BEST Inc. Announces Unaudited Fourth Quarter and Fiscal Year 2020 Financial Results

11-Mar-2021 Intellasia | PR Newswire Asia | 6:00 AM Print This Post

Strategic Refocusing Plan Delivered Positive Results

HANGZHOU, China, March 11, 2021 /PRNewswire/ -- BEST Inc. (NYSE: BEST) ("BEST" or the "Company"), a leading integrated smart supply chain solutions and logistics services provider in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2020.

Following the Company's previously announced decision to wind down its Store+ business by the end of 2020, starting with this announcement for the fourth quarter ended December 31, 2020, Store+'s historical financial results for the periods prior to the wind-down will be reflected in the Company's consolidated financial statements as discontinued operations.  

Johnny Chou, Founder, Chairman and Chief Executive Officer of BEST, commented, "In the fourth quarter of 2020, we executed our strategic refocusing plan and turned our business around amid strong industry competition, attesting to our ability to make quick and decisive changes in our strategies and operational practices. We continued to make improvements to all of our business segments and reduced losses, which put us back on the path to strong growth and profitability. Our Express segment under new management focused on strengthening network stability, optimizing product and cost structure, as well as enhancing service quality. In December 2020, despite a net loss for the quarter, net profit for Express turned positive for the first time since the second quarter of 2020. Our Freight segment continued to strengthen its industry leadership, demonstrating 25.1% year-over-year volume growth while returning to profitability. We also took initiatives to improve our Supply Chain Management performance as we focused on higher-margin customers. Our Global business continued its growth momentum by gaining more cross-border and Southeast Asia businesses, achieving over 400% parcel volume growth year-over-year."  

"While the Company suffered major setbacks due to the pandemic in 2020, we have taken decisive actions to steer the Company back to the path of growth and profitability. We firmly believe the worst is behind us and the future is bright. We entered 2021 with optimism and strong momentum, and anticipate strong growth for our business as the year progresses. We are determined to strengthen our market share, optimize cost structure, improve service quality and customer experience, and build out a leading integrated smart supply chain and logistics company to deliver sustainable and powerful future growth," concluded Mr. Chou.

Gloria Fan, BEST's Chief Financial Officer, commented, "We concluded a challenging 2020 with a fourth quarter focusing on strategic initiatives. We took decisive actions to realign our businesses to adapt to the evolving competitive market conditions as well as set a solid foundation for future growth. Our revenue, affected by the challenging pricing environment and reduced by the wind-down of Store+ during the quarter, was RMB9.3 billion. As part of our refocusing strategy, we identified and executed additional measures to manage our costs, expenses and liquidity. In the fourth quarter, we generated net operating cash flow of RMB347 million while maintaining a healthy combined balance of cash and cash equivalents, restricted cash and short-term investments of RMB4.5 billion. As we progress into 2021, we will remain focused on improving our capital structure as well as enhancing our balance sheet and cash flow to support the Company's future growth. Based on current market conditions and current operations, we expect the Company's revenue for the full fiscal year of 2021 to be between RMB34 billion and RMB36 billion. This forecast reflects management's current and preliminary expectation, which is subject to change."

FINANCIAL HIGHLIGHTS[1] 

For the Fourth Quarter Ended December 31, 2020:

Results presented herein exclude Store+-related discontinued operations

  • Revenue was RMB9,255.4 million (US$1,418.4 million), a decrease of 8.9% year-over-year ("YoY"). The decrease was primarily due to a decrease in average selling price ("ASP") per parcel in Express business, partially offset by an increase in Express parcel volume.
  • Gross Profit was RMB50.1 million (US$7.7 million), a decrease of 91.1% YoY compared to gross profit of RMB561.5 million in the same period of 2019. The decrease was primarily due to a steeper ASP decrease than unit cost reduction in Express business. Gross Margin was 0.5%, a decrease of 5.0 percentage points ("ppts") YoY.
  • Net Loss was RMB492.9 million (US$75.5 million), compared to a net income of RMB132.6 million in the same period of 2019. Non-GAAP Net Loss[2][3] was RMB475.7 million (US$72.9 million), compared to non-GAAP net income of RMB146.8 million in the same period of 2019.
  • Diluted EPS[4] was negative RMB1.26 (US$0.19), compared to RMB0.36 in the same period of 2019. Non-GAAP Diluted EPS(3)(4) was negative RMB1.22 (US$0.19), compared to RMB0.39 in the same period of 2019.
  • EBITDA[5] was negative RMB305.2 million (US$46.8 million), compared to RMB245.9 million in the same period of 2019. Adjusted EBITDA[3][5] was negative RMB288.0 million (US$44.1 million), compared to RMB259.2 million in the same period of 2019.

[1] All numbers presented have been rounded to the nearest integer, tenth, or hundredth, and year-over-year comparisons are based on figures before rounding.

[2] Non-GAAP net income/loss represents net income/loss excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and fair value change of equity investments (if any).

[3] See the sections entitled "Use of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures" for more information about the non-GAAP measures referred to within this results announcement.

[4] Diluted earnings per share, or Diluted EPS, is calculated by dividing net profit attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period.

[5] EBITDA represents net loss excluding depreciation, amortization, interest expense and income tax expense and minus interest income. Adjusted EBITDA represents EBITDA excluding share-based compensation expenses and fair value change of equity investments (if any).

For the Fiscal Year Ended December 31, 2020:

Results presented herein exclude Store+-related discontinued operations

  • Revenue was RMB29,995.0 million (US$4,596.9 million), a decrease of 7.3% YoY. The decrease was primarily due to a decrease in ASP per parcel in Express business, partially offset by an increase in Express parcel volume.
  • Gross Profit was RMB238.1 million (US$36.5 million), a decrease of 85.5% YoY compared to gross profit of RMB1,637.3 million in fiscal year 2019. The decrease was primarily due to a steeper ASP decrease than unit cost reduction in Express and Freight businesses. Gross Margin was 0.8%, a decrease of 4.3 percentage points YoY.
  • Net Loss was RMB1,683.1 million (US$257.9 million), compared to a net income of RMB172.7 million in fiscal year 2019. Non-GAAP Net Loss was RMB1,569.3 million (US$240.5 million), compared to non-GAAP net income of RMB253.9 million in fiscal year 2019.
  • Diluted EPS was negative RMB4.28 (US$0.66), compared to RMB0.49 in fiscal year 2019. Non-GAAP Diluted EPS was negative RMB3.98 (US$0.61), compared to RMB0.70 in fiscal year 2019.
  • EBITDA was negative RMB1,046.1 million (US$160.3 million), compared to RMB652.9 million in fiscal year 2019. Adjusted EBITDA was negative RMB935.1 million (US$143.3 million), compared to RMB730.4 million in fiscal year 2019.

BUSINESS HIGHLIGHTS[6]

  • The Company made significant changes in the fourth quarter of 2020 across its business segments. The initial positive results brought about by these changes affirms the Company's strategic direction targeting a sustainable recovery.
  • The Company continues to evaluate strategic options aimed at enhancing its balance sheet and profitability.

[6] All numbers presented have been rounded to the nearest integer, tenth, or hundredth, and year-over-year comparisons are based on figures before rounding.  

