HANGZHOU, China, Nov. 16, 2022 /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, 2022.
Johnny Chou, Founder, Chairman and CEO of BEST, commented, "Ongoing COVID-19 pandemic-related restrictions continued to impact the macro environment in China and SEA, weighing heavily on the logistics industry. Amid the challenging landscape, we delivered good progress in our core business lines. BEST Freight's growth momentum picked up, showing volume increase both quarter over quarter and year over year. BEST Supply Chain Management ("SCM") delivered strong top line and bottom line results compared with the same quarter last year.
"In the third quarter of 2022, total Freight volume increased by 4.1% year over year. Its revenue increased by 9.7% and gross loss narrowed by 58.3% compared with the second quarter of 2022. BEST SCM achieved year-over-year revenue growth of 15.2% and its gross margin reached 7.2%, up 3.5 percentage points from the same quarter last year, narrowing SCM's net loss by 64.3%.
"Southeast Asia market remained challenging in the third quarter. While continuing to improve service quality and efficiency, we focused on expanding small and medium enterprise customer coverage to reduce customer concentration. We also continued to synergize with SCM and Freight in developing cross-border and supply chain business in the region. Despite the challenging environment, we remain bullish on long-term growth opportunities in SEA markets.
"Our efforts in cost reduction and service quality improvement across our business lines have helped us weather the storm. The measures we have taken make our ecosystem stronger and more resilient. Moving forward, we are confident that BEST's strength in technology, domestic and global supply chain management as well as logistics capabilities will allow us to capture growth opportunities and create long-term value," concluded Mr. Chou.
Gloria Fan, BEST's Chief Financial Officer, added, "Despite the headwinds, our third quarter performance was encouraging. Our total revenue for the quarter, excluding UCargo and Capital, decreased slightly by 2.3% year over year but we significantly narrowed our non-GAAP net loss by 16.0%, excluding the one-off gain recognized on selling assets in the third quarter of 2021. We maintained a healthy balance sheet with cash and cash equivalents, restricted cash, and short-term investments of RMB3.3 billion after repurchasing an aggregate principal amount of RMB746.5 million of existing Convertible Senior Notes. Our net cash position was RMB1.1 billion at the end of the quarter. We believe we are well positioned for sustainable growth and profitability as we drive long-term value for our customers through our Freight, integrated Supply Chain Management and Global logistics solutions."
FINANCIAL HIGHLIGHTS ([1])
For the Third Quarter Ended September 30, 2022:([2])
BUSINESS HIGHLIGHTS([7])
BEST Freight – In the third quarter of 2022, Freight's volume increased by 4.1% year over year, while its revenue increased by 9.7% to RMB1,325.8 million compared with the second quarter of 2022. The Company remained focused on developing its e-commerce related business, which contributed 21.1% of total volume in the third quarter of 2022, representing an increase of 0.7% year over year. Freight's net loss decreased by 36.8% or RMB81.0 million compared with the same quarter of 2021 as we continued to reduce expenses and improve operating efficiency.
BEST UCargo's operations and financial results are now consolidated with BEST Freight.
BEST Supply Chain Management – In the third quarter of 2022, BEST SCM continued to terminate low margin legacy accounts and penetrate new markets with better unit economics. Its distribution volume increased by 84.5% but total number of orders fulfilled by Cloud OFCs decreased by 14.8% year over year. The total revenue for SCM in the third quarter of 2022 increased by 15.2% to RMB461.5 million year over year, and gross margin improved by 3.5 percentage points to 7.2%, narrowing SCM's net loss by RMB17.4 million, or 64.3%.
BEST Global – The market in SEA remained challenging in the third quarter of 2022. Along with the relaxed COVID-19 pandemic control measures in the region, there was a noticeable shift in consumer consumption activities from online to offline, which negatively impacted the e-commerce logistics industry. Meanwhile, some major e-commerce platforms increased reliance on their own logistics capabilities and gradually reduced their reliance on third-party logistics service providers. As a result, Global's parcel volume decreased by 27.1% year over year to 27.0 million in the third quarter of 2022. However, parcel volumes in Vietnam and Singapore increased by 34.4% and 23.5%, and their revenues increased by 42.3% and 45.2%, respectively.
