EX-99.1 2 tm2331482d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

 

BEST Inc. Announces Unaudited Third Quarter 2023 Financial Results

 

HANGZHOU, China, November 23, 2023 -- BEST Inc. (NYSE: BEST) (“BEST” or the “Company”), a leading integrated smart supply chain solutions and logistics services provider in China and Southeast Asia (“SEA”), today announced its unaudited financial results for the third quarter ended September 30, 2023.

 

FINANCIAL HIGHLIGHTS(1)

 

For the Third Quarter Ended September 30, 2023:(2)

 

Revenue was RMB2,226.7 million (US$305.2 million), compared to RMB2,029.1 million in the third quarter of 2022. The increase was primarily due to increased revenue of BEST Freight and BEST Global.

 

Gross profit was RMB51.8 million (US$7.1 million), compared to a gross loss of RMB39.0 million 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 was 2.3%, compared to a gross loss margin of 1.9% in the third quarter of 2022.

 

Net Loss from continuing operations was RMB193.0 million (US$26.5 million), compared to RMB378.9 million in the third quarter of 2022. Non-GAAP net loss from continuing operations(3)(4) was RMB180.9 million (US$24.8 million), compared to RMB363.0 million in the third quarter of 2022.

 

Diluted loss per ADS(5) from continuing operations was RMB9.46 (US$1.30), compared to a loss of RMB17.60 in the third quarter of 2022. Non-GAAP diluted loss per ADS(3)(4) from continuing operations was RMB8.81 (US$1.21), compared to a loss of RMB16.79 in the third quarter of 2022.

 

 

(1) All numbers presented have been rounded to the nearest integer, tenth, or hundredth, and year over year comparisons are based on figures before rounding.

(2) In December 2021, BEST sold its China express business, the principal terms of which were previously announced. As a result, China express business has been deconsolidated from the Company and its historical financial results are reflected in the Company’s consolidated financial statements as discontinued operations accordingly. The financial information and non-GAAP financial information disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated.

(3) Non-GAAP net income/loss represents net income/loss excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and fair value change of equity investments (if any).

(4) See the sections entitled “Use of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures” for more information about the non-GAAP measures referred to within this results announcement.

(5) Diluted earnings/loss per ADS, is calculated by dividing net income/loss attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares expressed in ADS outstanding during the period.

 

 1 

 

 

EBITDA(6) from continuing operations was negative RMB151.2 million (US$20.7 million), compared to negative RMB335.9 million in the third quarter of 2022. Adjusted EBITDA(6) from continuing operations was negative RMB139.1 million (US$19.1 million), compared to negative RMB320.0 million in the third quarter of 2022.

 

BEST Freight – 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.

 

BEST Supply Chain Management – 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.

 

BEST Global – 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 and Malaysia, 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.

 

Others – The Company continued to wind down its Capital business line and expects to complete the wind-down by the end of 2023.

 

 

(6) EBITDA represents net income/loss excluding depreciation, amortization, interest expense and income tax expense and minus interest income. Adjusted EBITDA represents EBITDA excluding share-based compensation expenses and fair value change of equity investments (if any).

 

 2 

 

 

Key Operational Metrics

 

   Three Months Ended   % Change YOY 
   September 30,
2021
   September 30, 
2022
   September 30,
2023
   2022 vs 
2021
   2023 vs 
2022
 
Freight Volume (Tonne in ‘000)   2,427    2,527    2,557    4.1%   1.2%
Supply Chain Management volume (Tonne in ‘000)   260    480    680    84.6%   41.7%
Global Parcel Volume in SEA (in ‘000)   37,082    27,044    39,194    (27.1)%   44.9%

 

FINANCIAL RESULTS(7)

 

For the Third Quarter Ended September 30, 2023:

 

Revenue

 

The following table sets forth a breakdown of revenue by business segment for the periods indicated.

 

Table 1 – Breakdown of Revenue by Business Segment

 

   Three Months Ended     
   September 30, 2022   September 30, 2023     
(In ‘000, except for )%  RMB   % of
Revenue
   RMB   US$   % of
Revenue
   % Change
YOY
 
Total Freight   1,325,833    65.3%   1,457,988    199,834    65.5%   10.0%
Supply Chain Management   461,527    22.7%   465,790    63,842    20.9%   0.9%
Global   211,347    10.4%   275,198    37,719    12.4%   30.2%
Others(8)   30,417    1.6%   27,680    3,794    1.2%   (9.0)%
Total Revenue   2,029,124    100.0%   2,226,656    305,189    100.0%   9.7%

 

Freight Service Revenue was RMB1,458.0 million (US$199.8 million) for the third quarter of 2023, compared to RMB1,325.8 million 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.

