HANGZHOU, China, Nov. 13, 2019 /PRNewswire/ -- BEST Inc. (NYSE:
BEST) ("BEST" or the "Company"), a leading integrated smart supply
chain solutions and logistics services provider in China, today announced its unaudited financial
results for the quarter ended September 30,
2019.
"BEST's third quarter results were highlighted by strong revenue
growth and significant net loss reduction which saw us achieve
positive non-GAAP net income for a second consecutive quarter and
we remain on track to achieve our goal of achieving positive
non-GAAP net income for the full year 2019," said Johnny Chou, Chairman and Chief Executive
Officer of BEST. "Despite challenging market conditions, e-commerce
grew at a healthy pace which contributed to accelerating demand for
BEST's supply chain solutions and logistics services. BEST Express
and Freight continued to gain market share and lower costs, while
Supply Chain Management and Store+ optimized their
operations and improved profitability. Our "Others" segments of
UCargo, Global and Capital continued to expand and deliver strong
growth as we capitalized on the significant opportunities in
truckload services brokerage and geographic expansion in
Southeast Asia. BEST is very well
positioned to maintain our strong momentum as we enter into the
fourth quarter, which is a peak season for our businesses, and as
we execute our strategy of above-market growth and increased
profitability."
"BEST delivered an excellent third quarter with strong revenue
growth and margin improvement despite a competitive industry
environment and the traditionally slow season for our businesses,"
said Jenny Pan, BEST's principal
accounting officer. "We recorded solid revenue growth of 22%
year-over-year on revenue of RMB8.7
billion. We also achieved positive non-GAAP net income for
the first time during a third quarter period, with non-GAAP net
income of RMB16.7 million compared to
non-GAAP net loss of RMB101 million
for the same period of last year. Gross profit margin increased by
0.4 percentage points year-over-year to 5.8%. EBITDA increased by
71% to RMB93 million while adjusted
EBITDA increased to RMB114 million
from RMB1.3 million for the same
period of last year. Our company also generated positive operating
cashflow of RMB237 million compared
to RMB86 million for the same period
of last year. In mid-September, we successfully completed a
US$200 million convertible notes
offering. As of September 30, 2019,
our cash and cash equivalents, restricted cash and short-term
investments were RMB4.8 billion which
allows us to invest for the future and create long-term value for
our shareholders."
FINANCIAL HIGHLIGHTS
For the Quarter Ended September 30,
2019:
- Revenue was RMB8,745.3
million (US$1,223.5 million),
an increase of 21.6% year-over-year ("YoY"). Revenue
ex-Store+ was RMB7,883.3
million (US$1,102.9 million),
an increase of 25.1% YoY.
- Express Service Revenue increased 19.4% YoY to RMB5,202.2 million (US$727.8 million).
- Freight Service Revenue increased 25.8% YoY to RMB1,375.4 million (US$192.4 million).
- Supply Chain Management Service Revenue decreased 8.3% YoY to
RMB450.9 million (US$63.1 million).
- Store+ Service Revenue decreased 2.7% YoY to
RMB862.0 million (US$120.6 million).
- Others [1] Service
Revenue increased 136.6% YoY to RMB854.9
million (US$119.6
million).
- Gross Profit was RMB507.1
million (US$70.9 million), an
increase of 30.0% YoY; and Gross Profit Margin was 5.8%, an
increase of 0.4 percentage points YoY. Gross Profit
ex-Store+ was RMB416.2
million (US$58.2 million), an
increase of 30.6% YoY; and Gross Profit Margin
ex-Store+ was 5.3%, an increase of 0.2 percentage
points YoY.
- Net Loss was RMB6.7
million (US$0.9 million), an
improvement of 86.9% YoY; and Non-GAAP Net Income
[2] [3] was RMB16.7 million (US$2.3
million), compared to Non-GAAP Net Loss of RMB101.4 million in the same period of 2018.
Net Income ex-Store+ was RMB93.2 million (US$13.0
million); and Non-GAAP Net Income
ex-Store+ [2]
[3] was RMB113.5 million
(US$15.9 million).
- Diluted EPS [4] was negative RMB0.01 (US$0.001),
compared to negative RMB0.13 in the
same period of 2018; and Non-GAAP diluted EPS
[3] [5] was RMB0.05 (US$0.007),
compared to negative RMB0.26 in the
same period of 2018.
- EBITDA [3]
[6] was RMB93.4 million
(US$13.1 million), compared to
RMB54.7 million in the same period of
2018; and Adjusted EBITDA [3]
[6] was RMB114.3 million
(US$16.0 million), compared to
RMB1.3 million in the same period of
2018. EBITDA [3]
[6] ex-Store+ was RMB190.1 million (US$26.6
million); and Adjusted EBITDA [3] [6] ex-Store+
was RMB209.5 million (US$29.3 million).
- Net Cash Generated from Operating Activities was
RMB237.3 million (US$33.2 million), compared to RMB86.3 million in the same period of 2018.
BUSINESS HIGHLIGHTS [7]
BEST Express:
Table 1 – BEST
Express Key Operating Metrics
|
|
|
|
|
|
Three Months
Ended
|
|
%
Change
|
(in RMB, unless
otherwise noted)
|
September 30,
2018
|
September 30,
2019
|
|
YoY
|
Parcel Volume
(in '000)
|
1,371,055
|
1,890,842
|
|
37.9%
|
BEST Express Market
Share [8] (%)
|
10.8%
|
11.7%
|
|
0.9ppts
|
Average Revenue Per
Parcel
|
3.18
|
2.75
|
|
(13.4%)
|
Average Cost Per
Parcel
|
3.02
|
2.62
|
|
(13.2%)
|
Average Transportation
Cost Per Parcel
|
0.86
|
0.75
|
|
(12.7%)
|
Average Labor Cost Per
Parcel
|
0.29
|
0.23
|
|
(22.9%)
|
Average Lease Cost Per
Parcel
|
0.11
|
0.10
|
|
(5.1%)
|
Average Other Cost Per
Parcel
|
0.17
|
0.11
|
|
(34.6%)
|
Average Last-mile Cost
Per Parcel
|
1.59
|
1.43
|
|
(9.9%)
|
Gross Profit per
Parcel
|
0.16
|
0.13
|
|
(18.6%)
|
Hubs & Sortation
Centers (as of period end)
|
117
|
94
|
|
(19.7%)
|
- Strong volume growth and market share gain: Express
parcel volume grew by 37.9% YoY to 1.89 billion, compared to
industry-wide YoY growth rate of 27.6% [9] in the third quarter of 2019. The
Company increased its market share to 11.7% in the third quarter of
2019, a YoY increase of 0.9 percentage points.