BEST Express – The strategic refocusing plan announced in November 2020 focused on optimizing product structure, improving network stability and flexibility, as well as enhancing service quality and customer experience. These initiatives have already resulted in an encouraging recovery, demonstrated by improving parcel unit economics. Despite a net loss for the quarter, it achieved net profit for the month of December. During the quarter, parcel volume increased by 6.0% YoY, representing a market share of 9.5% during the quarter. Gross margin contracted by 7.2 ppts due to a decline in ASP per parcel of 20.4% YoY, partially offset by a decrease in average cost per parcel of 14.3% YoY. In fiscal year 2020, total parcel volume increased by 12.7% YoY to 8.54 billion, representing a market share of 10.2%.

BEST Freight – Freight continued strong post-pandemic recovery and delivered a strong quarter with a higher-than-industry-average growth rate while returning to profitability. The Company continued to emphasize the e-commerce aspect of its freight services, solidify its leadership position and brand recognition, and improve operating efficiency. Freight volume increased by 25.1% YoY in the fourth quarter of 2020. Gross margin was 5.5%, having recovered to pre-COVID level, and improved by 4.5 ppts quarter-over-quarter ("QoQ"), as pricing in the fourth quarter continued to rebound. Average cost per tonne and ASP both decreased by 16.7% YoY. In fiscal year 2020, total Freight volume increased by 20.2% YoY to 8.4 million tonnes.

BEST Supply Chain Management – The total number of orders fulfilled by Cloud OFCs increased by 11.7% YoY to 136.1 million in the fourth quarter of 2020 and the total number of orders fulfilled by franchised Cloud OFCs increased by 15.1% YoY to 67.1 million. The number of franchised OFCs increased by 22.2% YoY to 358 in the fourth quarter of 2020. In fiscal year 2020, the total number of orders fulfilled by Cloud OFCs increased by 21.4% YoY to 433.2 million and the total number of orders fulfilled by franchised Cloud OFCs increased by 35.9% YoY to 214.7 million. In the fourth quarter of 2020, gross margin for Supply Chain Management decreased by 6.3 ppts YoY, primarily due to one-off costs incurred by closing down Store+-  related operations, and pricing pressure associated with certain legacy key account customers, which are in the process of being discontinued.

BEST Global – In the fourth quarter of 2020, Global continued to expand cross-border and Southeast Asia business and margin improvement. In the fourth quarter, parcel volume in Thailand increased by 25.0% QoQ to 12.3 million, while parcel volume in Vietnam increased by 35.9% QoQ to 14 million. Global's gross margin expanded by 7.4 ppts YoY. In fiscal year 2020, total parcel volume in Thailand increased by 612.8% YoY to 37.3 million, and total parcel volume in Vietnam increased by 852.0% YoY to 33.8 million.

BEST UCargo – As of December 31, 2020, the number of registered drivers on the UCargo mobile app increased by 70.6% YoY to over 320,000. In the fourth quarter, the total number of transactions on the trucking brokerage platform increased by 19.0% YoY to 255,139. In fiscal year 2020, the total number of transactions on the trucking brokerage platform increased by 19.2% YoY to 738,131.

BEST Capital – As of December 31, 2020, BEST Capital had provided financing solutions to 13,410 trucks in total.

BEST Store+ – The Company has completed the wind-down of its Store+ business in accordance with the announcement on November 15, 2020.

Key Operational Metrics


Three Months Ended

% Change YoY

 

Express Parcel Volume (in '000)

December 31,
2018


December 31,
2019


December 31,
2020


2019 vs
2018


2020 vs
2019

1,868,489


2,437,959


2,585,249


30.5%


6.0%

Freight Volume (Tonne in '000)

1,605


2,097


2,623


30.6%


25.1%

Supply Chain Management
Orders Fulfilled (in '000)

83,623


121,907


136,126


45.8%


11.7%

UCargo Number of
Transactions (in '000)

196


214


255


9.6%


19.0%

Global Parcel Volume in
Southeast Asia (in '000)

14


5,157


27,891


37,112%


441%












Fiscal Year Ended

% Change YoY

 

Express Parcel Volume (in '000)

December 31,
2018


December 31,
2019


December 31,
2020


2019 vs
2018


2020 vs
2019

5,470,092


7,576,204


8,535,133


38.5%


12.7%

Freight Volume (Tonne in '000)

5,430


6,980


8,392


28.5%


20.2%

Supply Chain Management
Orders Fulfilled (in '000)

246,717


356,905


433,224


44.7%


21.4%

UCargo Number of
Transactions (in '000)

466


619


738


32.8%


19.2%

Global Parcel Volume in
Southeast Asia (in '000)

14


8,785


73,586


63,293%


738%

FINANCIAL RESULTS

For the Fourth Quarter Ended December 31, 2020:

Results presented herein exclude Store+-related discontinued operations

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, 2019


December 31, 2020



(In '000, except for %)

RMB

% of
Revenue


RMB

US$

% of
Revenue


% Change
YoY

Express

6,896,868

68.0%


5,822,926

892,402

63.0%


(15.6%)

Freight

1,555,229

15.3%


1,620,388

248,335

17.5%


4.2%

Supply Chain
Management

608,583

6.0%


542,332

83,116

5.9%


(10.9%)

Global

135,423

1.3%


253,351

38,828

2.7%


87.1%

UCargo

908,887

8.9%


957,865

146,799

10.3%


5.4%

Capital

51,741

0.5%


58,497

8,965

0.6%


13.1%

Total Revenue

10,156,731

100.0%


9,255,359

1,418,445

100.0%


(8.9%)

  • Express Service Revenue decreased by 15.6% YoY to RMB5,822.9 million (US$892.4 million) from RMB6,896.9 million, primarily due to a 20.4% YoY decrease in ASP per parcel, partially offset by a 6.0% YoY increase in parcel volume. The decrease in ASP per parcel is primarily attributable to competitive market dynamics.
  • Freight Service Revenue increased by 4.2% YoY to RMB1,620.4 million (US$248.3 million) from RMB1,555.2 million, primarily due to a 25.1% YoY increase in freight volume, partially offset by a 16.7% YoY decrease in ASP per tonne.
  • Supply Chain Management Service Revenue decreased by 10.9% YoY to RMB542.3 million (US$83.1 million) from RMB608.6 million, primarily due to pricing pressure associated with certain legacy key account customers, partially offset by a 11.7% YoY increase in the total number of orders fulfilled by Cloud OFCs.
  • Global Service Revenue increased by 87.1% YoY to RMB253.4 million (US$38.8 million) from RMB135.4 million, primarily due to strong growth in parcel volumes in Southeast Asia.
  • UCargo Service Revenue increased by 5.4% YoY to RMB957.9 million (US$146.8 million) from RMB908.9 million, primarily due to an increased number of total transactions.
  • Capital Service Revenue increased by 13.1% YoY to RMB58.5 million (US$9.0 million) from RMB51.7 million.

