BEST Inc. Announces Unaudited Fourth Quarter and Fiscal Year 2022 Financial Results

The Board Has Authorized a Share Repurchase Program

HANGZHOU,China,March 9,2023 --BEST Inc. (NYSE: BEST) ("BEST" or the "Company"),a leading integrated smart supply chain solutions and logistics services provider in China and Southeast Asia,today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31,2022. The Company also announced that its board of directors has authorized a share repurchase program,under which the Company may repurchase up to US$20 million worth of its outstanding American Depositary Shares over the next 12 months.

Johnny Chou,Founder,Chairman and CEO of BEST,commented,"2022 was a challenging year. The COVID-19 pandemic and its related controls seriously impacted general economy,and was particularly hard for the logistic industry. However,under such severe challenges,we prevailed. In the fourth quarter of 2022,both BEST Freight and BEST Supply Chain Management have significantly improved their gross margins and narrowed their losses. At the same time,BEST Global began to show promising operating trends.

After lifting of COVID pandemic-related controls,we have seen a rapid recovery in general economy and our multiple business lines. We are confident to deliver a strong growth and financial results in 2023. In addition,our Board has authorized an up-to-$20M share repurchase program."

"During 2022,Best Freight focused heavily on digital transformation,cost reductions and quality improvement. As a result,our operating efficiency and service quality have significantly improved. In the fourth quarter,Freight's gross margin grew by 10.4 percentage points and its net loss was narrowed by 69.3% year over year."

"For BEST Supply Chain Management,its strong technical know-how and superb service capabilities helped us weather the storm. Despite COVID-related restrictions throughout the year,BEST Supply Chain Management went above and beyond to make sure we provided our customers with top quality service. As a result,we were rewarded with additional business. Supply Chain Management has added 64 new key account customers in the second half of 2022 and its distribution volume and revenue increased in the fourth quarter by 82.1% and 2.7%,respectively,and gross margin increased to 4.4%,from negative 1.9%,year over year."

"For BEST Global,with the lifting of COVID-related controls,we quickly adjusted our strategy,and realigned our organization in response to the evolving Southeast Asia market. We greatly elevated our organization's capabilities,widening our network coverage and significantly improved our service quality. We also expanded our coverage of small- and medium-sized enterprise customers and the revenue contribution from those customers grew by 13 percentage points to 40.2% in the fourth quarter of 2022,compared with the first quarter of 2022. In addition,we are accelerating our B2B2C and cross border business to provide additional product offerings. We believe this strategic direction will usher in Global's fast recovery and prompt growth for a much improved gross margin and better cash flow in 2023."

"We finished 2022 with a much more resilient,streamlined business infrastructure and improved operating efficiency. Our strengths in technology,domestic and global supply chain management as well as logistics services place us in a strong position to deliver a strong profitable growth in 2023 and beyond." concluded Mr. Chou.

Gloria Fan,BEST's Chief Financial Officer,added,"While our revenue for the fourth quarter was dampened by the COVID-19 pandemic,the cost control measures we enacted significantly narrowed our Group non-GAAP net loss by 52.4% year over year. We are actively managing our cash and our balance sheet remains healthy. At the end of 2022,we had cash,cash equivalents,restricted cash and short-term investments of RMB3.2 billion,after we used RMB1.4 billion during 2022 to repurchase our Convertible Senior Notes due 2024. Our overarching goal is to achieve ongoing sustainable and profitable growth. In 2023,we expect Freight and Supply Chain Management to become profitable in the second quarter and generate positive cash flow and profitable growth throughout the year,and BEST Global to see profitability in certain countries."

FINANCIAL HIGHLIGHTS ([1])

For the Fourth Quarter Ended December 31,2022:([2])

Revenue was RMB1,981.4 million (US$287.3 million),compared with RMB2,724.9 million in the fourth quarter of 2021. The decrease was primarily due to the wind-down of the BEST UCargo business line and lower Freight and Global volume. Revenue generated from UCargo was approximately RMB952,000 (US$0.1 million),compared with RMB350 million in the same quarter of 2021.

Gross Loss was RMB58.5 million (US$8.5 million),compared with RMB228.4 million in the fourth quarter of 2021. The decrease in gross loss was primarily due to improved gross margin from BEST Freight and BEST Supply Chain business lines. Gross Loss Margin was 3.0% for the fourth quarter of 2022,compared with a Gross Loss Margin of 8.4% in the same period of 2021.

Net Loss from continuing operations was RMB365.8 million (US$53.0 million),compared with RMB734.1 million in the fourth quarter of 2021. Non-GAAP Net Loss from continuing operations([3])([4]) was RMB338.0 million (US$49.0 million),compared with RMB710.4 million in the fourth quarter of 2021.

Diluted loss per ADS([5]) from continuing operations was RMB4.49 (US$0.65),compared with RMB9.07 in the fourth quarter of 2021. Non-GAAP diluted loss per ADS(3)(4) from continuing operations was RMB4.13 (US$0.60),compared with RMB8.77 in the fourth quarter of 2021.

EBITDA([6]) from continuing operations was negative RMB324.7 million (US$47.1million),compared with negative RMB658.9 million in the fourth quarter of 2021. Adjusted EBITDA(6) from continuing operations was negative RMB296.9 million (US$43.0 million),compared with negative RMB635.2 million in the fourth quarter of 2021.

