,961 | |
| Short-term Investments | |
| 35,888 | | |
| 61,749 | | |
| 8,552 | |
| Amounts Due from Related Parties | |
| 60,394 | | |
| 48,916 | | |
| 6,775 | |
| Lease Rental Receivables | |
| 47,925 | | |
| 25,234 | | |
| 3,495 | |
| Total Current Assets | |
| 3,090,197 | | |
| 3,235,407 | | |
| 448,099 | |
| Non-current Assets | |
| | | |
| | | |
| | |
| Property and Equipment, Net | |
| 624,205 | | |
| 594,836 | | |
| 82,384 | |
| Intangible Assets, Net | |
| 93,173 | | |
| 91,196 | | |
| 12,631 | |
| Long-term Investments | |
| 156,859 | | |
| 156,859 | | |
| 21,725 | |
| Goodwill | |
| 54,135 | | |
| 54,135 | | |
| 7,498 | |
| Non-current Deposits | |
| 81,869 | | |
| 52,971 | | |
| 7,336 | |
| Other Non-current Assets | |
| 46,913 | | |
| 43,931 | | |
| 6,084 | |
| Restricted Cash | |
| 812,371 | | |
| 451,431 | | |
| 62,522 | |
| Lease Rental Receivables | |
| 314 | | |
| - | | |
| - | |
| Operating Lease Right-of-use Assets | |
| 1,293,526 | | |
| 1,216,540 | | |
| 168,488 | |
| Total non-current Assets | |
| 3,163,365 | | |
| 2,661,899 | | |
| 368,668 | |
| Total Assets | |
| 6,253,562 | | |
| 5,897,306 | | |
| 816,767 | |
| Liabilities and Shareholders’ Equity | |
| | | |
| | | |
| | |
| Current Liabilities | |
| | | |
| | | |
| | |
| Long-term borrowings-current | |
| 721 | | |
| 55 | | |
| 8 | |
| Long-term Bank Loans-current | |
| 794,679 | | |
| 956,858 | | |
| 132,523 | |
| Convertible Senior Notes held by related parties | |
| 531,202 | | |
| 106,425 | | |
| 14,740 | |
| Convertible Senior Notes held by third parties | |
| 78 | | |
| 78 | | |
| 11 | |
| Short-term Bank Loans | |
| 401,755 | | |
| 459,400 | | |
| 63,626 | |
| Accounts and Notes Payable | |
| 1,640,864 | | |
| 1,483,687 | | |
| 205,488 | |
| Income Tax Payable | |
| 2,777 | | |
| 2,604 | | |
| 361 | |
| Customer Advances and Deposits and Deferred Revenue | |
| 288,184 | | |
| 286,732 | | |
| 39,711 | |
| Accrued Expenses and Other Liabilities | |
| 1,091,573 | | |
| 1,057,814 | | |
| 146,506 | |
| Financing Lease Liabilities | |
| 418 | | |
| 474 | | |
| 66 | |
| Operating Lease Liabilities | |
| 509,450 | | |
| 551,756 | | |
| 76,417 | |
| Amounts Due to Related Parties | |
| 1,119 | | |
| 1,196 | | |
| 166 | |
| Total Current Liabilities | |
| 5,262,820 | | |
| 4,907,079 | | |
| 679,623 | |
Summary of Unaudited Condensed Consolidated
Balance Sheets (Cont’d)
(In Thousands)
| | |
As of December 31, 2023 | | |
As of March 31, 2024 | |
| | |
RMB | | |
RMB | | |
US$ | |
| Non-current Liabilities | |
| | | |
| | | |
| | |
| Convertible senior notes held by related parties | |
| - | | |
| 425,700 | | |
| 58,959 | |
| Operating Lease Liabilities | |
| 876,854 | | |
| 776,519 | | |
| 107,547 | |
| Financing Lease Liabilities | |
| 1,231 | | |
| 1,202 | | |
| 166 | |
| Other Non-current Liabilities | |
| 22,837 | | |
| 18,009 | | |
| 2,494 | |
| Long-term Bank Loans | |
| 159,729 | | |
| 133 | | |
| 18 | |
| Total Non-current Liabilities | |
| 1,060,651 | | |
| 1,221,563 | | |
| 169,184 | |
| Total Liabilities | |
| 6,323,471 | | |
| 6,128,642 | | |
| 848,807 | |
| Mezzanine Equity: | |
| | | |
| | | |
| | |
| Convertible Non-controlling Interests | |
| 191,865 | | |
| 191,865 | | |
| 26,573 | |
| Total mezzanine equity | |
| 191,865 | | |
| 191,865 | | |
| 26,573 | |
| Shareholders’ Deficit | |
| | | |
| | | |
| | |
| Ordinary Shares | |
| 25,988 | | |
| 25,988 | | |
| 3,599 | |
| Treasury Shares | |
| (23,853 | ) | |
| (23,853 | ) | |
| (3,304 | ) |
| Additional Paid-In Capital | |
| 19,529,806 | | |
| 19,537,054 | | |
| 2,705,851 | |
| Accumulated Deficit | |
| (19,749,262 | ) | |
| (19,910,194 | ) | |
| (2,757,530 | ) |
| Accumulated Other Comprehensive Income | |
| 119,169 | | |
| 122,595 | | |
| 16,979 | |
| BEST Inc. Shareholders’ Deficit | |
| (98,152 | ) | |
| (248,410 | ) | |
| (34,405 | ) |
| Non-controlling Interests | |
| (163,622 | ) | |
| (174,791 | ) | |
| (24,208 | ) |
| Total Shareholders’ Deficit | |
| (261,774 | ) | |
| (423,201 | ) | |
| (58,613 | ) |
| Total Liabilities, Mezzanine Equity and Shareholders’ Deficit | |
| 6,253,562 | | |
| 5,897,306 | | |
| 816,767 | |
Summary of Unaudited Condensed
Consolidated Statements of Cash Flows
(In Thousands)
| | |
