Hangzhou, China, Nov. 22, 2023 /PRNewswire/ -- In today's announcement, BEST Inc. (NYSE: BEST) ("BEST" or the "Company"), a leading provider of integrated smart supply chain solutions and logistics services in China and Southeast Asia ("SEA"), released its unaudited financial results for the third quarter ended September 30, 2023.
HIGHLIGHTS OF THE FINANCIAL PERFORMANCE[1]
The following are the results for the Third Quarter ended September 30, 2023:[2]
Over the course of the third quarter of 2023, BEST Freight recorded a 10.0% increase in revenue. In the last quarter of 2022, our gross margins were 3.2%, representing a 6.2% percentage point improvement compared to the same period in 2022 as we continued to reduce operating expenses and improve efficiency.
Best Supply Chain Management - With its best-in-class service quality and digital capabilities, BEST Supply Chain Management recorded a gross margin of 9.1% in the first quarter of 2022, which was an increase from 7.2% during the same period in 2022.
The third quarter of BEST Global was an excellent time for the company to continue its robust recovery following COVID. Over the past year, BEST Global's revenues increased by 30.2% and its parcel volumes increased by 44.9%, while parcel volumes in Vietnam and Malaysia increased by 64.9% and 122.0%, respectively. The overall volume of cross-border business in the third quarter increased by approximately 41.2%. 
Among other things, the Company has continued to wind down its Capital business line and looks forward to completing that process by the end of 2023.
Metrics that are important to operational performance 
RESULT OF FINANCIAL ANALYSIS[7]
The following are the results for the Third Quarter ended September 30, 2023:
Bringing in revenue
For each of the periods indicated in the following table, we provide a breakdown of revenues by business segment.
The cost of revenue is calculated as follows:
A breakdown of the cost of revenue by business segment for the indicated periods can be found in the table below.
The gross profit for the third quarter of 2022 was RMB51.8 million (US$7.1 million), compared to a loss of RMB39.0 million in the third quarter of 2022. Gross Margin for the third quarter was positive 2.3%, compared to negative 1.9% in the third quarter of 2022.
Expenses associated with operating the business
A total of RMB236.3 million (US$32.4 million) was spent on selling, general, and administrative ("SG&A") expenses in the third quarter of 2023, or 10.6% of revenue, compared with RMB275.2 million in the same quarter of 2022, or 13.6% of revenue. The SG&A expenses in the third quarter decreased 14.1% year over year due to a reduction in headcount and bad debt expense.
The R&D expenditures for the third quarter of 2023 were RMB27.8 million (US$3.8 million) or 1.3% of the company's revenue, as opposed to RMB39.6 million or 2.0% of the company's revenue in the third quarter of 2022, primarily due to a reduction in headcount.
There was a total of RMB12,907 in Share-based Compensation ("SBC") Expenses included in the cost and expense items above.Approximately 2 million dollars (US$1 million).An increase of RMB7 million is expected in the third quarter of 2023 in comparison to RMB15 million.During the same period of 2022, the number is expected to reach 9 million. A total of RMB0 was spent on SBC expenses of the total.05 million dollars (US$0).The cost of revenue (RMB01 million) was allocated to the cost of revenue..A total of $5 million (US$0) was raised.There was an allocation of RMB1 million for selling expenses, and RMB10 million for other expenses.A total of $7 million (US$1 billion) has been raised so far.A total of RMB5 million was allocated to general and administrative expenses and a total of RMB0.A total of $8 million (US$0).A total of $1 million was allocated to research and development expenses as part of the project
A total of $1 million was allocated to research and development expenses as part of the project
Non-GAAP Net Loss from Continuing Operations and Non-GAAP Net Loss from Continuing Operations
There was a net loss of RMB193.0 million (US$26.5 million) from continuing operations in the third quarter of 2023 compared to a net loss of RMB378.9 million in the same period in 2022. In the third quarter of 2023, the non-GAAP net loss from continuing operations was RMB180.9 million (US$24.8 million), compared to RMB363.0 million in the third quarter of 2022, excluding SBC expenses.
A diluted loss per ADS derived from continuing operations and a non-GAAP diluted loss per ADS derived from continuing operations
It was estimated that diluted loss per ADS for the third quarter of 2023 from continuing operations was RMB9.46 (US$1.30), compared with a loss of RMB17.60 from continuing operations during the same period in 2022. Excluding SBC expenses, the non-GAAP diluted loss per ADS in the third quarter of 2023 was RMB8.81 (US$1.21), as compared to an RMB16.79 loss per ADS in the third quarter of 2022. At the end of this results announcement, there is a reconciliation between the non-GAAP diluted loss per ADS and the diluted loss per ADS.
