BEST Inc. Completes Sale of its Express Business in China

Rhea-AI Summary

BEST Inc. (NYSE: BEST) has successfully completed the sale of its express delivery business in China to J&T Express Co., Ltd. for approximately RMB6.8 billion (US$1.1 billion). This transaction, finalized on December 17, 2021, follows regulatory approval and is expected to significantly enhance BEST's balance sheet and profitability. CEO Johnny Chou stated this move allows the company to refocus on its core competencies in integrated supply chain, freight, and global logistics services, ultimately aiming to deliver enhanced value to customers and shareholders.

Positive

• Completion of express delivery business sale enhances balance sheet.
• Transaction value of RMB6.8 billion (US$1.1 billion) strengthens capital.
• Refocus on core competencies in supply chain and logistics services.

Negative

• None.

HANGZHOU, China, Dec. 17, 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 the closing and completion of its previously announced sale of its express delivery business in China (the "Business") to J&T Express Co., Ltd. ("J&T Express China"), a PRC limited liability company and a logistics services provider in China, at approximately RMB6.8 billion (US$1.1 billion) enterprise value, contemplated by the definitive agreement entered into by the parties dated October 29, 2021 (the "Agreement").

The Agreement has been approved by relevant regulatory agencies. The final transaction has been completed pursuant to the terms of the Agreement, and the Business has been transferred to J&T Express China.

Johnny Chou, Founder, Chairman and CEO of BEST, commented, "We are pleased with the outcome of this transaction. Its successful culmination allows us to further prioritize and reinforce our efforts in supply chain-based logistics solutions while also significantly improving our balance sheet and profitability. Moving forward, we will firmly center our business on three key pillars – integrated supply chain, freight and global logistics services. We are confident that focusing on these core competencies will enable us to deliver enhanced value for our customers and shareholders."

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.

ABOUT BEST INC.

BEST Inc. (NYSE: BEST) is a leading integrated smart supply chain and logistics solutions provider. Through its proprietary technology platform and extensive networks, BEST offers a comprehensive set of logistics and value-add services, including supply chain management, freight delivery, and international logistics. 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/.

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SOURCE BEST Inc.

FAQ

What was the sale price of BEST's express delivery business in China?

BEST's express delivery business in China was sold for approximately RMB6.8 billion (US$1.1 billion).

When was the sale of BEST's express delivery business completed?

The sale of BEST's express delivery business was completed on December 17, 2021.

Who acquired BEST's express delivery business?

BEST's express delivery business was acquired by J&T Express Co., Ltd.

How will the sale affect BEST's profitability?

The sale is expected to significantly improve BEST's balance sheet and profitability.

What are BEST's future business focuses after the sale?

BEST plans to focus on integrated supply chain, freight, and global logistics services.