BEST Inc. Announces Unaudited First Quarter 2020 Financial Results

HANGZHOU,China,May 28,2020 -- 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 March 31,2020. The Company's results were adversely impacted by operational disruptions caused by the COVID-19 pandemic.

Johnny Chou,Founder,Chairman and Chief Executive Officer of BEST,commented,"In the first quarter of 2020,amid the COVID-19 pandemic,we focused our efforts on three key priorities: ensuring the health and safety of our employees and customers,rapidly resuming operations,and committing our resources to the global fight against COVID-19. These efforts could not have been accomplished without the extraordinary efforts of our employees,franchisees,suppliers and partners. As we entered the second quarter,all of our business lines had swiftly returned to normal operations,and I am pleased to report that the demand for our integrated supply chain and logistics services are robust as consumer purchasing habits have shifted deeper online. Our fundamentals are strong with continued high growth in e-commerce,a laser-sharp focus on increased operational efficiencies,and our plans to streamline sales and marketing in addition to general and administrative functions,all of which can drive improved profitability in 2020.

Strategically,we continued to optimize our logistics networks during the quarter by further improving route planning and automation,integrating our comprehensive solutions to create revenue and cost synergies,and enhancing overall quality of service. In addition,we are exploring ways to sharpen our strategic focus,with one potential option being the spin-off of certain business units that are in early stages of development with the intent of moving the company to profitability while allowing those units to independently raise capital for future growth," concluded Mr. Chou.

Gloria Fan,BEST's Chief Financial Officer,"While the COVID-19 outbreak brought many unique challenges to our business,we are witnessing a strong recovery and rebound. In the first quarter,however,our Net Loss widened as parcel and freight volume along with associated costs were negatively impacted by prolonged work stoppages and travel restrictions. Despite these factors,our balance sheet remains strong with cash and cash equivalents,restricted cash,and short-term investments totaling over RMB4.2 billion at the end of the quarter. As the impact from the pandemic subsides,we are confident in the long-term operating profitability of our core logistics and supply chain businesses."

FINANCIAL HIGHLIGHTS

For the Quarter Ended March 31,2020:

Revenue was RMB5,465.5 million (US$771.9 million),a decrease of 20.5% year-over-year ("YoY"). The decrease was primarily due to disruptions in our business from the COVID-19 pandemic and the passing through of a temporary government waiver of highway toll fees to our customers through downward price adjustments.

Gross Loss was RMB176.6 million (US$24.9 million),compared to gross profit of RMB292.7 million in the same period of 2019. The decrease was primarily due to loss of revenue and extra costs incurred due to the pandemic. Gross Margin was negative 3.2%,a decrease of 7.5 percentage points YoY.

Net Loss was RMB750.8 million (US$106.0 million),compared to Net Loss of RMB233.4 million in the same period of 2019. Non-GAAP Net Loss(1)(2) was RMB712.1 million (US$100.6 million),compared to non-GAAP Net Loss of RMB208.4 million in the same period of 2019.

Diluted EPS(3) was negative RMB1.91 (US$0.27),compared to negative RMB0.60 in the same period of 2019. Non-GAAP diluted EPS(3)(4) was negative RMB1.81 (US$0.26),compared to negative RMB0.53 in the same period of 2019.

EBITDA(3)(5) was negative RMB616.5 million (US$87.1 million),compared to negative RMB101.1 in the same period of 2019. Adjusted EBITDA(3)(6) was negative RMB580.3 million (US$82.0 million),compared to negative RMB79.1 in the same period of 2019.

BUSINESS HIGHLIGHTS AND STRATEGIC UPDATES(6)

Core Logistics and Supply Chain

The Company's results were adversely impacted by business disruptions caused by the COVID-19 pandemic. Beginning in mid-January,the COVID-19 outbreak resulted in travel restrictions and quarantines in China that negatively affected the Company's operations and caused lower productivity from late January to late March. By the end of March,recovery of the Company's services across China had been completed,including the reopening of all hubs,sortation centers and Cloud order fulfillment centers (OFC),as well as the resumption of all businesses.

Aside from mobilizing its workforces and partners to maintain service and ensure health and safety during the pandemic,the Company's key strategic focuses during the quarter included:

Optimization of logistics and supply chain network: the Company improved its transportation efficiency for both express and freight by capacity sharing. In addition,the Company continued to enhance automation for its hubs and sortation centers to drive down unit costs.