 

Supply Chain Management Service Revenue increased by 0.9% year over year to RMB465.8 million (US$63.8 million) for the third quarter of 2023, up from RMB461.5 million in the same period of last year.

 

Global Service Revenue increased by 30.2% year over year to RMB275.2 million (US$37.7 million) for the third quarter of 2023 from RMB211.3 million in the same period last year primarily due to rapid volume growth in Vietnam, Malaysia and cross-border business.

 

 

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

(8) Others” Segment primarily represents Capital business unit.

 

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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    
   September 30, 2022   September 30, 2023   % of Revenue
(In ‘000, except for )%  RMB   % of
 Revenue
   RMB   US$   % of 
Revenue
   Change
YOY
Freight   (1,365,074)   103.0%   (1,410,625)   (193,342)   96.8%   (6.2)ppt
Supply Chain Management   (428,190)   92.8%   (423,320)   (58,021)   90.9%   (1.9)ppt
Global   (255,341)   120.8%   (324,408)   (44,464)   117.9%   (2.9)ppt
Others   (19,469)   64.0%   (16,540)   (2,267)   59.8%   (4.2)ppt
Total Cost of Revenue   (2,068,074)   101.9%   (2,174,893)   (298,094)   97.7%   (4.2)ppt

 

Cost of Revenue for Freight was RMB1,410.6 million (US$193.3 million), 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.

 

Cost of Revenue for Supply Chain Management was RMB423.3 million (US$58.0 million), 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.

 

Cost of Revenue for Global was RMB324.4 million (US$44.5 million), 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.

 

Gross Profit was RMB51.8 million (US$7.1 million), compared to a gross loss of RMB39.0 million in the third quarter of 2022; Gross Margin was positive 2.3%, compared to negative 1.9% in the third quarter of 2022.

 

 4 

 

 

Operating Expenses

 

Selling, General and Administrative (“SG&A”) Expenses were RMB236.3 million (US$32.4 million), or 10.6% of revenue, in the third quarter of 2023, compared to RMB275.2 million, 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.

 

Research and Development Expenses were RMB27.8 million (US$3.8 million) or 1.3% of revenue in the third quarter of 2023, compared to RMB39.6 million or 2.0% of revenue in the third quarter of 2022, primarily due to reduced headcount.

 

Share-based Compensation (“SBC”) Expenses included in the cost and expense items above were RMB12.2 million (US$1.7 million) in the third quarter of 2023, compared to RMB15.9 million in the same period of 2022. Of the total SBC expenses, RMB0.05 million (US$0.01 million) was allocated to cost of revenue, RMB0.5 million (US$0.1 million) was allocated to selling expenses, RMB10.7 million (US$1.5 million) was allocated to general and administrative expenses, and RMB0.8 million (US$0.1 million) was allocated to research and development expenses.

 

Net Loss and Non-GAAP Net Loss from continuing operations

 

Net Loss from continuing operations in the third quarter of 2023 was RMB193.0 million (US$26.5 million), compared to RMB378.9 million in the same period of 2022. Excluding SBC expenses, non-GAAP net loss from continuing operations in the third quarter of 2023 was RMB180.9 million (US$24.8 million), compared to RMB363.0 million in the third quarter of 2022.

 

Diluted loss per ADS and Non-GAAP diluted loss per ADS from continuing operations

 

Diluted loss per ADS from continuing operations in the third quarter of 2023 was RMB9.46 (US$1.30), compared to a loss of RMB17.60 in the same period of 2022. Excluding SBC expenses non-GAAP diluted loss per ADS from continuing operations in the third quarter of 2023 was RMB8.81 (US$1.21), compared to a loss of RMB16.79 in the third quarter of 2022. A reconciliation of non-GAAP diluted loss per ADS to diluted loss per ADS is included at the end of this results announcement.

 

Adjusted EBITDA and Adjusted EBITDA Margin from continuing operations

 

Adjusted EBITDA from continuing operations in the third quarter of 2023 was negative RMB139.1 million (US$19.1 million), compared to negative RMB320.0 million in the same period of 2022. Adjusted EBITDA margin from continuing operations in the third quarter of 2023 was negative 6.2%, compared to negative 15.8% in the same period of 2022.