From continuing operations, Adjusted EBITDA and Adjusted EBITDA Margin are presented 
It is estimated that the adjusted EBITDA from continuing operations in the third quarter of 2023 was negative RMB139.1 million (US$19.1 million), compared with a negative RMB320.0 million in the same quarter of 2022. In the third quarter of 2023, the adjusted EBITDA margin was negative 6.2%, compared to a negative 15.8% for the same period in 2022.
Cash and cash equivalents, restricted cash, and short-term investments are all examples of cash and cash equivalents
There were RMB2,360.9 million (US$323.6 million) in cash and cash equivalents, restricted cash, and short-term investments as of September 30, 2023, compared to RMB3,332.0 million (US$323.6 million) at that time. The Company has repurchased approximately US$75 million (RMB 542 million) in aggregate principal amount of its existing Convertible Senior Notes due 2024 during the third quarter.
Cash used in continuing operating activities as a percentage of net cash 
During the third quarter of 2023, the amount of net cash used to continue operating activities was RMB234.4 million (US$32.13 million), as compared to RMB250.4 million during the same period of 2022. As a result of the decreased net loss in the third quarter of 2023, the decrease in net cash used in operating activities was primarily due to the decrease in net cash used in operating activities. 
THE SHARES ARE OUTSTANDING
The Company had approximately 397.6 million ordinary shares outstanding as of November 9, 2023 [9]. Each American Depositary Share represents twenty (20) ordinary shares of Class A of the Company.
As previously announced, effective from April 4, 2023, the ratio of its American Depositary Shares to its Class A ordinary shares, par value US$0.01 per share, has changed from an original ADS ratio of one (1) ADS to five (5) Class A ordinary shares to a new ADS ratio of one (1) ADS to twenty (20) Class A ordinary shares as of April 4, 2023.
It has been previously announced that the board of directors of the Company authorized a share repurchase program, whereby the Company is able to repurchase up to US$20 million worth of its outstanding American Depositary Shares over a period of 12 months. There has been a termination of the share repurchase program by the Company's board of directors, effective as of September 25, 2023. As of the end of the program, the Company had repurchased a total of 1,265,685 ADSs for a total amount of US$3,311,134 before the program was terminated.Under the program, 95 people have been employed (excluding commissions)
Under the program, 95 people have been employed (excluding commissions)
BEST INC. - ABOUT US
Incorporated by BEST, Inc.. Located in China and Southeast Asia, BEST (NYSE: BEST) is a leading provider of integrated smart supply chain solutions and logistics services. In addition to its proprietary technology platform and extensive network, BEST offers an extensive range of logistics and value-added services, including freight delivery, supply chain management, and global logistics services, through its proprietary technology platform and extensive networks. BEST's mission is to empower business and enrich lives by leveraging technology and business model innovation to create a smarter, more efficient supply chain by leveraging technology and business model innovation. Please visit the following website for more information: http://www..A best-in-class company.Visit http://www.com/en/Home Page.   
   
STATEMENT OF SAFE HARBOR
There are forward-looking statements in this announcement. The statements in this document have been made in accordance with the "safe harbor" provisions of the U.S.. In 1995, the Private Securities Litigation Reform Act was passed into law. Generally, forward-looking statements can be identified by terminology such as the words "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar expressions.. A number of forward-looking statements are contained in this announcement, including, but not limited to, the business outlook and quotations from management, as well as BEST's strategic and operational plans.. The BEST may also make forward-looking statements in its periodic reports to the U.S Securities and Exchange Commission in writing or orally. There have been many instances of the Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials, as well as in oral statements made by its officers, directors, or employees to third parties. The statements made by BEST that are not historical facts, such as those relating to BEST's beliefs and expectations, are forward-looking statements. There are inherent risks and uncertainties associated with forward-looking statements. 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. It is BEST's filings with the Securities and Exchange Commission that provide further information regarding these and other risks.. The information provided in this press release and in the attachments is current only as of the date of this press release, and BEST is not obligated to update any forward-looking statement except to the extent that applicable law requires it to do so.
The information provided in this press release and in the attachments is current only as of the date of this press release, and BEST is not obligated to update any forward-looking statement except to the extent that applicable law requires it to do so.