Emphasis on synergies across business units: the Company stressed the e-commerce aspect of its transportation service as well as its supply chain management business. This helped the Company to achieve strong business-to-consumer (B2C) order growth during the quarter.

Improvement of service quality: the Company continued to improve quality of services by enhancing network flexibility,density of last-mile service outlets,and customer experience.

BEST Express - Parcel volume decreased by 1.9% YoY compared to an overall market increase of 3.2 %(7). While it is the Company's annual practice to shut down the majority of services over the Chinese New Year holiday period to allow franchisees to return home to celebrate,this year's work stoppage was extended by over one month beyond the Chinese New Year holiday period due to the pandemic. Daily volume rebounded in late March as recovery accelerated,partially offsetting declines in February and early March. Despite challenging operating conditions,average cost per parcel decreased by 14.0% YoY.

BEST Freight- Freight volume decreased by 15.3% YoY in the first quarter of 2020. The decrease was caused by the extended work stoppages after the Chinese New Year holiday period,in addition to deceleration of manufacturing activities and disruption of supply chains that reduced demand for business-to-business freight services. Since late March,when businesses began to return to normal operations in China,freight volume has rebounded sharply with strong demand.

BEST Supply Chain Management- Total number of Business-to-Consumer (B2C) orders fulfilled increased by 34.9% YoY. The increase was due to strong demand for online shopping and strategic shift to grow franchised cloud OFC business. The number of franchised OFCs increased by 28.5% YoY to 302. However,Business-to-Business (B2B) orders decreased due to temporary pandemic-related business closure of our customers.

BEST UCargo - The number of registered drivers on the UCargo mobile app more than tripled YoY to 209,537. Total number of transactions on the trucking brokerage platform decreased by 6.4% YoYdue to severe disruptions in supply chains and travel restrictions across China.

BEST Capital- As of March 31,2020,BEST Capital had provided financing solutions to 11,159 trucks in total,a quarter-over-quarter ("QoQ") increase of 5.0% compared to December 31,2019.

BEST Store+

Demand for Store+services was robust during the pandemic as more membership and franchised stores went online for procurement and fulfillment. Gross margin per order fulfilled continued to improve YoY despite challenging operating conditions as a result of the Company's strategy of focusing on quality of orders. Total number of orders fulfilled decreased by 4.6% YoY due to decline in orders from temporary pandemic-related closure of self-operated WoWo stores. These order declines were offset by increased orders from membership and franchised stores.

BEST Global

Global continued with strong momentum in Southeast Asia. Parcel volume in Thailand increased by 96.3% QoQ to 5.11 million,while parcel volume in Vietnam increased by 46.0% QoQ to 3.73 million in the first quarter of 2020.

Key Operational Metrics

Three Months Ended

% Change YoY

March 31,

2018

March 31,

2019

March 31,

2020

2019 VS

2018

2020 VS

2019

Express Parcel Volume

(in '000)

950,498

1,340,540

1,315,525

41.0%

(1.9%)

Freight Volume (Tonne in

'000)

985

1,268

1,074

28.8%

(15.3%)

Supply Chain Management

Orders Fulfilled (in '000)

45,345

61,964

83,596

36.7%

34.9%

UCargo Number of

Transactions (in '000)

39

120

112

208.5%

(6.4%)

Store+Total Number of

Orders Fulfilled (in '000)

587

556

530

(5.4%)

(4.6%)

Global Parcel Volume in

Southeast Asia (in '000)

-

237

8,840

-

3,624.3%

Environmental Social and Governance (ESG) Report

On May 7,the Company released its second ESG report,which can be accessed via the following link: http://www.best-inc.com/2019ESGReportIIvPUB.pdf.

FINANCIAL RESULTS

For the Quarter Ended March 31,2020:

Revenue

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

Table 1 – Breakdown of Revenue by Business Segment

Three Months Ended

March 31,2019

March 31,2020

(In '000,except for %)

RMB

% of

Revenue

RMB

US$

% of

Revenue

% Change

YoY

Core logistics and

supply chain:

Express

4,267,959

62.1%

3,366,687

475,467

61.6%

(21.1%)

Freight

987,930

14.4%

683,520

96,532

12.5%

(30.8%)

Supply Chain

Management

534,637

7.8%

407,592

57,563

7.5%

(23.8%)

UCargo

441,187

6.4%

380,549

53,744

7.0%

(13.7%)

