BEST Inc. Announces Unaudited Fourth Quarter and Fiscal Year 2018 Financial Results

HANGZHOU,China,March 5,2019 -- BEST Inc. (NYSE: BEST) ("BEST" or the "Company"),a leading integrated smart supply chain solutions provider,today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31,2018.

"We are very pleased to report an excellent fourth quarter in which BEST reached an important milestone. While recording a small net loss,Company achieved non-GAAP net profit for the first time. In fiscal 2018,BEST delivered solid revenue growth,strong market share gain and margin improvement,and excellent performance in growth initiatives," said Johnny Chou,Chairman and Chief Executive Officer of BEST. "Looking ahead to 2019,we will continue to execute our long term strategy of building the leading smart supply chain and logistics platform to benefit our ever growing ecosystem in the digital economy. We will focus on market share gain,operating efficiency,technology adoption,customer experience and profitability,while continuing to invest for the future."

"We delivered strong results for the fourth quarter and fiscal year 2018. For the quarter,our revenue increased by 38.3% year-over-year to over RMB9.0 billion,beating the top end of our revenue guidance. Company's net loss was reduced by 82.5% to RMB24.0 million and we achieved non-GAAP net profit of RMB20.1 million," said Alice Guo,BEST's Chief Accounting Officer and Senior Vice President of Finance. "Company recorded positive EBITDA and adjusted EBITDA for the third consecutive quarter,with EBITDA of RMB109.0 million and adjusted EBITDA of RMB150.1 million. Net cash generated from operating activities was RMB729.0 million for the quarter and our cash and cash equivalents,restricted cash and short-term investments were RMB4.0 billion at year end. Our healthy balance sheet gives us the resources and flexibility to accomplish our business and strategic objectives."

FINANCIAL HIGHLIGHTS

Table 1 - Summary of Financial Results [1]

Three Months

Ended

%

Change

Fiscal Year Ended

%

Change

(RMB million,except for %)

December 31,

2017

December 31,

2018

YoY

December 31,

2018

YoY

Revenue

6,531

9,036

38.3%

19,990

27,961

39.9%

Express

4,347

5,943

36.7%

12,786

17,703

38.5%

Freight

964

1,217

26.2%

3,178

4,103

29.1%

Supply Chain Management

530

686

29.5%

1,601

2,074

29.6%

Store+

592

616

4.0%

2,226

2,845

27.8%

Others [2]

98

574

482.5%

199

1,236

523.5%

Gross Profit

288

524

81.7%

486

1,441

196.8%

Gross Profit Margin

4.4%

5.8%

1.4ppts

2.4%

5.2%

2.8ppts

Express

4.4%

5.2%

0.8ppts

2.7%

4.4%

1.7ppts

Freight

(0.1%)

5.7%

5.8ppts

(5.8%)

3.8%

9.6ppts

Supply Chain Management

3.1%

3.9%

0.8ppt

6.1%

5.0%

(1.1ppts)

Store+

9.1%

10.5%

1.4ppts

6.9%

9.0%

2.1ppts

Others

30.7%

9.2%

(21.5ppts)

34.3%

11.2%

(23.1ppts)

Net Loss

(137)

(24)

(82.5%)

(1,228)

(508)

(58.6%)

Net Loss Margin

(2.1%)

(0.3%)

1.8ppts

(6.1%)

(1.8%)

4.3ppts

Non-GAAP Net (Loss)/Profit [3][4]

(116)

20

n/m

(923)

(452)

(51.0%)

Non-GAAP Net (Loss)/Profit Margin

(1.8%)

0.2%

2.0ppts

(4.6%)

(1.6%)

3.0ppts

Adjusted EBITDA [4] [5]

(24)

150

n/m

(583)

(18)

(96.9%)

Adjusted EBITDA Margin

(0.4%)

1.7%

2.1ppts

(2.9%)

(0.1%)

2.8ppts

For the Quarter Ended December 31,2018:

Revenue was RMB9,035.6 million (US$1,314.2 million),an increase of 38.3% year-over-year ("YoY").

- Express Service Revenue increased 36.7% YoY to RMB5,943.4 million (US$864.4 million).

- Freight Service Revenue increased 26.2% YoY to RMB1,216.6 million (US$176.9 million).

- Supply Chain Management Service Revenue increased 29.5% YoY to RMB685.8 million (US$99.7 million).

- Store+ Service Revenue increased 4.0% YoY to RMB615.6 million (US$89.5 million).

- OthersService Revenues increased 482.5% YoY to RMB574.3 million (US$83.5 million).

Gross Profit was RMB524.1 million (US$76.2 million),an increase of 81.7% YoY; and Gross Profit Margin was 5.8%,an improvement of 1.4 percentage points YoY.

Net Loss was RMB24.0 million (US$3.5 million),a decrease of 82.5% YoY; and Non-GAAP Net Profit was RMB20.1 million (US$2.9 million),compared to Non-GAAP Net Loss of RMB115.6 million in the same period of 2017.

Diluted EPS [6] was negative RMB0.06 (US$0.01) and Non-GAAP diluted EPS [4] [7] was RMB0.05 (US$0.01).

EBITDA was RMB109.0 million (US$15.9 million),compared to negative RMB42.3 million in the same period of 2017; and Adjusted EBITDA was RMB150.1 million (US$21.8 million),compared to negative RMB24.0 million in the same period of 2017.

Net Cash Generated From Operating Activities was RMB729.0 million (US$106.0 million),compared to negative RMB9.3 million in the same period of 2017.

For the Fiscal Year Ended December 31,2018:

Revenue was RMB27,961.0 million (US$4,066.8 million),an increase of 39.9% YoY.

- Express Service Revenue increased 38.5% YoY to RMB17,702.9 million (US$2,574.8 million).

- Freight Service Revenue increased 29.1% YoY to RMB4,102.6 million (US$596.7 million).