For the Fiscal Year Ended December 31,2022:

Revenue was RMB7,744.1 million (US$1,122.8 million),compared with RMB11,425.8 million in 2021. The decrease was primarily due to the wind-down of the BEST UCargo business line and lower Freight and Global volume. Revenue generated from UCargo was approximately RMB36.0 million (US$5.2 million),809.1 million in 2021.

Gross Loss was RMB263.6 million (US$38.2 million),compared with RMB199.4 million in 2021. The increase in gross loss was primarily due to lower parcel volume from BEST Global business line. Gross Loss Margin was 3.4%,compared with a Gross Loss Margin of 1.7% in 2021.

Net Loss from continuing operations was RMB1,464.8 million (US$212.4 million),compared with RMB1,263.9 million in 2021. Non-GAAP Net Loss from continuing operations([7])([8]) was RMB1,380.4 million (US$200.1 million),214.8 million in 2021.

Diluted loss per ADS([9]) from continuing operations was RMB18.17 (US$2.63),compared with a loss of RMB15.61 in 2021. Non-GAAP diluted loss per ADS(3)(4) from continuing operations was RMB17.09 (US$2.48),compared with a loss of RMB14.98 in 2021.

EBITDA([10]) from continuing operations was negative RMB1,266.2 million (US$183.6 million),compared with negative RMB976.2 million in 2021. Adjusted EBITDA(6) from continuing operations was negative RMB1,181.8 million (US$171.3 million),compared with negative RMB927.2 million in 2021.

BUSINESS HIGHLIGHTS([11])

BEST Freight – In the fourth quarter of 2022,Freight's volume decreased by 7.6% year over year,and revenue decreased by 32.0% year over year to approximately RMB1.3 billion. The decrease in Freight revenue was primarily due to the wind-down of UCargo business unit. The Company remained focused on developing its e-commerce related business,which contributed 21.2% of total volume in the fourth quarter of 2022. Freight's gross margin was negative 1.3%,representing a 10.4 percentage points improvement from the same period of 2021 as we continued to reduce operating expenses and improve efficiency. For the full year of 2022,Freight's volume decreased by 6.1% year over year to 8.7 million tonnes.

BEST UCargo's operations and financial results are now consolidated with BEST Freight.

BEST Supply Chain Management – In the fourth quarter of 2022,total revenue for Supply Chain Management increased by 2.7% to RMB500.6 million year over year,and gross margin improved by 6.3 percentage points to 4.4%,narrowing Supply Chain Management's net loss by RMB60.4 million,or 81.3%.Its distribution volume increased by 82.1% in the fourth quarter,while the total number of orders fulfilled by Cloud OFCs decreased by 15.6% year over year. For the full year of 2022,the distribution volume increased by 53.6% year over year,while the total number of orders fulfilled by Cloud OFCs decreased by 16.6%. BEST Supply Chain Management's gross margin for 2022 improved by 2.1 percentage points to 6.1%.

BEST Global – The market in Southeast Asia remained challenging in the fourth quarter of 2022. In the wake of relaxed COVID-19 pandemic control measures in the region,there was a shift in consumer consumption activities from online to offline,which negatively impacted the e-commerce logistics industry. As a result,Global's parcel volume decreased by 41.8% year over year to 25.4 million in the fourth quarter of 2022. For the full year of 2022,Global's parcel volume decreased by 19.1% year over year to 121.6 million.

Others

As part of its Strategic Refocusing Program,the Company substantially completed its wind down of the Capital business line in the fourth quarter of 2022.

Key Operational Metrics

Three Months Ended

% Change YOY

December 31,

2020

December 31,

2021

December 31,

2022

2021 vs

2020

2022 vs

2021

Freight Volume (Tonne in '000)

2,623

2,408

2,226

(8.2%)

(7.6%)

Global Parcel Volume in

Southeast Asia(in '000)

27,891

43,707

25,421

56.7%

(41.8%)

Fiscal Year Ended

% Change YoY

December 31,

2022

2021 vs

2020

2022 vs

2021

Freight Volume (Tonne in '000)

8,392

9,218

8,659

9.8%

(6.1%)

Global Parcel Volume in

Southeast Asia (in '000)

73,585

150,392

121,637

104.4%

(19.1%)

FINANCIAL RESULTS ([12])

For the Fourth Quarter Ended December 31,2022:

Revenue

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

Table 1 – Breakdown of Revenue by Business Segment

Three Months Ended

December 31,2021

December 31,2022

(In '000,except for %)

RMB

% of

Revenue

RMB

US$

% of

Revenue

% Change

YOY

Total Freight

1,854,018

68.1%

1,261,196

182,856

63.7%

-32.0%

-Freight

1,503,995

55.3%

1,260,244

182,718

63.6%

-16.2%

-Legacy UCargo

350,023

12.8%

952

138

0.1%

-99.7%

Supply Chain

Management

487,337

17.9%

500,602

72,580

25.3%

2.7%

Global

330,564

12.1%

195,680

28,371

9.9%

-40.8%

Others([13])

52,935

1.9%

23,917

3,468

1.1%

-54.8%

Total Revenue

2,724,854

100.0%

1,981,395

287,275

100.0%

-27.3%

Freight Service Revenue was RMB1,261.2 million (US$182.9 million) for the fourth quarter of 2022,854.0 million in the same period last year,of which,RMB952,000 and RMB350.0 million were from the legacy UCargo business line,respectively. Freight service revenue,excluding the legacy UCargo business,decreased by 16.2% year over year,primarily due to lower volume and decrease in average selling price per tonne.

