BEST Inc. Announces Unaudited Fourth Quarter and Fiscal Year 2021 Financial Results
BEST Inc. (NYSE: BEST) reported its financial results for Q4 and FY 2021, revealing a revenue of RMB 2.7 billion, a 20.3% decrease YoY, primarily due to the cessation of the UCargo business. Despite this, the company recorded a net income of RMB 1.9 billion due to the sale of its China express business. BEST expects core segment revenue growth of 15-20% YoY in 2022. The gross loss for Q4 was RMB 228.4 million, with a net loss of RMB 734.1 million. The full-year revenue was RMB 11.4 billion, an 8.5% increase YoY, supported by significant growth in Global services.
- Achieved net income of RMB 1.9 billion due to the sale of the China express business.
- Full-year revenue increased 8.5% YoY to RMB 11.4 billion.
- Global segment parcel volume grew 57% YoY in Q4 and 104% YoY for FY 2021.
- Expecting 15-20% revenue growth in core segments for 2022.
- Q4 revenue declined by 20.3% YoY to RMB 2.7 billion.
- Reported a gross loss of RMB 228.4 million in Q4.
- Net loss from continuing operations increased to RMB 734.1 million in Q4 from RMB 252.2 million in 2020.
- Diluted EPS from continuing operations worsened to negative RMB 1.81 in Q4.
HANGZHOU, China, March 8, 2022 /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, 2021.
Johnny Chou, Founder, Chairman and Chief Executive Officer of BEST, commented, "Successfully completing the sale of China express business in the fourth quarter, we exited the year with a leaner and more focused organization. We now have a much stronger capital base and a clear path to support our sustainable growth and profitability.
"Following a smooth Express handover, BEST Freight rebounded strongly in December, narrowing its net loss by
"In 2022, our businesses are better aligned for near and long-term success, with a stronger ability to return value to our stakeholders and partners," Mr. Chou continued. "By focusing on our core competencies in freight, integrated supply chain management and global logistics solutions while maximizing revenue and cost synergies, we expect to grow the top line of our core segments by
Gloria Fan, BEST's Chief Financial Officer, added, "Our fourth quarter capped a critical year of decisive business adjustments. Built on the strength of our main business pillars, we have paved the way for BEST's future growth. With a challenging macro environment and the short-term effects of our strategic recalibration, our fourth quarter revenue was RMB2.7 billion. We also continued to streamline our costs and strengthen our operating efficiency during the quarter. Most importantly, we significantly improved our balance sheet. We now have a lower debt level and sufficient cash. We hope to transition to a year of growth in 2022, with an efficient organization guided by a clear roadmap."
FINANCIAL HIGHLIGHTS([1])
For the Fourth Quarter Ended December 31, 2021([2]):
- Revenue was RMB2,724.9 million (US
$427.6 million ), a decrease of20.3% year-over-year ("YoY"). The revenue decrease was primarily due to the winding-down of UCargo business and a decrease in Freight revenue partially offset by the growth of Global's revenue.
- Gross Loss was RMB228.4 million (US
$35.8 million ), compared to gross profit of RMB115.3 million in 2020. Gross Loss Margin was8.4% , which decreased by 11.8 percentage points ("ppts") YoY.
- Net Loss from continuing operations was RMB734.1 million (US
$115.2 million ), compared to RMB252.2 million in 2020. Non-GAAP Net Loss from continuing operations ([3])([4]) was RMB710.4 million (US$111.5 million ), compared to RMB236.7 million in 2020.
- Net Income was RMB1,945.3 million (US
$305.3 million ), compared to Net Loss of RMB630.1 million in 2020. The increase was primarily due to the gain related to the sale of our China express business.
- Diluted EPS([5]) from continuing operations was negative RMB1.81 (US
$0.28) , compared to negative RMB0.64 in 2020. Non-GAAP Diluted EPS(3)(4) from continuing operations was negative RMB1.75 (US$0.28) , compared to negative RMB0.60 in 2020.
- EBITDA([6]) from continuing operations was negative RMB658.9 million (US
$103.4 million ), compared to negative RMB182.6 million in 2020. Adjusted EBITDA(3)(5) from continuing operations was negative RMB635.2 million (US$99.7 million ), compared to negative RMB167.1million in 2020.
For the Fiscal Year Ended December 31, 2021:
- Revenue was RMB11,425.8 million (US
$1,793.0 million ), an increase of8.5% YoY. The revenue increase was primarily due to increased volume in Freight and Global, partially offset by a decrease in Freight average selling price ("ASP").
- Gross Loss was RMB199.4 million (US
$31.3 million ), compared to gross profit of RMB242.3 million in 2020. The decrease was primarily due to a steeper ASP decrease than unit cost reduction in the Freight business. Gross Margin was negative1.7% , a decrease of 4.0 ppts YoY.
- Net Loss from continuing operations was RMB1,263.9 million (US
$198.3 million ), compared to RMB1,028.4 million in 2020. Non-GAAP Net Loss from continuing operations was RMB1,220.4 million (US$191.5 million ), compared to RMB928.9 million in 2020.