- Supply Chain Management Service Revenue increased 29.6% YoY to RMB2,074.4 million (US$301.7 million).

- Store+ Service Revenue increased 27.8% YoY to RMB2,845.0 million (US$413.8 million).

- Others Service Revenues increased 523.5% YoY to RMB1,236.1 million (US$179.8 million).

Gross Profit was RMB1,441.1 million (US$209.6 million),an increase of 196.8% YoY; and Gross Profit Margin was 5.2%,an improvement of 2.7 percentage points YoY.

Net Loss was RMB508.4 million (US$73.9 million),a decrease of 58.6% YoY; and Non-GAAP Net Loss was RMB451.9 million (US$65.7 million),a decrease of 51.1% YoY.

Diluted EPS was negative RMB1.32 (US$0.19) and Non-GAAP diluted EPS was negative RMB1.17 (US$0.17).

EBITDA was negative RMB62.7 million (US$9.1 million),compared to negative RMB882.2 million in the same period of 2017; and Adjusted EBITDAwas negative RMB18.2 million (US$2.6 million),compared to negative RMB583.2 million in the same period of 2017.

Net Cash Generated From Operating Activities was RMB637.2 million (US$92.7 million),compared to RMB25.6 million in 2017.

BUSINESS HIGHLIGHTS

BEST Express:

Table 2- BEST Express Key Operating Metrics[8]

Three Months Ended

% Change

Fiscal Year Ended

% Change

December 31,

2018

YoY

Parcel Volume (in '000)

1,270,168

1,868,489

47.1%

3,769,385

5,470,092

45.1%

BEST Express Market Share [1](%)

10.0%

11.7%

1.7ppts

9.4%

10.8%

1.4ppts

Average Revenue Per Parcel(RMB)

3.42

3.18

(7.1%)

3.39

3.24

(4.6%)

Average Cost Per Parcel (RMB)

3.27

3.01

(7.9%)

3.30

3.09

(6.3%)

Gross Profit per Parcel(RMB)

0.15

0.17

11.7%

0.09

0.14

54.6%

Hubs & Sortation Centers (asofperiodend)

145

106

(26.9%)

145

106

(26.9%)

The Company increased its express market share to 11.7% in the fourth quarter of 2018,compared to 10.0% in the same period of 2017. In the fourth quarter of 2018,parcel volume increased by 47.1% YoY,compared to an industry-wide YoY growth rate of 26.1%[10]. In fiscal year 2018,parcel volume increased by 45.1% YoY,compared to an industry-wide YoY growth rate of 26.6% [9].

The reduction in average cost per parcel continued to outpace the decrease in average revenue perparcel,leading to continued improvements in gross profit per parcel. Gross profit per parcel was RMB0.17 (US$0.02) in the fourth quarter of 2018,an increase of 11.7% compared to the same period of 2017. In fiscal year 2018,gross profit per parcel was RMB0.14 (US$0.02),an increase of 54.6% compared to 2017.

Improved operational efficiency by ongoing network optimization,investment in automation and digitization:

- Further reduced the total number of hubs and sortation centers by 26.9% YoY to 106.

- Achieved 99.7% digital waybill usage.

- Continued to invest in and upgrade the automation system in major hubs and sortation centers. Added ten high-speed automated sorting and 283 dimension and weight scanning systems during the fourth quarter of 2018.

BEST FREIGHT:

Table 3- BEST Freight Key Operating Metrics[8]

Three Months Ended

%

Change

Fiscal Year Ended

%

Change

December

31,2017

December

31,2018

YoY

December

31,2018

YoY

FreightVolume (Tonnein '000)

1,237

1,605

29.7%

4,316

5,430

25.8%

Average Revenue per Tonne(RMB)

779.0

758.0

(2.7%)

736.3

755.5

2.6%

Average Cost Per Tonne (RMB)

780.1

714.9

(8.4%)

779.1

726.7

(6.7%)

Gross Profit Per Tonne (RMB)

(1.1)

43.1

n/m

(42.8)

28.8

n/m

Hubs & Sortation

Centers (asofperiodend)

132

111

(15.9%)

132

111

(15.9%)

Last-mile Service Stations

(AsofPeriodEnd)

9,539

13,804

44.7%

9,804

44.7%

The Company achieved solid volume growth,with freight volume increased by 29.7% YoY in the fourth quarter of 2018 and 25.8% YoY in fiscal year 2018.

In the fourth quarter of 2018,gross profit margin increased by 5.8 percentage points YoY to 5.7%. In fiscal year 2018,gross profit margin increased by 9.6 percentage points YoY to 3.8%.

Continued to optimize freight network to improve operating efficiency and reduce costs:

- Reduced total number of hubs and sortation centers by 15.9% YoY to 111,which contributed to lower transportation,labor and lease costs,and shortened delivery time.

- Expanded service coverage significantly by increasing the total number of franchisees-operated last-mile service stations by 44.7% YoY to 13,804.

BEST Supply Chain Management:

In the fourth quarter of 2018,the total number of orders fulfilled by Cloud OFCs increased by 38.0% YoY to 83.6 million,of which the total number of orders fulfilled by franchised Cloud OFCs increased by 69.3% YoY to 28.8 million. In fiscal 2018,the total number of orders fulfilled by Cloud OFCs increased by 36.7% YoY to 246.7 million,of which the total number of orders fulfilled by franchised Cloud OFCs increased by 70.6% YoY to 82.3 million.

Increased the total number of Cloud OFCs by 7.6% YoY to 352 as of December 31,2018.

Increased gross floor area ("GFA") of Cloud OFCs by 17.8% YoY from 2.4 million square meters as of December 31,2017 to 2.8 million square meters as of December 31,2018,of which 1.0 million square meters were owned and operated by franchisedOFCs.