Capital

48,392

0.7%

48,485

6,847

0.9%

0.2%

Total core logistics

and supply chain

6,280,105

91.4%

4,886,833

690,153

89.4%

(22.2%)

Store+

553,522

8.1%

462,835

65,365

8.5%

(16.4%)

Global

40,947

0.6%

115,788

16,352

2.1%

182.8%

Total Revenue

6,874,574

100%

5,465,456

771,870

100.0%

(20.5%)

Core Logistics and Supply Chain

Express Service Revenue decreased by 21.1% YoY to RMB3,366.7 million (US$475.5 million) from RMB4,268.0 million,primarily due to a 19.6% YoY decrease in average selling price (ASP) per parcel and a 1.9% YoY decrease in parcel volume. The decrease in ASP is attributable to competitive market dynamics and the pass-through of a temporary government waiver of highway toll fees to customers.

Freight Service Revenue decreased by 30.8% YoY to RMB683.5 million (US$96.5 million) from RMB987.9 million,primarily due to a 15.3% YoY decrease in freight volume,and the pass-through of a temporary government waiver of highway toll fees to customers which contributed to a 18.3% YoY decrease in ASP per tonne.

Supply Chain Management Service Revenue decreased by 23.8% YoY to RMB407.6 million (US$57.6 million) from RMB534.6 million,primarily due to pandemic-related decrease in B2B service revenue.

BEST UCargo Revenue decreased by 13.7% YoY to RMB380.5 million (US$53.7 million) from RMB441.2 million,due to decreases in the number of transactions on the trucking brokerage platform.

BEST Capital Revenue increased by 0.2% YoY to RMB48.5 million (US$6.8 million) from RMB48.4 million.

BEST Store+- Revenue decreased by 16.4% YoY to RMB462.8 million (US$65.4 million) from RMB553.5 million,primarily due to a decrease in revenue from self-operated WoWo,membership and franchised stores due to temporary store closures during the pandemic.

BEST Global - Revenue increased by 182.8% YoY to RMB115.8 million (US$16.4 million) from RMB40.9 million,primarily due to strong growth in parcel volumes in Thailand and Vietnam.

Cost of Revenue

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

Table 2 – Breakdown of Cost of Revenue by Business Segment

Three Months Ended

March 31,2020

% of Revenue

(In '000,except for %)

RMB

% of Revenue

RMB

US$

% of

Revenue

Change

YoY

Core logistics and

supply chain

Express

(4,137,708)

96.9%

(3,491,321)

(493,069)

103.7%

6.8ppts

Freight

(954,715)

96.6%

(816,435)

(115,302)

119.4%

22.8ppts

Supply Chain Management.

(513,054)

96.0%

(404,446)

(57,119)

99.2%

3.2ppts

UCargo

(432,681)

98.1%

(373,039)

(52,683)

98.0%

(0.1ppts)

Capital

(12,640)

26.1%

(7,057)

(997)

14.6%

(11.5ppts)

Total for core logistics

and supply chain

(6,050,798)

96.3%

(5,092,298)

(719,170)

104.2%

7.9ppts

Store+

(483,445)

87.3%

(401,475)

(56,699)

86.7%

(0.6ppts)

Global

(47,625)

116.3%

(148,318)

(20,947)

128.1%

11.8ppts

Total Cost of Revenue

(6,581,868)

95.7%

(5,642,091)

(796,816)

103.2%

7.5ppts

Cost of Revenue was RMB5,642.1 million (US$796.8 million) or 103.2% of revenue in the quarter ended March 31,compared to RMB6,581.9 million or 95.7% of revenue in the same quarter of 2019. The increase of 7.5 percentage points in cost of revenue as a percentage of revenue was primarily attributable to the decrease in revenue and additional costs incurred due to the pandemic.

Table 3 – Breakdown of Average Cost Per Parcel and Average Cost Per Tonne

Three Months Ended

% Change

(in RMB,unless otherwise noted)

March 31,2019

March 31,2020

YoY

Express:

Average Cost Per Parcel

3.09

2.65

(14.0%)

Average Transportation Cost Per Parcel

0.82

0.69

(16.1%)

Average Labor Cost Per Parcel

0.29

0.26

(8.8%)

Average Lease Cost Per Parcel

0.13

0.15

14.8%

Average Other Cost Per Parcel

0.17

0.15

(13.3%)

Average Last-mile Cost Per Parcel

1.68

1.40

(16.4%)

Freight:

Average Cost Per Tonne

752.7

759.9

1.0%

Average Transportation Cost Per Tonne

365.2

309.1

(15.4%)

Average Labor Cost Per Tonne

107.9

114.7

6.3%

Average Lease Cost Per Tonne

69.7

99.8

43.3%

Average Other Cost Per Tonne

52.3

72.9

39.4%

Average Last-mile Cost Per Tonne

157.6

163.4

3.7%

Express Service Average Cost per Parcel decreased by 14.0%,primarily attributable to lower last-mile,transportation,and labor costs,offset by a temporary increase in fixed costs per parcel due to the pandemic.