- Net Income was RMB209.6 million (US
$32.9 million ), compared to net loss of RMB2,051.2 million in 2020. The increase was primarily due to the gain related to the sale of our China express business.
- Diluted EPS from continuing operations was negative RMB3.12 (US
$0.49) , compared to negative RMB2.59 in 2020. Non-GAAP Diluted EPS from continuing operations was negative RMB3.01 (US$0.47) , compared to negative RMB2.29 in 2020.
- EBITDA from continuing operations was negative RMB976.2 million (US
$153.2 million ), compared to negative RMB789.7 million in 2020. Adjusted EBITDA from continuing operations was negative RMB932.7 million (US$146.4 million ), compared to negative RMB693.0 million in 2020.
BUSINESS HIGHLIGHTS([7])
BEST Express – On December 17, 2021, the Company announced the closing and completion of the sale of China express business (the "Business") to J&T Express Co., Ltd. ("J&T Express China"). The agreement has been approved by relevant regulatory agencies and the final transaction has been completed pursuant to the terms of the agreement. The Business has been transferred to J&T Express China.
BEST Freight – In the fourth quarter of 2021, the Company remained focused on developing its e-commerce related business, which contributed
After the Express handover was largely completed, Freight volume significantly recovered and the loss was narrowed month-over-month in December.
BEST Supply Chain Management – During the quarter, the Company continued to enlarge its franchised Cloud OFCs network for future growth and prioritize higher margin accounts. As the result of discontinuing certain low margin legacy customers, the total number of orders fulfilled by Cloud OFCs decreased
BEST Global – Global made solid progress in its cross-border and local business in Southeast Asia and North America with expanded margin for the quarter. Despite the continuous impact from COVID-19, parcel volume in Southeast Asia increased by
Others:
As part of the strategic refocusing plan, the Company started the process of winding down UCargo and Capital business lines in the fourth quarter of 2021 to realign BEST's business around our core competencies.
Key Operational Metrics
Three Months Ended | % Change YoY | ||||||||
December 31, | December 31, | December 31, | 2020 vs | 2021 vs | |||||
Freight Volume (Tonne in '000) | 2,097 | 2,623 | 2,408 | ( | |||||
Supply Chain Management | 121,907 | 136,126 | 123,309 | ( | |||||
Global Parcel Volume in | 5,157 | 27,891 | 43,707 | ||||||
Fiscal Year Ended | % Change YoY | ||||||||
December 31, | December 31, | December 31, | 2020 vs | 2021vs | |||||
Freight Volume (Tonne in '000) | 6,980 | 8,392 | 9,218 | ||||||
Supply Chain Management | 356,905 | 433,224 | 448,202 | ||||||
Global Parcel Volume in | 8,785 | 73,585 | 150,392 | ||||||
FINANCIAL RESULTS([8])
For the Fourth Quarter Ended December 31, 2021:
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, 2020 | December 31, 2021 | |||||||
(In '000, except for %) | RMB | % of | RMB | US$ | % of | % Change | ||
Freight | 1,624,756 | 1,503,995 | 236,010 | ( | ||||
Supply Chain | 542,332 | 487,337 | 76,474 | ( | ||||
Global | 253,351 | 330,564 | 51,873 | |||||
Others(9) | 1,000,115 | 402,958 | 63,233 | ( | ||||
Total Revenue | 3,420,554 | 2,724,854 | 427,590 | ( | ||||
- Freight Service Revenue decreased by
7.4% YoY to RMB1,504.0 million (US$236.0 million ) from RMB1,624.8 million, primarily due to an8.2% decrease in freight volume, partially offset by a1.0% increase in ASP per tonne. - Supply Chain Management Service Revenue decreased by
10.1% YoY to RMB487.3 million (US$76.5 million ) from RMB542.3million, primarily due to a9.4% decrease in the total number of orders fulfilled by Cloud OFCs. - Global Service Revenue increased by
30.5% YoY to RMB330.6 million (US$51.9 million ) from RMB253.4 million, primarily due to strong growth in parcel volumes in Southeast Asia.
Cost of Revenue
The following table sets forth a breakdown of cost of revenue by business segment for the periods indicated.