BEST Store+:

Focused on developing branded stores. The number of branded stores including franchised BEST-Neighbor and self-operated WoWo increased by 389.4% YoY to 1,840 as of December 31,2018.

The number of membership stores increased by 16.5% YoY to 423,636 as of December 31,2018.

In the fourth quarter of 2018,the total number of store orders fulfilled increased to 668,394,of which over 22.0% was fulfilled for branded stores. In fiscal year 2018,the total number of store orders fulfilled increased to 3,055,042,of which over 17.0% was fulfilled for branded stores.

Others:

BEST UCargo:

- Increased the number of registered agents by approximately 49.0% YoY to over 4,500 as of December 31,2018 from approximately 3,000 as of December 31,2017; and increased the number of registered trucks by approximately 45.0% YoY to over 261,2018 from approximately 180,2017.

- In the fourth quarter of 2018,BEST UCargo platform increased the number of transactions by approximately 424.0% YoY to over 195,000,with revenue generated from external customers increased significantly to RMB466.8 million (US$67.9 million).

BEST Global:

- Continued to develop cross border solutions and broaden service offerings in international markets. As of December 31,BEST Global served 15 countries and regions outside of mainland China.

- To further expand its footprint and capture growth opportunities in Southeast Asia,BEST Global launched its express delivery services in Thailand's Greater Bangkok area in the fourth quarter of 2018. As of the date of this press release,the service has been expanded nationwide to provide affordable,fast and high-quality delivery services across Thailand with operation centers in Bangkok,Khon Kaen,Phitsanulok and Suratthani.

BEST Capital:

- As of December 31,BEST Capital had provided cumulative total financing solutions to over 8,000 trucks,an increase of over 100.0% YoY.

FINANCIAL RESULTS

For the Quarter Ended December 31,2018:

Revenue

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

Table 4 - Breakdown of Revenue by Business Segment

Three Months Ended

December 31,2017

December 31,2018

(In '000,except

for %)

RMB

% of

Revenue

RMB

US$

% of

Revenue

% Change

YoY

Express

4,347,485

66.6%

5,943,381

864,429

65.8%

36.7%

Freight

963,666

14.8%

1,216,582

176,945

13.5%

26.2%

Supply Chain Mgmt.

529,518

8.1%

685,752

99,738

7.6%

29.5%

Store+

591,743

9.1%

615,566

89,530

6.8%

4.0%

Others

98,592

1.5%

574,301

83,529

6.4%

482.5%

Revenue

6,531,004

100.0%

9,035,582

1,314,171

100.0%

38.3%

Express Service Revenue increased by 36.7% YoY to RMB5,943.4 million (US$864.4 million) from RMB4,347.5 million,primarily due to 47.1% YoY increase in parcel volume.

Freight Service Revenue increased by 26.2% YoY to RMB1,216.6 million (US$176.9 million) from RMB963.7 million,primarily due to 29.7% YoY increase in freight volume.

Supply Chain Management Service Revenue increased by 29.5% YoY to RMB685.8 million (US$99.7 million) from RMB529.5 million,primarily due to an increase in fulfillment and transportation revenue from both existing and new customers.

BEST Store+ Service Revenue increased by 4.0% YoY to RMB615.6 million (US$89.5 million) from RMB591.7 million,primarily due to an increase in merchandise sales to branded and membership stores.

Others Service Revenues increased by 482.5% YoY to RMB574.3 million (US$83.5 million) from RMB98.6 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.

Costs and Expenses

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

Table 5- Breakdown of Cost of Revenue by Business Segment

Three Months Ended

% of

Revenue

Change

YoY

December 31,except

for %)

RMB

% of

Revenue

RMB

US$

% of

Revenue

Express

(4,158,328)

95.6%

(5,632,518)

(819,216)

94.8%

(0.8ppts)

Freight

(965,005)

100.1%

(1,147,338)

(166,873)

94.3%

(5.8ppts)

Supply Chain Mgmt.

(513,090)

96.9%

(659,084)

(95,860)

96.1%

(0.8ppts)

Store+

(537,885)

90.9%

(550,928)

(80,129)

89.5%

(1.4ppts)

Others

(68,357)

69.3%

(521,658)

(75,872)

90.8%

21.5ppts

Cost of Revenue

(6,242,665)

95.6%

(8,511,526)

(1,237,950)

94.2%

(1.4ppts)

Cost of Revenue was RMB8,511.5 million (US$1,238.0 million) or 94.2% of revenue in the quarter ended December 31,compared to RMB6,242.7 million or 95.6% of revenue in the same quarter of 2017. The reduction of 1.4 percentage points in cost of revenue as a percentage of revenue was primarily attributable to increased operating leverage and continued efforts in cost reduction,network optimization and operational improvement.

The following table sets forth a breakdown of operating expenses and adjusted operating expenses by category for the periodsindicated.

Table 6- Breakdown of Operating Expenses and Adjusted Operating Expenses by Category

Three Months Ended

% of

Revenue

Change

YoY

December 31,except

for %)

RMB

% of Revenue

RMB

US$

% of

Revenue

Selling Expenses

(207,613)

3.2%

(238,084)

(34,628)

2.6%

(0.6ppts)

Including SBC Expenses

(1,072)

0.0%

(2,028)

(295)

0.0%

(0.0ppts)

Adjusted Selling Expenses

(206,541)

3.2%

(236,056)

(34,333)

2.6%

(0.6ppts)

General and AdministrativeExpenses

(211,092)

3.2%

(273,490)

(39,777)

3.0%

(0.2ppts)

Including SBC Expense

(14,080)

0.2%

(22,189)

(3,227)

0.2%

(0.0ppts)

Adjusted General and AdministrativeExpenses

(197,012)

3.0%

(251,301)

(36,550)

2.8%

(0.2ppts)

Research and DevelopmentExpenses

(28,956)

