\n![\"\"](\"https:\/\/mma.prnasia.com\/media2\/1229159\/image_836843_21588047_Logo.jpg?p=medium600\" "\\"logo\\"") <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nHANGZHOU, China<\/span>, Nov. 23, 2023 \/PRNewswire\/ — BEST Inc. (NYSE: BEST) ("BEST" or the "Company"), a leading integrated smart supply chain solutions and logistics services provider in China<\/span> and Southeast Asia<\/span> ("SEA"), today announced its unaudited financial results for the third quarter ended September 30, 2023<\/span>.<\/span><\/p>\n\n<\/p><\/div>\n FINANCIAL HIGHLIGHTS<\/b>[1]<\/sup><\/p>\nFor the Third Quarter Ended September 30, 2023<\/span>:<\/u><\/b>[<\/u>2]<\/sup><\/p>\n\n- Revenue<\/b> was RMB2,226.7 million<\/span> (US$305.2 million<\/span>), compared to RMB2,029.1 million<\/span> in the third quarter of 2022. The increase was primarily due to increased revenue of BEST Freight and BEST Global.<\/li>\n
- Gross profit <\/b>was RMB51.8 million<\/span> (US$7.1 million<\/span>), compared to a gross loss of RMB39.0 million<\/span> in the third quarter of 2022. The increase was primarily due to further improvements in operating efficiency for both Freight and Supply Chain Management. Gross profit margin<\/b> was 2.3%, compared to a gross loss margin of 1.9% in the third quarter of 2022.<\/li>\n
- Net Loss<\/b> from continuing operations<\/b> was RMB193.0 million<\/span> (US$26.5 million<\/span>), compared to RMB378.9 million<\/span> in the third quarter of 2022. <\/span>Non-GAAP net loss from continuing operations<\/b>[3][4] <\/sup>was RMB180.9 million<\/span> (US$24.8 million<\/span>), compared to RMB363.0 million<\/span> in the third quarter of 2022.<\/span><\/li>\n
- Diluted loss per ADS<\/b>[5] <\/sup>from continuing operations<\/b> was RMB9.46<\/span> (US$1.30)<\/span>, compared to a loss of RMB17.60<\/span> in the third quarter of 2022. Non-GAAP diluted loss per ADS<\/b>[3][4]<\/sup> from continuing operations <\/b>was RMB8.81<\/span> (US$1.21)<\/span>, compared to a loss of RMB16.79<\/span> in the third quarter of 2022.<\/li>\n
- EBITDA<\/b>[6]<\/sup> from continuing operations<\/b> was negative RMB151.2 million<\/span> (US$20.7 million<\/span>), compared to negative RMB335.9 million<\/span> in the third quarter of 2022. Adjusted EBITDA<\/b>[6]<\/sup> from continuing operations<\/b> was negative RMB139.1 million<\/span> (US$19.1 million<\/span>), compared to negative RMB320.0 million<\/span> in the third quarter of 2022.<\/li>\n<\/ul>\n
BEST Freight<\/b> \u2013 BEST Freight recorded a revenue growth of 10.0% in the third quarter of 2023, year over year. Freight’s gross margin was 3.2%, representing a 6.2% percentage points improvement from the same period of 2022 as we continued to reduce operating expenses and improve efficiency.<\/p>\n BEST Supply Chain Management<\/b> \u2013 Driven by its best-in-class service quality and digital capabilities, BEST Supply Chain Management recorded a gross margin of 9.1% compared to 7.2% in the same period of 2022.<\/p>\n BEST Global<\/b> \u2013 In the third quarter, BEST Global continued its robust post-COVID recovery. BEST Global’s revenue increased by 30.2% and its parcel volumes increased by 44.9%, both year over year, with parcel volumes in Vietnam<\/span> and Malaysia<\/span>, increased by 64.9% and 122.0%, respectively. Total volume of the cross-border business in the third quarter increased by approximately 41.2% quarter-over-quarter. <\/p>\nOthers<\/b> \u2013 The Company continued to wind down its Capital business line and expects to complete the wind-down by the end of 2023.<\/p>\n Key Operational Metrics <\/b><\/p>\n\n \n\n\n| <\/td>\n | \n Three Months Ended<\/b><\/span><\/p>\n<\/td>\n | \n % Change YOY<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n\n| <\/td>\n | \n September 30, <\/b><\/span><\/p>\n2021<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n | \n September 30,
2022<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n | \n September 30, <\/b><\/span><\/p>\n2023<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n | \n 2022 vs
2021<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n | \n 2023 vs
2022<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n\n| <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n Freight Volume (Tonne in ‘000)<\/span><\/p>\n<\/td>\n | \n 2,427<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 2,527<\/span><\/p>\n<\/td>\n | \n 2,557<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 4.1 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 1.2 %<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Supply Chain Management
volume (Tonne in ‘000)<\/span><\/p>\n<\/td>\n | \n 260<\/span><\/p>\n<\/td>\n | \n 480<\/span><\/p>\n<\/td>\n | \n 680<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 84.6 %<\/span><\/p>\n<\/td>\n | \n 41.7 %<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Global Parcel Volume in <\/span>SEA<\/span>