Table 2 – Breakdown of Cost of Revenue by Business Segment | ||||||||
Three Months Ended | % of YoY | |||||||
December 31, 2020 | December 31, 2021 | |||||||
(In '000, except for %) | RMB | % of | RMB | US$ | % of | |||
Freight | (1,530,702) | (1,585,619) | (248,819) | 11.2ppt | ||||
Supply Chain | (549,212) | (496,353) | (77,889) | 0.6ppt | ||||
Global | (273,222) | (346,392) | (54,356) | (3.0ppt) | ||||
Others | (952,134) | (524,900) | (82,368) | 35.1ppt | ||||
Total Cost of Revenue | (3,305,270) | (2,953,264) | (463,432) | 11.8ppt | ||||
Cost of Revenue was RMB2,953.3 million (US
Table 3 – Breakdown of Average Cost Per Parcel and Average Cost Per Tonne | ||||
Three Months Ended | % Change | |||
(in RMB) | December 31, 2020 | December 31, 2021 | YoY | |
Freight: | ||||
Average Cost Per Tonne | 583.5 | 658.4 | ||
Freight Service Average Cost per Tonne increased by
Gross Loss was RMB228.4 million (US
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, 2020 | December 31, 2021 | ||||||||
(In '000, except for %) | RMB | % of | RMB | US$ | % of | % of Revenue YoY | |||
Selling, General and | (322,952) | (354,793) | (55,675) | 3.6ppt | |||||
Adjusted for SBC Expenses | (22,382) | (20,490) | (3,215) | 0.1ppt | |||||
Adjusted Selling, General and | (300,570) | (334,303) | (52,460) | 3.5ppt | |||||
Research and | (39,813) | (50,294) | (7,892) | 0.6ppt | |||||
Adjusted for SBC Expenses | (1,785) | (3,159) | (496) | 0.0ppt | |||||
Adjusted Research and | (38,028) | (47,135) | (7,396) | 0.6ppt | |||||
Total Operating Expenses | (362,765) | (405,087) | (63,567) | 4.2ppt | |||||
Adjusted for SBC Expenses | (24,167) | (23,649) | (3,711) | 0.1ppt | |||||
Adjusted Total | (338,598) | (381,438) | (59,856) | 4.1ppt | |||||
Selling, General and Administrative Expenses were RMB354.8 million (US
Research and Development Expenses were RMB50.3million (US
Share-based Compensation ("SBC") Expenses included in the cost and expense items above were RMB23.7 million (US
Net Loss and Non-GAAP Net Loss from continuing operations
Net Loss from continuing operations was RMB734.1 million (US
The following table sets forth a breakdown of non-GAAP net loss for the three months ended December 31, 2021 by segment.
Table 5 – Breakdown of non-GAAP Net Loss by Segment | ||||||
Three Months Ended December 31, 2021 | ||||||
(In RMB'000) | Freight | Supply Chain | Global | Others | Unallocated([1]) | Total |
Non-GAAP Net Loss | (263,630) | (72,413) | (83,452) | (239,945) | (50,971) | (710,411) |
Diluted EPS and Non-GAAP Diluted EPS from continuing operations
Diluted EPS from continuing operations was negative RMB1.81 (US
Adjusted EBITDA and Adjusted EBITDA Margin from continuing operations
Adjusted EBITDA from continuing operations was negative RMB635.2 million (US
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, 2021 by segment.
Table 6 – Breakdown of Adjusted EBITDA and Adjusted EBITDA Margin by Segment | ||||||
Three Months Ended December 31, 2021 | ||||||
(In RMB'000) | Freight | Supply Chain | Global | Others | Unallocated([1]) | Total |
Adjusted EBITDA | (248,266) | (62,903) | (78,756) | (211,901) | (33,338) | (635,164) |
Adjusted EBITDA | ( | ( | ( | ( | - | ( |
Cash and Cash Equivalents, Restricted Cash and Short-term Investments
As of December 31, 2021, cash and cash equivalents, restricted cash and short-term investments were RMB5,457 million (US
Net Cash Used In Continuing Operating Activities
Net cash used in operating activities was RMB555.7 million (US
Capital Expenditures ("CAPEX")
CAPEX was RMB20.6 million (US
For the Fiscal Year Ended December 31, 2021:
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, 2020 | December 31, 2021 | |||||||
(In '000, except for %) | RMB | % of | RMB | US$ | % of | % Change | ||
Freight | 5,175,830 | 5,435,354 | 852,926 | |||||
Supply Chain | 1,912,323 | 1,815,104 | 284,829 | ( | ||||
Global | 777,656 | 1,193,855 | 187,342 | |||||
Others | 2,662,425 | 2,981,523 | 467,866 | |||||
Total Revenue | 10,528,234 | 11,425,836 | 1,792,963 | |||||
- Freight Service Revenue increased by
5.0% YoY to RMB5,435.4 million (US$852.9 million ) from RMB5,175.8 million, primarily due to a9.8% YoY increase in freight volume, partially offset by a4.2% YoY decrease in ASP per tonne. - Supply Chain Management Service Revenue decreased by
5.1% YoY to RMB1,815.1 million (US$284.8 million ) from RMB1,912.3 million, primarily due to discontinuation of certain legacy key account customers, partially offset by a3.5% YoY increase in the total number of orders fulfilled by Cloud OFCs. - Global Service Revenue increased by
53.5% YoY to RMB1,193.9 million (US$187.3 million ) from RMB777.7 million, primarily due to strong growth in parcel volumes in Southeast Asia.
Cost of Revenue
The following table sets forth a breakdown of cost of revenue by business segment for the periods indicated.