Others
As part of its Strategic Refocusing Program, the Company continued to wind down the Capital business line in the third quarter of 2022 and expects the wind down to be substantially completed by the end of 2022.
Key Operational Metrics
Three Months Ended | % Change YOY | |||||||||
September 30, | September 30, | September 30, 2022 | 2021 vs | 2022 vs | ||||||
Freight Volume (Tonne in '000) | 2,464 | 2,427 | 2,527 | -1.5 % | 4.1 % | |||||
Supply Chain Management | 102,171 | 103,638 | 88,288 | 1.4 % | -14.8 % | |||||
Global Parcel Volume in SEA | 20,754 | 37,082 | 27,044 | 78.7 % | -27.1 % | |||||
FINANCIAL RESULTS ([8])
For the Third Quarter Ended September 30, 2022:
Revenue
The following table sets forth a breakdown of revenue by business segment for the periods indicated.
Table 1 – Breakdown of Revenue by Business Segment
Three Months Ended | ||||||||
September 30, 2021 | September 30, 2022 | |||||||
(In '000, except for %) | RMB | % of | RMB | US$ | % of | % Change | ||
Total Freight | 2,088,228 | 73.9 % | 1,325,833 | 186,383 | 65.3 % | (36.5 %) | ||
-Freight | 1,358,305 | 48.1 % | 1,325,401 | 186,322 | 65.3 % | (2.4 %) | ||
-Legacy UCargo | 729,923 | 25.8 % | 432 | 61 | 0.0 % | (99.9 %) | ||
Supply Chain | 400,551 | 14.2 % | 461,527 | 64,880 | 22.7 % | 15.2 % | ||
Global | 298,267 | 10.6 % | 211,347 | 29,711 | 10.4 % | (29.1 %) | ||
Others([9]) | 37,046 | 1.3 % | 30,417 | 4,276 | 1.6 % | (17.9 %) | ||
Total Revenue | 2,824,092 | 100.0 % | 2,029,124 | 285,250 | 100.0 % | (28.1 %) | ||
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 YOY | |||||||
September 30, 2021 | September 30, 2022 | |||||||
(In '000, except for %) | RMB | % of | RMB | US$ | % of | |||
Freight | (2,197,843) | 105.2 % | (1,365,074) | (191,899) | 103.0 % | (2.2 %) | ||
Supply Chain | (385,443) | 96.2 % | (428,190) | (60,194) | 92.8 % | (3.4 %) | ||
Global | (318,420) | 106.8 % | (255,341) | (35,895) | 120.8 % | 14.0 % | ||
Others | (31,281) | 84.4 % | (19,469) | (2,737) | 64.0 % | (20.4 %) | ||
Total Cost of Revenue | (2,932,987) | 103.9 % | (2,068,074) | (290,725) | 101.9 % | (2.0%） | ||
Gross loss was RMB39.0 million (US$5.5 million) in the third quarter of 2022, compared with a gross loss of RMB108.9 million in the third quarter of 2021; Gross Margin was negative 1.9%, compared with negative 3.9% in the third quarter of 2021.
Operating Expenses
Selling, General and Administrative ("SG&A") Expenses were RMB275.2 million (US$38.7 million), or 13.6% of revenue in the third quarter of 2022, compared with RMB274.8 million, or 9.7% of revenue in the same quarter of 2021.
Research and Development Expenses were RMB39.6 million (US$5.6 million), or 2.0% of revenue in the third quarter of 2022, compared with RMB42.3 million, or 1.5% of revenue in the third quarter of 2021, primarily due to reduced headcounts.