- Continuous unit cost reduction: Reduced average cost per
parcel by 13.2% to RMB2.62 in the
third quarter of 2019, compared to RMB3.02 in the same period of 2018.
- Ongoing network optimization: Further reduced total
number of hubs and sortation centers by 19.7% YoY to 94 as of
September 30, 2019 to strengthen
operating efficiency.
- Investment in technology application: Continued to
invest in automation and digitalization, with 80 automated sorting
lines and 967 dimension and weight scanning systems in use as of
September 30, 2019. Digital waybill
usage was 100% in the third quarter of 2019.
BEST Freight:
Table 2 – BEST
Freight Key Operating Metrics
|
|
|
|
|
|
Three Months
Ended
|
|
%
Change
|
(In RMB, unless
otherwise noted)
|
September 30,
2018
|
September 30,
2019
|
|
YoY
|
Freight Volume (Tonne
in '000)
|
1,474
|
1,885
|
|
27.9%
|
Average Revenue per
Tonne
|
741.7
|
729.8
|
|
(1.6%)
|
Average Cost Per
Tonne
|
707.5
|
683.9
|
|
(3.3%)
|
Average Transportation
Cost Per Tonne
|
372.0
|
342.5
|
|
(7.9%)
|
Average Labor Cost Per
Tonne
|
96.0
|
83.8
|
|
(12.8%)
|
Average Lease Cost Per
Tonne
|
54.7
|
49.6
|
|
(9.3%)
|
Average Other Cost Per
Tonne
|
42.8
|
42.7
|
|
(0.4%)
|
Average Last-mile Cost
Per Tonne
|
141.9
|
165.5
|
|
16.6%
|
Gross Profit Per
Tonne
|
34.3
|
45.8
|
|
33.7%
|
Hubs & Sortation
Centers (as of period end)
|
120
|
99
|
|
(17.5%)
|
Last-mile Service
Stations (as of period end)
|
11,698
|
17,817
|
|
52.3%
|
- Solid volume growth: Freight volume increased by 27.9%
YoY to 1,885,000 tonnes in the third quarter of 2019, significantly
higher than the industry-wide growth.
- Continuous margin improvement: Gross profit margin
reached 6.3% with a YoY increase of 1.7 percentage points in the
third quarter of 2019, resulting from stable price level and
continued unit cost reduction.
- Ongoing network optimization: Reduced the total number
of hubs and sortation centers by 17.5% YoY to 99 as of September 30, 2019 to further enhance operating
efficiency.
- Service coverage expansion: The total number of
last-mile service stations operated by franchisee partners
increased by 52.3% YoY to 17,817 as of September 30, 2019, which enhanced both density
and breadth of coverage.
BEST Supply Chain Management:
- Strong order fulfillment volume growth: The total number
of orders fulfilled by Cloud OFCs increased by 52.7% YoY to 86.3
million in the third quarter of 2019, of which total number of
orders fulfilled by franchised Cloud OFCs increased by 112.8% YoY
to 40.5 million.
- Significant improvement in gross profit margin: The
gross profit margin improved by 4.1 percentage points YoY to 8.1%
in the third quarter of 2019.
- Extensive nationwide network and services: Increased the
total number of Cloud OFCs to 385, of which 280 Cloud OFCs were
owned and operated by franchisees; managed over 3.0 million square
meters of facilities as of September 30,
2019, of which 1.3 million square meters of facilities were
owned and operated by franchisees.
BEST Store+:
- Strong network expansion: Continued to focus on
developing branded stores. Total number of branded stores including
franchised and self-operated stores increased by 161.0% YoY to
3,414 as of September 30, 2019, of
which the number of franchised BEST-Neighbor stores increased by
198.0% to 3,066 as of September 30,
2019. Total number of membership stores increased by 3.6%
YoY to 429,892 as of September 30,
2019.
- Significant increase in orders fulfilled for branded
stores: Total number of orders fulfilled for branded stores
increased by 53.6% YoY to 221,498 in the third quarter of 2019,
representing 24.5% of total orders fulfilled, of which the total
number of orders fulfilled for franchised BEST-Neighbor stores
increased by 403% YoY to 99,856 in the third quarter of 2019.
- Gross profit margin improvement: Continued to focus on
order quality enhancement of membership stores to improve
profitability. As a result, gross profit margin increased by 2.5
percentage points YoY to 10.5% in the third quarter of 2019.
- Expanding to-customer ("2C") last-mile network:
Continued to grow its 2C membership programs to develop
online-to-offline business and last-mile services. As of
September 30, 2019, branded stores
had acquired over 1 million 2C members, representing a YoY increase
of 222%.
Others:
- BEST UCargo:
- Rapid scaling of network: The
number of registered agents on the platform increased by 16.4% YoY
to 4,938 as of September 30, 2019;
the number of registered trucks increased by 27.0% YoY to 307,114
as of September 30, 2019.
- Significant increase in transaction volume and revenue:
The total number of transactions increased by 25.3% YoY to 170,198,
of which external transactions increased by 223.8% YoY to 158,046;
revenue generated from external customers increased by 174% to
RMB702.0 million (US$99.4 million).
- BEST Global:
- International service coverage expansion: Continued to
develop cross-border solutions and broaden service offerings in
international markets. As of September 30,
2019, BEST provided international service coverage in 19
countries and regions outside Mainland China, compared to 15
countries in the same period of 2018.
- Accelerated growth in Southeast
Asia: Strong growth in express parcel volume and
developing supply chain management services in Thailand and Vietnam.
- BEST Capital:
- As of September 30, 2019, BEST
Capital had provided financing solutions to 9,765 trucks in total,
a YoY increase of 60.6% compared to September 30, 2018.
FINANCIAL RESULTS
For the Quarter Ended September 30,
2019:
Revenue
The following table sets forth a breakdown of revenue by
business segment for the periods indicated.