Table 8 – Breakdown of Cost of Revenue by Business Segment | ||||||||
Fiscal Year Ended | % of YoY | |||||||
December 31, 2020 | December 31, 2021 | |||||||
(In '000, except for %) | RMB | % of | RMB | US$ | % of | |||
Freight | (5,063,236) | (5,557,115) | (872,033) | 4.4ppt | ||||
Supply Chain | (1,846,901) | (1,741,832) | (273,331) | (0.6ppt) | ||||
Global | (875,733) | (1,258,511) | (197,488) | (7.2ppt) | ||||
Others | (2,500,082) | (3,067,766) | (481,399) | 9.0ppt | ||||
Total Cost of Revenue | (10,285,952) | (11,625,224) | (1,824,251) | 4.0ppt | ||||
Cost of Revenue was RMB11,625.2 million (US
Table 9 – Breakdown of Average Cost Per Parcel and Average Cost Per Tonne | ||||
Fiscal Year Ended | % Change | |||
(in RMB) | December 31, 2020 | December 31, 2021 | YoY | |
Freight: | ||||
Average Cost Per Tonne | 603.4 | 602.9 | ( | |
Freight Service Average Cost per Tonne remained relatively flat, decreasing by
Gross Loss was RMB199.4 million (US
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, 2020 | December 31, 2021 | ||||||||
(In '000, except for %) | RMB | % of Revenue | RMB | US$ | % of Revenue | % of Revenue Change YoY | |||
Selling, General and Administrative Expenses | (1,102,936) | (1,141,717) | (179,160) | (0.5ppt) | |||||
Adjusted for | (106,510) | (98,015) | (15,381) | (0.1ppt) | |||||
Adjusted Selling, General | (996,426) | (1,043,702) | (163,779) | (0.4ppt) | |||||
Research and Development Expenses | (136,065) | (180,204) | (28,278) | 0.3ppt | |||||
Adjusted for | (7,763) | (9,321) | (1,463) | 0.0ppt | |||||
Adjusted Research and Development Expenses | (128,302) | (170,883) | (26,815) | 0.3ppt | |||||
Total Operating Expenses | (1,239,001) | (1,321,921) | (207,438) | (0.2ppt) | |||||
Adjusted for | (114,273) | (107,336) | (16,844) | (0.1ppt) | |||||
Adjusted Total Operating Expenses | (1,124,728) | (1,214,585) | (190,594) | (0.1ppt) | |||||
Selling, General and Administrative Expenses were RMB1,141.7 million (US
Research and Development Expenses were RMB180.2 million (US
Share-based Compensation ("SBC") Expenses included in the cost and expense items above were RMB107.7 million (US
Net Loss and Non-GAAP Net Loss from continuing operations
Net Loss from continuing operations was RMB1,263.9 million (US
The following table sets forth a breakdown of non-GAAP net loss for fiscal year 2021 by segment.
Table 11 – Breakdown of non-GAAP Net Loss by Segment | ||||||
Fiscal Year Ended December 31, 2021 | ||||||
(In RMB'000) | Freight | Supply Chain | Global | Others | Unallocated([1]) | Total |
Non-GAAP Net Loss | (446,007) | (95,036) | (259,298) | (338,416) | (81,628) | (1,220,385) |
Diluted EPS and Non-GAAP Diluted EPS from continuing operations
Diluted EPS from continuing operations was negative RMB3.12 (US
Adjusted EBITDA and Adjusted EBITDA Margin from continuing operations
Adjusted EBITDA from continuing operations was negative RMB932.7 million (US
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 2021 by segment.
Table 12 – Breakdown of Adjusted EBITDA and Adjusted EBITDA Margin by Segment | ||||||
Fiscal Year Ended December 31, 2021 | ||||||
(In RMB'000) | Freight | Supply Chain | Global | Others | Unallocated([1]) | Total |
Adjusted EBITDA | (377,944) | (56,338) | (239,771) | (295,648) | 36,972 | (932,729) |
Adjusted EBITDA | ( | ( | ( | ( | - | ( |
Net Cash Used In Continuing Operating Activities
Net cash used in operating activities was RMB941.3 million (US
Capital Expenditures ("CAPEX")
CAPEX was RMB145.2 million (US
SHARES OUTSTANDING
As of February 28, 2022, the Company had approximately 389.6 million ordinary shares outstanding([13]). Each American Depositary Share represents one Class A ordinary share.
FINANCIAL GUIDANCE
Based on current operations and market conditions, BEST expects 2022 revenue from its core business; Freight, Supply Chain Management and Global, to be between RMB 10 billion to RMB 12 billion. This represents BEST's current and preliminary estimates, which are subject to change.
WEBCAST AND CONFERENCE CALL INFORMATION
The Company will hold a conference call at 8:00 pm U.S. Eastern Time on March 8, 2022 (9:00 am Beijing Time on March 9, 2022), to discuss its financial results and operating performance for the fourth quarter and fiscal year 2021.