Freight Service Average Cost per Tonne increased by 1.0% YoY,primarily due to a temporary increase in costs per tonne caused by the pandemic,offset by a temporary government waiver of highway toll fees.

Gross Loss was RMB176.6 million (US$24.9 million),compared to gross profit of RMB292.7 million in the same quarter of 2019; Gross Margin was negative 3.2%,compared to positive 4.3% in the same quarter of 2019.

Operating Expenses

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

Table 4 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category

Three Months Ended

March 31,except for %)

RMB

% of

Revenue

RMB

US$

% of

Revenue

% of Revenue

Change

YoY

Selling,General and

Administrative Expenses

(480,344)

7.0%

(519,496)

(73,367)

9.5%

2.5ppts

Adjusted for SBC

Expenses

(19,582)

0.3%

(34,237)

(4,835)

0.6%

0.3ppts

Adjusted Selling,General

and

AdministrativeExpenses

(460,762)

6.7%

(485,259)

(68,532)

8.9%

2.2ppts

Research and

DevelopmentExpenses

(54,019)

0.8%

(60,315)

(8,518)

1.1%

0.3ppts

Adjusted for

SBCExpenses

(2,176)

0.0%

(1,354)

(191)

0.0%

(0ppts)

Adjusted Research and

DevelopmentExpenses

(51,843)

0.8%

(58,961)

(8,327)

1.1%

0.3ppts

Total Operating Expenses

(534,363)

7.8%

(579,811)

(81,885)

10.6%

2.8ppts

Adjusted for

SBCExpenses

(21,758)

0.3%

(35,591)

(5,026)

0.6%

0.3ppts

Adjusted Total

OperatingExpenses

(512,605)

7.5%

(544,220)

(76,859)

10.0%

2.5ppts

Adjusted Selling,General and Administrative Expenses were RMB485.3 million (US$68.5 million) or 8.9% of revenue in the quarter ended March 31,compared to RMB460.8 million or 6.7% of revenue in the same quarter of 2019. The increase in adjusted selling,general and administrative expenses was primarily attributable to an one-time increase in bad-debt provision of approximately RMB27 million resulting from adopting ASC 326 Estimate Credit Loss,and additional investment of approximately RMB10 million in Global operations,partially offset by the decrease of SG&A expenses from our core logistics and supply chain businesses.

Adjusted Research and Development Expenses were RMB59.0 million (US$8.3 million) or 1.1% of revenue in the quarter ended March 31,compared to RMB51.8 million,or 0.8% of revenue in the same quarter of 2019. The increase in adjusted research and development expenses was primarily attributable to the hiring of additional IT professionals.

Share-based Compensation ("SBC") Expenses included in the cost and expense items above in the quarter ended March 31,2020 were RMB36.2 million (US$5.1 million),compared to RMB22.0 million in the same quarter of 2019. In the first quarter of 2020,approximately RMB0.6 million (US$0.09 million) was allocated to cost of revenue,RMB2.8 million (US$0.4 million) was allocated to selling expenses,RMB31.5 million (US$4.4 million) was allocated to general and administrative expenses,and RMB1.4 million (US$0.2 million) was allocated to research and development expenses.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA was negative RMB580.3 million (US$82.0 million),compared to negative RMB79.1 million in the quarter ended March 31,2019. Adjusted EBITDA Margin was negative 10.6%,compared to negative 1.2% in the quarter ended March 31,2019.

Adjusted EBITDA and Adjusted EBITDA Margin by Segment

The following table sets forth a breakdown of adjusted EBITDA and adjusted EBITDA margin for the three months ended March 31,2020 by segment.