Table 3 –
Breakdown of Revenue by Business Segment
|
|
|
Three Months
Ended
|
|
|
|
September 30,
2018
|
|
September 30,
2019
|
|
|
(In '000, except
for %)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
% Change
YoY
|
Express
|
4,357,527
|
60.6%
|
|
5,202,214
|
727,817
|
59.5%
|
|
19.4%
|
Freight
|
1,093,331
|
15.2%
|
|
1,375,411
|
192,427
|
15.7%
|
|
25.8%
|
Supply Chain
Mgmt.
|
491,633
|
6.8%
|
|
450,854
|
63,077
|
5.2%
|
|
(8.3%)
|
Others
|
361,293
|
5.0%
|
|
854,853
|
119,598
|
9.8%
|
|
136.6%
|
Revenue
ex-Store+
|
6,303,784
|
87.7%
|
|
7,883,332
|
1,102,919
|
90.1%
|
|
25.1%
|
Store+
|
885,518
|
12.3%
|
|
861,964
|
120,593
|
9.9%
|
|
(2.7%)
|
Revenue
|
7,189,302
|
100.0%
|
|
8,745,296
|
1,223,512
|
100.0%
|
|
21.6%
|
- Express Service Revenue increased by 19.4% YoY to RMB5,202.2 million (US$727.8 million) from RMB4,357.5 million, primarily due to 37.9% YoY
increase in parcel volume, which was offset by a 13.4% YoY decrease
in average selling price per parcel.
- Freight Service Revenue increased by 25.8% YoY to RMB1,375.4 million (US$192.4 million) from RMB1,093.3 million, primarily due to 27.9% YoY
increase in freight volume.
- Supply Chain Management Service Revenue decreased by 8.3% YoY
to RMB450.9 million (US$63.1 million) from RMB491.6 million, primarily due to
discontinuation of projects with low profitability and focus on
growing franchised Cloud OFC business.
- BEST Store+ Service Revenue decreased by 2.7% YoY to
RMB862.0 million (US$120.6 million) from RMB885.5 million, primarily due to a decrease in
the number of orders fulfilled for membership stores resulting from
ongoing efforts to improve order quality and margins.
- Others Service Revenues increased by 136.6% YoY to RMB854.9 million (US$120.0
million) from RMB361.3
million, primarily due to increased revenue generated from
BEST UCargo's external customers, BEST Global's expanded operations
and BEST Capital's financing solutions to ecosystem
participants.
Cost of Revenue
The following table sets forth a breakdown of cost of revenue by
business segment for the periods indicated.
Table 4 –
Breakdown of Cost of Revenue by Business Segment
|
|
|
Three Months
Ended
|
|
% of Revenue
Change
YoY
|
|
|
September 30,
2018
|
|
September 30,
2019
|
|
|
(In '000, except
for %)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
|
Express
|
(4,139,558)
|
95.0%
|
|
(4,957,398)
|
(693,565)
|
95.3%
|
|
0.3ppts
|
Freight
|
(1,042,820)
|
95.4%
|
|
(1,289,098)
|
(180,351)
|
93.7%
|
|
(1.7ppts)
|
Supply Chain
Mgmt.
|
(472,045)
|
96.0%
|
|
(414,197)
|
(57,948)
|
91.9%
|
|
(4.1ppts)
|
Others
|
(330,659)
|
91.5%
|
|
(806,469)
|
(112,829)
|
94.3%
|
|
2.8ppts
|
Cost of Revenue
ex-Store+
|
(5,985,082)
|
94.9%
|
|
(7,467,162)
|
(1,044,693)
|
94.7%
|
|
(0.2ppts)
|
Store+
|
(814,299)
|
92.0%
|
|
(771,078)
|
(107,878)
|
89.5%
|
|
(2.5ppts)
|
Cost of
Revenue
|
(6,799,381)
|
94.6%
|
|
(8,238,240)
|
(1,152,571)
|
94.2%
|
|
(0.4ppts)
|
Cost of Revenue was RMB8,238.2
million (US$1,152.6 million)
or 94.2% of revenue in the quarter ended September 30, 2019, compared to RMB6,799.4 million or 94.6% of revenue in the
same quarter of 2018. The decrease of 0.4 percentage point in cost
of revenue as a percentage of revenue was primarily attributable to
increased operating efficiency.
Gross Profit was RMB507.1
million (US$70.9 million), a
YoY increase of 30.0% compared to RMB389.9
million in the same quarter of 2018. Gross Profit
Margin was 5.8%, compared to 5.4% in the same quarter of 2018.
Gross Profit ex-Store+ was RMB416.2 million (US$58.2
million), an increase of 30.6% YoY; and Gross Profit
Margin ex-Store+ was 5.3%, an increase of 0.2
percentage points YoY.
Operating Expenses
The following table sets forth a breakdown of operating expenses
and adjusted operating expenses by category for the
periods indicated.
Table 5 –
Breakdown of Operating Expenses and Adjusted Operating Expenses by
Category
|
|
|
Three Months
Ended
|
|
% of Revenue
Change
YoY
|
|
September 30,
2018
|
|
September 30,
2019
|
|
(In '000, except
for %)
|
RMB
|
% of
Revenue
|
|
RMB
|
US$
|
% of
Revenue
|
|
Selling
Expenses
|
(235,681)
|
3.3%
|
|
(212,714)
|
(29,760)
|
2.4%
|
|
(0.9ppts)
|
Adjusted for
SBC
Expenses
|
(1,837)
|
0.0%
|
|
(2,571)
|
(360)
|
0.0%
|
|
0.0ppts
|
Adjusted Selling
Expenses
|
(233,844)
|
3.3%
|
|
(210,143)
|
(29,400)
|
2.4%
|
|
(0.9ppts)
|
General and
Administrative Expenses
|
(264,784)
|
3.7%
|
|
(275,667)
|
(38,567)
|
3.2%
|
|
(0.5ppts)
|
Adjusted for
SBC
Expenses
|
(20,500)
|
0.3%
|
|
(15,595)
|
(2,182)
|
0.2%
|
|
(0.1ppts)
|
Adjusted General
and
Administrative Expenses
|
(244,284)
|
3.4%
|
|
(260,072)
|
(36,385)
|
3.0%
|
|
(0.5ppts)
|
Research and
Development Expenses
|
(42,922)
|
0.6%
|
|
(64,522)
|
(9,027)
|
0.7%
|
|
0.1ppts
|
Adjusted for
SBC Expenses
|
(2,240)
|
0.0%
|
|
(2,291)
|
(321)
|
0.0%
|
|
0.0ppts
|
Adjusted Research
and
Development Expenses
|
(40,682)
|
0.6%
|
|
(62,231)
|
(8,706)
|
0.7%
|
|
0.1ppts
|
Total Operating
Expenses
|
(543,387)
|
7.6%
|
|
(552,903)
|
(77,354)
|
6.3%
|
|
(1.4ppts)
|
Adjusted for
SBC Expenses
|
(24,577)
|
0.3%
|
|
(20,457)
|
(2,862)
|
0.2%
|
|
(0.1ppts)
|
Adjusted Total
Operating Expenses
|
(518,810)
|
7.2%
|
|
(532,446)
|
(74,492)
|
6.1%
|
|
(1.2ppts)
|
Selling Expenses were RMB212.7
million (US$29.8 million) or
2.4% of revenue in the quarter ended September 30, 2019, compared to RMB235.7 million or 3.3% of revenue in the same
quarter of 2018. The decrease in selling expenses as a percentage
of revenue was primarily attributable to economies of scale and
improved operating efficiencies. Selling Expenses
ex-Store+ were RMB74.5
million, representing 0.9% of ex-Store+
revenue.