0.4%

(58,145)

(8,457)

0.6%

0.2ppts

Including SBCExpense

(2,339)

0.0%

(2,449)

(356)

0.0%

(0.0ppts)

Adjusted Research and DevelopmentExpenses

(26,617)

0.4%

(55,696)

(8,101)

0.6%

0.2ppts

Total Operating Expenses

(447,661)

6.9%

(569,719)

(82,862)

6.3%

(0.6ppts)

Including SBCExpense

(17,491)

0.3%

(26,666)

(3,878)

0.3%

(0.0ppts)

Adjusted Total OperatingExpenses

(430,170)

6.6%

(543,053)

(78,984)

6.0%

(0.6ppts)

Selling Expenses were RMB238.1 million (US$34.6 million) or 2.6% of revenue in the quarter ended December 31,compared to RMB207.6 million or 3.2% of revenue in the same quarter of 2017. The decrease in selling expenses as a percentage of revenue was primarily attributable to improved operating efficiencies.

General and Administrative Expenses were RMB273.5 million (US$39.8 million) or 3.0% of revenue in the quarter ended December 31,compared to RMB211.1 million or 3.2% of revenue in the same quarter of 2017. The decrease in general and administrative expenses as a percentage of revenue was primarily attributable to improved operating efficiencies.

Research and Development Expenses were RMB58.1 million (US$8.5 million) or 0.6% of revenue in the quarter ended December 31,compared to RMB29.0 million,or 0.4% of revenue in the same quarter of 2017. The increase in research and development expenses as a percentage of revenue was primarily attributable to the hiring of additional R&D professionals.

Share-based compensation ("SBC") Expenses included in the cost and expense items above in the quarter ended December 31,2018 were RMB27.2 million (US$4.0 million),compared to RMB18.3 million in the same quarter of 2017. In the fourth quarter of 2018,approximately RMB0.5 million (US$0.08 million) was allocated to cost of revenue,RMB2.0 million (US$0.3 million) was allocated to selling expenses,RMB22.2 million (US$3.2 million) was allocated to general and administrative expenses,and RMB2.4 million (US$0.4 million) was allocated to research and development expenses.

Net Loss and Non-GAAP Net Profit

Net Loss in the quarter ended December 31,2018 was RMB24.0 million (US$3.5 million),a decrease of 82.5% compared to RMB136.9 million in the same quarter of 2017. Excluding the impact of SBC expense,amortization of intangible assets resulting from business acquisitions,and fair value change of equity investments,non-GAAP Net Profit in the quarter ended December 31,2018 was RMB20.1 million (US$2.9 million),compared to non-GAAP Net Loss of RMB115.6 million in the same quarter of 2017.

Diluted EPS and non-GAAP diluted EPS

Diluted EPS in the quarter ended December 31,2018 was negative RMB0.06 (US$0.01) based on a weighted average of 387.3 million diluted shares outstanding during the quarter. Excluding SBC expense,non-GAAP diluted EPS in the quarter ended December 31,2018 was RMB0.05 (US$0.01). 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 EBITDAwas RMB150.1 million (US$21.8 million),improved from negative RMB 24.0 million in the quarter ended December 31,2017. Adjusted EBITDA Margin was 1.7%,improved from negative 0.4% in the quarter ended December 31,2017. The improvement of RMB174.1 million (US$25.3 million),or 2.1 percentage points,was primarily attributable to strong revenue growth and improved operating efficiency.

The following table sets forth a breakdown of adjusted EBITDA and adjusted EBITDA margin for the three months ended December 31,2018 by segments[11],and a reconciliation of the Company's net profit/(loss) by segments[11] to EBITDA,adjusted EBITDA and adjusted EBITDA margin.

Table 7- Breakdown and Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segments[11]

Three Months Ended December 31,2018

(In RMB'000)

BEST (ex-Store+)

Store+

Unallocated[12]

Total

Net Profit/(loss)

226,859

(98,323)

(152,523)

(23,987)

Add

Depreciation & Amortization

113,627

7,473

11,364

132,464

Interest Expense

–

–

21,301

21,301

Income Tax Expense

1,933

2,983

–

4,916

Subtract

Interest Income

–

–

(25,695)

(25,695)

EBITDA

342,419

(87,867)

(145,553)

108,999

Add

Share-based

Compensation Expenses

10,827

1,657

14,696

27,180

Fair Value Change of

Equity Investments

–

–

13,900

13,900

Adjusted EBITDA

353,246

(86,210)

(116,957)

150,079

Adjusted EBITDA Margin

4.2%

(14.0%)

n/m

1.7%

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

As of December 31,cash and cash equivalents,restricted cash and short-term investments were RMB4,006.7 million (US$582.8 million),compared to RMB3,911.4 million as of September 30,2018. The increase in cash and cash equivalents,restricted cash and short-term investments was primarily due to net cash generated from operating activities,partially offset by CAPEX,purchase of leased equipment and other investment activities.

Cash Flow from Operating Activities

Net cash generated from operating activities was RMB729.0 million (US$106.0 million),compared to negative RMB9.3 million in the same period of 2017.

Capital Expenditures ("CAPEX")

CAPEX was RMB284.3 million (US$41.4 million),or 3.1% of total revenue in the quarter ended December 31,compared to CAPEX of RMB253.7 million,or 3.9% of total revenue,in the same period of 2017. 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 lines and dimension and weight scanning systems.

For the Fiscal Year Ended December 31,2018:

Revenue

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

Table 8- Breakdown of Revenue by Business Segment

Fiscal Year Ended

December 31,except

for %)

RMB

% of

Revenue

RMB

US$

% of

Revenue

% Change

YoY

Express

12,786,279

64.0%

17,702,869

2,574,776

63.3%

38.5%

Freight

3,178,044

15.9%

4,102,610

596,700

14.7%

29.1%

Supply Chain Mgmt.

