EX-99.1 2 tm228775d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

 

BEST Inc. Announces Unaudited Fourth Quarter and Fiscal Year 2021 Financial Results

 

HANGZHOU, China, March 8, 2022 -- 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 50% month-over-month. Supply Chain Management focused on higher margin accounts and expanded its franchised Cloud OFCs network in preparation for new customer acquisition. Global’s results remained encouraging with parcel volume growing 57% YoY for the quarter and 104% YoY for the full year despite the persistent impact of COVID-19.

 

“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 15% to 20%YoY in 2022, and aim to reach profitability in Freight and Supply Chain Management by second half of the year.”

 

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.”

 

1

 

 

FINANCIAL HIGHLIGHTS(1)

 

For the Fourth Quarter Ended December 31, 2021(2):

 

●Revenue was RMB2,724.9 million (US$427.6 million), a decrease of 20.3% 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 was 8.4%, 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.

 

 

(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).

 

2

 

 

For the Fiscal Year Ended December 31, 2021:

 

●Revenue was RMB11,425.8 million (US$1,793.0 million), an increase of 8.5% 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 negative 1.7%, 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 21.8% of total volume during the quarter, up 4.8 ppts YoY. In addition to the challenging macro environment such as the resurgence of the pandemic, the increasing oil price and power shortage, Freight’s performance was affected by the difficulty in Express operations, as Express and Freight shared certain franchisees and suppliers. Freight volume decreased by 8.2% YoY in the fourth quarter, but the volume for the full year increased by 9.8% YoY.

 

 

(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.

 

3

 

 

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 9.4% YoY to 123.3 million in the fourth quarter, of which the total number of orders fulfilled by franchised Cloud OFCs increased by 10.9% YoY to 74.4 million. Its fourth quarter gross margin decreased by 0.6 ppts YoY, primarily due to one-off costs incurred by discontinuing lower-margin accounts. Full-year gross margin increased by 0.6 ppts YoY. In fiscal year 2021, the total number of orders fulfilled by Cloud OFCs increased by 3.5% YoY to 448.2 million and the total number of orders fulfilled by franchised Cloud OFCs increased by 25.0% YoY to 268.3 million.

 

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 56.7% to 43.7 million in the fourth quarter. Global’s gross margin expanded by 3.0 ppts YoY, due to much improved economies of scale from increased market share and continued improvements in service quality and cost control. In fiscal year of 2021, total parcel volume in Southeast Asia increased by 104.4% compared to the prior year, with YoY growth rates of 87.7%, 87.1%, 609.2%, 336.8% and 522.6% from Thailand, Vietnam, Malaysia, Cambodia, and Singapore, respectively.

 

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,
2019		   December 31,
2020		   December 31,
2021		   2020 vs
2019		   2021 vs
2020		 
Freight Volume (Tonne in ‘000)   2,097    2,623    2,408    25.1%   (8.2)%
Supply Chain Management Orders Fulfilled (in ‘000)   121,907    136,126    123,309    11.7%   (9.4)%
Global Parcel Volume in Southeast Asia (in ‘000)   5,157    27,891    43,707    440.9%   56.7%

 

   Fiscal Year Ended   % Change YoY 
   December 31,
2019		   December 31,
2020		   December 31,
2021		   2020 vs
2019		   2021 vs
2020		 
Freight Volume (Tonne in ‘000)   6,980    8,392    9,218    20.2%   9.8%
Supply Chain Management Orders Fulfilled (in ‘000)   356,905    433,224    448,202    21.4%   3.5%
Global Parcel Volume in Southeast Asia (in ‘000)   8,785    73,585    150,392    737.6%   104.4%

 

4

 

 

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
Revenue		   RMB   US$   % of
Revenue		   % Change
YoY		 
Freight   1,624,756    47.5%   1,503,995    236,010    55.2%   (7.4)%
Supply Chain Management   542,332    15.9%   487,337    76,474    17.9%   (10.1)%
Global   253,351    7.4%   330,564    51,873    12.1%   30.5%
Others(9)   1,000,115    29.2%   402,958    63,233    14.8%   (59.7)%
Total Revenue   3,420,554    100.0%   2,724,854    427,590    100.0%   (20.3)%

 

•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 an 8.2% decrease in freight volume, partially offset by a 1.0% 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 a 9.4% 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.