Supply Chain Management Service Revenue increased by 2.7% year over year to RMB500.6 million (US$72.6 million) for the fourth quarter of 2022 from RMB487.3 million in the same period of 2021,primarily due to newly signed customers with high unit economics,and improved service capability.

Global Service Revenue decreased by 40.8% year over year to RMB195.7 million (US$28.4 million) for the fourth quarter of 2022 from RMB330.6 million in the same period of 2021,primarily due to decreased parcel volume.

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

% of Revenue

Change

YOY

December 31,except for %)

RMB

% of

Revenue

RMB

US$

% of

Revenue

Freight

(2,070,840)

111.7%

(1,277,026)

(185,151)

101.3%

-10.4%

Supply Chain

Management

(496,353)

101.9%

(478,511)

(69,378)

95.6%

-6.3%

Global

(346,392)

104.8%

(264,014)

(38,278)

134.9%

30.1%

Others

(39,679)

75.0%

(20,321)

(2,946)

85.0%

10.0%

Total Cost of Revenue

(2,953,264)

108.4%

(2,039,872)

(295,753)

103.0%

-5.4%

Cost of Revenue for Freight was RMB1,277.0 million (US$185.2 million),or 101.3% of revenue,in the fourth quarter of 2022. The 10.4% year-over-year decrease in cost of revenue as a percentage of revenue was mainly due to improved operating efficiency and effective cost control measures.

Cost of Revenue for Supply Chain Management was RMB478.5 million (US$69.4 million),or 95.6% of revenue,in the fourth quarter of 2022. The 6.3% year-over-year decrease in cost of revenue as a percentage of revenue was primarily due to effective cost control measures and customer structure optimization.

Cost of Revenue for Global was RMB264.0 million (US$38.3 million),or 134.9% of revenue,in the fourth quarter of 2022. The 30.1% year-over-year increase in cost of revenue as a percentage of revenue was primarily due to lower parcel volume.

Cost of Revenue for Others was RMB20.3 million (US$2.9 million),or 85.0% of revenue,in the fourth quarter of 2022,representing a 10.0% year-over-year increase.

Gross loss was RMB58.5 million (US$8.5 million) in the fourth quarter of 2022,compared with a gross loss of RMB228.4 million in the fourth quarter of 2021; Gross Margin was negative 3.0%,compared with negative 8.4% in the fourth quarter of 2021.

Operating Expenses

Selling,General and Administrative ("SG&A") Expenses were RMB263.4 million (US$38.2 million),or 13.3% of revenue in the fourth quarter of 2022,compared with RMB354.8 million,or 13.0% of revenue in the same quarter of 2021. The decrease in the SG&A expenses was primarily due to reduced employee headcount.

Research and Development Expenses were RMB29.2 million (US$4.2 million),or 1.5% of revenue in the fourth quarter of 2022,compared with RMB50.3 million,or 1.8% of revenue in the fourth quarter of 2021,primarily due to reduced employee headcount.

Share-based Compensation ("SBC") Expenses included in the cost and expense items above were RMB15.6 million (US$2.3 million) in the fourth quarter of 2022,compared with RMB23.7 million in the same period of 2021. Of the total SBC expenses,RMB0.08 million (US$0.01 million) was allocated to cost of revenue,RMB0.7 million (US$0.1 million) was allocated to selling expenses,RMB13.6 million (US$2.0 million) was allocated to general and administrative expenses,and RMB1.2 million (US$0.2 million) was allocated to research and development expenses.

Net Loss and Non-GAAP Net Loss from continuing operations

Net Loss from continuing operations in the fourth quarter of 2022 was RMB365.8 million (US$53.0 million),compared with RMB734.1 million in the same period of 2021. Excluding SBC expenses and fair value change of equity investments,Non-GAAP Net Loss from continuing operations in the fourth quarter of 2022 was RMB338.0 million (US$49.0 million),compared with RMB710.4 million in the fourth quarter of 2021.

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

Diluted loss per ADS from continuing operationsin the fourth quarter of 2022 was RMB4.49 (US$0.65),compared with a loss of RMB9.07 in the same period of 2021. Excluding SBC expenses,amortization of intangible assets resulting from business acquisitions and fair value change of equity investments,Non-GAAP diluted loss per ADS from continuing operations in the fourth quarter of 2022 was RMB4.13 (US$0.60),compared with a loss of RMB8.77in the fourth quarter of 2021. A reconciliation of non-GAAP diluted loss per ADS to diluted loss per ADS is included at the end of this results announcement.

Adjusted EBITDA and Adjusted EBITDA Margin from continuing operations

Adjusted EBITDA from continuing operations in the fourth quarter of 2022 was negative RMB296.9 million (US$43.0 million),compared with negative RMB635.2 million in the same period of 2021. Adjusted EBITDA Margin from continuing operations in the fourth quarter of 2022 was negative 15.0%,compared with negative 23.3% in the same period of 2021.