1,600,952

8.0%

2,074,414

301,711

7.4%

29.6%

Store+

2,226,034

11.1%

2,845,002

413,788

10.2%

27.8%

Others

198,253

1.0%

1,236,084

179,781

4.4%

523.5%

Revenue

19,989,562

100.0%

27,960,979

4,066,756

100.0%

39.9%

Express Service Revenue increased by 38.5% YoY to RMB17,574.8 million) from RMB12,786.3 million,primarily due to 45.1% YoY increase in parcel volume.

Freight Service Revenue increased by 29.1% YoY to RMB4,102.6 million (US$596.7 million) from RMB3,178.0 million,primarily due to 25.8% YoY increase in freight volume and 2.6% YoY increase in average revenue per tonne.

Supply Chain Management Service Revenue increased by 29.6% YoY to RMB2,074.4 million (US$301.7 million) from RMB1,601.0 million,primarily due to an increase in fulfillment and transportation revenue from both existing and new customers.

BEST Store+ Service Revenue increased by 27.8% YoY to RMB2,845.0 million (US$413.8 million) from RMB2,226.0 million,primarily due to an increase in merchandise sales to branded and membership stores.

Others Service Revenues increased by 523.5% YoY to RMB1,236.1 million (US$179.8 million) from RMB198.3 million,BEST Global's expanded operations and BEST Capital's financing solutions to ecosystem participants.

Costs and Expenses

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

Table 9- Breakdown of Cost of Revenue by Business Segment

Fiscal Year Ended

% of

Revenue

Change

YoY

December 31,except

for %)

RMB

% of

Revenue

RMB

US$

% of

Revenue

Express

(12,435,550)

97.3%

(16,915,801)

(2,460,301)

95.6%

(1.7ppts)

Freight

(3,362,652)

105.8%

(3,946,032)

(573,927)

96.2%

(9.6ppts)

Supply Chain Mgmt.

(1,502,570)

93.9%

(1,970,105)

(286,540)

95.0%

1.1ppts

Store+

(2,072,912)

93.1%

(2,589,883)

(376,683)

91.0%

(2.1ppts)

Others

(130,327)

65.7%

(1,098,021)

(159,701)

88.8%

23.1ppts

Cost of Revenue

(19,504,011)

97.6%

(26,519,842)

(3,857,152)

94.8%

(2.8ppts)

Cost of Revenue was RMB26,519.8 million (US$3,857.2 million) or 94.8% of revenue in fiscal year 2018,compared to RMB19,504.0 million or 97.6% of revenue in 2017. The reduction of 2.8 percentage points in cost of revenue as a percentage of revenue was primarily attributable to increased operating leverage and continued efforts in cost reduction,network optimization and operational improvement.

The following table sets forth a breakdown of operating expenses and adjusted operating expenses by category for the periodsindicated.

Table 10- Breakdown of Operating Expenses and Adjusted Operating Expenses by Category

Fiscal Year Ended

% of

Revenue

Change

YoY

December 31,except for %)

RMB

% of

Revenue

RMB

US$

% of

Revenue

Selling Expenses

(694,852)

3.5%

(893,859)

(130,006)

3.2%

(0.3ppts)

Including SBC Expenses

(14,244)

0.1%

(6,007)

(873)

0.0%

(0.1ppts)

Adjusted Selling Expenses

(680,608)

3.4%

(887,852)

(129,133)

3.2%

(0.2ppts)

General and

Administrative

Expenses

(928,188)

4.6%

(1,020,671)

(148,450)

3.7%

(0.9ppts)

Including SBC

Expenses

(251,312)

1.2%

(91,982)

(13,378)

0.4%

(0.8ppts)

Adjusted General

and Administrative

Expenses

(676,876)

3.4%

(928,689)

(135,072)

3.3%

(0.1ppts)

Research and Development Expenses

(139,009)

0.7%

(184,581)

(26,846)

0.7%

(0.0ppts)

Including SBC Expenses

(26,607)

0.1%

(9,115)

(1,326)

0.1%

(0.0ppts)

Adjusted Research andDevelopmentExpenses

(112,402)

0.6%

(175,466)

(25,520)

0.6%

(0.0ppts)

Total Operating Expenses

(1,762,049)

8.8%

(2,099,111)

(305,302)

7.5%

(1.3ppts)

Including SBCExpenses

(292,163)

1.4%

(107,104)

(15,577)

0.4%

(1.0ppts)

Adjusted Total OperatingExpenses

(1,469,886)

7.4%

(1,992,007)

(289,725)

7.1%

(0.3ppts)

Selling Expenses were RMB893.9 million (US$130.0 million) or 3.2% of revenue in fiscal year 2018,compared to RMB694.9 million or 3.5% of revenue in 2017. The decrease in selling expenses as a percentage of revenue was primarily attributable to improved operating efficiencies and the reduction in SBC expense.

General and Administrative Expenses were RMB1,020.7 million (US$148.5 million) or 3.7% of revenue in fiscal year 2018,compared to RMB928.2 million or 4.6% of revenue in 2017. The decrease in general and administrative expenses as a percentage of revenue was primarily attributable to the reduction in SBC expense,partially offset by investments in the growth of the Company's operations.

Research and Development Expenses were RMB184.6 million (US$26.8 million) or 0.7% of revenue in fiscal year 2018,compared to RMB139.0 million,or 0.7% of revenue in 2017. The reduction in SBC expense was offset by investments in technology and R&D professionals.

SBC Expenses[13] included in the cost and expense items above in fiscal year 2018 were RMB109.1 million (US$15.9 million),compared to RMB299.0 million in 2017. In fiscal year 2018,RMB2.0 million (US$0.3 million) was allocated to cost of revenue,RMB6.0 million (US$0.9 million) was allocated to selling expenses,RMB92.0 million (US$13.4 million) was allocated to general and administrative expenses,and RMB9.1 million (US$1.3 million) was allocated to research and development expenses.