 

 

(8) All numbers represented the financial results from continuing operations, unless otherwise stated.

(9) “Others” Segment primarily represents UCargo and Capital business units..

 

5

 

 

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 
   December 31, 2020   December 31, 2021   Revenue
(In ‘000, except for %)  RMB   % of
Revenue		   RMB   US$   % of
Revenue		   Change
YoY		 
Freight   (1,530,702)   94.2%   (1,585,619)   (248,819)   105.4%   11.2ppt
Supply Chain Management   (549,212)   101.3%   (496,353)   (77,889)   101.9%   0.6ppt
Global   (273,222)   107.8%   (346,392)   (54,356)   104.8%   (3.0ppt)
Others   (952,134)   95.2%   (524,900)   (82,368)   130.3%   35.1ppt
Total Cost of Revenue   (3,305,270)   96.6%   (2,953,264)   (463,432)   108.4%   11.8ppt

 

Cost of Revenue was RMB2,953.3 million (US$463.4 million) or 108.4% of revenue, compared to RMB3,305.3 million or 96.6% of revenue in 2020. The increase of 11.8 ppts in cost of revenue as a percentage of revenue was primarily attributable to the decreased Freight volume and the winding-down of the U-Cargo business.

 

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    12.8%

 

Freight Service Average Cost per Tonne increased by 12.8% YoY, primarily due to lower freight volume and higher costs resulting from increasing oil price and labor costs.

 

Gross Loss was RMB228.4 million (US$35.8 million) , compared to gross profit of RMB115.3 million in 2020; Gross Margin was negative 8.4%, compared to 3.4% in 2020.

 

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      % of Revenue
(In ‘000, except for %)   RMB     % of
Revenue		     RMB     US$     % of
Revenue		     Change
YoY
Selling, General and Administrative Expenses     (322,952 )     9.4 %     (354,793 )     (55,675 )     13.0 %   3.6ppt
    Adjusted for SBC Expenses     (22,382 )     0.6 %     (20,490 )     (3,215 )     0.7 %   0.1ppt
Adjusted Selling, General and Administrative Expenses     (300,570 )     8.8 %     (334,303 )     (52,460 )     12.3 %   3.5ppt
Research and Development Expenses     (39,813 )     1.2 %     (50,294 )     (7,892 )     1.8 %   0.6ppt
    Adjusted for SBC Expenses     (1,785 )     0.1 %     (3,159 )     (496 )     0.1 %   0.0ppt
Adjusted Research and Development Expenses     (38,028 )     1.1 %     (47,135 )     (7,396 )     1.7 %   0.6ppt
Total Operating Expenses     (362,765 )     10.6 %     (405,087 )     (63,567 )     14.8 %   4.2ppt
   Adjusted for SBC Expenses     (24,167 )     0.7 %     (23,649 )     (3,711 )     0.8 %   0.1ppt
Adjusted Total Operating Expenses     (338,598 )     9.9 %     (381,438 )     (59,856 )     14.0 %   4.1ppt

 

6

 

 

Selling, General and Administrative Expenses were RMB354.8 million (US$55.7 million) or 13.0% of revenue in 2021, compared to RMB323.0 million or 9.4% of revenue in 2020; primarily due to the expenses associated with winding down the Capital business unit and additional expenses incurred in transitioning our China express business.

 

Research and Development Expenses were RMB50.3million (US$7.9 million) or 1.8% of revenue in 2021, compared to RMB39.8 million, or 1.2% of revenue in 2020; primarily due to additional expenses incurred in transitioning our China express business.