Share-based Compensation ("SBC") Expenses included in the cost and expense items above were RMB15.9 million (US$2.2 million) in the third quarter of 2022, compared with RMB26.9 million in the same period of 2021. Of the total SBC expenses, RMB0.09 million (US$0.01 million) was allocated to cost of revenue, RMB0.7 million (US$0.1 million) was allocated to selling expenses, RMB13.9 million (US$2.0 million) was allocated to general and administrative expenses, and RMB1.2 million (US$0.2 million) was allocated to research and development expenses.
Net Loss and Non-GAAP Net Loss from continuing operations
Net Loss from continuing operations in the third quarter of 2022 was RMB378.9 million (US$53.3 million), compared with RMB191.6 million in the same period of 2021. Excluding SBC expenses and gain from appreciation of investment, Non-GAAP Net Loss from continuing operations in the third quarter of 2022 was RMB363.0 million (US$51.0 million), compared with RMB223.4 million in the third quarter of 2021.
Diluted loss per ADS and Non-GAAP diluted loss per ADS from continuing operations
Diluted loss per ADS from continuing operations in the third quarter of 2022 was RMB4.40 (US$0.62), compared with a loss of RMB2.30 in the same period of 2021. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment, Non-GAAP diluted loss per ADS from continuing operations in the third quarter of 2022 was RMB4.20 (US$0.59), compared with a loss of RMB2.71 in the third quarter of 2021. A reconciliation of non-GAAP diluted loss per ADS to diluted loss per ADS is included at the end of this results announcement.
Adjusted EBITDA and Adjusted EBITDA Margin from continuing operations
Adjusted EBITDA from continuing operations in the third quarter of 2022 was negative RMB320.0 million (US$45.0 million), compared with negative RMB148.4 million in the same period of 2021. Adjusted EBITDA Margin from continuing operations in the third quarter of 2022 was negative 15.8%, compared with negative 5.3% in the same period of 2021.
Cash and Cash Equivalents, Restricted Cash and Short-term Investments
As of September 30, 2022, cash and cash equivalents, restricted cash and short-term investments were RMB3.3 billion (US$468.4 million), compared with RMB2.9 billion as of September 30, 2021. In September 2022, the Company bought back an aggregate principal amount of US$105.1 million (RMB746.5 million) of its existing 1.75% Convertible Senior Notes due 2024.
Capital Expenditures ("CAPEX")
CAPEX was RMB48.1 million (US$6.8 million) or 2.4% of total revenue in the third quarter of 2022, compared with CAPEX of RMB11.8 million, or 0.4% of total revenue, in the same period of 2021.
SHARES OUTSTANDING
As of November 8, 2022, the Company had approximately 393.0 million ordinary shares outstanding([10]). Each American Depositary Share represents five (5) Class A ordinary shares.
FINANCIAL GUIDANCE
Due to the uncertainties relating to the macro environment, the Company is not providing any financial guidance or revenue outlook at this time. BEST is driving each of its business units toward a speedy recovery as the COVID-19 pandemic related restrictions ease.
WEBCAST AND CONFERENCE CALL INFORMATION
The Company will hold a conference call at 8:00 pm U.S. Eastern Time on November 16, 2022 (9:00 am Beijing Time on November 17, 2022), to discuss its financial results and operating performance for the third quarter of 2022.
Participants may access the call by dialing the following numbers:
United States : +1-888-317-6003
Hong Kong : 800-963976 or +852-5808-1995
Mainland China : 4001-206115
International : +1-412-317-6061
Participant Elite Entry Number : 4725664
A replay of the conference call will be accessible through November 23, 2022 by dialing the following numbers:
United States : +1-877-344-7529
International : +1-412-317-0088
Replay Access Code : 8040204
Please visit the Company's investor relations website to view the earnings release prior to the conference call. A live and archived webcast of the conference call and a corporate presentation will be available at the same site.
ABOUT BEST INC.