NON-GAAP FINANCIAL MEASUREMENTS ARE USED BY THE COMPANY 
As part of its evaluation of its business, BEST takes into account 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, which are supplemental measures used by the Company to evaluate its operating results as well as to make financial and operational decisions.. As a result of the Company's non-GAAP financial measures, the Company believes that it can identify underlying trends in its business that would otherwise be distorted by the effects of the expenses and gains that the Company includes in the loss from operations and net loss of the Company.. It is the Company's belief that these non-GAAP financial measures provide useful information about the Company's operating results, enhance the overall understanding of the Company's past performance and future prospects, as well as giving the Company's management a greater understanding of the key metrics it uses in making financial and operational decisions.. It should be noted that the presentation of these non-GAAP financial measures should not be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. According to GAAP,. You can find a detailed explanation of these non-GAAP financial measures in the table captioned "Reconciliation of Non-GAAP Measures to the Nearest Comparable GAAP Measures" in the announcement of results.
You can find a detailed explanation of these non-GAAP financial measures in the table captioned "Reconciliation of Non-GAAP Measures to the Nearest Comparable GAAP Measures" in the announcement of results.
It is important to note that non-GAAP financial measures are presented as additional information to help investors compare business trends across different reporting periods on a consistent basis, and to help investors gain a better understanding of the Company's current financial performance as well as its future prospects.. In addition to the results prepared in accordance with U.S. GAAP, the following non-GAAP financial measures should also be considered. It should not be considered a substitute for, or superior to, U.S. GAAP, but rather a guideline for understanding GAAP. Results based on GAAP. There is also the possibility that the Company's calculation of the non-GAAP financial measures may differ from the calculation used by other companies, therefore it may be difficult to compare them
There is also the possibility that the Company's calculation of the non-GAAP financial measures may differ from the calculation used by other companies, therefore it may be difficult to compare them
A RECONCILIATION OF NON-GAAP MEASURES WITH THE NEAREST COMPARABLE GAAP MEASURES IS MADE
Listed below is a reconciliation of the Company's net (loss)/income to EBITDA, adjusted EBITDA and adjusted EBITDA margin, for the periods indicated, for the periods indicated for the Company's continuing operations.
In accordance with GAAP, the following table shows a reconciliation of the Company's net (loss)/income, non-GAAP net Income/(loss), non-GAAP net Income/(loss) margin for the periods indicated for the Company's continuing operations:
This table provides a reconciliation of the Company's diluted loss per ADS for the periods indicated to Non-GAAP diluted loss per ADS for the same period for the Company's continuing operations:
All numbers presented in this report have been rounded to the nearest integer, tenth, or hundredth, and year-over-year comparisons are based on the numbers before they have been rounded.                     
BEST has announced the sale of the China express business in December 2021, the terms of which were previously announced.. Due to this deconsolidation, the 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 in accordance with their historical financial results. Unless otherwise specified, the financial information and non-GAAP financial information disclosed in this press release are presented on a continuing operations basis, unless otherwise indicated
Unless otherwise specified, the financial information and non-GAAP financial information disclosed in this press release are presented on a continuing operations basis, unless otherwise indicated
In this case, non-GAAP net income/loss means net income/loss excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and changes in fair value of equity investments (if any).
For more information regarding the non-GAAP measures referred to within this results announcement, please refer to the sections entitled "Use of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures" in this results announcement.
As part of the calculation of diluted earnings/loss per ADS, a weighted average number of ordinary and dilutive ordinary equivalent shares expressed in ADS outstanding during the period is used to divide net income/loss attributable to ordinary shareholders by the weighted average number of ordinary and dilutive ordinary equivalent shares.
[6] EBITDA represents a company's net income/loss excluding depreciation, amortization, interest expense, income tax expense and interest income. Adjusted EBITDA represents a company's net income/loss excluding share-based compensation expenses and fair value changes of equity investments (if any).
In all cases, unless otherwise stated, all figures represent the financial results from continuing operations.               
[8] The "Others" Segment is primarily responsible for the business unit Capital.
It should also be noted that the total number of shares outstanding does not include shares reserved for future issuances upon exercising or vesting of awards granted under the Company's share incentive plans.
There are a number of unallocated expenses, mostly related to corporate administrative expenses, and other miscellaneous items that have not been allocated to individual segments.
The Source Best Inc.
As a market leader in smart supply chain solutions and logistics services, BEST Inc. (NYSE: BEST) ("BEST" or the "Company") is a leading provider of integrated smart supply chain solutions...
Best Inc. (NYSE: BEST) ("BEST" or the "Company"), one of the leading providers of integrated smart supply chain solutions and logistics services in the Chinese market...
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