General and Administrative Expenses were RMB275.7 million (US$38.6
million) or 3.1% of revenue in the quarter ended
September 30, 2019, compared to
RMB264.8 million or 3.7% of revenue
in the same quarter of 2018. The decrease in general and
administrative expenses as a percentage of revenue was primarily
attributable to economies of scale and improved operating
efficiencies. General and Administrative Expenses
ex-Store+ was RMB232.8
million, representing 3.0% of ex-Store+
revenue.
Research and Development Expenses were RMB64.5 million (US$9.0
million) or 0.7% of revenue in the quarter ended
September 30, 2019, compared to
RMB43.0 million, or 0.6% of revenue
in the same quarter of 2018. The increase in research and
development expenses was primarily attributable to the hiring of
additional IT professionals. Research and Development Expenses
ex-Store+ were RMB54.8
million, representing 0.7% of ex-Store+
revenue.
Share-based compensation ("SBC") Expenses included in the
cost and expense items above in the quarter ended September 30, 2019 were RMB21.0 million (US$2.9
million), compared to RMB25.2
million in the same quarter of 2018. In the third quarter of
2019, approximately RMB0.5 million
(US$0.07 million) was allocated to
cost of revenue, RMB2.6 million
(US$0.4 million) was allocated to
selling expenses, RMB15.6 million
(US$2.2 million) was allocated to
general and administrative expenses, and RMB2.3 million (US$0.3
million) was allocated to research and development
expenses.
Net Loss and Non-GAAP Net Income
Net loss in the quarter ended September 30, 2019 was RMB6.7 million (US$0.9
million), an improvement of 86.9% compared to RMB51.1 million in the same quarter of 2018.
Excluding the impact of SBC expense and amortization of intangible
assets resulting from business acquisitions, non-GAAP Net
Income in the quarter ended September
30, 2019 was RMB16.7 million
(US$2.3 million), compared to
non-GAAP Net Loss of RMB101.4 million
in the same quarter of 2018. Ex-Store+ non-GAAP Net
Income in the quarter ended September
30, 2019 was RMB113.5 million
(US$15.9 million).
Diluted EPS and non-GAAP diluted EPS
Diluted EPS in the quarter ended September 30, 2019 was negative RMB0.01 (US$0.001)
based on a weighted average of 388.7 million diluted shares
outstanding during the quarter, an improvement of 92.4% compared to
negative RMB0.13 on a weighted
average of 387.1 million diluted shares outstanding during the same
period of 2018. Excluding SBC expense and amortization of
intangible assets resulting from business acquisitions, non-GAAP
diluted EPS in the quarter ended September 30, 2019 was RMB0.05 (US$0.007),
compared to negative RMB0.26 in the
same period of 2018. A reconciliation of diluted EPS to non-GAAP
diluted EPS is included at the end of this results
announcement.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA was RMB114.3
million (US$16.0 million),
improved from RMB1.3 million in the
quarter ended September 30, 2018.
Adjusted EBITDA Margin was 1.3%, improved from 0.02% in the
quarter ended September 30, 2018. The
improvement of RMB113.0 million
(US$15.8 million), or 1.28 percentage
points, was primarily attributable to strong revenue growth and
improved operating efficiency. Adjusted EBITDA [3] [6] ex-Store+ was
RMB209.5 million (US$29.3 million). Adjusted EBITDA Margin
ex-Store+ was 2.7%.
The following table sets forth a breakdown of adjusted EBITDA
and adjusted EBITDA margin for the three months ended September 30, 2019 by segment [10], and a reconciliation of the
Company's net loss by segment [11] to EBITDA, adjusted EBITDA and
adjusted EBITDA margin.
Table
6 – Breakdown and Reconciliation of Adjusted
EBITDA and Adjusted EBITDA Margin by Segment [11]
|
|
|
Three Months Ended
September 30, 2019
|
(In
RMB'000)
|
BEST
(ex-Store+)
|
|
Store+
|
|
Unallocated
[11]
|
|
Total
|
Net
Income/(Loss)
|
140,866
|
|
(99,927)
|
|
(47,635)
|
|
(6,696)
|
Add
|
|
|
|
|
|
|
|
Depreciation &
Amortization
|
94,127
|
|
3,570
|
|
7,904
|
|
105,601
|
Interest
Expense
|
-
|
|
-
|
|
12,023
|
|
12,023
|
Income Tax
Expense
|
4,076
|
|
(385)
|
|
(0)
|
|
3,691
|
Subtract
|
|
|
|
|
|
|
|
Interest
Income
|
-
|
|
-
|
|
(21,242)
|
|
(21,242)
|
EBITDA
|
239,069
|
|
(96,742)
|
|
(48,950)
|
|
93,377
|
Add
|
|
|
|
|
|
|
|
Share-based
Compensation Expenses
|
12,754
|
|
1,617
|
|
6,588
|
|
20,959
|
Adjusted
EBITDA
|
251,823
|
|
(95,125)
|
|
(42,362)
|
|
114,336
|
Adjusted EBITDA
Margin
|
3.2%
|
|
(11.0%)
|
|
n/m
|
|
1.3%
|
The following table sets forth a breakdown of non-GAAP net
income/loss for the three months ended September 30, 2019 by segment, and a
reconciliation of the Company's net loss by segment to non-GAAP net
income.