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, 2019


December 31, 2020


(In '000, except for %)

RMB

% of
Revenue


RMB

US$

% of
Revenue


Express

(6,489,669)

94.1%


(5,900,035)

(904,220)

101.3%


7.2ppt

Freight

(1,468,828)

94.4%


(1,530,702)

(234,590)

94.5%


0.1ppt

Supply Chain
Management

(577,977)

95.0%


(549,212)

(84,170)

101.3%


6.3ppt

Global

(156,028)

115.2%


(273,222)

(41,873)

107.8%


(7.4ppt)

UCargo

(896,662)

98.7%


(945,577)

(144,916)

98.7%


0.0ppt

Capital

(6,045)

11.7%


(6,557)

(1,005)

11.2%


(0.5ppt)

Total Cost of Revenue

(9,595,209)

94.5%


(9,205,305)

(1,410,774)

99.5%


5.0ppt

Cost of Revenue was RMB9,205.3 million (US$1,410.8 million) or 99.5% of revenue in the fourth quarter of 2020, compared to RMB9,595.2 million or 94.5% of revenue in the same quarter of 2019. The increase of 5.0 ppts in cost of revenue as a percentage of revenue was primarily attributable to a steeper decrease in ASP than unit cost reduction.

Table 3 – Breakdown of Average Cost Per Parcel and Average Cost Per Tonne



Three Months Ended


% Change

(in RMB)

December 31, 2019

December 31, 2020


YoY

Express:





Average Cost Per Parcel

2.66

2.28


(14.3%)

Average Transportation Cost Per Parcel

0.75

0.66


(12.0%)

Average Labor Cost Per Parcel

0.22

0.21


(4.5%)

Average Lease Cost Per Parcel

0.09

0.09


0.0%

Average Other Cost Per Parcel

0.12

0.09


(25.0%)

Average Last-mile Cost Per Parcel

1.48

1.23


(16.9%)

Freight:





Average Cost Per Tonne

700.6

583.5


(16.7%)

  • Express Service Average Cost per Parcel decreased by 14.3%, primarily due to improved operating efficiency and economies of scale.
  • Freight Service Average Cost per Tonne decreased by 16.7% YoY, primarily due to improved operating efficiency, network optimization and economies of scale.

Gross Profit was RMB50.1 million (US$7.7 million) in the fourth quarter of 2020, compared to gross profit of RMB561.5 million in the same quarter of 2019; Gross Margin was 0.5%, compared to 5.5% in the same quarter of 2019.

Operating Expenses

The following table sets forth a breakdown of operating expenses and adjusted operating expenses by category for the periods indicated.

Table 4 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category



Three Months Ended




December 31, 2019


December 31, 2020


(In '000, except for %)

RMB

% of
Revenue


RMB

US$

% of
Revenue


% of Revenue
Change
YoY

Selling, General and
    Administrative Expenses

(400,643)

3.9%


(498,716)

(76,432)

5.4%


1.5ppt

    Adjusted for 
   SBC Expenses

(26,366)

0.2%


(23,864)

(3,657)

0.3%


0.1ppt

Adjusted Selling, General 
   and 
   Administrative Expenses

(374,277)

3.7%


(474,852)

(72,775)

5.1%


1.4ppt

Research and 
   Development Expenses

(52,076)

0.5%


(53,788)

(8,243)

0.6%


0.1ppt

    Adjusted for
    SBC Expenses

(354)

0.0%


(1,785)

(274)

0.0%


0.0ppt

Adjusted Research and
     Development Expenses

(51,722)

0.5%


(52,003)

(7,969)

0.6%


0.1ppt

Total Operating Expenses

(452,719)

4.4%


(552,504)

(84,675)

6.0%


1.6ppt

   Adjusted for 
   SBC Expenses

(26,720)

0.2%


(25,649)

(3,931)

0.3%


0.1ppt

Adjusted Total 
   Operating Expenses

(425,999)

4.2%


(526,855)

(80,744)

5.7%


1.5ppt











Selling, General and Administrative Expenses were RMB498.7 million (US$76.4 million) or 5.4% of revenue in the fourth quarter of 2020, compared to RMB400.6 million or 3.9% of revenue in the same quarter of 2019. The increase in selling, general and administrative expenses was primarily attributable to additional accrued provision for certain trade receivables due to the pandemic and losses on disposal of fixed assets due to an upgrade of Express equipment.

Research and Development Expenses were RMB53.8 million (US$8.2 million) or 0.6% of revenue in the fourth quarter of 2020, compared to RMB52.1 million, or 0.5% of revenue in the same quarter of 2019.

Share-based Compensation ("SBC") Expenses included in the cost and expense items above in the fourth quarter of 2020 were RMB26.1 million (US$4.0 million), compared to RMB27.4 million in the same quarter of 2019. In the fourth quarter of 2020, RMB0.5 million (US$0.1 million) was allocated to cost of revenue, RMB0.5 million (US$0.1 million) was allocated to selling expenses, RMB23.3 million (US$3.6 million) was allocated to general and administrative expenses, and RMB1.8 million (US$0.3 million) was allocated to research and development expenses.

Net Loss and Non-GAAP Net Loss 

Net Loss in the fourth quarter of 2020 was RMB492.9 million (US$75.5 million), compared to net income of RMB132.6 million in the same period of 2019. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment (if any for a given period), Non-GAAP Net Loss in the fourth quarter of 2020 was RMB475.7 million (US$72.9 million), compared to non-GAAP net income of RMB146.8 million in the same quarter of 2019.

The following table sets forth a breakdown of non-GAAP net loss for the three months ended December 31, 2020 by segment.

Table 5 – Breakdown of non-GAAP Net Loss by Segment




Three Months Ended December 31, 2020


(In RMB'000)

Express

Freight

Supply Chain

Global

UCargo

Capital


Unallocated[7]

Total



Non-GAAP Net
Income/(Loss)

(262,178)

13,841

(77,198)

(58,433)

(36,913)

12,920


(67,717)

(475,678)



[7] Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

Diluted EPS and Non-GAAP Diluted EPS

Diluted EPS in the fourth quarter of 2020 was negative RMB1.26 (US$0.19), based on a weighted average of 385.6 million diluted shares outstanding during the quarter. This is compared to RMB0.36 on a weighted average of 392.8 million diluted shares outstanding in the same period of 2019. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment (if any for a given period), Non-GAAP Diluted EPS in the fourth quarter of 2020 was negative RMB1.22 (US$0.19), compared to RMB0.39 in the same period of 2019. A reconciliation of non-GAAP diluted EPS to diluted EPS is included at the end of this results announcement.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA in the fourth quarter of 2020 was negative RMB288.0 million (US$44.1 million), compared to RMB259.2 million in same quarter in 2019. Adjusted EBITDA Margin was negative 3.1% in the fourth quarter of 2020, compared to 2.6% in the same quarter in 2019.

Adjusted EBITDA and Adjusted EBITDA Margin by Segment

The following table sets forth a breakdown of adjusted EBITDA and adjusted EBITDA margin for the three months ended December 31, 2020 by segment.

Table 6 – Breakdown of Adjusted EBITDA and Adjusted EBITDA Margin by Segment



Three Months Ended December 31, 2020


(In RMB'000)

Express

Freight

Supply Chain

Global

UCargo

Capital


Unallocated[8]

Total



Adjusted EBITDA

(158,255)

31,962

(67,323)

(54,680)

(34,508)

18,528


(23,694)

(287,970)



Adjusted EBITDA
Margin

(2.7%)

2.0%

(12.4%)

(21.6%)

(3.6%)

31.7%


-

(3.1%)



[8] Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

Cash and Cash Equivalents, Restricted Cash and Short-term Investments

As of December 31, 2020, cash and cash equivalents, restricted cash and short-term investments were RMB4,464.2 million (US$684.2 million), compared to RMB5,005.5 million as of December 31, 2019.