 

Share-based Compensation (“SBC”) Expenses included in the cost and expense items above were RMB23.7 million (US$3.7 million), compared to RMB24.4 million in 2020. In the fourth quarter of 2021, RMB0.09 million (US$0.01 million) was allocated to cost of revenue, RMB4.6 million (US$0.7 million) was allocated to selling expenses, RMB15.8 million (US$2.5 million) was allocated to general and administrative expenses, and RMB3.2 million (US$0.5 million) was allocated to research and development expenses.

 

Net Loss and Non-GAAP Net Loss from continuing operations

 

Net Loss from continuing operations was RMB734.1 million (US$115.2 million), compared to RMB252.2 million in 2020. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment, Non-GAAP Net Loss from continuing operations was RMB710.4 million (US$111.5 million), compared to RMB236.7 million in 2020.

 

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(9)   Total 
Non-GAAP Net Loss   (263,630)   (72,413)   (83,452)   (239,945)   (50,971)   (710,411)

 

 

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

 

7

 

 

Diluted EPS and Non-GAAP Diluted EPS from continuing operations

 

Diluted EPS from continuing operations was negative RMB1.81 (US$0.28), based on 388.8 million weighted average diluted shares outstanding during the quarter. This compares to negative RMB0.64 on 385.6 million weighted average diluted shares outstanding in the same period of 2020. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment, Non-GAAP Diluted EPS from continuing operations was negative RMB1.75 (US$0.28), compared to negative RMB0.60 in 2020. A reconciliation of non-GAAP diluted EPS to diluted EPS is included at the end of this results announcement.

 

Adjusted EBITDA and Adjusted EBITDA Margin from continuing operations

 

Adjusted EBITDA from continuing operations was negative RMB635.2 million (US$99.7 million), compared to negative RMB167.1million in 2020. Adjusted EBITDA Margin from continuing operations was negative 23.3%, compared to negative 4.9% in 2020.

 

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(10)   Total 
Adjusted EBITDA   (248,266)   (62,903)   (78,756)   (211,901)   (33,338)   (635,164)
Adjusted EBITDA Margin   (16.5)%   (12.9)%   (23.8)%   (52.6)%   -    (23.3)%

 

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$856.4 million), compared to RMB3,740.8 million as of December 31, 2020.

 

Net Cash Used In Continuing Operating Activities

 

Net cash used in operating activities was RMB555.7 million (US$87.2 million), compared to RMB95.8 million of net cash generated from operating activities in 2020. The decrease in net cash generated from operating activities was mainly due to catch-up payments to vendors that were made in December.

 

Capital Expenditures (“CAPEX”)

 

CAPEX was RMB20.6 million (US$3.2 million), or 0.8% of total revenue in the fourth quarter ended December 31, 2021, compared to CAPEX of RMB99.5 million, or 2.9% of total revenue, in the same period of 2020.

 

 

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

 

8

 

 

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
Revenue		   RMB   US$   % of
Revenue		   % Change
YoY		 
Freight   5,175,830    49.1%   5,435,354    852,926    47.6%   5.0%
Supply Chain Management   1,912,323    18.2%   1,815,104    284,829    15.9%   (5.1)%
Global   777,656    7.4%   1,193,855    187,342    10.4%   53.5%
Others   2,662,425    25.3%   2,981,523    467,866    26.1%   12.0%
Total Revenue   10,528,234    100.0%   11,425,836    1,792,963    100.0%   8.5%

 

•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 a 9.8% YoY increase in freight volume, partially offset by a 4.2% 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 a 3.5% 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

        
    December 31, 2020       December 31, 2021       % of  
(In ‘000, except for %)   RMB     % of
Revenue		     RMB     US$     % of
Revenue		    