 

 5 

 

 

Cash and Cash Equivalents, Restricted Cash and Short-term Investments

 

As of September 30, 2023, cash and cash equivalents, restricted cash and short-term investments were RMB2,360.9 million (US$323.6 million), compared to RMB3,332.0 million as of September 30, 2022. In the third quarter, the Company repurchased approximately US$75 million (RMB 542 million) aggregate principal amount of its existing Convertible Senior Notes due 2024.

 

Net Cash Used In Continuing Operating Activities

 

Net cash used in continuing operating activities in the third quarter of 2023 was RMB234.4 million (US$32.13 million), compared to RMB250.4 million of net cash used in continuing operating activities in the same period of 2022. The decrease in net cash used in operating activities was mainly due to the decreased net loss in the third quarter of 2023.

 

SHARES OUTSTANDING

 

As of November 09, 2023, the Company had approximately 397.6 million ordinary shares outstanding (9). Each American Depositary Share represents twenty (20) Class A ordinary shares.

 

As previously announced, effective from April 4, 2023, the Company changed the ratio of its American Depositary Shares to its Class A ordinary shares, par value US$0.01 per share, from the original ADS ratio of one (1) ADS to five (5) Class A ordinary share, to a new ADS ratio of one (1) ADS to twenty (20) Class A ordinary shares.

 

As previously announced, the Company’s board of directors authorized a share repurchase program, under which the Company could repurchase up to US$20 million worth of its outstanding American Depositary Shares over a 12-month period. The Company’s board of directors has terminated the share repurchase program, effective as of September 25, 2023. Prior to the program’s termination, the Company repurchased a total of 1,265,685 ADSs for a total amount paid of US$3,311,134.95 (excluding commissions) under the program.

 

ABOUT BEST INC.

 

BEST Inc. (NYSE: BEST) is a leading integrated smart supply chain solutions and logistics services provider in China and Southeast Asia. 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/.

 

 

(9) 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.

 

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For investor and media inquiries, please contact:

 

BEST Inc

Investor relations team 

ir@best-inc.com

 

SAFE HARBOR STATEMENT

 

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as BEST's strategic and operational plans, contain forward-looking statements. BEST may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about BEST's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: BEST's goals and strategies; BEST's future business development, results of operations and financial condition; BEST's ability to maintain and enhance its ecosystem; BEST's ability to compete effectively; BEST's ability to continue to innovate, meet evolving market trends, adapt to changing customer demands and maintain its culture of innovation; fluctuations in general economic and business conditions in China and other countries in which BEST operates, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in BEST's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and BEST does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

USE OF NON-GAAP FINANCIAL MEASURES

 

In evaluating its business, BEST considers and uses non-GAAP measures, such as non-GAAP net loss/income, non-GAAP net loss/income margin, adjusted EBITDA, adjusted EBITDA margin, EBITDA, and non-GAAP Diluted earnings/loss per ADS, as supplemental measures in the evaluation of the Company’s operating results and in the Company’s financial and operational decision-making. The Company believes these non-GAAP financial measures that help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of the expenses and gains that the Company includes in loss from operations and net loss. The Company believes that these non-GAAP financial measures provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures” in the results announcement.

 

The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company's calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

 

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Summary of Unaudited Condensed Consolidated Income Statements

(In Thousands)

 

   Three Months Ended September 30,   Nine Months Ended September 30, 
   2022   2023   2022   2023 
   RMB   RMB   US$   RMB   RMB   US$ 
Revenue                        
Freight   1,325,833    1,457,988    199,834    3,627,082    3,902,486    534,880 
Supply Chain Management   461,527    465,790    63,842    1,321,473    1,387,250    190,138 
Global   211,347    275,198    37,719    721,227    711,607    97,534 
Others   30,417    