Three Months Ended March 31, | |
| | |
2023 | | |
2024 | |
| | |
RMB | | |
RMB | | |
US$ | |
| Net cash used in continuing operating activities | |
| (163,187 | ) | |
| (138,518 | ) | |
| (19,185 | ) |
| Net cash used in operating activities | |
| (163,187 | ) | |
| (138,518 | ) | |
| (19,185 | ) |
| Net cash generated from/(used in) continuing investing activities | |
| 683,000 | | |
| (132,734 | ) | |
| (18,383 | ) |
| Net cash generated from/(used in) investing activities | |
| 683,000 | | |
| (132,734 | ) | |
| (18,383 | ) |
| Net cash generated from continuing financing activities | |
| 117,619 | | |
| 52,007 | | |
| 7,203 | |
| Net cash generated from financing activities | |
| 117,619 | | |
| 52,007 | | |
| 7,203 | |
| Exchange Rate Effect on Cash and Cash Equivalents, and Restricted Cash | |
| (13,222 | ) | |
| 6,639 | | |
| 919 | |
| Net increase/(decrease) in Cash and Cash Equivalents, and Restricted Cash | |
| 624,210 | | |
| (212,606 | ) | |
| (29,446 | ) |
| Cash and Cash Equivalents, and Restricted Cash at Beginning of Period | |
| 2,478,423 | | |
| 2,246,665 | | |
| 311,160 | |
| Cash and Cash Equivalents, and Restricted Cash at End of Period | |
| 3,102,633 | | |
| 2,034,059 | | |
| 281,714 | |
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 3 – Reconciliation of EBITDA, Adjusted
EBITDA and Adjusted EBITDA Margin
| | |
Three Months Ended March 31, 2024 | |
| (In RMB‘000) | |
Freight | | |
Supply Chain | | |
Global | | |
Others | | |
Unallocated(10) | | |
Total | |
| Net Loss | |
| (42,439 | ) | |
| (13,438 | ) | |
| (100,337 | ) | |
| (6,040 | ) | |
| (9,847 | ) | |
| (172,101 | ) |
| Add | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Depreciation & Amortization | |
| 18,243 | | |
| 8,602 | | |
| 10,921 | | |
| 54 | | |
| 3,902 | | |
| 41,722 | |
| Interest Expense | |
| - | | |
| - | | |
| - | | |
| - | | |
| 12,445 | | |
| 12,445 | |
| Income Tax Expense | |
| - | | |
| - | | |
| - | | |
| 103 | | |
| - | | |
| 103 | |
| Subtract | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Interest Income | |
| - | | |
| - | | |
| - | | |
| - | | |
| (15,688 | ) | |
| (15,688 | ) |
| EBITDA | |
| (24,196 | ) | |
| (4,836 | ) | |
| (89,416 | ) | |
| (5,883 | ) | |
| (9,188 | ) | |
| (133,519 | ) |
| Add | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Share-based Compensation Expenses | |
| 1,271 | | |
| 696 | | |
| 265 | | |
| 6 | | |
| 5,010 | | |
| 7,248 | |
| Adjusted EBITDA | |
| (22,925 | ) | |
| (4,140 | ) | |
| (89,151 | ) | |
| (5,877 | ) | |
| (4,178 | ) | |
| (126,271 | ) |
| Adjusted EBITDA Margin | |
| (1.87 | )% | |
| (1.01 | )% | |
| (31.74 | )% | |
| (22.04 | )% | |
| - | | |
| (6.50 | )% |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
Three Months Ended March 31, 2023 | |
| (In RMB‘000) | |
Freight | | |
Supply Chain | | |
Global | | |
Others | | |
Unallocated | | |
Total | |
| Net Loss | |
| (80,238 | ) | |
| 376 | | |
| (111,867 | ) | |
| (20,362 | ) | |
| (45,536 | ) | |
| (257,627 | ) |
| Add | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Depreciation & Amortization | |
| 19,316 | | |
| 8,648 | | |
| 9,232 | | |
| 509 | | |
| 4,952 | | |
| 42,657 | |
| Interest Expense | |
| - | | |
| - | | |
| - | | |
| - | | |
| 17,621 | | |
| 17,621 | |
| Income Tax Expense/(Benefit) | |
| - | | |
| - | | |
| (11 | ) | |
| 149 | | |
| - | | |
| 138 | |
| Subtract | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Interest Income | |
| - | | |
| - | | |
| - | | |
| - | | |
| (21,678 | ) | |
| (21,678 | ) |
| EBITDA | |
| (60,922 | ) | |
| 9,024 | | |
| (102,646 | ) | |
| (19,704 | ) | |
| (44,641 | ) | |
| (218,889 | ) |
| Add | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Share-based Compensation Expenses | |
| 1,852 | | |
| 788 | | |
| 650 | | |
| 20 | | |
| 8,783 | | |
| 12,093 | |
| Adjusted EBITDA | |
| (59,070 | ) | |
| 9,812 | | |
| (101,996 | ) | |
| (19,684 | ) | |
| (35,858 | ) | |
| (206,796 | ) |
| Adjusted EBITDA Margin | |
| (5.62 | )% | |
| 2.23 | % | |
| (51.77 | )% | |
| (75.40 | )% | |
| - | | |
| (12.06 | )% |
(10)
Unallocated expenses are primarily related to corporate
administrative expenses and other miscellaneous items that are not allocated to individual segments.