Capital Expenditures ("CAPEX")

CAPEX was RMB11.1 million (US$1.6 million) or 0.6% of total revenue in the fourth quarter of 2022,compared with CAPEX of RMB20.6 million,or 0.8% of total revenue in the same period of 2021.

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

As of December 31,2022,cash and cash equivalents,restricted cash and short-term investments wereRMB3.2 billion (US$464.5 million),compared with RMB5.5 billion as of December 31,2021. In 2022,the Company bought back approximately US$200 million (RMB1.4 billion) aggregate principal amount of its existing Convertible Senior Notes due 2024.

For the Fiscal Year Ended December 31,2022:

Revenue

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

Table 3 – Breakdown of Revenue by Business Segment

Fiscal Year Ended

December 31,2021

December 31,2022

(In '000,except for %)

RMB

% of

Revenue

RMB

US$

% of

Revenue

% Change

YoY

Total Freight

8,244,435

72.2%

4,888,278

708,734

63.2%

-40.7%

-Freight

5,435,354

47.6%

4,852,299

703,518

62.8%

-10.7%

-Legacy UCargo

2,809,081

24.6%

35,979

5,216

0.4%

-98.7%

Supply Chain

Management

1,815,104

15.9%

1,822,075

264,176

23.5%

0.4%

Global

1,193,855

10.4%

916,907

132,939

11.8%

-23.2%

Others

172,442

1.5%

116,812

16,936

1.5%

-32.3%

Total Revenue

11,425,836

100.0%

7,744,072

1,122,785

100.0%

-32.2%

Freight Service Revenue was RMB4,888.3 million (US$708.7 million) in 2022 compared with RMB8,244.4 million in 2021,RMB36.0 million and RMB2,809.1 million were from the legacy UCargo business line in 2022 and 2021,decreased by 10.7% year over year,primarily due to lower volume.

Supply Chain Management Service Revenue increased by 0.4% year over year to RMB1,822.1 million (US$264.2 million) in 2022 from RMB1,815.1 million in 2021,primarily due to newly signed customers with high unit economics following discontinuation of certain low margin legacy accounts,as well as improved service capability.

Global Service Revenue decreased by 23.2% year over year to RMB916.9 million (US$132.9 million) in 2022 from RMB1,193.9 million in 2021,primarily due to decreased parcel volume.

Cost of Revenue

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

Table 4 – Breakdown of Cost of Revenue by Business Segment

Fiscal Year Ended

% of Revenue

Change

YoY

December 31,except for %)

RMB

% of

Revenue

RMB

US$

% of

Revenue

Freight

(8,506,738)

103.2%

(5,114,937)

(741,596)

104.6%

1.4%

Supply Chain

Management

(1,741,832)

96.0%

(1,711,818)

(248,190)

93.9%

-2.1%

Global

(1,258,511)

105.4%

(1,081,587)

(156,815)

118.0%

12.6%

Others

(118,143)

68.5%

(99,288)

(14,395)

85.0%

16.5%

Total Cost of Revenue

(11,625,224)

101.7%

(8,007,630)

(1,160,996)

103.4%

1.7%

Cost of Revenue for Freight was RMB5,114.9 million (US$741.6 million),or 104.6% of revenue in 2022. The 1.4% year-over-year increase in cost of revenue as a percentage of revenue was mainly due to lower volume.

Cost of Revenue for Supply Chain Management was RMB1,711.8 million (US$248.2 million),or 93.9% of revenue in 2022. The 2.1% year-over-year decrease in cost of revenue as a percentage of revenue was primarily due to effective cost control measures and customer structure optimization.

Cost of Revenue for Global was RMB1,081.6 million (US$156.8 million),or 118.0% of revenue in 2022. The 12.6% year-over-year increase in cost of revenue as a percentage of revenue was primarily due to lower parcel volume.

Cost of Revenue for Others was RMB99.3 million (US$14.4 million),or 85.0% of revenue in 2022,representing a 16.5% year-over-year increase.

Gross loss was RMB263.6 million (US$38.2 million) in 2022,compared with a gross loss of RMB199.4 million in 2021; Gross Margin was negative 3.4%,compared with negative 1.7% in 2021.

Operating Expenses

Selling,General and Administrative ("SG&A") Expenses were RMB1,127.3 million (US$163.4 million),or 14.6% of revenue in 2022,141.7 million,or 10.0% of revenue in 2021 due to reduced employee headcount.

Research and Development Expenses were RMB144.2 million (US$20.9 million),or 1.9% of revenue in 2022,compared with RMB180.2 million,or 1.6% of revenue in 2021 due to reduced employee headcount.

Share-based Compensation ("SBC") Expenses included in the cost and expense items above were RMB72.1 million (US$10.5 million) in 2022,compared with RMB107.7 million in 2021. Of the total SBC expenses,RMB0.32 million (US$0.05 million) was allocated to cost of revenue,RMB3.5 million (US$0.5 million) was allocated to selling expenses,RMB63.3 million (US$9.2 million) was allocated to general and administrative expenses,and RMB5.0 million (US$0.7 million) was allocated to research and development expenses.

