HangzhouAugust 17, 2022/ PR Newswire /-BEST INC (NYSE: BEST, Best or Group), a leading provider of smart supply chain solutions and logistics services in China and Southeast Asia, reported unaudited financial results for the second quarter of 2022.

According to the financial report, the group's revenue in the second quarter was 1.93 billion yuan, up 6.9% from the previous quarter. Although affected by the epidemic, Best Express's operating results have been significantly improved, Best's supply chain has been profitable, and Best's US business continues to be profitable.

This quarter, Best Express focused on improving service quality; Best supply chain signed 23 new customers and renewed 15 customers in the second quarter; and Best International continued to build B2B2C and cross-border business networks between China, Southeast Asia and North America.

Mr. Zhou Shaoning, Chairman and CEO of BEST INC, said: "since the beginning of this year, the Group's focus strategy has achieved remarkable results, with a significant improvement in the service quality of various business units, orderly cross-business coordination, and a more streamlined and focused organization. We are confident that the Group will have better business growth and financial performance before the end of the year."

Fan Qianyi, chief financial officer of BEST INC, said: "in the second quarter, the group's cash and cash equivalents, restricted cash and short-term investments reached 4.4 billion yuan, and the net cash at the end of the quarter reached 1.4 billion yuan. Excluding the shrinking financial business of Best and the additional expenses incurred by the group's stock merger, the group's net loss in the second quarter narrowed significantly by 27.1% from the previous quarter."

Business highlights:

Best Express

In the second quarter, the express business was affected by the epidemic, and the cargo volume fell 8.8% to 2.223 million tons compared with the same period last year, but under the cost reduction and efficiency measures, the net loss narrowed by 66.8% to 57.42 million yuan. In addition, express e-commerce accounted for 20.4% of the total, an increase of 1.2 percentage points over the same period last year.

Best supply chain

In the second quarter, the supply chain continued to expand customers in the auto parts and medical device industries, with emphasis on the development of B2B2C warehouse capacity. Benefiting from the large-scale use of automation equipment and technology, the gross profit margin of the supply chain increased by 3.9 percentage points to 8.2% month-on-month, achieving a net profit of 12.09 million yuan; cloud warehouse unit volume increased by 7.6% to 93.96 million orders, of which joining warehouse orders increased by 9.0% to 58.92 million.

Best International

Affected by the epidemic, Best International focused on improving network stability and service quality, with 30.78 million packages in Southeast Asia this quarter. Under the group's cross-business coordination strategy, Best International has launched Sino-Malaysia cross-border logistics products in Xintuo overseas warehouses in Thailand and joined hands with Best Express to promote Chinese brands to go overseas with diversified and differentiated services.