Participants may access the call by dialing the following numbers:
United States : +1-888-317-6003
China Hong Kong : 800-963976 or +852-5808-1995
Mainland China : 4001-206115
International : +1-412-317-6061
Participant Elite Entry Number : 3931702
A replay of the conference call will be accessible through March 15, 2022 by dialing the following numbers:
United States : +1-877-344-7529
International : +1-412-317-0088
Replay Access Code : 7754372
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-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 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, | |||||
2020 | 2021 | 2020 | 2021 | |||
RMB | RMB | US$ | RMB | RMB | US$ | |
Revenue | ||||||
Freight | 1,624,756 | 1,503,995 | 236,010 | 5,175,830 | 5,435,354 | 852,926 |
Supply Chain Management | 542,332 | 487,337 | 76,474 | 1,912,323 | 1,815,104 | 284,829 |
Global | 253,351 | 330,564 | 51,873 | 777,656 | 1,193,855 | 187,342 |
Others | 1,000,115 | 402,958 | 63,233 | 2,662,425 | 2,981,523 | 467,866 |
Total Revenue | 3,420,554 | 2,724,854 | 427,590 | 10,528,234 | 11,425,836 | 1,792,963 |
Cost of Revenue | ||||||
Freight | (1,530,702) | (1,585,619) | (248,819) | (5,063,236) | (5,557,115) | (872,033) |
Supply Chain Management | (549,212) | (496,353) | (77,889) | (1,846,901) | (1,741,832) | (273,331) |
Global | (273,222) | (346,392) | (54,356) | (875,733) | (1,258,511) | (197,488) |
Others | (952,134) | (524,900) | (82,368) | (2,500,082) | (3,067,766) | (481,399) |
Total Cost of Revenue | (3,305,270) | (2,953,264) | (463,432) | (10,285,952) | (11,625,224) | (1,824,251) |
Gross Profit/(Loss) | 115,284 | (228,410) | (35,842) | 242,282 | (199,388) | (31,288) |
Selling Expenses | (59,712) | (73,021) | (11,459) | (235,419) | (260,219) | (40,834) |
General and Administrative Expenses | (263,240) | (281,772) | (44,216) | (867,517) | (881,498) | (138,326) |
Research and Development Expenses | (39,813) | (50,294) | (7,892) | (136,065) | (180,204) | (28,278) |
Other operating income/(expense), net | 9,287 | (89,893) | (14,106) | 24,777 | 58,337 | 9,154 |
Loss from Operations | (238,194) | (723,390) | (113,515) | (971,942) | (1,462,972) | (229,572) |
Interest Income | 11,884 | 17,735 | 2,783 | 55,527 | 49,658 | 7,792 |
Interest Expense | (34,521) | (29,310) | (4,599) | (119,177) | (142,751) | (22,401) |
Foreign Exchange (Loss) / Gain | (908) | 44,186 | 6,934 | (8,243) | 44,556 | 6,992 |
Other Income | 19,416 | 6,709 | 1,053 | 47,536 | 321,075 | 50,384 |
Other Expense | (4,784) | (49,575) | (7,779) | (14,402) | (70,171) | (11,011) |
Loss before Income Tax | (247,107) | (733,645) | (115,123) | (1,010,701) | (1,260,605) | (197,816) |
Income Tax Expense | (5,033) | (500) | (78) | (17,553) | (3,198) | (502) |
Loss before Share of Net | (252,140) | (734,145) | (115,201) | (1,028,254) | (1,263,803) | (198,318) |
Share of Net Loss of Equity | (66) | - | - | (180) | (58) | (9) |
Net Loss from continuing | (252,206) | (734,145) | (115,201) | (1,028,434) | (1,263,861) | (198,327) |
Net (loss)/income from | (377,858) | 2,679,400 | 420,456 | (1,022,790) | 1,473,489 | 231,223 |
Net (Loss)/Income | (630,064) | 1,945,255 | 305,255 | (2,051,224) | 209,628 | 32,896 |
Net loss attributable to non-controlling interests | (5,326) | (28,727) | (4,508) | (25,716) | (52,279) | (8,204) |
Net (Loss)/Income attributable to Best Inc. | (624,738) | 1,973,982 | 309,763 | (2,025,508) | 261,907 | 41,100 |
Summary of Unaudited Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
As of December 31, 2020 | As of December 31, 2021 | |||||||
RMB | RMB | US$ | ||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and Cash Equivalents | 1,180,787 | 3,565,732 | 559,541 | |||||
Restricted Cash | 1,998,323 | 675,159 | 105,947 | |||||
Accounts and Notes Receivables | 825,700 | 798,749 | 125,338 | |||||
Inventories | 28,269 | 25,622 | 4,021 | |||||
Prepayments and Other Current Assets | 1,603,447 | 1,174,404 | 184,290 | |||||
Short–term Investments | 228,371 | 147,359 | 23,124 | |||||
Amounts Due from Related Parties | 182,409 | 125,198 | 19,646 | |||||
Lease Rental Receivables | 497,127 | 298,364 | 46,820 | |||||
Assets held for sale | 8,718,603 | - | - | |||||
Total Current Assets | 15,263,036 | 6,810,587 | 1,068,727 | |||||
Non–current Assets | ||||||||
Property and Equipment, Net | 822,114 | 762,642 | 119,675 | |||||