Table
7 – Breakdown and Reconciliation of non-GAAP
net income by Segment
|
|
|
|
Three Months Ended
September 30, 2019
|
(In
RMB'000)
|
BEST
(ex-Store+)
|
|
Store+
|
|
Unallocated
|
|
Total
|
Net
Income/(Loss)
|
140,866
|
|
(99,927)
|
|
(47,635)
|
|
(6,696)
|
Add
|
|
|
|
|
|
|
|
Share-based
Compensation Expenses
|
12,754
|
|
1,617
|
|
6,588
|
|
20,959
|
Amortization
of Intangible Assets
Resulting from Business Acquisitions
|
930
|
|
1,541
|
|
-
|
|
2,471
|
Non-GAAP Net
Income/(Loss)
|
154,550
|
|
(96,769)
|
|
(41,047)
|
|
16,734
|
Cash and Cash Equivalents, Restricted Cash and Short-term
Investments
As of September 30, 2019, cash and
cash equivalents, restricted cash and short-term investments were
RMB4,778.3 million (US$668.5 million), compared to RMB4,045.7 million as of June 30, 2019.
Net Cash Generated from Operating Activities
Net cash generated from operating activities was RMB237.3 million (US$33.2
million) for the third quarter of 2019, compared to
RMB86.3 million in the same period of
2018.
Capital Expenditures ("CAPEX")
CAPEX was RMB523.0 million
(US$73.2 million), or 6.0% of total
revenue in the quarter ended September 30,
2019, compared to CAPEX of RMB412.2
million, or 5.7% of total revenue, in the same period of
2018. The increase in CAPEX was primarily due to the upgrade of
automation systems in major hubs, sortation centers and Cloud OFCs,
including investments in high-speed automated sorting, dimension
and weight scanning systems.
SHARES OUTSTANDING
As of the date of this press release, the Company had
approximately 389.2 million ordinary shares outstanding
[12]. Each ADS
represents one Class A ordinary share.
FINANCIAL GUIDANCE
Based on current market conditions and current operations, and
after taking into account the lower average selling price per
parcel for Express and the lower revenue growth for
Store+, we adjusted our full fiscal year 2019 revenue
guidance to be in the range of RMB34.9 to RMB35.1
billion. This represents management's current and
preliminary expectation, which is subject to change.
COMPANY SHARE REPURCHASE
On November 13, 2019, the Company
announced that the board of directors of the Company has authorized
a share repurchase program whereby BEST may repurchase up to
US$100 million worth of its
outstanding American depositary shares ("ADSs") from time to time
during the next 18 months.
MANAGEMENT APPOINTMENT
On November 13, 2019, the Company
announced that Ms. Gloria Fan has
been appointed as Chief Financial Officer ("CFO"), effective
November 18, 2019.
CORPORATE RESPONSIBILITY
On September 19, 2019, the Company
released its inaugural environmental, social and governance (ESG)
report. The report, capturing the Company's ESG actions between
January 2016 and June 2019, covers six major areas, including
business introduction, environment, community, business partners,
workplace and corporate governance. It revealed the Company's key
initiatives around the issues that have the most direct impact to
the sustainable growth of BEST and the logistics and supply chain
industry.
For the full BEST Inc. 2019 ESG report, please visit:
http://www.best-inc.com/#/investor/esg
WEBCAST AND CONFERENCE CALL INFORMATION
The Company will hold a conference call at 7:30 am U.S. Eastern Time on November 13, 2019 (8:30
pm Beijing Time, the same day), to discuss its financial
results and operating performance for the second quarter 2019.
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 :
|
1252658
|
A replay of the conference call will be accessible through
November 20, 2019 by dialing the
following numbers:
United States
:
|
+1-877-344-7529
|
International
:
|
+1-412-317-0088
|
Replay Access Code
:
|
10136660
|
Please visit the Company's investor relations website
http://ir.best-inc.com/ on November 13,
2019 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-add services, including express and freight
delivery, supply chain management and last-mile services, truckload
service brokerage, international logistics and financial services.
BEST's mission is to empower business and enrich life by leveraging
technology and business model innovation to create a smarter, more
efficient supply chain. For more information, please visit:
http://www.best-inc.com/en/.
SAFE HARBOR STATEMENT
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the business outlook and quotations from management in this
announcement, as well as BEST's strategic and operational plans,
contain forward-looking statements. BEST may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the "SEC"), in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about BEST's beliefs and expectations,
are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: BEST's goals and strategies; BEST's future business
development, results of operations and financial condition; BEST 's
ability to maintain and enhance its ecosystem; BEST 's ability to
continue to innovate, meet evolving market trends, adapt to
changing customer demands and maintain its culture of innovation;
and fluctuations in general economic and business conditions in
China and assumptions underlying
or related to any of the foregoing. Further information regarding
these and other risks is included in BEST's filings with the SEC.
All information provided in this press release and in the
attachments is as of the date of this press release, and BEST does
not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
USE OF NON-GAAP FINANCIAL MEASURES
In evaluating its business, BEST considers and uses non-GAAP
measures, such as non-GAAP net loss/income, non-GAAP net
loss/profit margin, adjusted EBITDA, adjusted EBITDA margin,
EBITDA, adjusted selling expenses, adjusted general and
administrative expenses, adjusted research and development
expenses, and non-GAAP diluted EPS, as supplemental measures in the
evaluation of the Company's operating results and in the Company's
financial and operational decision-making. The Company believes
these non-GAAP financial measures that help identify underlying
trends in the Company's business that could otherwise be distorted
by the effect of the expenses and gains that the Company includes
in loss from operations and net loss. The Company believes that
these non-GAAP financial measures provide useful information about
its operating results, enhance the overall understanding of its
past performance and future prospects and allow for greater
visibility with respect to key metrics used by the Company's
management in its financial and operational decision-making. The
presentation of these non-GAAP financial measures is not intended
to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with U.S. GAAP.