Net Loss and Non-GAAP Net Loss from continuing operations

Net Loss from continuing operations in 2022 was RMB1,263.9 million in 2021. Excluding SBC expenses and fair value change of equity investments,Non-GAAP Net Loss from continuing operations in 2022 was RMB1,214.8 million in 2021.

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

Diluted loss per ADS from continuing operationsin 2022 was RMB18.17 (US$2.63),compared with a loss of RMB15.61 in 2021. Excluding SBC expenses,Non-GAAP diluted loss per ADS from continuing operations in 2022 was RMB17.09 (US$2.48),compared with a loss of RMB14.98in 2021. A reconciliation of non-GAAP diluted loss per ADS to diluted loss per ADS is included at the end of this results announcement.

Adjusted EBITDA and Adjusted EBITDA Margin from continuing operations

Adjusted EBITDA from continuing operations in 2022 was negative RMB1,compared with negative RMB927.2 million in 2021. Adjusted EBITDA Margin from continuing operations in 2022 was negative 15.3%,compared with negative 8.1% in 2021.

Capital Expenditures ("CAPEX")

CAPEX was RMB143.3 million (US$20.8 million) or 1.9% of total revenue in 2022,compared with CAPEX of RMB160.0 million,or 1.4% of total revenue in 2021.

SHARES OUTSTANDING

As of February 28,2023,the Company had approximately 393.9 million ordinary shares outstanding([14]). Each American Depositary Share represents five (5) Class A ordinary shares.

FINANCIAL GUIDANCE

The Company confirms its guidance for total revenue between RMB 9.0 billion and RMB 9.5 billion for the full year of 2023.

This forecast reflects the Company's current and preliminary view based on its current business situation and market conditions,which are subject to change.

WEBCAST AND CONFERENCE CALL INFORMATION

The Company will hold a conference call at 8:00 pm U.S. Eastern Time on March 8,2023 (9:00 am Beijing Time on March 9,2023),to discuss its financial results and operating performance for the fourth quarter and fiscal year 2022.

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 : 1659917

A replay of the conference call will be accessible through March 15,2023 by dialing the following numbers:

United States : +1-877-344-7529

International : +1-412-317-0088

Replay Access Code : 1608887

Please visit the Company's investor relations website to view the earnings release prior to the conference call. A live and archived webcast of the conference call and a corporate presentation will be available at the same site.

ABOUT BEST INC.

BEST Inc. (NYSE: BEST) is a leading integrated smart supply chain solutions and logistics services provider in China and Southeast Asia. Through its proprietary technology platform and extensive networks,BEST offers a comprehensive set of logistics and value-added services,including freight delivery,supply chain management and global logistics services. BEST's mission is to empower business and enrich life by leveraging technology and business model innovation to create a smarter,more efficient supply chain. For more information,please visit: http://www.best-inc.com/en/.

For investor and media inquiries,please contact:

BEST Inc.

Investor relations team

ir@best-inc.com

The Piacente Group,Inc.

Helen Wu

Tel: +86-10-6508-0677

E-mail: best@tpg-ir.com

The Piacente Group,Inc.

Brandi Piacente

Tel: +1-212-481-2050

E-mail:  best@tpg-ir.com

SAFE HARBOR STATEMENT

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

USE OF NON-GAAP FINANCIAL MEASURES

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

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

Summary of Unaudited Condensed Consolidated Income Statements

(In Thousands)

Three Months Ended December 31,

Fiscal Year Ended December 31,

2021

2022

2021

2022

RMB

RMB

US$

RMB

RMB

US$

Revenue

Freight

1,018

1,856

8,435

4,734

-Freight

1,995

1,244

182,718

5,354

4852,299

705,696

-Legacy UCargo

350,023

952

138

2,081

35,979

3,038

Supply Chain Management

487,337

500,580

1,104

1,176

Global

330,564

195,371

1,855

916,939

Others

52,935

23,468

172,442

116,936

Total Revenue

2,854

1,395

287,275

11,836

7,785

Cost of Revenue

Freight

(2,840)

(1,151)

(8,738)

(5,596)

Supply Chain Management

(496,353)

(478,378)

(1,832)

(1,190)

Global

(346,392)

(264,278)

(1,511)

(1,815)

Others

(39,679)

(20,946)

(118,143)

(99,395)

Total Cost of Revenue

(2,264)

(2,753)

(11,224)

(8,996)

Gross Loss

(228,410)

(58,477)

(8,478)

(199,388)

(263,558)

(38,211)

Selling Expenses

(73,021)

(54,621)

(7,919)

(260,219)

(237,918)

(34,495)

General and Administrative

Expenses

(281,772)

(208,738)

(30,264)

(881,498)

(889,345)

(128,943)

Research and Development

Expenses

(50,294)

(29,247)

(4,240)

(180,204)

(144,181)

(20,904)

Other operating (loss)/income,net

(89,893)

3,387

491

58,337

108,817

15,777

Loss from Operations

(723,390)

(347,696)

(50,410)

(1,462,972)

(1,426,185)

(206,776)

Interest Income

17,735

19,208

2,785

49,658

80,361

11,651

Interest Expense

(29,310)

(16,329)

(2,367)

(142,751)

(89,058)

(12,912)

Foreign Exchange Gain/(loss)

44,186

68,318

9,905

44,556

(132,730)

(19,244)