Revenue
Change

YoY 

  
Freight     (5,063,236 )     97.8 %     (5,557,115 )     (872,033 )     102.2 %     4.4ppt
Supply Chain Management     (1,846,901 )     96.6 %     (1,741,832 )     (273,331 )     96.0 %     (0.6ppt )
Global     (875,733 )     112.6 %     (1,258,511 )     (197,488 )     105.4 %     (7.2ppt )
Others     (2,500,082 )     93.9 %     (3,067,766 )     (481,399 )     102.9 %     9.0ppt
Total Cost of Revenue     (10,285,952 )     97.7 %     (11,625,224 )     (1,824,251 )     101.7 %     4.0ppt

 

9

 

 

Cost of Revenue was RMB11,625.2 million (US$1,824.3 million) or 101.7% of revenue, compared to RMB10,286.0 million or 97.7% of revenue in fiscal year 2020. The increase of 4.0 ppts in cost of revenue as a percentage of revenue was primarily attributable to additional costs resulting from higher oil price and labor costs.

 

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    (0.1)%

 

Freight Service Average Cost per Tonne remained relatively flat, decreasing by 0.1% YoY.

 

Gross Loss was RMB199.4 million (US$31.3 million), compared to gross profit of RMB242.3 million in fiscal year 2020; Gross Margin was negative1.7%, compared to 2.3% in fiscal year 2020.

 

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       % of Revenue  
(In ‘000, except for %)   RMB     % of
Revenue		     RMB     US$     % of
Revenue		     Change
YoY		  
Selling, General and Administrative Expenses     (1,102,936 )     10.5 %     (1,141,717 )     (179,160 )     10.0 %     (0.5ppt )
Adjusted for SBC Expenses     (106,510 )     1.0 %     (98,015 )     (15,381 )     0.9 %     (0.1ppt )
Adjusted Selling, General and Administrative Expenses     (996,426 )     9.5 %     (1,043,702 )     (163,779 )     9.1 %     (0.4ppt )
Research and Development Expenses     (136,065 )     1.3 %     (180,204 )     (28,278 )     1.6 %     0.3ppt
Adjusted for SBC Expenses     (7,763 )     0.1 %     (9,321 )     (1,463 )     0.1 %     0.0ppt
Adjusted Research and Development Expenses     (128,302 )     1.2 %     (170,883 )     (26,815 )     1.5 %     0.3ppt
Total Operating Expenses     (1,239,001 )     11.8 %     (1,321,921 )     (207,438 )     11.6 %     (0.2ppt )
Adjusted for SBC Expenses     (114,273 )     1.1 %     (107,336 )     (16,844 )     1.0 %     (0.1ppt )
Adjusted Total Operating Expenses     (1,124,728 )     10.7 %     (1,214,585 )     (190,594 )     10.6 %     (0.1ppt )

 

10

 

 

Selling, General and Administrative Expenses were RMB1,141.7 million (US$179.2million) or 10.0% of revenue, compared to RMB1,102.9 million or 10.5% of revenue in fiscal year 2020.

 

Research and Development Expenses were RMB180.2 million (US$28.3 million) or 1.6% of revenue, compared to RMB136.1 million, or 1.3% of revenue in fiscal year 2020; primarily due to the increasing expenses to support BEST Global’ s business expansion in Southeast Asia.

 

Share-based Compensation (“SBC”) Expenses included in the cost and expense items above were RMB107.7 million (US$16.9 million), compared to RMB115.5 million in fiscal year 2020. In fiscal year 2021, RMB0.3 million (US$0.05 million) was allocated to cost of revenue, RMB9.7 million (US$1.5 million) was allocated to selling expenses, RMB88.4 million (US$13.9 million) was allocated to general and administrative expenses, and RMB9.3 million (US$1.5 million) was allocated to research and development expenses.