For more information on these non-GAAP financial measures, please
see the table captioned "Reconciliations of Non-GAAP Measures to
the Nearest Comparable GAAP Measures" in the results
announcement.
The non-GAAP financial measures are provided as additional
information to help investors compare business trends among
different reporting periods on a consistent basis and to enhance
investors' overall understanding of the Company's current financial
performance and prospects for the future. These non-GAAP financial
measures should be considered in addition to results prepared in
accordance with U.S. GAAP, but should not be considered a
substitute for, or superior to, U.S. GAAP results. In addition, the
Company's calculation of the non-GAAP financial measures may be
different from the calculation used by other companies, and
therefore comparability may be limited.
[1] Others
include BEST Global, BEST Capital, BEST UCargo and other new
initiatives.
|
[2] 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).
|
[3] 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.
|
[4] Diluted earnings
per share, or Diluted EPS, is calculated by dividing net profit
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.
|
[5] Non-GAAP diluted
earnings per share, or non-GAAP diluted EPS, represents diluted
earnings per share excluding share-based compensation expenses,
amortization of intangible assets resulting from business
acquisitions, and fair value change of equity investments (if
any).
|
[6] EBITDA
represents net loss excluding depreciation, amortization, interest
expense and income tax expense and minus interest income. Adjusted
EBITDA represents EBITDA excluding share-based compensation
expenses and fair value change of equity investments (if
any).
|
[7] All numbers
presented have been rounded to the nearest integer, tenth, or
hundredth, and year-over-year comparisons are based on figures
before rounding.
|
[8] Express market
share calculated as the Company's parcel volume as a percentage of
aggregate national express delivery parcel volume for the relevant
period, based on data published by State Post Bureau of the
PRC.
|
[9] Based on data
published by State Post Bureau of the PRC. - For July
2019 data, see State Post Bureau of the PRC Published Post Industry
Operation Statistics for July 2019, State Post Bureau of the PRC,
August 14, 2019, available in Chinese at
http://www.spb.gov.cn/xw/dtxx_15079/201908/t20190814_1900591.html
- For August 2019 data, see State Post Bureau of the PRC
Published Post Industry Operation Statistics for August 2019, State
Post Bureau of the PRC, September 12, 2019, available in Chinese at
http://www.spb.gov.cn/xw/dtxx_15079/201909/t20190912_1926315.html -
For September 2019 data, see State Post Bureau of the PRC Published
Post Industry Operation Statistics for September of 2019, State
Post Bureau of the PRC, October 16, 2019, available in Chinese at
http://www.spb.gov.cn/xw/dtxx_15079/201910/t20191016_1947156.html
|
[10] Segments
consist of all business units other than BEST Store+,
BEST Store+ and unallocated expenses.
|
[11] Unallocated
expenses are primarily related to corporate administrative expenses
and other miscellaneous items that are not allocated to individual
segments.
|
[12] 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.
|
BEST INC.
Summary of
Unaudited Condensed Consolidated Income Statements
|
(In
Thousands)
|
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|
2018
|
2019
|
2018
|
2019
|
|
RMB
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
Revenue
|
|
|
|
|
|
|
Express
|
4,357,527
|
5,202,214
|
727,817
|
11,759,488
|
14,912,047
|
2,086,272
|
Freight
|
1,093,331
|
1,375,411
|
192,427
|
2,886,028
|
3,669,126
|
513,330
|
Supply Chain
Management
|
491,633
|
450,854
|
63,077
|
1,388,662
|
1,583,308
|
221,513
|
Store+
|
885,518
|
861,964
|
120,593
|
2,229,436
|
2,206,044
|
308,637
|
Others
|
361,293
|
854,853
|
119,598
|
661,783
|
2,037,475
|
285,053
|
Total
Revenue
|
7,189,302
|
8,745,296
|
1,223,512
|
18,925,397
|
24,408,000
|
3,414,805
|
Cost of
Revenue
|
|
|
|
|
|
|
|
Express
|
4,139,558
|
4,957,398
|
693,565
|
11,283,283
|
14,296,092
|
2,000,097
|
Freight
|
1,042,820
|
1,289,098
|
180,351
|
2,798,694
|
3,466,109
|
484,926
|
Supply Chain
Management
|
472,045
|
414,197
|
57,948
|
1,311,021
|
1,474,029
|
206,224
|
Store+
|
814,299
|
771,078
|
107,878
|
2,038,955
|
1,962,020
|
274,497
|
Others
|
330,659
|
806,469
|
112,829
|
576,363
|
1,889,921
|
264,410
|
Total Cost of
Revenue
|
6,799,381
|
8,238,240
|
1,152,571
|
18,008,316
|
23,088,171
|
3,230,154
|
Gross
Profit
|
389,921
|
507,056
|
70,941
|
917,081
|
1,319,829
|
184,651
|
Selling
Expenses
|
(235,681)
|
(212,714)
|
(29,760)
|
(655,775)
|
(619,203)
|
(86,630)
|
General and
Administrative
Expenses
|
(264,784)
|
(275,667)
|
(38,568)
|
(747,181)
|
(863,913)
|
(120,866)
|
Research and
Development Expenses
|
(42,922)
|
(64,522)
|
(9,027)
|
(126,436)
|
(181,058)
|
(25,331)
|
Total Operating
Expenses
|
(543,387)
|
(552,903)
|
(77,355)
|
(1,529,392)
|
(1,664,174)
|
(232,827)
|
Loss from
Operations
|
(153,466)
|
(45,847)
|
(6,414)
|
(612,311)
|
(344,345)
|
(48,176)
|
Interest
Income
|
28,436
|
21,242
|
2,972
|
77,126
|
71,291
|
9,974
|
Interest
Expense
|
(18,960)
|
(12,023)
|
(1,682)
|
(53,759)
|
(52,767)
|
(7,382)
|
Foreign Exchange
(Loss)/Gain
|
(375)
|
661
|
92
|
(7,607)
|
(3,405)
|
(476)
|
Other
Income
|
104,620
|
38,225
|
5,348
|
136,042
|
91,860
|
12,852
|
Other
Expense
|
(8,362)
|
(5,216)
|
(730)
|
(16,658)
|
(13,136)
|
(1,838)
|
Loss before Income
Tax
and Share of Net Loss of
Equity Investees
|
(48,107)
|
(2,958)
|
(414)
|
(477,167)
|
(250,502)
|
(35,046)
|
Income Tax
Expense
|
(2,971)
|
(3,691)
|
(516)
|
(6,971)
|
(11,793)
|
(1,650)
|
Loss before Share
of Net
Loss of Equity Investees
|
(51,078)
|
(6,649)
|
(930)
|
(484,138)
|
(262,295)
|
(36,696)
|
Share of Net
Income/(Loss)
of Equity Investees
|
24
|
(47)
|
(7)
|
(266)
|
(183)
|
(26)
|
Net
Loss
|
(51,054)
|
(6,696)
|
(937)
|
(484,404)
|
(262,478)
|
(36,722)
|
Net gain/(loss)
attributable to
non-controlling interests
|
141
|
(3,214)
|
(450)
|
141
|
(8,644)
|
(1,209)
|
Net loss
attributable to
Best Inc.