Other Income

6,709

2,149

312

321,075

25,914

3,757

Other Expense

(34,657)

(13,815)

(2,003)

(55,253)

5,763

836

(Loss)/Gain on changes in the fair

value of derivative assets/liabilities

(14,918)

(77,577)

(11,248)

(14,918)

71,619

10,384

Loss before Income Tax and

Share of Net Loss of Equity

Investees

(733,645)

(365,742)

(53,026)

(1,605)

(1,464,316)

(212,304)

Income Tax Expense

(500)

(106)

(15)

(3,198)

(511)

(74)

Loss before Share of Net loss of

Equity Investees

(734,145)

(365,848)

(53,041)

(1,263,803)

(1,827)

(212,378)

Share of Net Loss of Equity

Investees

-

-

-

(58)

-

-

Net Loss from continuing

operations

(734,861)

(1,378)

Net gain/(loss) from discontinued

operations

2,679,400

(31,787)

(4,609)

1,473,489

(38,464)

(5,577)

Net Gain/(Loss)

1,945,255

(397,635)

(57,650)

209,628

(1,291)

(217,955)

Net Loss from continuing operations

attributable to non-controlling

interests

(28,727)

(13,055)

(1,893)

(52,279)

(39,980)

(5,797)

Net Gain/(Loss) attributable to

BEST Inc.

1,973,982

(384,580)

(55,757)

261,907

(1,463,311)

(212,158)

Summary of Unaudited Condensed Consolidated Balance Sheets

(In Thousands)

As of December 31,2021

As of December 31,2022

RMB

RMB

US$

Assets

Current Assets

Cash and Cash Equivalents

3,571,745

533,481

77,347

Restricted Cash

675,159

399,337

57,898

Accounts and Notes Receivables

827,631

691,324

100,237

Inventories

25,622

16,480

2,389

Prepayments and Other Current

Assets

1,172,472

795,401

115,322

Short–term Investments

147,359

725,043

105,121

Amounts Due from Related Parties

125,198

76,368

11,072

Lease Rental Receivables

298,364

43,067

6,244

Total Current Assets

6,843,550

3,280,501

475,630

Non–current Assets

Property and Equipment,Net

762,642

784,732

113,775

Intangible Assets,Net

55,684

75,553

10,954

Long–term Investments

219,171

156,859

22,742

Goodwill

54,135

54,135

7,849

Non–current Deposits

92,866

50,767

7,361

Other Non–current Assets

111,640

75,666

10,971

Restricted Cash

1,069,244

1,545,605

224,092

Lease Rental Receivables

235,429

40,188

5,827

Operating Lease Right-of-use

Assets

1,899,522

1,743,798

252,827

Total non–current Assets

4,500,333

4,527,303

656,398

Total Assets

11,343,883

7,807,804

1,132,028

Liabilities and Shareholders'

Equity

Current Liabilities

Long-term borrowings-current

287,814

79,148

11,475

Convertible Senior Notes held by

related parties

633,475

1,045,488

151,582

Convertible Senior Notes held by

third parties

633,475

77

11

Short–term Bank Loans

530,495

183,270

26,572

Accounts and Notes Payable

1,353,150

1,430,004

207,331

Income Tax Payable

587

1,563

227

Customer Advances and Deposits

and Deferred Revenue

298,353

277,737

40,268

Accrued Expenses and Other

Liabilities

1,591,639

1,198,228

173,727

Financing Lease Liabilities

1,851

1,490

216

Operating Lease Liabilities

518,248

544,262

78,911

Amounts Due to Related Parties

2,763

1,315

191

Total Current Liabilities

5,851,850

4,762,582

690,511

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

(In Thousands)

As of December 31,2022

RMB

RMB

US$

Non-current Liabilities

Convertible senior notes held by

related parties

955,097

-

-

Long-term borrowings

67,080

381

55

Operating Lease Liabilities

1,456,843

1,292,057

187,331

Financing Lease Liabilities

2,121

1,392

202

Other Non–current Liabilities

24,261

18,752

2,719

Long-term Bank Loans

769,767

928,894

134,677

Total Non–current Liabilities

3,275,169

2,241,476

324,984

Total Liabilities

9,127,019

7,004,058

1,015,495

Mezzanine Equity:

Convertible Non-controlling Interests

191,865

191,865

27,818

Total mezzanine equity

191,865

191,865

27,818

Shareholders' Equity

Ordinary Shares

25,988

25,988

3,768

Treasury Shares

(113,031)

-

-

Additional Paid–In Capital

19,522,173

19,481,417

2,824,540

Statutory reserves

167

-

-

Accumulated Deficit

(17,471,716)

(18,934,860)([15])

(2,745,297)

Accumulated Other

Comprehensive Income

107,379

124,464

18,046

BEST Inc. Shareholders' Equity

2,960

697,009

101,057

Non-controlling Interests

(45,961)

(85,128)

(12,342)

Total Shareholders' Equity

2,024,999

611,881

88,715

Total Liabilities,Mezzanine Equity

and Shareholders' Equity

11,028

Summary of Unaudited Condensed Consolidated Statements of Cash Flows

(In Thousands)

Three Months Ended December 31,

Fiscal Year Ended December 31,

2021

2022

2021

2022

RMB

RMB

US$

RMB

RMB

US$

Net cash used in continuing

operating activities

(508,632)