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 4 – Reconciliation of Non-GAAP Net
Loss and Non-GAAP Net Loss Margin
| | |
Three Months Ended March 31, 2024 | |
| (In RMB‘000) | |
Freight | | |
Supply Chain | | |
Global | | |
Others | | |
Unallocated(11) | | |
Total | |
| Net Loss | |
| (42,439 | ) | |
| (13,438 | ) | |
| (100,337 | ) | |
| (6,040 | ) | |
| (9,847 | ) | |
| (172,101 | ) |
| Add | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Share-based Compensation Expenses | |
| 1,271 | | |
| 696 | | |
| 265 | | |
| 6 | | |
| 5,010 | | |
| 7,248 | |
| Non-GAAP Net Loss | |
| (41,168 | ) | |
| (12,742 | ) | |
| (100,072 | ) | |
| (6,034 | ) | |
| (4,837 | ) | |
| (164,853 | ) |
| Non-GAAP Net Loss Margin | |
| (3.36 | )% | |
| (3.10 | )% | |
| (35.63 | )% | |
| (22.63 | )% | |
| - | | |
| (8.49 | )% |
| | |
Three Months Ended March 31, 2023 | |
| (In RMB‘000) | |
Freight | | |
Supply Chain | | |
Global | | |
Others | | |
Unallocated(12) | | |
Total | |
| Net Loss | |
| (80,238 | ) | |
| 376 | | |
| (111,867 | ) | |
| (20,362 | ) | |
| (45,536 | ) | |
| (257,627 | ) |
| Add | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Share-based Compensation Expenses | |
| 1,852 | | |
| 788 | | |
| 650 | | |
| 20 | | |
| 8,783 | | |
| 12,093 | |
| Non-GAAP Net Loss | |
| (78,386 | ) | |
| 1,164 | | |
| (111,217 | ) | |
| (20,342 | ) | |
| (36,753 | ) | |
| (245,534 | ) |
| Non-GAAP Net Loss Margin | |
| (7.45 | )% | |
| 0.26 | % | |
| (56.45 | )% | |
| (77.92 | )% | |
| - | | |
| (14.31 | )% |
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 March 31, | |
| | |
2024 | |
| (In ‘000) | |
RMB | | |
US$ | |
| Net Loss Attributable to Ordinary Shareholders | |
| (160,932 | ) | |
| (22,289 | ) |
| Add | |
| | | |
| | |
| Share-based Compensation Expenses | |
| 7,248 | | |
| 1,004 | |
| Non-GAAP Net Loss Attributable to Ordinary Shareholders | |
| (153,684 | ) | |
| (21,285 | ) |
| Weighted Average Diluted Ordinary Shares Outstanding During the Quarter | |
| | | |
| | |
| Diluted | |
| 370,219,148 | | |
| 370,219,148 | |
| Diluted (Non-GAAP) | |
| 370,219,148 | | |
| 370,219,148 | |
| Diluted loss per ordinary share | |
| (0.43 | ) | |
| (0.06 | ) |
| Add | |
| | | |
| | |
| Non-GAAP adjustment to net loss per ordinary share | |
| 0.01 | | |
| 0.00 | |
| Non-GAAP diluted loss per ordinary share | |
| (0.42 | ) | |
| (0.06 | ) |
| | |
| | | |
| | |
| Diluted loss per ADS | |
| (8.69 | ) | |
| (1.20 | ) |
| Add | |
| | | |
| | |
| Non-GAAP adjustment to net loss per ADS | |
| 0.39 | | |
| 0.05 | |
| Non-GAAP diluted loss per ADS | |
| (8.30 | ) | |
| (1.15 | ) |
(11)
Unallocated expenses are primarily related to corporate administrative expenses and
other miscellaneous items that are not allocated to individual segments.
(12)
Unallocated expenses are primarily related to corporate administrative expenses
and other miscellaneous items that are not allocated to individual segments.
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