Intangible Assets, Net | 43,897 | 55,684 | 8,738 | |||||
Long–term Investments | 221,426 | 219,171 | 34,393 | |||||
Goodwill | 54,135 | 54,135 | 8,495 | |||||
Non–current Deposits | 97,889 | 92,866 | 14,573 | |||||
Other Non–current Assets | 509,023 | 111,640 | 17,519 | |||||
Restricted Cash | 333,313 | 1,069,244 | 167,788 | |||||
Lease Rental Receivables | 647,678 | 235,429 | 36,944 | |||||
Operating Lease Right-of-use Assets | 1,878,312 | 1,899,522 | 298,076 | |||||
Total non–current Assets | 4,607,787 | 4,500,333 | 706,201 | |||||
Total Assets | 19,870,823 | 11,310,920 | 1,774,928 | |||||
Liabilities and Shareholders' Equity | ||||||||
Current Liabilities | ||||||||
Long-term borrowings-current | 95,149 | 287,814 | 45,164 | |||||
Convertible Senior Notes held by | - | 633,475 | 99,406 | |||||
Convertible Senior Notes held by third | - | 633,475 | 99,406 | |||||
Short–term Bank Loans | 2,133,287 | 530,495 | 83,246 | |||||
Accounts and Notes Payable | 1,509,894 | 1,326,200 | 208,110 | |||||
Income Tax Payable | 14,550 | 587 | 92 | |||||
Customer Advances and Deposits and | 281,298 | 298,353 | 46,818 | |||||
Accrued Expenses and Other Liabilities | 1,407,253 | 1,585,626 | 248,819 | |||||
Financing Lease Liabilities | 1,581 | 1,851 | 290 | |||||
Operating Lease Liabilities | 531,736 | 518,248 | 81,324 | |||||
Amounts Due to Related Parties | 29,247 | 2,763 | 434 | |||||
Liabilities held for sale | 8,301,730 | - | - | |||||
Total Current Liabilities | 14,305,725 | 5,818,887 | 913,109 | |||||
Summary of Unaudited Condensed Consolidated Balance Sheets (Cont'd) | ||||
(In Thousands) | ||||
As of December 31, 2020 | As of December 31, 2021 | |||
RMB | RMB | US$ | ||
Non-current Liabilities | ||||
Convertible senior notes held by | 1,617,846 | 955,097 | 149,876 | |
Convertible Senior Notes held by | 642,121 | - | - | |
Long-term borrowings | - | 67,080 | 10,526 | |
Operating Lease Liabilities | 1,391,518 | 1,456,843 | 228,610 | |
Financing Lease Liabilities | 2,698 | 2,121 | 333 | |
Other Non–current Liabilities | 107,763 | 24,261 | 3,807 | |
Long-term Bank Loans | 78,548 | 769,767 | 120,793 | |
Total Non–current Liabilities | 3,840,494 | 3,275,169 | 513,945 | |
Total Liabilities | 18,146,219 | 9,094,056 | 1,427,054 | |
Mezzanine Equity: | ||||
Convertible Non-controlling Interests | - | 191,865 | 30,108 | |
Total mezzanine equity | - | 191,865 | 30,108 | |
Shareholders' Equity | ||||
Ordinary Shares | 25,988 | 25,988 | 4,078 | |
Treasury Shares | (211,352) | (113,031) | (17,737) | |
Additional Paid–In Capital | 19,487,232 | 19,522,173 | 3,063,455 | |
Statutory reserves | 8,038 | 167 | 26 | |
Accumulated Deficit | (17,710,964) | (17,471,716) ([1]) | (2,741,694) | |
Accumulated Other Comprehensive Income | 151,677 | 107,379 | 16,850 | |
BEST Inc. Shareholders' Equity | 1,750,619 | 2,070,960 | 324,978 | |
Non-controlling Interests | (26,015) | (45,961) | (7,212) | |
Total Shareholders' Equity | 1,724,604 | 2,024,999 | 317,766 | |
Total Liabilities, Mezzanine Equity and Shareholders' Equity | 19,870,823 | 11,310,920 | 1,774,928 | |
Summary of Unaudited Condensed Consolidated Statements of Cash Flows (In Thousands) | |||||||
Three Months Ended December 31, | Fiscal Year Ended December 31, | ||||||
2020 | 2021 | 2020 | 2021 | ||||
RMB | RMB | US$ | RMB | RMB | US$ | ||
Net cash generated from/(used in) | 95,780 | (555,740) | (87,207) | 96,433 | (941,323) | (147,715) | |
Net cash generated from/(used in) | 128,541 | (387,540) | (60,814) | (327,668) | (1,909,746) | (299,681) | |
Net cash generated from/(used in) | 224,321 | (943,280) | (148,021) | (231,235) | (2,851,069) | (447,396) | |
Net cash generated from continuing | 118,606 | 3,235,312 | 507,691 | 242,568 | 4,991,472 | 783,271 | |
Net cash used in discontinued | (282,713) | (97,328) | (15,273) | (1,115,501) | (450,424) | (70,681) | |
Net cash (used in)/generated from | (164,107) | 3,137,984 | 492,418 | (872,933) | 4,541,048 | 712,590 | |
Net cash generated from/(used in) | 25,191 | (703,646) | (110,417) | 1,558,713 | (194,911) | (30,586) | |
Net cash (used in)/generated from | (215,290) | 469,421 | 73,662 | (10,529) | (337,839) | (53,014) | |
Net cash (used in)/generated from | (190,099) | (234,225) | (36,755) | 1,548,184 | (532,750) | (83,600) | |