Net Cash Generated From Operating Activities

Net cash generated from operating activities was RMB346.9 million (US$53.2 million), compared to RMB606.2 million in the same period of 2019. The decrease in net cash generated from operating activities was mainly due to decreasing ASP per parcel for the Express business segment.

Capital Expenditures ("CAPEX")

CAPEX was RMB331.1 million (US$50.7 million), or 3.6% of total revenue in the fourth quarter ended December 31, 2020, compared to CAPEX of RMB387.6 million, or 3.8% of total revenue, in the same period of 2019.

For the Fiscal Year Ended December 31, 2020:

Results presented herein exclude Store+-related discontinued operations

Revenue

The following table sets forth a breakdown of revenue by business segment for the periods indicated.

Table 7 – Breakdown of Revenue by Business Segment



Fiscal Year Ended



December 31, 2019


December 31, 2020



(In '000, except for %)

RMB

% of
Revenue


RMB

US$

% of
Revenue


% Change
YoY

Express

21,822,442

67.5%


19,417,559

2,975,871

64.7%


(11.0%)

Freight

5,224,355

16.1%


5,156,551

790,276

17.2%


(1.3%)

Supply Chain
Management

2,195,759

6.8%


1,912,323

293,076

6.4%


(12.9%)

Global

336,874

1.0%


777,656

119,181

2.6%


130.8%

UCargo

2,574,054

8.0%


2,519,919

386,194

8.4%


(2.1%)

Capital

205,203

0.6%


211,021

32,340

0.7%


2.8%

Total Revenue

32,358,687

100.0%


29,995,029

4,596,938

100.0%


(7.3%)

  • Express Service Revenue decreased by 11.0% YoY to RMB19,417.6 million (US$2,975.9 million) from RMB21,822.4 million, primarily due to a 21.0% YoY decrease in ASP per parcel, partially offset by a 12.7% YoY increase in parcel volume. The decrease in ASP per parcel is primarily attributable to competitive market dynamics.
  • Freight Service Revenue decreased by 1.3% YoY to RMB5,156.6 million (US$790.3 million) from RMB5,224.4 million, primarily due to a 17.9% YoY decrease in ASP per tonne, partially offset by a 20.2% YoY increase in freight volume.
  • Supply Chain Management Service Revenue decreased by 12.9% YoY to RMB1,912.3 million (US$293.1 million) from RMB2,195.8 million, primarily due to pricing pressure associated with certain legacy key account customers, partially offset by a 21.4% YoY increase in the total number of orders fulfilled by Cloud OFCs.
  • Global Service Revenue increased by 130.8% YoY to RMB777.7 million (US$119.2 million) from RMB336.9 million, primarily due to strong growth in parcel volumes in Southeast Asia.
  • UCargo Service Revenue decreased by 2.1% YoY to RMB2,519.9 million (US$386.2 million) from RMB2,574.1 million.
  • Capital Service Revenue increased by 2.8% YoY to RMB211.0 million (US$32.3 million) from RMB205.2 million.

Cost of Revenue

The following table sets forth a breakdown of cost of revenue by business segment for the periods indicated.

Table 8 – Breakdown of Cost of Revenue by Business Segment



Fiscal Year Ended


% of
Revenue
Change

YoY


December 31, 2019


December 31, 2020


(In '000, except for %)

RMB

% of
Revenue


RMB

US$

% of
Revenue


Express

(20,793,370)

95.3%


(19,470,937)

(2,984,052)

100.3%


5.0ppt

Freight

(4,934,937)

94.5%


(5,063,236)

(775,975)

98.2%


3.7ppt

Supply Chain
Management

(2,052,006)

93.5%


(1,846,901)

(283,050)

96.6%


3.1ppt

Global

(371,404)

110.3%


(875,733)

(134,212)

112.6%


2.3ppt

UCargo

(2,517,642)

97.8%


(2,473,857)

(379,135)

98.2%


0.4ppt

Capital

(52,001)

25.3%


(26,225)

(4,019)

12.4%


(12.9ppt)

Total Cost of Revenue

(30,721,360)

94.9%


(29,756,889)

(4,560,443)

99.2%


4.3ppt

Cost of Revenue was RMB29,756.9 million (US$4,560.4 million) or 99.2% of revenue in fiscal year 2020, compared to RMB30,721.4 million or 94.9% of revenue in fiscal year 2019. The increase of 4.3 ppts in cost of revenue as a percentage of revenue was primarily attributable to intensified Express market competition and a pricing lag after the PRC government reinstated highway tolls. As a result, the decrease in ASP outpaced reduction in unit cost in Express and Freight businesses.

Table 9 – Breakdown of Average Cost Per Parcel and Average Cost Per Tonne



Fiscal Year Ended


% Change

(in RMB)

December 31, 2019

December 31, 2020


YoY

Express:





Average Cost Per Parcel

2.74

2.28


(16.9%)

Average Transportation Cost Per Parcel

0.75

0.64


(14.7%)

Average Labor Cost Per Parcel

0.24

0.21


(12.5%)

Average Lease Cost Per Parcel

0.10

0.10


0.0%

Average Other Cost Per Parcel

0.13

0.10


(23.1%)

Average Last-mile Cost Per Parcel

1.52

1.23


(19.1%)

Freight:





Average Cost Per Tonne

707.0

603.4


(14.7%)

  • Express Service Average Cost per Parcel decreased by 16.9%, primarily due to improved operating efficiency and economies of scale.
  • Freight Service Average Cost per Tonne decreased by 14.7% YoY, primarily due to improved operating efficiency, network optimization and economies of scale.

Gross Profit was RMB238.1 million (US$36.5 million) in fiscal year 2020, compared to gross profit of RMB1,637.3 million in fiscal year 2019; Gross Margin was 0.8%, compared to 5.1% in fiscal year 2019.

Operating Expenses

The following table sets forth a breakdown of operating expenses and adjusted operating expenses by category for the periods indicated.

Table 10 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category



Fiscal Year Ended




December 31, 2019


December 31, 2020


(In '000, except for %)

RMB

% of
Revenue


RMB

US$

% of
Revenue


% of Revenue
Change
YoY

Selling, General and
   Administrative Expenses

(1,365,657)

4.2%


(1,740,134)

(266,688)

5.8%


1.6ppt

   Adjusted for
  
SBC Expenses

(82,714)

0.2%


(119,488)

(18,312)

0.4%


0.2ppt

Adjusted Selling, General
   and
   Administrative Expenses

(1,282,943)

4.0%


(1,620,646)

(248,376)

5.4%


1.4ppt

Research and
    Development Expenses

(204,234)

0.6%


(191,417)

(29,336)

0.6%


0.0ppt

    Adjusted for
    SBC Expenses

(7,209)

0.0%


(7,763)

(1,190)

0.0%


0.0ppt

Adjusted Research and
    Development Expenses

(197,025)

0.6%


(183,654)

(28,146)

0.6%


0.0ppt

Total Operating Expenses

(1,569,891)

4.8%


(1,931,551)

(296,024)

6.4%


1.6ppt

   Adjusted for 
   SBC Expenses

(89,923)

0.2%


(127,251)

(19,502)

0.4%


0.2ppt

Adjusted Total
   Operating Expenses

(1,479,968)

4.6%


(1,804,300)

(276,522)

6.0%


1.4ppt











Selling, General and Administrative Expenses were RMB1,740.1 million (US$266.7 million) or 5.8% of revenue in fiscal year 2020, compared to RMB1,365.7 million or 4.2% of revenue in fiscal year 2019. The increase in selling, general and administrative expenses was primarily attributable to increase in staff costs of Southeast Asia business, additional accrued provision for certain trade receivables due to the pandemic and losses on disposal of fixed assets due to an upgrade of Express's equipment.