BEST Inc. (NYSE: BEST) is a leading integrated smart supply chain solutions and logistics services provider in China and 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 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, | |||||
2021 | 2022 | 2021 | 2022 | |||
RMB | RMB | US$ | RMB | RMB | US$ | |
Revenue | ||||||
Freight | 2,088,228 | 1,325,833 | 186,383 | 6,390,417 | 3,627,082 | 509,887 |
-Freight | 1,358,305 | 1,325,401 | 186,322 | 3,931,359 | 3,607,081 | 507,075 |
-Legacy UCargo | 729,923 | 432 | 61 | 2,459,058 | 20,001 | 2,812 |
Supply Chain Management | 400,551 | 461,527 | 64,880 | 1,327,767 | 1,321,473 | 185,770 |
Global | 298,267 | 211,347 | 29,711 | 863,291 | 721,227 | 101,388 |
Others | 37,046 | 30,417 | 4,276 | 119,507 | 92,895 | 13,059 |
Total Revenue | 2,824,092 | 2,029,124 | 285,250 | 8,700,982 | 5,762,677 | 810,104 |
Cost of Revenue | ||||||
Freight | (2,197,843) | (1,365,074) | (191,899) | (6,435,898) | (3,837,911) | (539,525) |
Supply Chain Management | (385,443) | (428,190) | (60,194) | (1,245,479) | (1,233,307) | (173,376) |
Global | (318,420) | (255,341) | (35,895) | (912,119) | (817,573) | (114,933) |
Others | (31,281) | (19,469) | (2,737) | (78,464) | (78,967) | (11,101) |
Total Cost of Revenue | (2,932,987) | (2,068,074) | (290,725) | (8,671,960) | (5,967,758) | (838,934) |
Gross Loss/(Profit) | (108,895) | (38,950) | (5,476) | 29,022 | (205,081) | (28,830) |
Selling Expenses | (67,327) | (62,241) | (8,750) | (187,198) | (183,297) | (25,767) |
General and Administrative | (207,505) | (212,921) | (29,932) | (599,726) | (680,607) | (95,678) |
Research and Development | (42,259) | (39,632) | (5,571) | (129,910) | (114,934) | (16,157) |
Other operating income/(loss), net | 7,688 | (14,185) | (1,994) | 148,230 | 105,430 | 14,821 |
Loss from Operations | (418,298) | (367,929) | (51,723) | (739,582) | (1,078,489) | (151,612) |
Interest Income | 7,562 | 19,981 | 2,809 | 31,923 | 61,153 | 8,597 |
Interest Expense | (39,924) | (20,569) | (2,892) | (113,441) | (72,729) | (10,224) |
Foreign Exchange Gain/(loss) | 1,081 | (98,628) | (13,865) | 370 | (201,048) | (28,263) |
Other Income | 268,106 | 2,657 | 374 | 314,366 | 23,765 | 3,341 |
Other Expense | (9,107) | (464) | (65) | (20,596) | 19,578 | 2,752 |
Gain on changes in the fair value of | - | 86,108 | 12,105 | - | 149,196 | 20,974 |
Loss before Income Tax and | (190,580) | (378,844) | (53,257) | (526,960) | (1,098,574) | (154,435) |
Income Tax Expense | (1,051) | (93) | (13) | (2,698) | (405) | (57) |
Loss before Share of Net loss | (191,631) | (378,937) | (53,270) | (529,658) | (1,098,979) | (154,492) |
Share of Net Loss of Equity Investees | (16) | - | - | (58) | - | - |
Net Loss from continuing operations | (191,647) | (378,937) | (53,270) | (529,716) | (1,098,979) | (154,492) |
Net loss from discontinued operations | (459,188) | (8,904) | (1,252) | (1,205,911) | (6,677) | (939) |
Net Loss | (650,835) | (387,841) | (54,522) | (1,735,627) | (1,105,656) | (155,431) |
Net Loss from continuing | (12,623) | (33,248) | (4,674) | (23,552) | (83,382) | (11,722) |