Exchange Rate Effect on Cash, Cash | (110,778) | (29,695) | (4,660) | (192,110) | (56,215) | (8,821) | |
Net (Decrease)/Increase in Cash and | (240,663) | 1,930,784 | 302,982 | 251,906 | 1,101,014 | 172,773 | |
Cash and Cash Equivalents, and | 4,449,784 | 3,379,351 | 530,294 | 3,957,215 | 4,209,121 | 660,503 | |
Cash and Cash Equivalents, and | 4,209,121 | 5,310,135 | 833,276 | 4,209,121 | 5,310,135 | 833,276 | |
Less: Cash and Cash Equivalents, | 696,698 | - | - | 696,698 | - | - | |
Cash and Cash Equivalents, and | 3,512,423 | 5,310,135 | 833,276 | 3,512,423 | 5,310,135 | 833,276 | |
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES
For the Company's continuing operations, the table below sets forth a reconciliation of the Company's net loss to EBITDA, adjusted EBITDA and adjusted EBITDA margin for the periods indicated:
Table 13 – Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin | ||||||
Three Months Ended December 31, 2021 | ||||||
(In RMB'000) | Freight | Supply Chain | Global | Others | Unallocated([1]) | Total |
Net Loss | (266,493) | (74,380) | (85,518) | (240,610) | (67,144) | (734,145) |
Add | ||||||
Depreciation & | 15,364 | 9,431 | 4,696 | 27,623 | 6,058 | 63,172 |
Interest Expense | - | - | - | - | 29,310 | 29,310 |
Income Tax Expense | - | 79 | - | 421 | - | 500 |
Subtract | ||||||
Interest Income | - | - | - | - | (17,735) | (17,735) |
EBITDA | (251,129) | (64,870) | (80,822) | (212,566) | (49,511) | (658,898) |
Add | ||||||
Share-based | 2,863 | 1,967 | 2,066 | 665 | 16,173 | 23,734 |
Adjusted EBITDA | (248,266) | (62,903) | (78,756) | (211,901) | (33,338) | (635,164) |
Adjusted EBITDA Margin | ( | ( | （ | ( | ( | |
Three Months Ended December 31, 2020 | ||||||
(In RMB'000) | Freight | Supply Chain | Global | Others | Unallocated([1]) | Total |
Net Income/(Loss) | 7,019 | (79,027) | (60,688) | (34,338) | (85,172) | (252,206) |
Add | ||||||
Depreciation & | 18,121 | 10,095 | 3,753 | 2,760 | 7,171 | 41,900 |
Interest Expense | - | - | - | - | 34,521 | 34,521 |
Income Tax | - | (220) | - | 5,253 | - | 5,033 |
Subtract | ||||||
Interest Income | - | - | - | - | (11,884) | (11,884) |
EBITDA | 25,140 | (69,152) | (56,935) | (26,325) | (55,364) | (182,636) |
Add | ||||||
Share-based | 2,373 | 1,829 | 2,255 | 683 | 17,261 | 24,401 |
Subtract | ||||||
Gain from | - | - | - | - | (8,850) | (8,850) |
Adjusted EBITDA | 27,513 | (67,323) | (54,680) | (25,642) | (46,953) | (167,085) |
Adjusted EBITDA Margin | ( | ( | ( | ( | ||
Fiscal Year Ended December 31, 2021 | ||||||
(In RMB'000) | Freight | Supply Chain | Global | Others | Unallocated([1]) | Total |
Net Loss | (457,451) | (103,387) | (267,902) | (341,117) | (94,004) | (1,263,861) |
Add | ||||||
Depreciation & | 68,063 | 38,525 | 19,506 | 39,758 | 25,513 | 191,365 |
Interest Expense | - | - | - | - | 142,751 | 142,751 |
Income Tax | - | 173 | 21 | 3,010 | (6) | 3,198 |
Subtract | ||||||
Interest Income | - | - | - | - | (49,658) | (49,658) |
EBITDA | (389,388) | (64,689) | (248,375) | (298,349) | 24,596 | (976,205) |
Add | ||||||
Share-based | 11,444 | 8,351 | 8,604 | 2,701 | 76,581 | 107,681 |
Subtract | ||||||
Gain from | - | - | - | - | (64,205) | (64,205) |
Adjusted EBITDA | (377,944) | (56,338) | (239,771) | (295,648) | 36,972 | (932,729) |
Adjusted EBITDA Margin | ( | ( | ( | ( | ( | |
Fiscal Year Ended December 31, 2020 | ||||||
(In RMB'000) | Freight | Supply Chain | Global | Others | Unallocated([1]) | Total |
Net Loss | (188,184) | (175,072) | (251,511) | (103,710) | (309,957) | (1,028,434) |
Add | ||||||
Depreciation | 64,643 | 42,121 | 15,955 | 5,664 | 29,112 | 157,495 |
Interest Expense | - | - | - | - | 119,177 | 119,177 |
Income Tax | - | (178) | (830) | 18,561 | - | 17,553 |
Subtract | ||||||
Interest Income | - | - | - | - | (55,527) | (55,527) |
EBITDA | (123,541) | (133,129) | (236,386) | (79,485) | (217,195) | (789,736) |
Add | ||||||
Share-based | 11,123 | 11,006 | 8,803 | 3,655 | 80,876 | 115,463 |
Subtract | ||||||
Gain from | - | - | - | - | (18,688) | (18,688) |
Adjusted EBITDA | (112,418) | (122,123) | (227,583) | (75,830) | (155,007) | (692,961) |
Adjusted EBITDA Margin | （ | ( | ( | ( | ( | |
For the Company's continuing operations, 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, 2021 | |||||||
(In RMB'000) | Freight | Supply Chain | Global | Others | Unallocated([1]) | Total | |