Research and Development Expenses were RMB191.4 million (US$29.3 million) or 0.6% of revenue in fiscal year 2020, compared to RMB204.2 million, or 0.6% of revenue in fiscal year 2019. The decrease in research and development expenses was primarily attributable to capitalization of certain research and development expenditures to intangible assets.

Share-based Compensation ("SBC") Expenses included in the cost and expense items above in fiscal year 2020 were RMB129.7 million (US$19.9 million), compared to RMB91.7 million in fiscal year 2019. In fiscal year 2020, RMB2.4 million (US$0.4 million) was allocated to cost of revenue, RMB7.7 million (US$1.2 million) was allocated to selling expenses, RMB111.8 million (US$17.1 million) was allocated to general and administrative expenses, and RMB7.8 million (US$1.2 million) was allocated to research and development expenses.

Net Loss and Non-GAAP Net Loss 

Net Loss in fiscal year 2020 was RMB1,683.1 million (US$257.9 million), compared to net income of RMB172.7 million in fiscal year 2019. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment (if any for a given period), Non-GAAP Net Loss in fiscal year 2020 was RMB1,569.3 million (US$240.5 million), compared to non-GAAP net income of RMB253.9 million in fiscal year 2019.

The following table sets forth a breakdown of non-GAAP net loss for fiscal year 2020 by segment.

Table 11 – Breakdown of non-GAAP Net Loss by Segment



Fiscal Year Ended December 31, 2020


(In RMB'000)

Express

Freight

Supply Chain

Global

UCargo

Capital


Unallocated[9]

Total



Non-GAAP Net
Income/(Loss)

(741,117)

(188,703)

(164,066)

(239,926)

(113,638)

94,492


(216,365)

(1,569,323)



[9] Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

Diluted EPS and Non-GAAP Diluted EPS

Diluted EPS in fiscal year 2020 was negative RMB4.28 (US$0.66), based on a weighted average of 387.5 million diluted shares outstanding during fiscal year 2020. This is compared to RMB0.49 on a weighted average of 388.5 million diluted shares outstanding in fiscal year 2019. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment (if any for a given period), Non-GAAP Diluted EPS in fiscal year 2020 was negative RMB3.98 (US$0.61), compared to RMB0.70 in fiscal year 2019. A reconciliation of non-GAAP Diluted EPS to Diluted EPS is included at the end of this results announcement.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA was negative RMB935.1 million (US$143.3 million) in fiscal year 2020, compared to RMB730.4 million in fiscal year 2019. Adjusted EBITDA Margin was negative 3.1% in fiscal year 2020, compared to 2.3% in fiscal year 2019.

Adjusted EBITDA and Adjusted EBITDA Margin by Segment

The following table sets forth a breakdown of adjusted EBITDA and adjusted EBITDA margin for the in fiscal year 2020 by segment.

Table 12 – Breakdown of Adjusted EBITDA and Adjusted EBITDA Margin by Segment




Fiscal Year Ended December 31, 2020


(In RMB'000)

Express

Freight

Supply Chain

Global

UCargo

Capital


Unallocated[10]

Total



Adjusted EBITDA

(379,039)

(124,060)

(122,123)

(227,583)

(109,621)

114,700


(87,373)

(935,099)



Adjusted EBITDA
Margin

(2.0%)

(2.4%)

(6.4%)

(29.3%)

(4.4%)

54.4%


-

(3.1%)



[10] Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

Net Cash Generated From Operating Activities

Net cash generated from operating activities in fiscal year 2020 was RMB11.2 million (US$1.7 million), compared to RMB1,131.2 million of net cash generated from operating activities in fiscal year 2019. The decrease in net cash generated from operating activities was mainly due to decreased ASP for the Express and Freight segments.

Capital Expenditures ("CAPEX")

CAPEX was RMB1,587.7 million (US$243.3 million), or 5.3% of total revenue in fiscal year 2020, compared to CAPEX of RMB1,497.7 million, or 4.6% of total revenue in fiscal year 2019.

SHARES OUTSTANDING

As of the date of this press release, the Company had approximately 387.7 million ordinary shares outstanding[11]. Each American Depositary Share represents one Class A ordinary share.

[11] 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.

FINANCIAL GUIDANCE 

Based on current market conditions and current operations, the Company expects its revenue for the full fiscal year of 2021 to be between RMB34 billion and RMB36 billion. This forecast reflects management's current and preliminary expectation, which is subject to change.

MANAGEMENT CHANGE

Mr. Bo Liu, senior vice president and general manager of BEST Store+ of the Company, has left the Company in late February 2021.

WEBCAST AND CONFERENCE CALL INFORMATION

The Company will hold a conference call at 9:00 pm U.S. Eastern Time on March 10, 2021 (10:00 am Beijing Time on March 11, 2021), to discuss its financial results and operating performance for the fourth quarter and fiscal year 2020.

Participants may access the call by dialing the following numbers:

United States:

+1-888-317-6003

Hong Kong:

800-963976 or +852-5808-1995

Mainland China:

4001-206115

International:

+1-412-317-6061

Participant Elite Entry Number:

9453989

A replay of the conference call will be accessible through March 17, 2021 by dialing the following numbers:

United States:

+1-877-344-7529

International:

+1-412-317-0088

Replay Access Code:

10152635

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. Through its proprietary technology platform and extensive networks, BEST offers a comprehensive set of logistics and value-add services, including express and freight delivery, supply chain management and last-mile services, truckload service brokerage, international logistics and financial services. BEST's mission is to empower business and enrich life by leveraging technology and business model innovation to create a smarter, more efficient supply chain. For more information, please visit: http://www.best-inc.com/en/.  

For investor and media inquiries, please contact:

BEST Inc.
Investor relations team                         
[email protected]

The Piacente Group, Inc.
Yang Song
Tel: +86-10-6508-0677
E-mail: [email protected]

The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail:  [email protected]

SAFE HARBOR STATEMENT

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as BEST's strategic and operational plans, contain forward-looking statements. BEST may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about BEST's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: BEST's goals and strategies; BEST's future business development, results of operations and financial condition; BEST 's ability to maintain and enhance its ecosystem; BEST 's ability to continue to innovate, meet evolving market trends, adapt to changing customer demands and maintain its culture of innovation; fluctuations in general economic and business conditions in China and other countries in which BEST operates, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in BEST's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and BEST does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

USE OF NON-GAAP FINANCIAL MEASURES

In evaluating its business, BEST considers and uses non-GAAP measures, such as non-GAAP net loss/income, non-GAAP net loss/profit margin, adjusted EBITDA, adjusted EBITDA margin, EBITDA, adjusted selling expenses, adjusted general and administrative expenses, adjusted research and development expenses, and non-GAAP Diluted EPS, as supplemental measures in the evaluation of the Company's operating results and in the Company's financial and operational decision-making. The Company believes these non-GAAP financial measures that help identify underlying trends in the Company's business that could otherwise be distorted by the effect of the expenses and gains that the Company includes in loss from operations and net loss. The Company believes that these non-GAAP financial measures provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures" in the results announcement.