(241,890)

(35,071)

(891,135)

(1,051,662)

(152,478)

Net cash used in discontinued

operating activities

(387,540)

-

-

(1,912,826)

(66,174)

(9,594)

Net cash used in operating

activities

(896,172)

(241,890)

(35,071)

(2,803,961)

(1,117,836)

(162,072)

Net cash generated from

continuing investing activities

3,236,982

239,536

34,729

4,990,734

150,756

21,858

Net cash used in discontinued

Investing activities

(97,328)

-

-

(448,016)

-

-

Net cash generated from

investing activities

3,139,654

239,536

34,729

4,542,718

150,756

21,858

Net cash (used in)/generated

from continuing financing

activities

(746,656)

481

70

(237,922)

(1,948,367)

(282,487)

Net cash generated from/(used

in) discontinued financing

activities

469,421

-

-

(337,838)

-

-

Net cash(used in)/generated

fromfinancing activities

(277,235)

481

70

(575,760)

(1,367)

(282,487)

Exchange Rate Effect on Cash

and Cash Equivalents,and

Restricted Cash

(29,450)

(14,864)

(2,155)

(55,970)

77,722

11,269

Net increase/(decrease)in

Cash and Cash Equivalents,

and Restricted Cash

1,936,797

(16,737)

(2,427)

1,107,027

(2,837,725)

(411,432)

Cash and Cash Equivalents,

and Restricted Cash at

Beginning ofPeriod

3,379,351

2,495,160

361,764

4,209,121

5,316,148

770,769

Cash and Cash Equivalents,

and Restricted Cash at End

ofPeriod

5,148

2,478,423

359,337

5,337

RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLEGAAP MEASURES

For the Company's continuing operations,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 5 – Reconciliation of EBITDA,Adjusted EBITDA and Adjusted EBITDA Margin

Three Months Ended December 31,2022

(In RMB'000)

Freight

Supply Chain

Global

Others

Unallocated([16])

Total

Net Loss

(137,133)

(13,939)

(134,200)

(25,378)

(55,198)

(365,848)

Add

Depreciation &

Amortization

19,411

7,492

11,682

847

4,448

43,880

Interest Expense

-

-

-

-

16,329

16,329

Income Tax Expense

-

(12)

(5)

123

-

106

Subtract

Interest Income

-

-

-

-

(19,208)

(19,208)

EBITDA

(117,722)

(6,459)

(122,523)

(24,408)

(53,629)

(324,741)

Add

Share-based

Compensation

Expenses

2,237

1,259

(235)

25

12,291

15,577

Loss from

depreciation of

investments

-

-

-

-

12,312

12,312

Adjusted EBITDA

(115,485)

(5,200)

(122,758)

(24,383)

(29,026)

(296,852)

Adjusted EBITDA

Margin

(9.2%)

(1.0%)

(62.7%)

(101.9%)

-

(15.0%)

Three Months Ended December 31,2021

(In RMB'000)

Freight

Supply Chain

Global

Others

Unallocated([17])

Total

Net Loss

(447,057)

(74,380)

(85,518)

(60,046)

(67,144)

(734,145)

Add

Depreciation &

Amortization

19,730

9,431

4,696

23,257

6,058

63,172

Interest Expense

-

-

-

-

29,310

29,310

Income Tax

Expense

-

79

-

421

-

500

Subtract

Interest Income

-

-

-

-

(17,735)

(17,735)

EBITDA

(427,327)

(64,870)

(80,822)

(36,368)

(49,511)

(658,898)

Add

Share-based

Compensation

Expenses

3,404

1,967

2,066

124

16,173

23,734

Adjusted EBITDA

(423,923)

(62,903)

(78,756)

(36,244)

(33,338)

(635,164)

Adjusted EBITDA

Margin

(22.9%)

(12.9%)

（23.8%)

(68.5%)

-

(23.3%)

Fiscal Year Ended December 31,2022

(In RMB'000)

Freight

Supply Chain

Global

Others

Unallocated([18])

Total

Net Loss

(506,411)

(32,277)

(420,687)

(213,794)

(291,658)

(1,827)

Add

Depreciation &

Amortization

79,273

35,789

29,300

22,846

22,179

189,387

Interest Expense

-

-

-

-

89,058

89,058

Income Tax

Expense

-

23

25

451

12

511

Subtract

Interest Income

-

-

-

-

(80,361)

(80,361)

EBITDA

(427,138)

3,535

(391,362)

(190,497)

(260,770)

(1,266,232)

Add

Share-based

Compensation

Expenses

10,478

6,081

4,962

319

50,256

72,096

Loss from

depreciation of

investments

-

-

-

-

12,312

Adjusted EBITDA

(416,660)

9,616

(386,400)

(190,178)

(198,202)

(1,181,824)

Adjusted EBITDA

Margin

(8.5%)

0.5%

(42.1%)

(162.8%)

-

(15.3%)

Fiscal Year Ended December 31,2021

(In RMB'000)

Freight

Supply Chain

Global

Others

Unallocated([19])

Total

Net Loss

(707,793)

(103,387)

(267,902)

(90,775)

(94,004)

(1,861)