Table 5– Breakdown of Adjusted EBITDA and Adjusted EBITDA Margin by Segment

Three Months Ended March 31,2020

Core logistics and supply chain

(In RMB'000)

Express

Freight

Supply Chain

UCargo

Capital

Store+

Global

Unallocated(8)

Total

Adjusted EBITDA

(198,376)

(184,454)

(33,849)

(27,630)

20,982

(77,692)

(64,399)

(14,887)

(580,305)

Adjusted EBITDA

Margin

(5.9%)

(27.0%)

(8.3%)

(7.3%)

43.3%

(16.8%)

(55.6%)

-

(10.6%)

Core Logistics and Supply Chain - Adjusted EBITDA was negative RMB423.3 million (US$59.8 million),compared to RMB123.0 million in the quarter ended March 31,2019. Adjusted EBITDA Margin was negative 8.7%,compared to 2.0% in the quarter ended March 31,2019.

Store+ - Adjusted EBITDA wasnegative RMB77.7 million (US$11.0 million),compared to negative RMB74.5 million in the quarter ended March 31,2019. Adjusted EBITDA Margin was negative 16.8% compared to negative 13.5% in the quarter ended March 31,2019.

Global - Adjusted EBITDA wasnegative RMB64.4 million (US$9.1 million),compared to negative RMB22.4 million in the quarter ended March 31,2019. Adjusted EBITDA Margin was negative 55.6% compared to negative 54.8% in the quarter ended March 31,2019.

Net Loss and Non-GAAP NetLoss

Net Loss in the quarter ended March 31,2020 was RMB750.8 million (US$106.0 million),compared to Net Loss of RMB233.4 million in the same period of 2019. Excluding the impact of SBC expenses and amortization of intangible assets resulting from business acquisitions,non-GAAP Net Loss in the quarter ended March 31,2020 was RMB712.1 million (US$100.6 million),compared to non-GAAP Net Loss of RMB208.4 million in the same quarter of 2019.

The following table sets forth a breakdown of non-GAAP net income/loss for the three months ended March 31,2020 by segment.

Table 6– Breakdown of non-GAAP NetLoss by Segment

Three Months Ended March 31,2020

Core logistics and supply chain

(In RMB'000)

Express

Freight

Supply Chain

UCargo

Capital

Store+

Global

Unallocated(9)

Total

Non-GAAP Net

Income/(Loss)

(276,077)

(199,484)

(44,956)

(27,731)

16,276

(79,715)

(66,928)

(33,448)

(712,063)

Diluted EPS and non-GAAP diluted EPS

Diluted EPS in first quarter of 2020 was negative RMB1.91,based on a weighted average of 389.8 million diluted shares outstanding during the quarter. This compared to negative RMB0.60 on a weighted average of 387.6 million diluted shares outstanding in the same period of 2019. Excluding SBC expenses and amortization of intangible assets resulting from business acquisitions and fair value change of equity investment,non-GAAP diluted EPS in first quarter 2020 was negative RMB1.81,compared to negative RMB0.53 in the same period of 2020. A reconciliation of non-GAAP diluted EPS to diluted EPS is included at the end of this results announcement.

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

As of March 31,cash and cash equivalents,restricted cash and short-term investments were RMB4,236.1 million (US$598.3 million),compared to RMB5,014.8 million as of December 31,2019.

Net Cash Used in Operating Activities

Net cash used in operating activities was RMB1,293.5 million (US$182.7 million),compared to RMB205.6 million in the same period of 2019. The increase in net cash used in operating activities was mainly due to the increase in net loss of RMB517.4 million (US$73.1 million),which was mainly attributable to decreases in parcel and freight volume and extra costs due to prolonged work stoppages and travel restrictions as a result of the COVID-19 pandemic,as well as the increase from change in accounts and note payables of RMB681.6 million (US$96.3 million),partially offset by the decrease from change in accounts receivables and due from related parties in the aggregate amount of RMB97.7 million (US$13.8 million),both of which were primarily attributable to the temporary slow-down in core logistics and supply chain business caused by COVID 19 pandemic.

Capital Expenditures ("CAPEX")

CAPEX was RMB345.9 million (US$48.9 million),or 6.3% of total revenue in the quarter ended March 31,compared to CAPEX of RMB206.2 million,or 3.0% of total revenue,in the same period of 2019. The increase in CAPEX was primarily due to planned upgrades of automation systems in major hubs,sortation centers,and Cloud OFCs,which included investments in high-speed automated sorting lines,dimension and weight scanning systems.

SHARES OUTSTANDING

As of the date of this press release,the Company had approximately 390.9 million ordinary shares outstanding(10). Each American Depositary Share represents one Class A ordinary share.