The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company's calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

Summary of Unaudited Condensed Consolidated Income Statements

(In Thousands)



Three Months Ended December 31,

Fiscal Year Ended December 31,


2019

2020

2019

2020


RMB

RMB

US$

RMB

RMB

US$

Revenue







Express

6,896,868

5,822,926

892,402

21,822,442

19,417,559

2,975,871

Freight

1,555,229

1,620,388

248,335

5,224,355

5,156,551

790,276

Supply Chain Management

608,583

542,332

83,116

2,195,759

1,912,323

293,076

Global

135,423

253,351

38,828

336,874

777,656

119,181

UCargo

908,887

957,865

146,799

2,574,054

2,519,919

386,194

Capital

51,741

58,497

8,965

205,203

211,021

32,340

Total Revenue

10,156,731

9,255,359

1,418,445

32,358,687

29,995,029

4,596,938

Cost of Revenue








Express

(6,489,669)

(5,900,035)

(904,220)

(20,793,370)

(19,470,937)

(2,984,052)

Freight

(1,468,828)

(1,530,702)

(234,590)

(4,934,937)

(5,063,236)

(775,975)

Supply Chain Management

(577,977)

(549,212)

(84,170)

(2,052,006)

(1,846,901)

(283,050)

Global

(156,028)

(273,222)

(41,873)

(371,404)

(875,733)

(134,212)

UCargo

(896,662)

(945,577)

(144,916)

(2,517,642)

(2,473,857)

(379,135)

Capital

(6,045)

(6,557)

(1,005)

(52,001)

(26,225)

(4,019)

Total Cost of Revenue

(9,595,209)

(9,205,305)

(1,410,774)

(30,721,360)

(29,756,889)

(4,560,443)

Gross Profit

561,522

50,054

7,671

1,637,327

238,140

36,495

Selling Expenses

(200,554)

(124,967)

(19,152)

(432,939)

(477,902)

(73,242)

General and Administrative
   Expenses

(200,089)

(373,749)

(57,280)

(932,718)

(1,262,232)

(193,446)

Research and
Development Expenses

(52,076)

(53,788)

(8,243)

(204,234)

(191,417)

(29,336)

Total Operating Expenses

(452,719)

(552,504)

(84,675)

(1,569,891)

(1,931,551)

(296,024)

Loss from Operations

108,803

(502,450)

(77,004)

67,436

(1,693,411)

(259,529)

Interest Income

24,149

16,621

2,547

95,440

74,727

11,452

Interest Expense

(26,719)

(53,473)

(8,195)

(79,486)

(174,607)

(26,760)

Foreign Exchange Loss

(2,607)

(908)

(139)

(4,375)

(8,243)

(1,263)

Other Income

55,371

55,916

8,570

145,853

165,346

25,340

Other Expense

(19,342)

(2,307)

(354)

(31,784)

(24,576)

(3,766)

Income/(Loss) before Income
   Tax and Share of Net Loss of
   Equity Investees

139,655

(486,601)

(74,575)

193,084

(1,660,764)

(254,526)

Income Tax Expense

(6,883)

(6,268)

(961)

(20,027)

(22,124)

(3,391)

Income/(Loss) before Share of
   Net loss of Equity Investees

132,772

(492,869)

(75,536)

173,057

(1,682,888)

(257,917)

Share of Net Loss of Equity
   Investees

(172)

(66)

(10)

(355)

(180)

(28)

Net Income/(Loss) from 
continuing operations

132,600

(492,935)

(75,546)

172,702

(1,683,068)

(257,945)

Net loss from discontinued
   operations

(89,190)

(137,129)

(21,016)

(391,770)

(368,156)

(56,422)

Net Income/(Loss)

43,410

(630,064)

(96,562)

(219,068)

(2,051,224)

(314,367)

Net Loss from continuing
   operations attributable to non-
   controlling interests

(8,008)

(5,326)

(816)

(16,652)

(25,716)

(3,941)

Net Income/(Loss) attributable to
   Best Inc.

51,418

(624,738)

(95,746)

(202,416)

(2,025,508)

(310,426)

 

 

Summary of Unaudited Condensed Consolidated Balance Sheets

(in thousands)



As of December 31, 2019


As of December 31, 2020


RMB


RMB

US$

Assets





Current Assets





Cash and Cash Equivalents

1,985,413


1,383,317

212,003

Restricted Cash

1,786,832


2,102,426

322,211

Accounts and Notes Receivables

1,228,995


992,410

152,093

Inventories

106,483


44,133

6,764

Prepayments and Other Current Assets

2,728,812


3,318,736

508,618

Short–term Investments

1,057,598


268,647

41,172

Amounts Due from Related Parties

246,758


255,917

39,221

Lease Rental Receivables

483,363


497,127

76,188

Assets held for sale

64,195


483,893

74,160

Total Current Assets

9,688,449


9,346,606

1,432,430

Non–current Assets





Property and Equipment, Net

2,924,404


4,079,235

625,170

Intangible Assets, Net

20,408


12,198

1,869

Long–term Investments

230,855


221,426

33,935

Goodwill

289,319


295,759

45,327

Non–current Deposits

118,629


129,645

19,869

Other Non–current Assets

346,645


543,949

83,364

Restricted Cash

175,700


709,848

108,789

Lease Rental Receivables

993,260


647,678

99,261

Operating Lease Right-of-use Assets

4,209,014


3,841,813

588,784

Assets held for sale

496,173


-

-

Total non–current Assets

9,804,407


10,481,551

1,606,368

Total Assets

19,492,856


19,828,157

3,038,798

Liabilities and Shareholders' Equity





Current Liabilities 





Securitization Debt

104,899


95,149

14,582

Short–term Bank Loans

2,510,500


3,082,537

472,419

Accounts and Notes Payable

3,391,383


4,144,711

635,205

Income Tax Payable

7,358


14,550

2,230

Customer Advances and Deposits and
   Deferred Revenue

1,488,630


1,526,051

233,878

Accrued Expenses and Other Liabilities

2,006,049


2,466,460

378,002

Financing Lease Liabilities

1,363


1,581

242

Operating Lease Liabilities

975,475


1,038,215

159,113

Amounts Due to Related Parties

9,769


34,651

5,310

Liabilities held for sale

74,242


167,906

25,733

Total Current Liabilities

10,569,668


12,571,811

1,926,714

 

Summary of Unaudited Condensed Consolidated Balance Sheets (Cont'd)

(In Thousands)








As of December 31, 2019


As of December 31, 2020


RMB


RMB 


US$

Non-current Liabilities






Convertible senior notes held by 






   related parties

680,104


1,617,846


247,946

Convertible Senior Notes held by third
   parties

680,104


642,121


98,409

Operating Lease Liabilities

3,388,908


3,014,945


462,061

Financing Lease Liabilities

2,072


2,698


413

Deferred Tax Liabilities

828


-


-

Other Non–current Liabilities

137,184


175,584


26,909

Long-term Bank Loans

-


78,548


12,038

Liabilities held for sale

118,704


-


-

Total Non–current Liabilities

5,007,904


5,531,742


847,776

Total Liabilities

15,577,572


18,103,553


2,774,490

Shareholders' Equity






Ordinary Shares

25,988


25,988


3,983

Treasury Shares

-


(211,352)


(32,391)

Additional Paid–In Capital

19,353,400


19,487,232


2,986,549

Statutory reserves

7,865


8,038


1,232

Accumulated Deficit

(15,629,537)


­­­­­(17,710,964)[12]


(2,714,324)

Accumulated Other
   Comprehensive Income

163,196


151,677


23,246

BEST Inc. Shareholders' Equity

3,920,912


1,750,619


268,295

Non-controlling Interests

(5,628)


(26,015)


(3,987)

Total Shareholders' Equity

3,915,284


1,724,604


264,308

Total Liabilities and
   Shareholders' Equity

19,492,856


19,828,157


3,038,798


[12] 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 RMB8,217,157.