Add

Depreciation &

Amortization

83,425

38,525

19,506

24,396

25,513

191,365

Interest Expense

-

-

-

-

142,751

142,751

Income Tax

Expense/(Benefit)

-

173

21

3,010

(6)

3,198

Subtract

Interest Income

-

-

-

-

(49,658)

(49,658)

EBITDA

(624,368)

(64,689)

(248,375)

(63,369)

24,596

(976,205)

Add

Share-based

Compensation

Expenses

13,537

8,351

8,604

608

76,581

107,681

Subtract

Gain from

appreciation of

investments

-

-

-

-

(58,643)

(58,643)

Adjusted EBITDA

(610,831)

(56,338)

(239,771)

(62,761)

42,534

(927,167)

Adjusted EBITDA

Margin

(7.4%)

(3.1%)

(20.1%)

(36.4%)

-

(8.1%)

For the Company's continuing operations,the table below sets forth a reconciliation of the Company's net loss to non-GAAP net loss,non-GAAP net loss margin for the periods indicated:

Table 6 –Reconciliation of Non-GAAP Net Loss and Non-GAAP Net Loss Margin

Three Months Ended December 31,2022

(In RMB'000)

Freight

Supply Chain

Global

Others

Unallocated([20])

Total

NetLoss

(137,848)

Add

Share-based

Compensation

Expenses

2,312

Non-GAAP Net

Loss

(134,896)

(12,680)

(134,435)

(25,353)

(30,595)

(337,959)

Non-GAAP Net

LossMargin

(10.7%)

(2.5%)

(68.7%)

(106.0%)

-

(17.1%)

Three Months Ended December 31,2021

(In RMB'000)

Freight

Supply Chain

Global

Others

Unallocated([21])

Total

Net Loss

(447,145)

Add

Share-based

Compensation

Expenses

3,734

Non-GAAP Net

Loss

(443,653)

(72,413)

(83,452)

(59,922)

(50,971)

(710,411)

Non-GAAP Net

Loss Margin

(23.9%)

(14.9%)

(25.2%)

(113.2%)

-

(26.1%)

Fiscal Year Ended December 31,2022

(In RMB'000)

Freight

Supply Chain

Global

Others

Unallocated([22])

Total

Net Loss

(506,827)

Add

Share-based

Compensation

Expenses

10,312

Non-GAAP Net

Loss

(495,933)

(26,196)

(415,725)

(213,475)

(229,090)

(1,380,419)

Non-GAAP Net

Loss Margin

(10.1%)

(1.4%)

(45.3%)

(182.8%)

-

(17.8%)

Fiscal Year Ended December 31,2021

(In RMB'000)

Freight

Supply Chain

Global

Others

Unallocated([23])

Total

Net Loss

(707,861)

Add

Share-based

Compensation

Expenses

13,643)

Non-GAAP Net

Loss

(694,256)

(95,036)

(259,298)

(90,167)

(76,066)

(1,214,823)

Non-GAAP Net

Loss Margin

(8.4%)

(5.2%)

(21.7%)

(52.3%)

-

(10.6%)

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

Table 7 – Reconciliation of diluted loss per ADS and Non-GAAP diluted loss per ADS

Three Months Ended December 31,

Fiscal Year Ended December 31,

2022

2022

(In '000)

RMB

US$

RMB

US$

Net Loss Attributable to Ordinary Shareholders

(352,793)

(51,148)

(1,424,847)

(206,581)

Add

Share-based Compensation Expenses

15,577

2,258

72,096

10,454

Loss from depreciation of investments

12,312

1,785

12,785

Non-GAAP Net Loss Attributable to Ordinary

Shareholders

(324,904)

(47,105)

(1,340,439)

(194,342)

Weighted Average Diluted Ordinary Shares

Outstanding During the Quarter

Diluted

393,078,084

393,084

392,192,648

392,648

Diluted (Non-GAAP)

393,648

Diluted loss per ordinary share

(0.90)

(0.13)

(3.63)

(0.53)

Add

Non-GAAP adjustment to net loss per

ordinary share

0.07

0.01

0.21

0.03

Non-GAAP diluted loss per ordinary share

(0.83)

(0.12)

(3.42)

(0.50)

Diluted loss per ADS

(4.49)

(0.65)

(18.17)

(2.63)

Add

Non-GAAP adjustment to net loss per ADS

0.36

0.05

1.08

0.15

Non-GAAP diluted loss per ADS

(4.13)

(0.60)

(17.09)

(2.48)

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

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

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

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

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

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

([7])Non-GAAP net income/loss represents net income/loss excluding share-based compensation expenses,and fair value change of equity investments (if any).

([8]) 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.

([9])Diluted earnings/loss per ADS,by the weighted average number of ordinary and dilutive ordinary equivalent shares expressed in ADS outstanding during the period.

([10])EBITDA represents net income/loss excluding depreciation,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).

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

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

([13])"Others" Segment primarily represents Capital business units. Results from UCargo's legacy contracts with external customers are now reported under "Freight" segment and prior period segment information were retrospectively revised to conform to current period presentation.

([14])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.

([15])Including accumulated accretion to redemption value and deemed dividend in relation to redeemable convertible preferred shares of RMB9,493,and accumulated loss from operations of RMB9,441,053.

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

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

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

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

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

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

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

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

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