Net Loss and Non-GAAP Net Loss

Net Loss in fiscal year 2018 was RMB508.4 million (US$73.9 million),a decrease of 58.6% compared to RMB1,228.1 million in 2017. Excluding the impact of SBC expense,non-GAAP Net Loss in fiscal year 2018 was RMB451.9 million (US$65.7 million),a decrease of 51.0% compared to RMB922.5 million in 2017.

Diluted EPS and non-GAAP diluted EPS

Diluted EPS in fiscal year 2018 was negative RMB1.32 (US$0.19) based on a weighted average of 384.4 million diluted shares outstanding during the fiscal year. Excluding SBC expense,non-GAAP diluted EPS in fiscal year 2018 was negative RMB1.17 (US$0.17). 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 EBITDAwas negative RMB18.2 million (US$2.6 million) in fiscal year 2018,improved from negative RMB583.2 million in 2017. Adjusted EBITDA Margin was negative 0.1%,improved from negative 2.9% in 2017. The improvement of RMB565.1 million (US$82.2 million),or 2.8 percentage points,was primarily attributable to strong revenue growth and improved operating efficiency.

The following table sets forth a breakdown of adjusted EBITDA and adjusted EBITDA margin for the fiscal year ended December 31,2018 by segments[14],and a reconciliation of the Company's net profit/(loss) by segments[13] to EBITDA,adjusted EBITDA and adjusted EBITDA margin.

Table 11- Breakdown and Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segments[13]

Fiscal Year Ended December 31,2018

(In RMB'000)

BEST

(ex-Store+)

Store+

Unallocated[15]

Total

Net Profit/(loss)

342,760

(401,145)

(450,006)

(508,391)

Add

Depreciation & Amortization

402,877

20,298

38,437

461,612

Interest Expense

–

–

75,060

75,060

Income Tax Expense

9,830

1,387

670

11,887

Subtract

Interest Income

–

–

(102,821)

(102,821)

EBITDA

755,467

(379,460)

(438,660)

(62,653)

Add

Share-based

Compensation Expenses

36,519

4,971

67,617

109,107

Subtract

Fair Value Change of

Equity Investments

–

–

(64,628)

(64,628)

Adjusted EBITDA

791,986

(374,489)

(435,671)

(18,174)

Adjusted EBITDA Margin

3.2%

(13.2%)

n/m

(0.1%)

Cash Flow from Operating Activities

Net cash generated from operating activities was RMB637.2 million (US$92.7 million) in fiscal year 2018,an increase of 2,388.9% YoY compared to RMB25.6 million in 2017.

CAPEX

CAPEX was RMB1,077.8 million (US$156.8 million),or 3.9% of total revenue in fiscal year 2018,compared to CAPEX of RMB749.7 million,or 3.8% of total revenue in 2017. The increase in CAPEX was primarily due to the upgrade of automation systems in major hubs,including investments in high-speed automated sorting lines and dimension and weight scanning systems.

SHARES OUTSTANDING

As of the date of this press release,the Company had approximately 387.4 million ordinary shares outstanding [16]. Each ADS represents one Class A ordinary share.

FINANCIAL GUIDANCE

Based on current market conditions and current operations,revenue for the full fiscal year 2019 is expected to be in the range of RMB36.5 billion to RMB37.2 billion. This represents management's current and preliminary expectation,which is subject to change.

WEBCAST AND CONFERENCE CALL INFORMATION

The Company will hold a conference call at 7:30 am U.S. Eastern Time on March 5,2019 (8:30 pm Beijing Time,the same day),to discuss its financial results and operating performance for the fourth quarter and fiscal year 2018.

Participants may access the call by dialing the following numbers:

United States

: +1-888-317-6003

Hong Kong

: 800-963976 or +852-5808-1995

China

: 4001-206115

International

: +1-412-317-6061

Participant Elite Entry Number

: 4829739

A replay of the conference call will be accessible through March 12,2019 by dialing the following numbers:

United States

: +1-877-344-7529

International

: +1-412-317-0088

Replay Access Code

: 10129022

Please visit the Company's investor relations website http://ir.best-inc.com/ on March 5,2019 to view the earnings release prior to the conference call. A live and archived webcast of the conference call and an accompanying slide presentation will be available at the samesite.

ABOUT BEST INC.

BEST Inc. is a leading integrated smart supply chain solutions provider. BEST's mission is to empower businesses and enrich the lives of consumers by leveraging technology and business model innovation to create a smarter,more efficient supply chain. For more information,please visit: http://www.best-inc.com/en/.

For investor and media inquiries,please contact:

For Investors:

Kobe Ge

ir@best-inc.com

For Media:

Jill Mao

mmj@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 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 applicablelaw.

USE OF NON-GAAP FINANCIAL MEASURES

In evaluating its business,BEST considers and uses non-GAAP measures,such as non-GAAP net loss,non-GAAP net loss margin,non-GAAP net profit,non-GAAP net 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.

BEST INC.