 

Net Loss and Non-GAAP Net Loss from continuing operations

 

Net Loss from continuing operations was RMB1,263.9 million (US$198.3 million), compared to RMB1,028.4 million in fiscal year 2020. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment (if any for a given period). Non-GAAP Net Loss from continuing operations was RMB1,220.4 million (US$191.5 million), compared to RMB928.9 million in fiscal year 2020.

 

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(11)   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$0.49), based on a 388.1 million weighted average diluted shares outstanding during fiscal year 2021. This compares to negative RMB2.59 on 387.5 million weighted average diluted shares outstanding in fiscal year 2020. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment (if any for a given period), Non-GAAP Diluted EPS from continuing operations was negative RMB3.01 (US$0.47), compared to negative RMB2.29 in fiscal year 2020. A reconciliation of non-GAAP Diluted EPS to Diluted EPS is included at the end of this announcement.

 

 

(11) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

 

11

 

 

Adjusted EBITDA and Adjusted EBITDA Margin from continuing operations

  

Adjusted EBITDA from continuing operations was negative RMB932.7 million (US$146.4 million), compared to negative RMB693.0 million in fiscal year 2020. Adjusted EBITDA Margin from continuing operations was negative 8.2%, compared to negative 6.6% in fiscal year 2020.

 

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(12)   Total 
Adjusted EBITDA   (377,944)   (56,338)   (239,771)   (295,648)   36,972    (932,729)
Adjusted EBITDA Margin   (7.0)%   (3.1)%   (20.1)%   (9.9)%   -    (8.2)%

 

Net Cash Used In Continuing Operating Activities

 

Net cash used in operating activities was RMB941.3 million (US$147.7 million), compared to RMB96.4 million of net cash generated from operating activities in fiscal year 2020. The decrease in net cash generated from operating activities was mainly due to extending the payment term due to the pandemic in 2020, which gradually became normalized in 2021.

 

Capital Expenditures (“CAPEX”)

 

CAPEX was RMB145.2 million (US$22.8 million), or 1.3% of total revenue, compared to CAPEX of RMB311.3 million, or 3.0% of total revenue in fiscal year 2020.

 

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.

 

 

(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.

 

12

 

 

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
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/.

 

For investor and media inquiries, please contact:

 

BEST Inc.

 

Investor relations team

ir@best-inc.com

 

The Piacente Group, Inc.

 

Yang Song

Tel: +86-10-6508-0677

E-mail: best@tpg-ir.com

 

The Piacente Group, Inc.

Brandi Piacente

Tel: +1-212-481-2050

E-mail:  best@tpg-ir.com

 

13 

 

 

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.

 

14 

 

 

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.

 

15 

 

 

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 and Share of Net Loss of Equity Investees   (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 loss of Equity Investees   (252,140)   (734,145)   (115,201)   (1,028,254)   (1,263,803)   (198,318)
Share of Net Loss of Equity Investees   (66)   -    -    (180)   (58)   (9)
Net Loss from continuing operations   (252,206)   (734,145)   (115,201)   (1,028,434)   (1,263,861)   (198,327)
Net (loss)/income from discontinued operations   (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 

 

16 

 

 

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 related parties   -    633,475    99,406 
Convertible Senior Notes held by third parties   -    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 Deferred Revenue   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 

 

17 

 

 

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 related parties   1,617,846    955,097    149,876 
Convertible Senior Notes held by third parties   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) (14)    (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 

 

 

(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.