|
(51,195)
|
(3,482)
|
(487)
|
(484,545)
|
(253,834)
|
(35,513)
|
Net loss attributable to
ordinary shareholders
|
(51,195)
|
(3,482)
|
(487)
|
(484,545)
|
(253,834)
|
(35,513)
|
Summary of
Unaudited Condensed Consolidated Balance Sheets
|
(in
thousands)
|
|
|
As of December 31,
2018
|
|
As of September
30, 2019
|
|
RMB
|
|
RMB
|
US$
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and Cash
Equivalents
|
1,630,444
|
|
2,138,107
|
299,132
|
Restricted
Cash
|
1,278,326
|
|
1,273,351
|
178,148
|
Accounts and Notes
Receivables
|
1,046,844
|
|
1,138,325
|
159,258
|
Inventories
|
151,031
|
|
162,005
|
22,665
|
Prepayments and Other
Current Assets
|
1,904,846
|
|
2,210,508
|
309,261
|
Short‑term
Investments
|
1,007,329
|
|
1,195,819
|
167,301
|
Amounts Due from
Related Parties
|
197,488
|
|
133,274
|
18,646
|
Lease Rental
Receivables
|
613,439
|
|
634,852
|
88,819
|
Total Current
Assets
|
7,829,747
|
|
8,886,241
|
1,243,230
|
Non‑current
Assets
|
|
|
|
|
Property and
Equipment, Net
|
2,064,657
|
|
2,761,205
|
386,307
|
Intangible Assets,
Net
|
143,810
|
|
124,606
|
17,433
|
Long‑term
Investments
|
214,339
|
|
217,300
|
30,401
|
Goodwill
|
469,076
|
|
490,986
|
68,691
|
Non‑current
Deposits
|
77,043
|
|
113,440
|
15,871
|
Other Non‑current
Assets
|
45,531
|
|
186,103
|
26,037
|
Restricted
Cash
|
90,638
|
|
171,014
|
23,926
|
Lease Rental
Receivables
|
1,431,441
|
|
1,150,623
|
160,978
|
Operating Lease
Right-of-use Assets
|
-
|
|
4,067,499
|
569,064
|
Total non‑current
Assets
|
4,536,535
|
|
9,282,776
|
1,298,708
|
Total
Assets
|
12,366,282
|
|
18,169,017
|
2,541,938
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Securitization
Debt
|
-
|
|
108,443
|
15,172
|
Short‑term Bank
Loans
|
1,782,900
|
|
1,939,500
|
271,346
|
Accounts and Notes
Payable
|
2,851,557
|
|
3,033,122
|
424,349
|
Income Tax
Payable
|
5,767
|
|
4,502
|
630
|
Customer Advances and
Deposits and
Deferred Revenue
|
1,219,230
|
|
1,446,731
|
202,405
|
Accrued Expenses and
Other Liabilities
|
2,238,785
|
|
2,036,637
|
284,935
|
Capital Lease
Obligation
|
2,851
|
|
1,722
|
241
|
Operating Lease
Liabilities
|
-
|
|
823,677
|
115,237
|
Amounts Due to
Related Parties
|
12,429
|
|
3,291
|
460
|
Total Current
Liabilities
|
8,113,519
|
|
9,397,625
|
1,314,775
|
Non-current
Liabilities
|
|
|
|
|
Securitization
Debt
|
-
|
|
18,251
|
2,553
|
Convertible
Bond
|
-
|
|
1,376,633
|
192,598
|
Capital Lease
Obligation
|
745
|
|
2,101
|
294
|
Deferred Tax
Liabilities
|
25,356
|
|
23,123
|
3,235
|
Other Non‑current
Liabilities
|
86,504
|
|
136,332
|
19,074
|
Operating Lease
Liabilities
|
-
|
|
3,347,937
|
468,394
|
Total Non‑current
Liabilities
|
112,605
|
|
4,904,377
|
686,148
|
Summary of
Unaudited Condensed Consolidated Balance Sheets
(Cont'd)
|
(In
Thousands)
|
|
|
|
|
|
As of December 31,
2018
|
|
As of September
30, 2019
|
|
RMB
|
|
RMB
|
US$
|
Total
Liabilities
|
8,226,124
|
|
14,302,002
|
2,000,923
|
Shareholders'
Equity
|
|
|
|
|
Ordinary
Shares
|
25,988
|
|
25,988
|
3,636
|
Additional Paid‑In
Capital
|
19,407,460
|
|
19,322,587
|
2,703,329
|
Accumulated
Deficit
|
(15,419,256)
|
|
(15,673,090)
|
(2,192,746)
|
Accumulated Other
Comprehensive Income
|
123,923
|
|
189,150
|
26,463
|
BEST Inc.