Summary of Unaudited Condensed Consolidated Income Statement

(In Thousands)

Three Months Ended December 31,

Fiscal Year Ended December 31,

2017

2018

2017

2018

RMB

RMB

US$

RMB

RMB

US$

Revenue

Express

4,485

5,429

12,279

17,776

Freight

963,666

1,945

3,044

4,700

Supply Chain Management

529,518

685,738

1,952

2,711

Store+

591,743

615,530

2,034

2,788

Others

98,592

574,529

198,253

1,781

Total Revenue

6,004

9,171

19,562

27,756

Cost of Revenue

Express

(4,328)

(5,216)

(12,550)

(16,301)

Freight

(965,005)

(1,873)

(3,652)

(3,927)

Supply Chain Management

(513,090)

(659,860)

(1,570)

(1,540)

Store+

(537,885)

(550,129)

(2,912)

(2,683)

Others

(68,357)

(521,872)

(130,327)

(1,701)

Total Cost of Revenue

(6,665)

(8,950)

(19,011)

(26,152)

Gross Profit

288,339

524,056

76,221

485,551

1,441,137

209,604

Selling Expenses

(207,613)

(238,628)

(694,852)

(893,006)

General and

Administrative Expenses

(211,092)

(273,777)

(928,188)

(1,450)

Research and

Development Expenses

(28,956)

(58,457)

(139,009)

(184,846)

Total Operating

Expenses

(447,661)

(569,719)

(82,862)

(1,049)

(2,111)

(305,302)

Loss from Operations

(159,322)

(45,663)

(6,641)

(1,276,498)

(657,974)

(95,698)

Interest Income

24,115

25,695

3,737

75,056

102,821

14,955

Interest Expense

(14,355)

(21,301)

(3,098)

(47,154)

(75,060)

(10,917)

Foreign Exchange

Gain/(Loss)

778

1,074

156

(6,320)

(6,533)

(950)

Other Income

21,101

35,328

5,138

56,035

171,370

24,925

Other Expense

(4,933)

(14,014)

(2,038)

(18,507)

(30,672)

(4,461)

Loss before Income Tax and

Share of Loss of EquityInvestees

(132,616)

(18,881)

(2,746)

(1,217,388)

(496,048)

(72,146)

Income Tax Expense

(3,420)

(4,916)

(715)

(9,856)

(11,887)

(1,729)

Loss before Share of Loss of

Equity Investees

(136,036)

(23,797)

(3,461)

(1,227,244)

(507,935)

(73,875)

Share of Net Loss of Equity Investees

(816)

(190)

(28)

(816)

(456)

(66)

Net Loss

(136,852)

(23,987)

(3,489)

(1,228,060)

(508,391)

(73,941)

Net Loss Attributable to

Non-controlling Interests

(160)

(544)

(79)

(167)

(403)

(59)

Net Loss Attributable to

BEST Inc.

(136,692)

(23,443)

(3,410)

(1,893)

(507,988)

(73,882)

Summary of Unaudited Condensed Consolidated Balance Sheets

(in thousands)

As of

December31,2017

As of December 31,2018

RMB

RMB

US$

Assets

Current Assets

Cash and Cash Equivalents

1,240,431

1,630,444

237,138

Restricted Cash

1,652,653

1,278,326

185,925

Accounts and Notes Receivables

734,252

1,046,844

152,257

Inventories

156,974

151,031

21,967

Prepayments and Other Current Assets

1,459,755

1,904,846

277,048

Short‑term Investments

2,353,663

1,007,329

146,510

Lease Rental Receivables

193,703

613,439

89,221

Amounts Due from Related Parties

164,894

197,488

28,723

Total Current Assets

7,956,325

7,829,747

1,138,789

Non‑current Assets

Property and Equipment,Net

1,307,470

2,064,657

300,292

Intangible Assets,Net

158,556

143,810

20,916

Long‑term Investments

37,167

214,339

31,174

Goodwill

448,584

469,076

68,224

Non‑current Deposits

69,125

77,043

11,205

Other Non‑current Assets

62,314

45,531

6,622

Lease Rental Receivables

749,243

1,431,441

208,194

Restricted Cash

89,745

90,638

13,183

Total non‑current Assets

2,922,204

4,536,535

659,810

Total Assets

10,878,529

12,366,282

1,798,599

Liabilities and Shareholders' Equity

Current Liabilities

Short‑term Bank Loans

1,384

1,782,900

259,312

Accounts and Notes Payable

2,388,393

2,858,003

415,679

Income Tax Payable

629

5,767

839

Customer Advances and Deposits

910,383

1,219,230

177,330

Accrued Expenses and Other Liabilities

1,841,273

2,238,785

325,616

Capital Lease Obligation

7,227

2,851

415

Amounts Due to Related Parties

12,902

5,983

870

Total Current Liabilities

6,377,191

8,113,519

1,180,061

Non-current Liabilities

Capital Lease Obligation

1,828

745

108

Deferred Tax Liabilities

31,688

86,504

12,581

Other Non‑current Liabilities

75,327

25,356

3,688

Total Non‑current Liabilities

108,843

112,605

16,377

Total Liabilities

6,486,034

8,124

1,196,438

Shareholders' Equity

Ordinary Shares

24,786

25,988

3,780

Additional Paid‑In Capital

19,912

19,407,460

2,822,698

Accumulated Deficit

(14,886,214)

(15,419,256) [17]

(2,638)

Accumulated Other ComprehensiveIncome

12,333

123,923

18,024

BEST Inc. Shareholders' Equity

4,391,817

4,115

601,864

Non-controlling Interests

678

2,043

297

Total Shareholders' Equity

4,392,495

4,140,158

602,161

Total Liabilities and Shareholders'Equity

10,599

Summary of Unaudited Condensed Consolidated Statements of Cash Flows

(In Thousands)

Three Months Ended December 31,

2017

2018

2017

2018

RMB

RMB

US$

RMB

RMB

US$

Net Cash (Used in)/Generated from

OperatingActivities

(9,303)

728,988

106,027

25,602

637,204

92,677

Net Cash Generated from/(Usedin)

InvestingActivities

616,859

112,547

16,369

(4,105,923)

(1,230,953)

(179,035)

Net Cash

Generated from

FinancingActivities

579,086

326,930

47,550

3,730,859

557,149

81,034

Exchange Rate Effect on Cash and

Cash Equivalents,and Restricted Cash

29,980

1,767

257

(48,241)

53,179

7,735

Net Increase/(Decrease) in Cash

and Cash Equivalents,and Restricted Cash

1,622

1,170,232

170,203

(397,703)