Net Loss attributable to BEST | (638,212) | (354,593) | (49,848) | (1,712,075) | (1,022,274) | (143,709) |
Summary of Unaudited Condensed Consolidated Balance Sheets (In Thousands) | |||||
As of December 31,2021 | As of September 30, 2022 | ||||
RMB | RMB | US$ | |||
Assets | |||||
Current Assets | |||||
Cash and Cash Equivalents | 3,571,745 | 767,359 | 107,874 | ||
Restricted Cash | 675,159 | 251,152 | 35,306 | ||
Accounts and Notes Receivables | 827,631 | 821,680 | 115,510 | ||
Inventories | 25,622 | 20,820 | 2,927 | ||
Prepayments and Other Current | 1,172,472 | 922,893 | 129,738 | ||
Short‑term Investments | 147,359 | 836,802 | 117,636 | ||
Amounts Due from Related Parties | 125,198 | 59,575 | 8,375 | ||
Lease Rental Receivables | 298,364 | 74,127 | 10,421 | ||
Total Current Assets | 6,843,550 | 3,754,408 | 527,786 | ||
Non‑current Assets | |||||
Property and Equipment, Net | 762,642 | 757,470 | 106,483 | ||
Intangible Assets, Net | 55,684 | 70,233 | 9,873 | ||
Long‑term Investments | 219,171 | 189,171 | 26,593 | ||
Goodwill | 54,135 | 54,135 | 7,610 | ||
Non‑current Deposits | 92,866 | 41,473 | 5,830 | ||
Other Non‑current Assets | 111,640 | 75,626 | 10,631 | ||
Restricted Cash | 1,069,244 | 1,476,649 | 207,584 | ||
Lease Rental Receivables | 235,429 | 71,534 | 10,056 | ||
Operating Lease Right-of-use | 1,899,522 | 1,709,283 | 240,287 | ||
Total non‑current Assets | 4,500,333 | 4,445,574 | 624,949 | ||
Total Assets | 11,343,883 | 8,199,982 | 1,152,735 | ||
Liabilities and Shareholders' | |||||
Current Liabilities | |||||
Long-term borrowings-current | 287,814 | 110,539 | 15,539 | ||
Convertible Senior Notes held by | 633,475 | 1,065,224 | 149,747 | ||
Convertible Senior Notes held by | 633,475 | 78 | 11 | ||
Short‑term Bank Loans | 530,495 | 126,288 | 17,753 | ||
Accounts and Notes Payable | 1,353,150 | 1,533,502 | 215,576 | ||
Income Tax Payable | 587 | 1,543 | 217 | ||
Customer Advances and Deposits | 298,353 | 260,099 | 36,564 | ||
Accrued Expenses and Other | 1,591,639 | 1,143,195 | 160,708 | ||
Financing Lease Liabilities | 1,851 | 1,872 | 263 | ||
Operating Lease Liabilities | 518,248 | 501,296 | 70,471 | ||
Amounts Due to Related Parties | 2,763 | 12,443 | 1,749 | ||
Total Current Liabilities | 5,851,850 | 4,756,079 | 668,599 | ||
Summary of Unaudited Condensed Consolidated Balance Sheets (Cont'd) (In Thousands) | ||||
As of December 31, 2021 | As of September 30, 2022 | |||
RMB | RMB | US$ | ||
Non-current Liabilities | ||||
Convertible senior notes held by related parties | 955,097 | - | - | |
Long-term borrowings | 67,080 | 15,828 | 2,225 | |
Operating Lease Liabilities | 1,456,843 | 1,273,950 | 179,089 | |
Financing Lease Liabilities | 2,121 | 1,428 | 201 | |
Other Non‑current Liabilities | 24,261 | 27,913 | 3,924 | |
Long-term Bank Loans | 769,767 | 944,808 | 132,819 | |
Total Non‑current Liabilities | 3,275,169 | 2,263,927 | 318,258 | |
Total Liabilities | 9,127,019 | 7,020,006 | 986,857 | |
Mezzanine Equity: | ||||
Convertible Non-controlling Interests | 191,865 | 191,865 | 26,972 | |
Total mezzanine equity | 191,865 | 191,865 | 26,972 | |