 

18

 

 

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) continuing operating activities   95,780    (555,740)   (87,207)   96,433    (941,323)   (147,715)
Net cash generated from/(used in) discontinued operating activities   128,541    (387,540)   (60,814)   (327,668)   (1,909,746)   (299,681)
Net cash generated from/(used in) operating activities   224,321    (943,280)   (148,021)   (231,235)   (2,851,069)   (447,396)
Net cash generated from continuing Investing Activities   118,606    3,235,312    507,691    242,568    4,991,472    783,271 
Net cash used in discontinued Investing activities   (282,713)   (97,328)   (15,273)   (1,115,501)   (450,424)   (70,681)
Net cash (used in)/generated from investing activities   (164,107)   3,137,984    492,418    (872,933)   4,541,048    712,590 
Net cash generated from/(used in) continuing financing activities   25,191    (703,646)   (110,417)   1,558,713    (194,911)   (30,586)
Net cash (used in)/generated from discontinued financing activities   (215,290)   469,421    73,662    (10,529)   (337,839)   (53,014)
Net cash (used in)/generated from financing activities   (190,099)   (234,225)   (36,755)   1,548,184    (532,750)   (83,600)
Exchange Rate Effect on Cash, Cash Equivalents, and Restricted Cash   (110,778)   (29,695)   (4,660)   (192,110)   (56,215)   (8,821)
Net (Decrease)/Increase in Cash and Cash Equivalents, and Restricted Cash   (240,663)   1,930,784    302,982    251,906    1,101,014    172,773 
Cash and Cash Equivalents, and Restricted Cash at Beginning of Period   4,449,784    3,379,351    530,294    3,957,215    4,209,121    660,503 
Cash and Cash Equivalents, and Restricted Cash at End of Period   4,209,121    5,310,135    833,276    4,209,121    5,310,135    833,276 
Less: Cash and Cash Equivalents, and Restricted Cash held for sales at end of the Period   696,698    -    -    696,698    -    - 
Cash and Cash Equivalents, and Restricted Cash from continuing operations at End of Period   3,512,423    5,310,135    833,276    3,512,423    5,310,135    833,276 

 

19

 

 

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(15)   Total 
Net Loss   (266,493)   (74,380)   (85,518)   (240,610)   (67,144)   (734,145)
Add                              
Depreciation & Amortization   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 Compensation Expenses   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   (16.5)%   (12.9)%   (23.8)%   (52.6)%        (23.3)%

 

   Three Months Ended December 31, 2020 
(In RMB‘000)  Freight   Supply Chain   Global   Others   Unallocated(16)   Total 
Net Income/(Loss)   7,019    (79,027)   (60,688)   (34,338)   (85,172)   (252,206)
Add                              
Depreciation & Amortization   18,121    10,095    3,753    2,760    7,171    41,900 
Interest Expense   -    -    -    -    34,521    34,521 
Income Tax Expense/(Benefit)   -    (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 Compensation Expenses   2,373    1,829    2,255    683    17,261    24,401 
Subtract                              
Gain from appreciation of investments   -    -    -    -    (8,850)   (8,850)
Adjusted EBITDA   27,513    (67,323)   (54,680)   (25,642)   (46,953)   (167,085)
Adjusted EBITDA Margin   1.7%   (12.4)%   (21.6)%   (2.6)%        (4.9)%

 

 

(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.

 

20

 

 

   Fiscal Year Ended December 31, 2021 
(In RMB‘000)  Freight   Supply Chain   Global   Others   Unallocated(17)   Total 
Net Loss   (457,451)   (103,387)   (267,902)   (341,117)   (94,004)   (1,263,861)
Add                              
Depreciation & Amortization   68,063    38,525    19,506    39,758    25,513    191,365 
Interest Expense   -    -    -    -    142,751    142,751 
Income Tax Expense/(Benefit)   -    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
Compensation Expenses		   11,444    8,351    8,604    2,701    76,581    107,681 
Subtract                              
Gain from appreciation of investments   -    -    -    -    (64,205)   (64,205)
Adjusted EBITDA   (377,944)   (56,338)   (239,771)   (295,648)   36,972    (932,729)
Adjusted EBITDA Margin   (7.0)%   (3.1)%   (20.1)%   (9.9)%        (8.2)%

 