(in ‘000)<\/span><\/p>\n<\/td>\n | \n 37,082<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 27,044<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 39,194<\/span><\/p>\n<\/td>\n | <\/td>\n | \n (27.1 %)<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 44.9 %<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n <\/p>\n FINANCIAL RESULTS<\/b>[7]<\/sup><\/p>\nFor the Third Quarter Ended September 30, 2023<\/span>:<\/b><\/p>\nRevenue<\/b><\/u><\/p>\n The following table sets forth a breakdown of revenue by business segment for the periods indicated.<\/p>\n \n \n\n\n| \n Table 1 \u2013 Breakdown of Revenue by Business Segment<\/i><\/span><\/p>\n<\/td>\n<\/tr>\n\n| <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| <\/td>\n | \n Three Months Ended<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| <\/td>\n | \n September 30, 2022<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n | \n September 30, 2023<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n (In ‘000, except for %)<\/b><\/span><\/p>\n<\/td>\n | \n RMB<\/b><\/span><\/p>\n<\/td>\n | \n % of
Revenue<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n | \n RMB<\/b><\/span><\/p>\n<\/td>\n | \n US$<\/b><\/span><\/p>\n<\/td>\n | \n % of
Revenue<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n | \n % Change<\/b>
YOY<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Total Freight<\/span> <\/span><\/p>\n<\/td>\n | \n 1,325,833<\/span><\/p>\n<\/td>\n | \n 65.3 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 1,457,988<\/span><\/p>\n<\/td>\n | \n 199,834<\/span><\/p>\n<\/td>\n | \n 65.5 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 10.0 %<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Supply Chain
Management <\/span><\/p>\n<\/td>\n | \n 461,527<\/span><\/p>\n<\/td>\n | \n 22.7 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 465,790<\/span><\/p>\n<\/td>\n | \n 63,842<\/span><\/p>\n<\/td>\n | \n 20.9 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 0.9 %<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Global<\/span><\/p>\n<\/td>\n | \n 211,347<\/span><\/p>\n<\/td>\n | \n 10.4 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 275,198<\/span><\/p>\n<\/td>\n | \n 37,719<\/span><\/p>\n<\/td>\n | \n 12.4 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 30.2 %<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Others<\/span>[8]<\/sup><\/p>\n<\/td>\n| \n 30,417<\/span><\/p>\n<\/td>\n | \n 1.6 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 27,680<\/span><\/p>\n<\/td>\n | \n 3,794<\/span><\/p>\n<\/td>\n | \n 1.2 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n (9.0 %)<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Total Revenue<\/b><\/span><\/p>\n<\/td>\n | \n 2,029,124<\/b><\/span><\/p>\n<\/td>\n | \n 100.0 %<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n | \n 2,226,656<\/b><\/span><\/p>\n<\/td>\n | \n 305,189<\/b><\/span><\/p>\n<\/td>\n | \n 100.0 %<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n | \n 9.7 %<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n <\/p>\n \n- Freight Service Revenue was RMB1,458.0 million<\/span> (US$199.8 million<\/span>) for the third quarter of 2023, compared to RMB1,325.8 million<\/span> in the same period last year. Freight service revenue increased by 10.0% year over year, primarily resulting from increases in average selling price per tonne.<\/li>\n
- Supply Chain Management Service Revenue increased by 0.9% year over year to RMB465.8 million<\/span> (US$63.8 million<\/span>) for the third quarter of 2023, up from RMB461.5 million<\/span> in the same period of last year.<\/li>\n
- Global Service Revenue increased by 30.2% year over year to RMB275.2 million<\/span> (US$37.7 million<\/span>) for the third quarter of 2023 from RMB211.3 million<\/span> in the same period last year primarily due to rapid volume growth in Vietnam<\/span>, Malaysia<\/span> and cross-border business.<\/li>\n<\/ul>\n
Cost of Revenue<\/b><\/u><\/p>\n The following table sets forth a breakdown of cost of revenue by business segment for the periods indicated.<\/p>\n \n \n\n\n| \n Table 2 \u2013 Breakdown of Cost of Revenue by Business Segment<\/i><\/span><\/p>\n<\/td>\n<\/tr>\n\n| <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| <\/td>\n | \n Three Months Ended<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n | \n % of Revenue
Change<\/b><\/span><\/p>\nYOY<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n\n| <\/td>\n | \n September 30, 2022<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n | \n September 30, 2023<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n (In ‘000, except for %)<\/b><\/span><\/p>\n<\/td>\n | \n RMB<\/b><\/span><\/p>\n<\/td>\n | \n % of
Revenue<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n | \n RMB<\/b><\/span><\/p>\n<\/td>\n | \n US$<\/b><\/span><\/p>\n<\/td>\n | \n % of