 

 

Summary of Unaudited Condensed Consolidated Statements of Cash Flows

(In Thousands) 



Three Months Ended December 31,

Fiscal Year Ended December 31,


2019

2020

2019

2020


RMB

RMB

US$

RMB

RMB

US$

Net cash generated from continuing
  
operating activities

606,189

346,937

53,172

1,131,226

11,188

1,715

Net cash used in discontinued
  
operating activities

(119,385)

(122,616)

(18,792)

(278,393)

(242,423)

(37,153)

Net cash Generated from/(Used in)
   operating activities

486,804

224,321

34,380

852,833

(231,235)

(35,438)

Net cash used in continuing
   Investing Activities

(532,859)

(162,881)

(24,963)

(1,918,474)

(872,353)

(133,694)

Net cash generated from/(used in)
   discontinued Investing activities

3,934

(1,226)

(188)

5,992

(580)

(89)

Net cash used in investing
   activities

(528,925)

(164,107)

(25,151)

(1,912,482)

(872,933)

(133,783)

Net cash generated from/(used in)
   continuing financing activities

373,080

(172,599)

(26,452)

2,377,212

1,760,684

269,837

Net cash generated from/(used in)
   discontinued financing activities

80,000

(17,500)

(2,682)

(365,400)

(212,500)

(32,567)

Net cash generated from/(used in)
   financing activities

453,080

(190,099)

(29,134)

2,011,812

1,548,184

237,270

Exchange Rate Effect on Cash, Cash
   Equivalents, and Restricted Cash

(36,216)

(110,778)

(16,977)

5,644

(192,110)

(29,442)

Net Increase/(Decrease) in Cash and
   Cash Equivalents, and
   Restricted Cash

374,743

(240,663)

(36,882)

957,807

251,906

38,607

Cash and Cash Equivalents, and
   Restricted Cash at Beginning
   of Period

3,582,472

4,449,784

681,959

2,999,408

3,957,215

606,470

Cash and Cash Equivalents,
   and Restricted Cash at End of Period

3,957,215

4,209,121

645,077

3,957,215

4,209,121

645,077

Less: Cash and Cash Equivalents, and
   Restricted Cash held for sales
   at end of the Period

9,270

13,530

2,074

9,270

13,530

2,074

Cash and Cash Equivalents, and
   Restricted Cash from continuing
   operations at End of Period

3,947,945

4,195,591

643,003

3,947,945

4,195,591

643,003

RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES

The table below sets forth a reconciliation of the Company's net loss to EBITDA, adjusted EBITDA and adjusted EBITDA margin for the periods indicated:

Table 13 – Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin



Three Months  Ended December 31, 2020


(In RMB'000)

Express

Freight

Supply Chain

Global

UCargo

Capital


Unallocated[13]

Total



Net Income/(Loss)

(263,884)

11,468

(79,027)

(60,688)

(37,538)

12,862


(76,128)

(492,935)



Add:












Depreciation &
Amortization

102,688

18,121

10,095

3,753

2,405

355


7,171

144,588



Interest Expense

-

-

-

-

-

-


53,473

53,473



Income Tax
Expense/(Benefit)

1,235

-

(220)

-

-

5,253


-

6,268



Subtract:












Interest Income

-

-

-

-

-

-


(16,621)

(16,621)



EBITDA

(159,961)

29,589

(69,152)

(56,935)

(35,133)

18,470


(32,105)

(305,227)



Add:












   Share-based
   Compensation
   Expenses

1,706

2,373

1,829

2,255

625

58


17,261

26,107



Subtract:












Gain from
appreciation of
investments

-

-

-

-

-

-


(8,850)

(8,850)



Adjusted EBITDA

(158,255)

31,962

(67,323)

(54,680)

(34,508)

18,528


(23,694)

(287,970)



Adjusted EBITDA
Margin

(2.7%)

2.0%

(12.4%)

(21.6%)

(3.6%)

31.7%


-

(3.1%)



[13] Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.







Three Months  Ended December 31, 2019


(In RMB'000)

Express

Freight

Supply Chain

Global

UCargo

Capital


Unallocated[14]

Total



Net Income/(Loss)

261,633

16,097

(68,105)

(64,395)

(14,457)

34,705


(32,878)

132,600



Add:












Depreciation &
Amortization

70,267

14,088

6,221

2,676

48

(134)


10,698

103,864



Interest Expense

-

-

-

-

-

-


26,719

26,719



Income Tax
Expense/(Benefit)

1,701

21

215

(213)

-

5,172


(13)

6,883



Subtract:












Interest Income

-

-

-

-

-

-


(24,149)

(24,149)



EBITDA

333,601

30,206

(61,669)

(61,932)

(14,409)

39,743


(19,623)

245,917



Add:












   Share-based
   Compensation
   Expenses

4,237

2,555

3,417

2,587

766

72


13,814

27,448



Subtract:












Gain from
appreciation of
investments

-

-

-

-

-

-


(14,155)

(14,155)



Adjusted EBITDA

337,838

32,761

(58,252)

(59,345)

(13,643)

39,815


(19,964)

259,210



Adjusted EBITDA
Margin

4.9%

2.1%

(9.6%)

(43.8%)

(1.5%)

77.0%


-

2.6%



[14] Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.







Fiscal Year Ended December 31, 2020


(In RMB'000)

Express

Freight

Supply Chain

Global

UCargo

Capital


Unallocated[15]

Total



Net Income/(Loss)

(755,305)

(199,826)

(175,072)

(251,511)

(116,782)

93,981


(278,553)

(1,683,068)



Add:












Depreciation &
Amortization

357,507

64,643

42,121

15,955

4,017

1,647


29,112

515,002



Interest Expense

-

-

-

-

-

-


174,607

174,607



Income Tax
Expense/(Benefit)

4,571


(178)

(830)


18,561



22,124



Subtract:












Interest Income

-

-

-

-

-

-


(74,727)

(74,727)



EBITDA

(393,227)

(135,183)

(133,129)

(236,386)

(112,765)

114,189


(149,561)

(1,046,062)



Add:












   Share-based
  
Compensation
   Expenses

14,188

11,123

11,006

8,803

3,144

511


80,876

129,651



Subtract:












Gain from
appreciation of
investments

-

-

-

-

-

-


(18,688)

(18,688)



Adjusted EBITDA

(379,039)

(124,060)

(122,123)

(227,583)

(109,621)

114,700


(87,373)

(935,099)



Adjusted EBITDA
Margin

(2.0%)

(2.4%)

(6.4%)

(29.3%)

(4.4%)

54.4%


-

(3.1%)



[15] Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.






