omniture

BEST Inc. Announces Unaudited Third Quarter 2023 Financial Results

2023-11-23 06:00 3772

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.
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