Net Loss | (266,493) | (74,380) | (85,518) | (240,610) | (67,144) | (734,145) | |
Add | |||||||
Share-based | 2,863 | 1,967 | 2,066 | 665 | 16,173 | 23,734 | |
Non-GAAP Net | (263,630) | (72,413) | (83,452) | (239,945) | (50,971) | (710,411) | |
Non-GAAP Net | ( | ( | ( | ( | ( | ||
Three Months Ended December 31, 2020 | |||||||
(In RMB'000) | Freight | Supply Chain | Global | Others | Unallocated([1]) | Total | |
Net Income/(Loss) | 7,019 | (79,027) | (60,688) | (34,338) | (85,172) | (252,206) | |
Add | |||||||
hare-based | 2,373 | 1,829 | 2,255 | 683 | 17,261 | 24,401 | |
Subtract | |||||||
Gain from | - | - | - | - | (8,850) | (8,850) | |
Non-GAAP Net | 9,392 | (77,198) | (58,433) | (33,655) | (76,761) | (236,655) | |
Non-GAAP Net | ( | ( | ( | ( | |||
Fiscal Year Ended December 31, 2021 | ||||||
(In RMB'000) | Freight | Supply Chain | Global | Others | Unallocated([1]) | Total |
Net Loss | (457,451) | (103,387) | (267,902) | (341,117) | (94,004) | (1,263,861) |
Add | ||||||
Share-based | 11,444 | 8,351 | 8,604 | 2,701 | 76,581 | 107,681 |
Subtract | ||||||
Gain from | - | - | - | - | (64,205) | (64,205) |
Non-GAAP Net | (446,007) | (95,036) | (259,298) | (338,416) | (81,628) | (1,220,385) |
Non-GAAP Net | ( | ( | ( | ( | ( | |
Fiscal Year Ended December 31, 2020 | ||||||
(In RMB'000) | Freight | Supply Chain | Global | Others | Unallocated([1]) | Total |
Net Loss | (188,184) | (175,072) | (251,511) | (103,710) | (309,957) | (1,028,434) |
Add | ||||||
Share-based | 11,123 | 11,006 | 8,803 | 3,655 | 80,876 | 115,463 |
Amortization of | - | - | 2,782 | - | - | 2,782 |
Subtract | ||||||
Gain from | - | - | - | - | (18,688) | (18,688) |
Non-GAAP Net | (177,061) | (164,066) | (239,926) | (100,055) | (247,769) | (928,877) |
Non-GAAP Net | ( | ( | ( | ( | ( | |
For the Company's continuing operations, 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, | ||||||
2021 | 2021 | ||||||
(In '000) | RMB | US$ | RMB | US$ | |||
Net Loss Attributable to Ordinary Shareholders | (705,418) | (110,693) | (1,211,582) | (190,123) | |||
Add | |||||||
Share-based Compensation Expenses | 23,734 | 3,725 | 107,681 | 16,898 | |||
Subtract | |||||||
Gain from appreciation of investments | - | - | (64,205) | (10,075) | |||
Non-GAAP Net Loss Attributable to Ordinary Non-GAAP Diluted EPS | (681,684) | (106,968) | (1,168,106) | (183,300) | |||
Weighted Average Diluted Shares | |||||||
Diluted | 388,841,762 | 388,841,762 | 388,073,411 | 388,073,411 | |||
Diluted (Non-GAAP) | 388,841,762 | 388,841,762 | 388,073,411 | 388,073,411 | |||
Diluted EPS | (1.81) | (0.28) | (3.12) | (0.49) | |||
Add | |||||||
Non-GAAP adjustment to net loss per share | 0.06 | 0.00 | 0.11 | 0.02 | |||
Non-GAAP Diluted EPS | (1.75) | (0.28) | (3.01) | (0.47) | |||
([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 per share, or Diluted EPS, 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 outstanding during the period.
([6]) 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).
([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 UCargo and Capital business units..
([9]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([10]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([11]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([12]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([13]) 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.
([14]) 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 RMB7,977,909.
([15]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([16]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([17]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([18]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([19]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([20]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([21]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([22]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
View original content to download multimedia:https://www.prnewswire.com/news-releases/best-inc-announces-unaudited-fourth-quarter-and-fiscal-year-2021-financial-results-301498369.html
SOURCE BEST Inc.
FAQ
What were BEST Inc.'s financial results for Q4 2021?
How did BEST Inc. perform in fiscal year 2021?
What is BEST Inc.'s revenue guidance for 2022?
What were the major challenges faced by BEST Inc. in Q4 2021?