27,680

    3,794    92,895    78,250    10,725 
Total Revenue   2,029,124    2,226,656    305,189    5,762,677    6,079,593    833,277 
Cost of Revenue                              
Freight   (1,365,074)   (1,410,625)   (193,342)   (3,837,911)   (3,784,616)   (518,725)
Supply Chain Management   (428,190)   (423,320)   (58,021)   (1,233,307)   (1,256,540)   (172,223)
Global   (255,341)   (324,408)   (44,464)   (817,573)   (861,338)   (118,056)
Others   (19,469)   (16,540)   (2,267)   (78,967)   (44,989)   (6,166)
Total Cost of Revenue   (2,068,074)   (2,174,893)   (298,094)   (5,967,758)   (5,947,483)   (815,170)
Gross (Loss)/Profit   (38,950)   51,763    7,095    (205,081)   132,110    18,107 
Selling Expenses   (62,241)   (68,054)   (9,328)   (183,297)   (184,541)   (25,293)
General and Administrative Expenses   (212,921)   (168,286)   (23,066)   (680,607)   (528,375)   (72,420)
Research and Development Expenses   (39,632)   (27,843)   (3,816)   (114,934)   (86,468)   (11,851)
Other operating (expense)/income, net   (14,185)   973    133    105,430    83    11 
Loss from Operations   (367,929)   (211,447)   (28,982)   (1,078,489)   (667,191)   (91,446)
Interest Income   19,981    18,283    2,506    61,153    65,962    9,041 
Interest Expense   (20,569)   (15,800)   (2,166)   (72,729)   (50,419)   (6,911)
Foreign Exchange (loss)/gain   (98,628)   6,177    847    (201,048)   (25,760)   (3,531)
Other Income   2,657    131    18    23,765    10,598    1,453 
Other Expense   (464)   (103)   (14)   19,578    (3,819)   (524)
Gain on changes in the fair value of derivative assets/liabilities   86,108    10,279    1,409    149,196    46,436    6,365 
Loss before Income Tax and Share of Net Loss of Equity Investees   (378,844)   (192,480)   (26,382)   (1,098,574)   (624,193)   (85,553)
Income Tax Expense   (93)   (568)   (77)   (405)   (892)   (122)
Loss before Share of Net loss of Equity Investees   (378,937)   (193,048)   (26,459)   (1,098,979)   (625,085)   (85,675)
Net Loss from continuing operations   (378,937)   (193,048)   (26,459)   (1,098,979)   (625,085)   (85,675)
Net (Loss)/income from discontinued operations   (8,904)   -    -    (6,677)   15,222    2,086 
Net Loss   (387,841)   (193,048)   (26,459)   (1,105,656)   (609,863)   (83,589)
Net Loss from continuing operations attributable to non-controlling interests   (9,976)   (14,942)   (2,048)   (26,925)   (42,171)   (5,780)
Net Loss attributable to BEST Inc.   (377,865)   (178,106)   (24,411)   (1,078,731)   (567,692)   (77,809)

 

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Summary of Unaudited Condensed Consolidated Balance Sheets

(In Thousands)

 

   As of December 31,2022   As of September 30, 2023 
   RMB   RMB   US$ 
Assets            
Current Assets               
Cash and Cash Equivalents   533,481    482,817    66,175 
Restricted Cash   399,337    227,113    31,128 
Accounts and Notes Receivables   691,324    869,922    119,233 
Inventories   16,480    10,213    1,400 
Prepayments and Other Current Assets   777,842    687,850    94,278 
Short-term Investments   725,043    36,377    4,986 
Amounts Due from Related Parties   76,368    41,732    5,720 
Lease Rental Receivables   43,067    40,326    5,527 
Total Current Assets   3,262,942    2,396,350    328,447 
Non-current Assets               
Property and Equipment, Net   784,732    731,424    100,250 
Intangible Assets, Net   75,553    88,541    12,136 
Long-term Investments   156,859    156,859    21,499 
Goodwill   54,135    54,135    7,420 
Non-current Deposits   50,767    42,907    5,881 
Other Non-current Assets   75,666    113,360    15,537 
Restricted Cash   1,545,605    1,614,553    221,293 
Lease Rental Receivables   40,188    3,817    523 
Operating Lease Right-of-use Assets   1,743,798    1,413,430    193,727 
Total non-current Assets   4,527,303    4,219,026    578,266 
Total Assets   7,790,245    6,615,376    906,713 
Liabilities and Shareholders’ Equity               
Current Liabilities               
Long-term borrowings-current   79,148    19,801    2,714 
Convertible Senior Notes held by related parties   522,744    538,485    73,806 
Convertible Senior Notes held by third parties   77    79    11 
Short-term Bank Loans   183,270    442,845    60,697 
Accounts and Notes Payable   1,430,004    1,597,125    218,904 
Income Tax Payable   1,563    2,538    348 
Customer Advances and Deposits and Deferred Revenue   277,737    279,771    38,346 
Accrued Expenses and Other Liabilities   1,145,654    1,051,736    144,152 
Financing Lease Liabilities   11,873    1,267    174 
Operating Lease Liabilities   544,262    538,255    73,774 
Amounts Due to Related Parties   1,315    1,436    196 
Total Current Liabilities   4,197,647    4,473,338    613,122 

 