   Fiscal Year Ended December 31, 2020 
(In RMB‘000)  Freight   Supply Chain   Global   Others   Unallocated(18)   Total 
Net Loss   (188,184)   (175,072)   (251,511)   (103,710)   (309,957)   (1,028,434)
Add                              
Depreciation & Amortization   64,643    42,121    15,955    5,664    29,112    157,495 
Interest Expense   -    -    -    -    119,177    119,177 
Income Tax Expense/(Benefit)   -    (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
Compensation Expenses		   11,123    11,006    8,803    3,655    80,876    115,463 
Subtract                              
Gain from appreciation of investments   -    -    -    -    (18,688)   (18,688)
Adjusted EBITDA   (112,418)   (122,123)   (227,583)   (75,830)   (155,007)   (692,961)
Adjusted EBITDA Margin   （2.2)%   (6.4)%   (29.3)%   (2.8)%        (6.6)%

 

 

(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.

 

21

 

 

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(19)   Total 
Net Loss   (266,493)   (74,380)   (85,518)   (240,610)   (67,144)   (734,145)
Add                              
Share-based
Compensation Expenses		   2,863    1,967    2,066    665    16,173    23,734 
Non-GAAP Net Loss   (263,630)   (72,413)   (83,452)   (239,945)   (50,971)   (710,411)
Non-GAAP Net Loss Margin   (17.5)%   (14.9)%   (25.2)%   (59.5)%        (26.1)%

 

 

   Three Months Ended December 31, 2020 
(In RMB‘000)  Freight   Supply Chain   Global   Others   Unallocated(20)   Total 
Net Income/(Loss)   7,019    (79,027)   (60,688)   (34,338)   (85,172)   (252,206)
Add                              
Share-based
Compensation Expenses		   2,373    1,829    2,255    683    17,261    24,401 
Subtract                              
Gain from appreciation of investments   -    -    -    -    (8,850)   (8,850)
Non-GAAP Net Income/(Loss)   9,392    (77,198)   (58,433)   (33,655)   (76,761)   (236,655)
Non-GAAP Net Income/(Loss) Margin   0.6%   (14.2)%   (23.1)%   (3.4)%        (6.9)%

 

 

(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.

 

22

 

 

   Fiscal Year Ended December 31, 2021 
(In RMB‘000)  Freight   Supply Chain   Global   Others   Unallocated(21)   Total 
Net Loss   (457,451)   (103,387)   (267,902)   (341,117)   (94,004)   (1,263,861)
Add                              
Share-based
Compensation Expenses		   11,444    8,351    8,604    2,701    76,581    107,681 
Subtract                              
Gain from appreciation of investments   -    -    -    -    (64,205)   (64,205)
Non-GAAP Net Loss   (446,007)   (95,036)   (259,298)   (338,416)   (81,628)   (1,220,385)
Non-GAAP Net Loss Margin   (8.2)%   (5.2)%   (21.7)%   (11.4)%        (10.7)%

 

 

   Fiscal Year Ended December 31, 2020 
(In RMB‘000)  Freight   Supply Chain   Global   Others   Unallocated(22)   Total 
Net Loss   (188,184)   (175,072)   (251,511)   (103,710)   (309,957)   (1,028,434)
Add                              
Share-based
Compensation Expenses		   11,123    11,006    8,803    3,655    80,876    115,463 

Amortization of Intangible Assets Resulting from Business

   -    -    2,782    -    -    2,782 
Subtract                              
Gain from appreciation of investments   -    -    -    -    (18,688)   (18,688)
Non-GAAP Net Loss   (177,061)   (164,066)   (239,926)   (100,055)   (247,769)   (928,877)
Non-GAAP Net Loss Margin   (3.4)%   (8.6)%   (30.9)%   (3.8)%        (8.8)%

 

 

(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.

 

23

 

 

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 Shareholders for Computing Non-GAAP Diluted EPS   (681,684)   (106,968)   (1,168,106)   (183,300)

Weighted Average Diluted Shares Outstanding During the

    Quarter

                    
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)

 

24