Fiscal Year Ended December 31, 2019


(In RMB'000)

Express

Freight

Supply Chain

Global

UCargo

Capital


Unallocated[16]

Total



Net Income/(Loss)

461,490

18,684

(122,312)

(167,600)

(22,056)

125,966


(121,470)

172,702



Add:












Depreciation &
Amortization

325,950

53,684

48,405

9,510

234

1,225


37,093

476,101



Interest Expense

-

-

-

-

-

-


79,486

79,486



Income Tax
Expense/(Benefit)

1,701

21

357

(1,027)

-

18,988


(13)

20,027



Subtract:












Interest Income

-

-

-

-

-

-


(95,440)

(95,440)



EBITDA

789,141

72,389

(73,550)

(159,117)

(21,822)

146,179


(100,344)

652,876



Add:












   Share-based
  
Compensation
   Expenses

20,209

8,531

11,110

7,480

2,498

247


41,618

91,693



Subtract:












Gain from
appreciation of
investments

-

-

-

-

-

-


(14,155)

(14,155)



Adjusted EBITDA

809,350

80,920

(62,440)

(151,637)

(19,324)

146,426


(72,881)

730,414



Adjusted EBITDA
Margin

3.7%

1.5%

(2.8%)

(45.0%)

(0.8%)

71.4%


-

2.3%



[16] Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.


The table below sets forth a reconciliation of the Company's net Income/(loss) to non-GAAP net Income/(loss), non-GAAP net Income/(loss) margin for the periods indicated:

 

Table 14 – Reconciliation of Non-GAAP Net Income/(Loss) and Non-GAAP Net Income/(Loss) Margin



Three Months  Ended December 31, 2020


(In RMB'000)

Express

Freight

Supply Chain

Global

UCargo

Capital


Unallocated[17]

Total



Net Income/(Loss)

(263,884)

11,468

(79,027)

(60,688)

(37,538)

12,862


(76,128)

(492,935)



Add:












   Share-based
  
Compensation
   Expenses

1,706

2,373

1,829

2,255

625

58


17,261

26,107



   Amortization of
   Intangible Assets
  
Resulting from
  
Business

-

-

-

-

-

-


-

-



Subtract:












Gain from
appreciation of
investments

-

-

-

-

-

-


(8,850)

(8,850)



Non-GAAP Net
Income/(Loss)

(262,178)

13,841

(77,198)

(58,433)

(36,913)

12,920


(67,717)

(475,678)



Non-GAAP Net
Income/(Loss)
Margin

(4.5%)

0.9%

(14.2%)

(23.1%)

(3.9%)

22.1%


-

(5.1%)



[17] Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.




Three Months  Ended December 31, 2019


(In RMB'000)

Express

Freight

Supply Chain

Global

UCargo

Capital


Unallocated[18]

Total



Net Income/(Loss)

261,633

16,097

(68,105)

(64,395)

(14,457)

34,705


(32,878)

132,600



Add:












   Share-based
  
Compensation
   Expenses

4,237

2,555

3,417

2,587

766

72


13,814

27,448



   Amortization of
  
Intangible Assets
  
Resulting from
  
Business

-

-

-

933

-

-


-

933



Subtract:












Gain from
appreciation of
investments

-

-

-

-

-

-


(14,155)

(14,155)



Non-GAAP Net
Income/(Loss)

265,870

18,652

(64,688)

(60,875)

(13,691)

34,777


(33,219)

146,826



Non-GAAP Net
Income/(Loss)
Margin

3.9%

1.2%

(10.6%)

(45.0%)

(1.5%)

67.2%


-

1.4%



[18] Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.




Fiscal Year  Ended December 31, 2020


(In RMB'000)

Express

Freight

Supply Chain

Global

UCargo

Capital


Unallocated[19]

Total



Net Income/(Loss)

(755,305)

(199,826)

(175,072)

(251,511)

(116,782)

93,981


(278,553)

(1,683,068)



Add:












   Share-based
  
Compensation
   Expenses

14,188

11,123

11,006

8,803

3,144

511


80,876

129,651



   Amortization of
  
Intangible Assets
  
Resulting from
  
Business

-

-

-

2,782

-

-


-

2,782



Subtract:












Gain from
appreciation of
investments

-

-

-

-

-

-


(18,688)

(18,688)



Non-GAAP Net
Income/(Loss)

(741,117)

(188,703)

(164,066)

(239,926)

(113,638)

94,492


(216,365)

(1,569,323)



Non-GAAP Net
Income/(Loss)
Margin

(3.8%)

(3.7%)

(8.6%)

(30.9%)

(4.5%)

44.8%


-

(5.2%)



[19] Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.




Fiscal Year  Ended December 31, 2019


(In RMB'000)

Express

Freight

Supply Chain

Global

UCargo

Capital


Unallocated[20]

Total



Net Income/(Loss)

461,490

18,684

(122,312)

(167,600)

(22,056)

125,966


(121,470)

172,702



Add:












   Share-based
  
Compensation
   Expenses

20,209

8,531

11,110

7,480

2,498

247


41,618

91,693



   Amortization of
   I
ntangible Assets
  
Resulting from
  
Business

-

-

-

3,660

-

-


-

3,660



Subtract:












Gain from
appreciation of
investments

-

-

-

-

-

-


(14,155)

(14,155)



Non-GAAP Net
Income/(Loss)

481,699

27,215

(111,202)

(156,460)

(19,558)

126,213


(94,007)

253,900



Non-GAAP Net
Income/(Loss)
Margin

2.2%

0.5%

(5.1%)

(46.4%)

(0.8%)

61.5%


-

0.8%



[20] Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.



The table below sets forth a reconciliation of the Company's Diluted EPS to non-GAAP Diluted EPS for the periods indicated:

Table 15 – Reconciliation of Diluted EPS and Non-GAAP Diluted EPS



Three Months Ended December 31,


Fiscal Year Ended December 31,


2020


2020

(In '000)

        RMB

       US$


RMB

US$

Net Loss Attributable to Ordinary Shareholders

(487,609)

(74,730)


(1,657,352)

(254,004)

Add:






Share-based Compensation Expenses

26,107

4,000


129,651

19,869

Amortization of Intangible Assets Resulting
   from Business Acquisitions

-

-


2,782

426

Subtract:






Gain from appreciation of investments

(8,850)

(1,356)


(18,688)

(2,864)

Non-GAAP Net Loss Attributable to Ordinary
   Shareholders for Computing
   Non-GAAP Diluted EPS

(470,352)

(72,086)


(1,543,607)

(236,573)

Weighted Average Diluted Shares
   Outstanding During the Period






Diluted

385,575,665

385,575,665


387,492,906

387,492,906

Diluted (Non-GAAP)

385,575,665

385,575,665


387,492,906

387,492,906

Diluted EPS

(1.26)

(0.19)


(4.28)

(0.66)

Add:






Non-GAAP adjustment to net loss per share

0.04

-


0.30

0.05

Non-GAAP Diluted EPS

(1.22)

(0.19)


(3.98)

(0.61)

 

Related Links :

https://www.best-inc.com/

 

Category: PR Newswire, PRAsia

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