 9 

 

 

Summary of Unaudited Condensed Consolidated Balance Sheets (Cont’d) 

(In Thousands)

 

   As of December 31, 2022   As of September 30, 2023 
   RMB   RMB   US$ 
Non-current Liabilities               
Convertible senior notes held by related parties   522,744    -    - 
Long-term borrowings   381    -    - 
Operating Lease Liabilities   1,292,057    1,138    156 
Financing Lease Liabilities   26,024    21,368    2,929 
Other Non-current Liabilities   18,752    956,243    131,064 
Long-term Bank Loans   928,894    963,976    132,124 
Total Non-current Liabilities   2,788,852    1,942,725    266,273 
Total Liabilities   6,986,499    6,416,063    879,395 
Mezzanine Equity:               
Convertible Non-controlling Interests   191,865    191,865    26,297 
Total mezzanine equity   191,865    191,865    26,297 
Shareholders’ Equity               
Ordinary Shares   25,988    25,988    3,562 
Treasury Shares   -    (23,853)   (3,269)
Additional Paid-In Capital   19,481,417    19,518,882    2,675,285 
Accumulated Deficit   (18,934,860)   (19,502,552)   (2,673,047)
Accumulated Other Comprehensive Income   124,464    115,794    15,871 
BEST Inc. Shareholders’ Equity   697,009    134,259    18,402 
Non-controlling Interests   (85,128)   (126,811)   (17,381)
Total Shareholders’ Equity   611,881    7,448    1,021 
Total Liabilities, Mezzanine Equity and Shareholders’ Equity   7,790,245    6,615,376    906,713 

 

 10 

 

 

Summary of Unaudited Condensed Consolidated Statements of Cash Flows 

(In Thousands)

 

   Three Months Ended September 30,   Nine Months Ended September 30, 
   2022   2023   2022   2023 
   RMB   RMB   US$   RMB   RMB   US$ 
Net cash used in continuing operating activities   (250,375)   (234,429)   (32,131)   (809,772)   (555,609)   (76,153)
Net cash used in discontinued operating activities   (7,917)   -    -    (66,174)   -    - 
Net cash used in operating activities   (258,292)   (234,429)   (32,131)   (875,946)   (555,609)   (76,153)
Net cash generated from/(used in) from continuing investing activities   891,756    65,212    8,938    (88,780)   701,698    96,176 
Net cash generated from/(used in)  investing activities   891,756    65,212    8,938    (88,780)   701,698    96,176 
Net cash used in from continuing financing activities   (982,052)   (602,297)   (82,552)   (1,948,848)   (375,362)   (51,448)
Net cash used in from financing activities   (982,052)   (602,297)   (82,552)   (1,948,848)   (375,362)   (51,448)
Exchange Rate Effect on Cash and Cash Equivalents, and Restricted Cash   44,482    27,416    3,758    92,586    75,333    10,325 
Net decrease in Cash and Cash Equivalents, and Restricted Cash   (304,106)   (744,098)   (101,987)   (2,820,988)   (153,940)   (21,099)
Cash and Cash Equivalents, and Restricted Cash at Beginning of Period   2,799,266    3,068,581    420,584    5,316,148    2,478,423    339,696 
Cash and Cash Equivalents, and Restricted Cash at End of Period   2,495,160    2,324,483    318,597    2,495,160    2,324,483    318,597 
Cash and Cash Equivalents, and Restricted Cash from continuing operations at End of Period   2,495,160    2,324,483    318,597    2,495,160    2,324,483    318,597 

 

 11 

 

 

RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES

 

For the Company’s continuing operations, the table below sets forth a reconciliation of the Company’s net (loss)/income to EBITDA, adjusted EBITDA and adjusted EBITDA margin for the periods indicated:

 

Table 3 – Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

 

   Three Months Ended September 30, 2023 
(In RMB‘000)  Freight   Supply Chain   Global   Others   Unallocated(10)   Total 
Net Loss   (37,702)   (477)   (114,597)   (16,993)   (23,279)   (193,048)
Add                              
Depreciation & Amortization   19,330    8,558    11,278    283    4,287    43,736 
Interest Expense   -    -    -    -    15,800    15,800 
Income Tax Expense   2    1    -    565    -    568 
Subtract                              
Interest Income   -    -    -    -    (18,283)   (18,283)
EBITDA   (18,370)   8,082    (103,319)   (16,145)   (21,475)   (151,227)
Add                              
Share-based Compensation Expenses   1,680    865    510    9    9,089    12,153 
Adjusted EBITDA   (16,690)   8,947    (102,809)   (16,136)   (12,386)   (139,074)
Adjusted EBITDA Margin   (1.1)%   1.9%   (37.4)%   (58.3)%   -    (6.2)%
     