FINANCIAL GUIDANCE

BEST continues to evaluate the impact of the COVID-19 pandemic and is therefore unable to provide full-year financial guidance for 2020 at this time. The Company is closely monitoring the situation and plans to provide more information during its second quarter 2020 earnings call based on the most current information it will have at that time.

WEBCAST AND CONFERENCE CALL INFORMATION

The Company will hold a conference call at 9:00pm U.S. Eastern Time on May 27,2020 (9:00 am Beijing Time on May 28),to discuss its financial results and operating performance for the first quarter of 2020.

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:

0086632

A replay of the conference call will be accessible through June 3,2020 by dialing the following numbers:

United States:

+1-877-344-7529

International:

+1-412-317-0088

Replay Access Code:

10144146

Please visit the Company's investor relations website http://ir.best-inc.com/ on May 27,2020 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 samesite.

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; fluctuations in general economic and business conditions in China and other countries in which BEST operates,and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in BEST's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release,and BEST does not undertake any obligation to update any forward-looking statement,except as required under applicablelaw.

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.

Summary of Unaudited Condensed Consolidated Income Statements

(In Thousands)

Three Months Ended March 31,

2019

2020

RMB

RMB

US$

Revenue

Express

4,959

3,467

Freight

987,930

683,532

Supply Chain Management

534,637

407,563

UCargo

441,187

380,744

Capital

48,392

48,847

Store+

553,522

462,365

Global

40,947

115,352

Total Revenue

6,574

5,870

Cost of Revenue

Express

(4,708)

(3,069)

Freight

(954,715)

(816,302)

Supply Chain Management

(513,054)

(404,119)

UCargo

(432,681)

(373,683)

Capital

(12,640)

(7,057)

(997)

Store+

(483,445)

(401,699)

Global

(47,625)

(148,947)

Total Cost of Revenue

(6,868)

(5,816)

Gross Profit

292,706

(176,635)

(24,946)

Selling Expenses

(193,267)

(218,777)

(30,897)

General and Administrative Expenses

(287,077)

(300,719)

(42,470)

Research and

Development Expenses

(54,019)

(60,518)

Total Operating Expenses

(534,363)

(579,811)

(81,885)

Loss from Operations

(241,657)

(756,446)

(106,831)

Interest Income

24,025

21,585

3,049

Interest Expense

(26,048)

(33,172)

(4,685)

Foreign Exchange Loss

(1,868)

(149)

(21)

Other Income

20,559

33,934

4,792

Other Expense

(4,695)

(12,324)

(1,740)

Loss before Income Tax and Share of Net

Loss of EquityInvestees

(229,684)

(746,572)

(105,436)

Income Tax Expense

(3,692)

(4,150)

(586)

Loss before Share of Net Loss of Equity

Investees

(233,376)

(750,722)

(106,022)

Share of Net Loss of Equity Investees

(35)

(30)

(4)

Net Loss

(233,411)

(750,752)

(106,026)

Net Loss attributable to non-controlling interests

(2,353)

(7,860)

(1,110)

Net loss attributable to Best Inc.

(231,058)

(742,892)

(104,916)

Net loss attributable to ordinary shareholders

(231,916)

Summary of Unaudited Condensed Consolidated Balance Sheets

(in thousands)