Revenue<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n Freight <\/span><\/p>\n<\/td>\n | \n (1,365,074)<\/span><\/p>\n<\/td>\n | \n 103.0 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n (1,410,625)<\/span><\/p>\n<\/td>\n | \n (193,342)<\/span><\/p>\n<\/td>\n | \n 96.8 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n \uff08<\/span>6.2ppt<\/span>\uff09<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Supply Chain
Management<\/span><\/p>\n<\/td>\n | \n (428,190)<\/span><\/p>\n<\/td>\n | \n 92.8 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n (423,320)<\/span><\/p>\n<\/td>\n | \n (58,021)<\/span><\/p>\n<\/td>\n | \n 90.9 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n \uff08<\/span>1.9ppt<\/span>\uff09<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Global<\/span><\/p>\n<\/td>\n | \n (255,341)<\/span><\/p>\n<\/td>\n | \n 120.8 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n (324,408)<\/span><\/p>\n<\/td>\n | \n (44,464)<\/span><\/p>\n<\/td>\n | \n 117.9 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n (2.9ppt)<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Others<\/span><\/p>\n<\/td>\n | \n (19,469)<\/span><\/p>\n<\/td>\n | \n 64.0 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n (16,540)<\/span><\/p>\n<\/td>\n | \n (2,267)<\/span><\/p>\n<\/td>\n | \n 59.8 %<\/span><\/p>\n<\/td>\n | <\/td>\n | \n \uff08<\/span>4.2ppt<\/span>\uff09<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Total Cost of Revenue<\/b><\/span><\/p>\n<\/td>\n | \n (2,068,074)<\/b><\/span><\/p>\n<\/td>\n | \n 101.9 %<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n | \n (2,174,893)<\/b><\/span><\/p>\n<\/td>\n | \n (298,094)<\/b><\/span><\/p>\n<\/td>\n | \n 97.7 %<\/b><\/span><\/p>\n<\/td>\n | <\/td>\n | \n \uff08<\/b>4.2ppt<\/b>\uff09<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n\n- Cost of Revenue for Freight was RMB1,410.6 million<\/span> (US$193.3 million<\/span>), or 96.8% of revenue in the third quarter of 2023. The 6.2 percentage points year-over-year decrease in cost of revenue as a percentage of revenue was mainly due to higher price and reduced unit cost.<\/li>\n
- Cost of Revenue for Supply Chain Management was RMB423.3 million<\/span> (US$58.0 million<\/span>), or 90.9% of revenue in the third quarter of 2023. The 1.9 percentage points year-over-year decrease in cost of revenue as a percentage of revenue was primarily due to improved operating efficiency and optimized customer mix.<\/li>\n
- Cost of Revenue for Global was RMB324.4 million<\/span> (US$44.5 million<\/span>), or 117.9% of revenue in the third quarter of 2023. The 2.9% year-over-year decrease in cost of revenue as a percentage of revenue was primarily due to higher gross margin in cross-border business and Vietnam<\/span>.<\/li>\n<\/ul>\n
Gross Profit <\/b>was RMB51.8 million<\/span> (US$7.1 million<\/span>), compared to a gross loss of RMB39.0 million<\/span> in the third quarter of 2022; Gross Margin<\/b> was positive 2.3%, compared to negative 1.9% in the third quarter of 2022.<\/p>\nOperating Expenses<\/u><\/b><\/p>\n Selling, General and Administrative ("SG&A") Expenses<\/b> were RMB236.3 million<\/span> (US$32.4 million<\/span>), or 10.6% of revenue, in the third quarter of 2023, compared to RMB275.2 million<\/span>, or 13.6% of revenue, in the same period of 2022. SG&A expenses in the third quarter decreased by 14.1% year over year due to reduced headcount and bad debt expense.<\/p>\nResearch and Development Expenses<\/b> were RMB27.8 million<\/span> (US$3.8 million<\/span>) or 1.3% of revenue in the third quarter of 2023, compared to RMB39.6 million<\/span> or 2.0% of revenue in the third quarter of 2022, primarily due to reduced headcount.<\/p>\nShare-based Compensation ("SBC") Expenses<\/b> included in the cost and expense items above were RMB12.2 million<\/span> (US$1.7 million<\/span>) in the third quarter of 2023, compared to RMB15.9 million<\/span> in the same period of 2022. Of the total SBC expenses, RMB0.05 million<\/span> (US$0.01 million<\/span>) was allocated to cost of revenue, RMB0.5 million<\/span> (US$0.1 million<\/span>) was allocated to selling expenses, RMB10.7 million<\/span> (US$1.5 million<\/span>) was allocated to general and administrative expenses, and RMB0.8 million<\/span> (US$0.1 million<\/span>) was allocated to research and development expenses.<\/p>\nNet Loss and Non-GAAP Net Loss from continuing operations<\/u><\/b><\/p>\n Net Loss from continuing operations<\/b> in the third quarter of 2023 was RMB193.0 million<\/span> (US$26.5 million<\/span>), compared to RMB378.9 million<\/span> in the same period of 2022. Excluding SBC expenses, non-GAAP net loss from continuing operations<\/b> in the third quarter of 2023 was RMB180.9 million<\/span> (US$24.8 million<\/span>), compared to RMB363.0 million<\/span> in the third quarter of 2022.<\/p>\n | | | | | | | | | | | | | | | | | | | | |