   Three Months Ended September 30, 2022 
(In RMB‘000)  Freight   Supply Chain   Global   Others   Unallocated   Total 
Net Loss   (138,749)   (9,664)   (110,426)   (48,601)   (71,497)   (378,937)
Add                              
Depreciation & Amortization   19,417    8,397    6,531    1,976    6,025    42,346 
Interest Expense   -    -    -    -    20,569    20,569 
Income Tax Expense   -    (22)   -    115    -    93 
Subtract                              
Interest Income   -    -    -    -    (19,981)   (19,981)
EBITDA   (119,332)   (1,289)   (103,895)   (46,510)   (64,884)    (335,910)
Add                              
Share-based Compensation Expenses   2,511    1,314    1,354    23    10,694    15,896 
Adjusted EBITDA   (116,821)   25    (102,541)   (46,487)   (54,190)   (320,014)
Adjusted EBITDA Margin   (8.8)%   0.0%   (48.5)%   (152.8)%   -    (15.8)%

 

 

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

 

 12 

 

 

For the Company’s continuing operations, the table below sets forth a reconciliation of the Company’s net (loss)/income to non-GAAP net Income/(loss), non-GAAP net Income/(loss) margin for the periods indicated:

 

Table 4 – Reconciliation of Non-GAAP Net (Loss)/Income and Non-GAAP Net (Loss)/Income Margin

 

   Three Months Ended September 30, 2023 
(In RMB‘000)  Freight   Supply Chain   Global   Others   Unallocated   Total 
Net Loss   (37,702)   (477)   (114,597)   (16,993)   (23,279)   (193,048)
Add                              
Share-based Compensation Expenses   1,680    865    510    9    9,089    12,153 
Non-GAAP Net (Loss)/Income   (36,022)   388    (114,087)   (16,984)   (14,190)   (180,895)
Non-GAAP Net (Loss)/Income Margin   (2.5)%   0.1%   (41.5)%   (61.4)%   -    (8.1)%

 

   Three Months Ended September 30, 2022 
(In RMB‘000)  Freight   Supply Chain   Global   Others   Unallocated   Total 
Net Loss   (138,749)   (9,664)   (110,426)   (48,601)   (71,497)   (378,937)
Add                              
Share-based Compensation Expenses   2,511    1,314    1,354    23    10,694    15,896 
Non-GAAP Net Loss   (136,238)   (8,350)   (109,072)   (48,578)   (60,803)   (363,041)
Non-GAAP Net Loss Margin   (10.3)%   (1.8)%   (51.6)%   (159.7)%   -    (17.9)%

 

 13 

 

 

For the Company’s continuing operations, the table below sets forth a reconciliation of the Company’s diluted loss per ADS to Non-GAAP diluted loss per ADS for the periods indicated:

 

Table 5 – Reconciliation of diluted loss per ADS and Non-GAAP diluted loss per ADS

 

   Three Months Ended September 
30,
   Nine Months Ended September 
30,
 
   2023   2023 
(In ‘000)  RMB   US$   RMB   US$ 
Net Loss Attributable to Ordinary Shareholders   (178,106)   (24,411)   (582,914)   (79,895)
Add                    
Share-based Compensation Expenses   12,153    1,666    37,419    5,129 
Non-GAAP Net Loss Attributable to Ordinary Shareholders   (165,953)   (22,746)   (545,495)   (74,766)
Weighted Average Diluted Ordinary Shares Outstanding During the Quarter                    
Diluted   376,632,651    376,632,651    385,954,907    385,954,907 
Diluted (Non-GAAP)   376,632,651    376,632,651    385,954,907    385,954,907 
Diluted loss per ordinary share   (0.47)   (0.06)   (1.51)   (0.21)
Add                    
Non-GAAP adjustment to net loss per ordinary share   0.03    0.00    0.10    0.02 
Non-GAAP diluted loss per ordinary share   (0.44)   (0.06)   (1.41)   (0.19)
                     
Diluted loss per ADS   (9.46)   (1.30)   (30.21)   (4.14)
Add                    
Non-GAAP adjustment to net loss per ADS   0.65    0.09    1.94    0.27 
Non-GAAP diluted loss per ADS   (8.81)   (1.21)   (28.27)   (3.87)

 

 14