Shareholders' Equity | ||||
Ordinary Shares | 25,988 | 25,988 | 3,653 | |
Treasury Shares | (113,031) | - | - | |
Additional Paid‑In Capital | 19,522,173 | 19,465,841 | 2,736,465 | |
Statutory reserves | 167 | - | - | |
Accumulated Deficit | (17,471,716) | (18,550,280) | (2,607,757) | |
Accumulated Other | 107,379 | 118,635 | 16,677 | |
BEST Inc. Shareholders' Equity | 2,070,960 | 1,060,184 | 149,038 | |
Non-controlling Interests | (45,961) | (72,073) | (10,132) | |
Total Shareholders' Equity | 2,024,999 | 988,111 | 138,906 | |
Total Liabilities, Mezzanine Equity | 11,343,883 | 8,199,982 | 1,152,735 | |
Summary of Unaudited Condensed Consolidated Statements of Cash Flows (In Thousands) | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2021 | 2022 | 2021 | 2022 | |||||
RMB | RMB | US$ | RMB | RMB | US$ | |||
Net cash used in continuing | (236,492) | (250,375) | (35,197) | (382,503) | (809,772) | (113,836) | ||
Net cash used in discontinued | (921,754) | (7,917) | (1,113) | (1,525,286) | (66,174) | (9,303) | ||
Net cash used in operating | (1,158,246) | (258,292) | (36,310) | (1,907,789) | (875,946) | (123,139) | ||
Net cash generated from/(used | 1,159,859 | 891,756 | 125,361 | 1,753,752 | (88,780) | (12,480) | ||
Net cash used in discontinued | (104,948) | - | - | (350,688) | - | - | ||
Net cash generated | 1,054,911 | 891,756 | 125,361 | 1,403,064 | (88,780) | (12,480) | ||
Net cash (used in)/generated | 353,528 | (982,052) | (138,055) | 508,734 | (1,948,848) | (273,965) | ||
Net cash used in discontinued | (294,139) | - | - | (807,259) | - | - | ||
Net cash used in financing | 59,389 | (982,052) | (138,055) | (298,525) | (1,948,848) | (273,965) | ||
Exchange Rate Effect on Cash | 3,895 | 44,482 | 6,253 | (26,520) | 92,586 | 13,016 | ||
Net decrease in Cash and | (40,051) | (304,106) | (42,751) | (829,770) | (2,820,988) | (396,568) | ||
Cash and Cash Equivalents, | 3,419,402 | 2,799,266 | 393,515 | 4,209,121 | 5,316,148 | 747,332 | ||
Cash and Cash Equivalents, | 3,379,351 | 2,495,160 | 350,764 | 3,379,351 | 2,495,160 | 350,764 | ||
Less: Cash and Cash | 511,696 | - | - | 511,696 | - | - | ||
Cash and Cash Equivalents, | 2,867,655 | 2,495,160 | 350,764 | 2,867,655 | 2,495,160 | 350,764 | ||
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, 2022 | ||||||
(In RMB'000) | Freight | Supply Chain | Global | Others | Unallocated([11]) | Total |
Net Loss | (138,749) | (9,664) | (110,426) | (48,601) | (71,497) | (378,937) |
Add | ||||||
Depreciation & | 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 | 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 | -8.8 % | 0.0 % | -48.5 % | -152.8 % | - | -15.8 % |
Three Months Ended September 30, 2021 | ||||||
(In RMB'000) | Freight | Supply Chain | Global | Others | Unallocated | Total |
Net Income/(Loss) | (219,708) | (27,069) | (68,869) | (25,181) | 149,180 | (191,647) |
Add | ||||||
Depreciation & | 20,767 | 9,055 | 4,981 | 397 | 6,363 | 41,563 |
Interest Expense | - | - | - | - | 39,924 | 39,924 |
Income Tax Expense | - | (130) | - | 1,182 | (1) | 1,051 |
Subtract | ||||||