As of December 31,2019

As of March 31,2020

RMB

RMB

US$

Assets

Current Assets

Cash and Cash Equivalents

1,994,683

1,262,267

178,266

Restricted Cash

1,786,832

1,650,233

233,057

Accounts and Notes Receivables

1,229,083

995,314

140,565

Inventories

140,006

150,908

21,312

Prepayments and Other Current Assets

2,750,126

2,673,991

377,640

Short‑term Investments

1,057,598

829,376

117,130

Lease Rental Receivables

483,363

485,199

68,523

Amounts Due from Related Parties

246,758

145,649

20,570

Total Current Assets

9,688,449

8,192,937

1,157,063

Non‑current Assets

Property and Equipment,Net

2,939,379

3,237,194

457,179

Intangible Assets,Net

121,587

117,351

16,573

Goodwill

490,986

493,183

69,651

Long‑term Investments

230,855

230,825

32,599

Non‑current Deposits

127,191

134,895

19,051

Other Non‑current Assets

346,645

359,367

50,752

Operating Lease Right-of-use Assets

4,378,804

4,257,686

601,300

Lease Rental Receivables

993,260

936,464

132,254

Restricted Cash

175,700

494,270

69,804

Total non‑current Assets

9,804,407

10,261,235

1,449,163

Total Assets

19,492,856

18,454,172

2,606,226

Liabilities and Shareholders' Equity

Current Liabilities

Short‑term Bank Loans

2,510,500

3,036,900

428,892

Securitization Debt

104,899

90,568

12,791

Accounts and Notes Payable

3,391,383

2,589,115

365,653

Accrued Expenses and Other Liabilities

2,023,263

2,095,455

295,934

Customer Advances and Deposits and

Deferred Revenue

1,489,510

1,387,730

195,985

Operating Lease Liabilities

1,035,252

1,114,481

157,395

Financing Lease Liabilities

1,363

1,436

203

Amounts Due to Related Parties

6,140

3,611

510

Income Tax Payable

7,358

7,231

1,021

Total Current Liabilities

10,569,668

10,326,527

1,458,384

Non-current Liabilities

Convertible Senior Notes

1,360,208

1,384,947

195,592

Operating Lease Liabilities

3,482,634

3,349,763

473,077

Financing Lease Liabilities

2,072

2,657

375

Deferred Tax Liabilities

25,806

25,154

3,552

Other Non‑current Liabilities

137,184

171,692

24,248

Long-term Bank Loan

-

74,256

10,487

Total Non‑current Liabilities

5,007,904

5,008,469

707,331

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

(In Thousands)

As of December 31,2020

RMB

RMB

US$

Total Liabilities

15,577,572

15,334,996

2,165,715

Shareholders' Equity

Ordinary Shares

25,988

25,988

3,670

Treasury Shares

-

(41,546)

(5,867)

Additional Paid‑In Capital

19,353,400

19,390,533

2,738,466

Accumulated Deficit

(15,621,672)

(16,420,310)

(2,318,991)

Accumulated Other ComprehensiveIncome

163,196

178,041

25,144

BEST Inc. Shareholders' Equity

3,920,912

3,132,706

442,422

Non-controlling Interests

(5,628)

(13,530)

(1,911)

Total Shareholders' Equity

3,915,284

3,119,176

440,511

Total Liability and Shareholders'

Equity

19,226

Summary of Unaudited Condensed Consolidated Statements of Cash Flows

(In Thousands)

Three Months Ended March 31,

2019

2020

RMB

RMB

US$

Net Cash Used in OperatingActivities

(205,550)

(1,293,513)

(182,679)

Net Cash (Usedin) / Generated from

InvestingActivities

(188,755)

113,917

16,088

Net Cash Generated from FinancingActivities

356,792

604,985

85,440

Exchange Rate Effect on Cash,Cash Equivalents,and

Restricted Cash

(27,401)

24,166

3,413

Net Decrease in Cash and Cash Equivalents,and

Restricted Cash

(64,914)

(550,445)

(77,738)

Cash and Cash Equivalents,and Restricted Cash

at Beginning ofPeriod

2,999,408

3,957,215

558,865

Cash and Cash Equivalents,and Restricted Cash

at End ofPeriod

2,934,494

3,406,770

481,127

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 7 – Reconciliation of EBITDA,Adjusted EBITDA and Adjusted EBITDA Margin

Three Months Ended March 31,2020

Core logistics and supply chain

(In RMB'000)

Express

Freight

Supply Chain

UCargo

Capital

Store+

Global

Unallocated(11)

Total

Net Income/(Loss)

(280,448)

(202,811)

(48,350)

(28,673)

16,216

(83,879)

(69,940)

(52,867)

(750,752)

Add

Depreciation &

Amortization

77,217

15,030

10,969

101

517

3,949

3,731

6,974

118,488

Interest Expense

-

-

-

-

-

-

-

33,172

33,172

Income Tax Expense

484

-

138

-

4,189

(385)

(276)

-

4,150

Subtract

Interest Income

-

-

-

-

-

-

-

(21,585)

(21,585)

EBITDA

(202,747)

(187,781)

(37,243)

(28,572)

20,922

(80,315)

(66,485)

(34,306)

(616,527)

Add

Share-based

Compensation

Expenses

4,371

3,327

3,394

942

60

2,623

2,086

19,419

36,222

Adjusted EBITDA

(198,305)

Adjusted EBITDA

Margin

(5.9%)

(27.0%)

(8.3%)

(7.3%)