Shareholders' Equity
|
4,138,115
|
|
3,864,635
|
540,682
|
Non-controlling
Interests
|
2,043
|
|
2,380
|
333
|
Total
Shareholders' Equity
|
4,140,158
|
|
3,867,015
|
541,015
|
Total Liabilities
and Shareholders' Equity
|
12,366,282
|
|
18,169,017
|
2,541,938
|
Summary of
Unaudited Condensed Consolidated Statements of Cash
Flows
|
(In
Thousands)
|
|
|
Three Months Ended
September 30,
|
Nice Months Ended
September 30,
|
|
2018
|
2019
|
2018
|
2019
|
|
RMB
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
Net Cash Generated
from
/(Used in)
Operating Activities
|
86,310
|
237,337
|
33,205
|
(91,784)
|
366,029
|
51,209
|
Net Cash
Used in
Investing Activities
|
(1,610,214)
|
(556,306)
|
(77,830)
|
(1,343,500)
|
(1,383,557)
|
(193,567)
|
Net Cash Generated
from
Financing Activities
|
150,667
|
897,235
|
125,528
|
230,219
|
1,558,732
|
218,075
|
Exchange Rate Effect
on
Cash, Cash Equivalents, and
Restricted Cash
|
50,150
|
41,930
|
5,866
|
51,412
|
41,860
|
5,856
|
Net
(Decrease)/Increase in
Cash and Cash
Equivalents, and Restricted Cash
|
(1,323,087)
|
620,196
|
86,769
|
(1,153,653)
|
583,064
|
81,573
|
Cash and Cash
Equivalents, and Restricted
Cash at Beginning
of Period
|
3,152,263
|
2,962,276
|
414,437
|
2,982,829
|
2,999,408
|
419,633
|
Cash and Cash
Equivalents, and Restricted
Cash at End of Period
|
1,829,176
|
3,582,472
|
501,206
|
1,829,176
|
3,582,472
|
501,206
|
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST
COMPARABLE GAAP MEASURES
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
8 – Reconciliation of EBITDA, Adjusted EBITDA
and Adjusted EBITDA Margin
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2018
|
2019
|
|
2018
|
2019
|
(In
'000)
|
RMB
|
RMB
|
US$
|
|
RMB
|
RMB
|
US$
|
Net
Loss
|
(51,054)
|
(6,696)
|
(937)
|
|
(484,404)
|
(262,478)
|
(36,722)
|
Add
|
|
|
|
|
|
|
|
Depreciation &
Amortization
|
112,241
|
105,601
|
14,775
|
|
329,148
|
383,426
|
53,644
|
Interest
Expense
|
18,960
|
12,023
|
1,682
|
|
53,759
|
52,767
|
7,382
|
Income Tax
Expense
|
2,971
|
3,691
|
516
|
|
6,971
|
11,793
|
1,650
|
Subtract
|
|
|
|
|
|
|
|
Interest
Income
|
(28,436)
|
(21,242)
|
(2,972)
|
|
(77,126)
|
(71,291)
|
(9,974)
|
EBITDA
|
54,682
|
93,377
|
13,064
|
|
(171,652)
|
114,217
|
15,980
|
Add
|
|
|
|
|
|
|
|
Share-based
Compensation
Expenses
|
25,185
|
20,959
|
2,932
|
|
81,927
|
69,214
|
9,683
|
Fair value change
of
equity investments
|
(78,528)
|
-
|
-
|
|
(78,528)
|
-
|
-
|
Adjusted
EBITDA
|
1,339
|
114,336
|
15,996
|
|
(168,253)
|
183,431
|
25,663
|
Adjusted EBITDA
Margin
|
0.02%
|
1.3%
|
1.3%
|
|
(0.9%)
|
0.8%
|
0.8%
|
The table below sets forth a reconciliation of the Company's net
loss to non-GAAP net loss/income, non-GAAP net profit margin for
the periods indicated:
Table
9 – Reconciliation of non-GAAP Net Loss and
Non-GAAP Net Loss Margin
|
|
|
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
|
2018
|
2019
|
2018
|
2019
|
|
(In
'000)
|
RMB
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
Net
Loss
|
(51,054)
|
(6,696)
|
(937)
|
(484,404)
|
(262,478)
|
(36,722)
|
Add
|
|
|
|
|
|
|
Share-based
Compensation Expenses
|
25,185
|
20,959
|
2,932
|
81,927
|
69,214
|
9,683
|
Amortization of
Intangible
Assets Resulting from
Business Acquisitions
|
3,040
|
2,471
|
346
|
8,991
|
8,133
|
1,138
|
Fair value change
of
equity investments
|
(78,528)
|
-
|
-
|
(78,528)
|
-
|
-
|
Non-GAAP (Loss)/
Net
Income
|
(101,357)
|
16,734
|
2,341
|
(472,014)
|
(185,131)
|
(25,901)
|
Non-GAAP Net
(Loss)/
Profit Margin
|
(1.4%)
|
0.2%
|
0.2%
|
(2.5%)
|
(0.8%)
|
(0.8%)
|
The table below sets forth a reconciliation of the Company's
diluted EPS to non-GAAP diluted EPS for the periods indicated:
Table 10 –
Reconciliation of Diluted EPS and Non-GAAP Diluted
EPS
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2019
|
(In
'000)
|
RMB
|
US$
|
|
RMB
|
US$
|
Net Loss Attributable
to Ordinary
Shareholders
|
(3,482)
|
(487)
|
|
(253,834)
|
(35,513)
|
Add
|
|
|
|
|
|
Share-based
Compensation Expenses
|
20,959
|
2,932
|
|
69,214
|
9,683
|
Amortization of
Intangible Assets Resulting from Business Acquisitions
|
2,471
|
346
|
|
8,133
|
1,138
|
Add back: Interest accretion
related to
convertible bonds
|
1,257
|
176
|
|
-
|
-
|
Non-GAAP Net
Profit/(Loss) Attributable to
Ordinary Shareholders for Computing
Non-GAAP Diluted EPS
|
21,205
|
2,967
|
|
(176,487)
|
(24,691)
|
Weighted Average
Diluted Shares
Outstanding During the Quarter
|
|
|
|
|
|
Diluted
|
388,750,617
|
388,750,617
|
|
388,213,043
|
388,213,043
|
Diluted
(Non-GAAP)
|
397,229,787
|
397,229,787
|
|
388,213,043
|
388,213,043
|
Diluted
EPS
|
(0.01)
|
(0.001)
|
|
(0.65)
|
(0.09)
|
Add
|
|
|
|
|
|
Non-GAAP adjustment to
net loss per
share
|
0.06
|
0.01
|
|
0.20
|
0.03
|
Non-GAAP Diluted
EPS
|
0.05
|
0.01
|
|
(0.45)
|
(0.06)
|
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SOURCE BEST Inc.