Interest Income | - | - | - | - | (7,562) | (7,562) |
EBITDA | (198,941) | (18,144) | (63,888) | (23,602) | 187,904 | (116,671) |
Add | ||||||
Share-based Compensation Expenses
| 3,459 | 2,160 | 2,068 | 171 | 19,038 | 26,896 |
Subtract | ||||||
Gain from | - | - | - | - | (58,643) | (58,643) |
Adjusted EBITDA | (195,482) | (15,984) | (61,820) | (23,431) | 148,299 | 148,418 |
Adjusted EBITDA | -9.4 % | -4.0 % | -20.7 % | -63.2 % | - | -5.3 % |
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, 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 | 2,511 | 1,314 | 1,354 | 23 | 10,694 | 15,896 |
Non-GAAP Net | (136,238) | (8,350) | (109,072) | (48,578) | (60,803) | (363,041) |
Non-GAAP Net | -10.3 % | -1.8 % | -51.6 % | -159.7 % | - | -17.9 % |
Three Months Ended September 30, 2021 | ||||||
(In RMB'000) | Freight | Supply Chain | Global | Others | Unallocated | Total |
Net Income/(Loss) | (219,708) | (27,069) | (68,869) | (25,181) | 149,180 | (191,647) |
Add | ||||||
Share-based Compensation | 3,459 | 2,160 | 2,068 | 171 | 19,038 | 26,896 |
Subtract | ||||||
Gain from | - | - | - | - | (58,643) | (58,643) |
Non-GAAP Net | (216,249) | (24,909) | (66,801) | (25,010) | 109,575 | (223,394) |
Non-GAAP Net | -10.4 % | -6.2 % | -22.4 % | -67.5 % | - | -7.9 % |
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, | ||||
2022 | 2022 | ||||
(In '000) | RMB | US$ | RMB | US$ | |
Net Loss Attributable to Ordinary Shareholders | (345,689) | (48,596) | (1,015,597) | (142,770) | |
Add | |||||
Share-based Compensation Expenses | 15,896 | 2,234 | 56,518 | 7,945 | |
Non-GAAP Net Loss Attributable to Ordinary | (329,793) | (46,362) | (959,079) | (134,825) | |
Weighted Average Diluted Ordinary Shares | |||||
Diluted | 392,842,492 | 392,842,492 | 388,632,377 | 388,632,377 | |
Diluted (Non-GAAP) | 392,842,492 | 392,842,492 | 388,632,377 | 388,632,377 | |
Diluted loss per ordinary share | (0.88) | (0.12) | (2.61) | (0.37) | |
Add | |||||
Non-GAAP adjustment to net loss per | 0.04 | 0.00 | 0.14 | 0.02 | |
Non-GAAP diluted loss per ordinary share | (0.84) | (0.12) | (2.47) | (0.35) | |
Diluted loss per ADS | (4.40) | (0.62) | (13.07) | (1.84) | |
Add | |||||
Non-GAAP adjustment to net loss per ADS | 0.20 | 0.03 | 0.73 | 0.11 | |
Non-GAAP diluted loss per ADS | (4.20) | (0.59) | (12.34) | (1.73) | |
([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 presented have been rounded to the nearest integer, tenth, or hundredth, and year over year comparisons are based on figures before rounding. |
([8]) All numbers represented the financial results from continuing operations, unless otherwise stated. |
([9]) "Others" Segment primarily represents Capital business units. Results from UCargo's legacy contracts with external customers are now reported under "Freight" segment and prior period segment information were retrospectively revised to conform to current period presentation. |
([10]) 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. |
([11]) 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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