43.3%

(16.8%)

(55.6%)

-

(10.6%)

Three Months Ended March 31,2019

Core logistics and supply chain

(In RMB'000)

Express

Freight

Supply Chain

UCargo

Capital

Store+

Global

Unallocated(12)

Total

Net Income/(Loss)

13,504

(25,489)

(25,087)

(560)

37,631

(79,355)

(25,466)

(128,589)

(233,411)

Add

Depreciation &

Amortization

83,861

12,655

14,038

55

417

3,953

2,148

9,448

126,575

Interest Expense

-

-

-

-

-

-

-

26,048

26,048

Income Tax

Expense

-

-

-

-

4,490

(532)

(266)

-

3,692

Subtract

Interest Income

-

-

-

-

-

-

-

(24,025)

(24,025)

EBITDA

97,365

(12,834)

(11,049)

(505)

42,538

(75,934)

(23,584)

(117,118)

(101,121)

Add

Share-based

Compensation

Expenses

2,586

1,726

2,636

485

50

1,430

1,135

11,995

22,043

Adjusted EBITDA

99,951

(11,108)

(8,413)

(20)

42,588

(74,504)

(22,449)

(105,123)

(79,078)

Adjusted EBITDA

Margin

2.3%

(1.1%)

(1.6%)

0.0%

88.0%

(13.5%)

(54.8%)

-

(1.2%)

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

Table 8 – Reconciliation of non-GAAP Net Loss and Non-GAAP Net Loss Margin

Three Months Ended March 31,2020

Core logistics and supply chain

(In RMB'000)

Express

Freight

Supply Chain

UCargo

Capital

Store+

Global

Unallocated(13)

Total

Net Income/(Loss)

(280,752)

Add

Share-based

Compensation

Expenses

4,222

Amortization of

Intangible Assets

Resulting from

Business

Acquisition

-

-

-

-

-

1,541

926

-

2,467

Non-GAAP Net

Income/(Loss)

(276,063)

Non-GAAP Net

Loss Margin

(8.2%)

(29.2%)

(11.0%)

(7.3%)

33.6%

(17.2%)

(57.8%)

-

(13.0%)

Three Months Ended March 31,2019

Core logistics and supply chain

(In RMB'000)

Express

Freight

Supply Chain

UCargo

Capital

Store+

Global

Unallocated(14)

Total

Net Income/(Loss)

13,411)

Add

Share-based

Compensation

Expenses

2,043

Amortization of

Intangible Assets

Resulting from

Business

Acquisition

-

-

-

-

-

2,128

890

-

3,018

Non-GAAP Net

Income/(Loss)

16,090

(23,763)

(22,451)

(75)

37,681

(75,797)

(23,441)

(116,594)

(208,350)

Non-GAAP Net

Loss Margin

0.4%

(2.4%)

(4.2%)

0.0%

77.9%

(13.7%)

(57.2%)

-

(3.0%)

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

Table 9 – Reconciliation of Diluted EPS and Non-GAAP Diluted EPS

Three Months Ended March 31,

2019

2020

(In '000)

RMB

RMB

US$

Net Loss Attributable to Ordinary Shareholders

(231,058)

(742,892)

(104,916)

Add

Share-based Compensation Expenses

22,043

36,222

5,115

Amortization of Intangible Assets Resulting from

Business Acquisitions

3,018

2,467

348

Non-GAAP Net Loss Attributable to Ordinary

Shareholders for Computing

Non-GAAP Diluted EPS

(205,997)

(704,203)

(99,453)

Weighted Average Diluted Shares Outstanding

During the Quarter

Diluted

387,629,232

389,754,775

389,775

Diluted (Non-GAAP)

387,775

Diluted EPS

(0.60)

(1.91)

(0.27)

Add

Non-GAAP adjustment to net loss per share

0.07

0.10

0.01

Non-GAAP Diluted EPS

(0.53)

(1.81)

(0.26)

Notes:

(1)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).

(2) 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.

(3)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.

(4) 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 (if any).

(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 (if any).

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

(7) Based on data published by State Post Bureau of the PRC.

- For First Quarter of 2020 data,see State Post Bureau of the PRC Published Post Industry Operation Statistics

for First Quarter of 2020,State Post Bureau of the PRC,April 13,available in Chinese at

http://www.spb.gov.cn/xw/dtxx_15079/202004/t20200413_2087010.html

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

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

(10)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.

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

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

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

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

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