16,579

2,411

Cash and Cash Equivalents,and

Restricted Cash at Beginning ofPeriod

1,766,207

1,176

266,043

3,380,532

2,982,829

433,835

Cash and Cash Equivalents,and

Restricted Cash at End ofPeriod

2,829

2,999,408

436,246

2,246

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 12- Reconciliation of EBITDA,Adjusted EBITDA and Adjusted EBITDA Margin

Three Months Ended December 31,

2017

2018

2017

2018

(In '000)

RMB

RMB

US$

RMB

RMB

US$

Net Loss

(136,941)

Add

Depreciation & Amortization

100,934

132,464

19,267

363,909

461,612

67,138

Interest Expense

14,355

21,301

3,098

47,154

75,060

10,917

Income Tax Expense

3,420

4,916

715

9,856

11,887

1,729

Subtract

Interest Income

(24,115)

(25,695)

(3,737)

(75,056)

(102,821)

(14,955)

EBITDA

(42,258)

108,999

15,854

(882,197)

(62,653)

(9,112)

Add

Share-based

Compensation Expenses

18,274

27,180

3,953

298,963

109,107

15,869

Add/(Subtract)

Fair Value Change of

Equity Investments

–

13,900

2,022

–

(64,628)

(9,400)

Adjusted EBITDA

(23,984)

150,079

21,829

(583,234)

(18,174)

(2,643)

Adjusted EBITDA Margin

(0.4%)

1.7%

1.7%

(2.9%)

(0.1%)

(0.1%)

The table below sets forth a reconciliation of the Company's net loss to non-GAAP net (loss)/profit,non-GAAP net (loss)/profit margin for the periods indicated:

Table 13- Reconciliation of non-GAAP Net (Loss)/Profit and Non-GAAP Net (Loss)/Profit Margin

Three Months Ended December 31,941)

Add

Share-based

Compensation Expenses

18,869

Amortization of

Intangible Assets

Resulting from

Business Acquisitions

3,027

3,012

438

6,580

12,003

1,746

Add/(Subtract)

Fair Value Change of

Equity Investments

–

13,400)

Non-GAAP Net (Loss)/Profit

(115,551)

20,105

2,924

(922,517)

(451,909)

(65,726)

Non-GAAP Net (Loss)/ProfitMargin

(1.8%)

0.2%

0.2%

(4.6%)

(1.6%)

(1.6%)

The table below sets forth a reconciliation of the Company's diluted EPS to non-GAAP diluted EPS for the periods indicated:

Table 14- Reconciliation of Diluted EPS and Non-GAAP Diluted EPS

Three Months Ended December

31,

Fiscal Year Ended December

31,

2018

2018

(In '000)

RMB

US$

RMB

US$

Net Loss Attributable to Ordinary

Shareholders

(23,443)

(3,410)

(507,988)

(73,882)

Add

Share-based Compensation Expenses

27,953

109,869

Amortization of Intangible Assets

Resulting from Business Acquisitions

3,012

438

12,746

Add/(Subtract)

Fair Value Change of

EquityInvestments

13,022

(64,400)

Non-GAAP Net Profit/(Loss) Attributable

to Ordinary Shareholders for Computing

Non-GAAP Diluted EPS

20,649

3,003

(451,506)

(65,667)

Weighted Average Diluted Shares

Outstanding During the Quarter

387,272,203

387,203

384,876

384,876

Diluted EPS

(0.06)

(0.01)

(1.32)

(0.19)

Add

Share-based Compensation Expenses

0.07

0.01

0.29

0.04

Amortization of Intangible Assets

Resulting from Business Acquisitions

0.00

0.00

0.03

0.00

Add/(Subtract)

Fair Value Change of

EquityInvestments

0.04

0.01

(0.17)

(0.02)

Non-GAAP Diluted EPS

0.05

0.01

(1.17)

(0.17)

[1]All numbers presented have been rounded to the nearest integer,and year-over-year comparisons are based on figures before rounding.

[2] Others include BEST Global,BEST Capital,BEST UCargo and other new initiatives.

[3]Non-GAAP net profit and non-GAAP net loss represent net profit and net loss,respectively,excluding share-based compensation expenses,and fair value change of equity investments.

[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])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.

[6]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.

[7] Non-GAAP diluted earnings per share,or non-GAAP diluted EPS,represents diluted earnings per share excluding share-based compensation expenses,and fair value change of equity investments.

[8]All numbers presented have been rounded to the nearest integer,tenth,or hundredth,and year-over-year comparisons are based on figures before rounding.

[9]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.

[10]Based on data published by State Post Bureau of the PRC.

- For October 2018 data,see State Post Bureau of the PRC Published Post Industry Operation Statistics for October 2018,State Post Bureau of the PRC,November 13,available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201811/t20181113_1695034.html

- For November 2018 data,see State Post Bureau of the PRC Published Post Industry Operation Statistics for November 2018,December 11,available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201812/t20181211_1715374.html

- For December 2018 data,see State Post Bureau of the PRC Published Post Industry Operation Statistics for December 2018,January 16,2019,available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201901/t20190116_1746179.html

- For full year 2018 data,available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201901/t20190116_1746179.html

[11]Segments consist of all business units other than BEST Store+,BEST Store+,and unallocated expenses.

[12]Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

[13]Before the completion of the Company's IPO in September 2017,no share-based compensation expenses had been recognized. Upon completion of the IPO,the Company immediately recognized a substantial amount of share-based compensation expense associated with vested share-based awards,in the third quarter of 2017.

[14]Segments consist of all business units other than BEST Store+,and unallocated expenses.

[15]Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

[16]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.

[17]Including accumulated accretion to redemption value and deemed dividend in relation to redeemable convertible preferred shares of RMB9,493,807,and accumulated loss from operations of RMB5,925,449.

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