Monthly Archives: November 2020

PR Newswire

BEST Inc. Announces Unaudited Third Quarter 2020 Financial Results

Leave a comment

Company Announces Strategic Refocusing Plan

HANGZHOU, China, Nov. 20, 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 September 30, 2020.

Johnny Chou, Founder, Chairman and Chief Executive Officer of BEST, commented, "We had a challenging third quarter amid intensified industry competition. Our Express segment execution did not meet the fast-changing market dynamics in both operation and pricing strategy, which led to lower volume growth and margin. Facing strong industry headwinds, we are taking steps to make major strategic adjustments and organizational changes to our business, focusing on our core logistics and supply chain management businesses, emphasizing service quality, enhancing operating efficiency, with the goal of putting us back on a path to profitability."

Gloria Fan, BEST’s Chief Financial Officer, commented, "Our third-quarter performance reflects both the challenges and resiliency of our business. Revenue was RMB8.7 billion, relatively stable compared with the same period last year, while our gross margin contracted 5.4 percentage points year-over-year due to a challenging pricing environment that offset our volume growth across multiple business units, resulting in a net loss of RMB640 million. Despite the net loss, we generated net operating cash inflow of RMB115 million during the third quarter and maintained a healthy balance of cash and cash equivalents, restricted cash and short-term investments of RMB4.8 billion."

FINANCIAL HIGHLIGHTS[1]

For the Quarter Ended September 30, 2020:

  • Revenue was RMB8,693.3 million (US$1,280.4 million), a decrease of 0.6% year-over-year ("YoY"). The decrease was primarily due to a decrease in average selling price ("ASP") of Express business, partially offset by an increase in Express volume.
  • Gross Profit was RMB37.6 million (US$5.5 million), a decrease of 92.6% YoY compared to gross profit of RMB507.1 million in the same period of 2019. The decrease was primarily due to decreased ASP and increased costs of Express and Freight units. Gross Margin was 0.4%, a decrease of 5.4 percentage points ("ppts") YoY.
  • Net Loss was RMB639.5 million (US$94.2 million), compared to a net loss of RMB6.7 million in the same period of 2019. Non-GAAP Net Loss[2] [3] was RMB612.0 million (US$90.1 million), compared to non-GAAP Net Income of RMB16.7 million in the same period of 2019.
  • Diluted EPS[4] was negative RMB1.64 (US$0.24), compared to negative RMB0.01 in the same period of 2019. Non-GAAP diluted EPS[3] [5] was negative RMB1.57 (US$0.23), compared to RMB0.05 in the same period of 2019.
  • EBITDA[3] [6] was negative RMB462.9 million (US$68.2 million), compared to RMB93.4 million in the same period of 2019. Adjusted EBITDA[3] [6] was negative RMB437.7 million (US$64.5 million), compared to RMB114.3 million in the same period of 2019.

Strategic Refocusing Plan

Following a comprehensive review of the Company’s business operations, BEST plans to implement extensive strategic adjustments to refocus its core businesses with a view to driving long-term growth and profitability.   

1.   Core businesses: The Company will focus on its core logistics and supply chain management businesses.

a)     Express: BEST will refocus its Express business on sustainable long-term growth and profitability by focusing on optimizing its product structure, improving operating efficiency, enhancing service quality and customer experience, and gaining market share.

b)     Freight: BEST will continue to emphasize the e-commerce aspect of its freight services and solidify the Company’s competitive position by expanding its market share, improving operating efficiency and increasing profitability.

c)     Supply Chain Management: BEST will focus on quality growth and profitability, continue to implement an improved asset-light model and grow the Company’s franchised Cloud OFC business.

2.    Non-core businesses: The Company announced the winding down of Store+ on November 15, 2020. The Company believes that by phasing out Store+, it can eliminate the significant cash-flow requirements associated with this early-stage business, allowing the Company to further prioritize capital allocation towards its core businesses. For its other non-core businesses, including UCargo, Capital and Global, the Company is considering all available strategic options with the goal of improving the Company’s profitability to maximize shareholder value.   

3.    Management: BEST took significant steps to realign its management team to support the refocusing plan for its core businesses. As announced on November 15, 2020, and effective the same day, Mr. Xiaoqing Wang, former general manager of BEST’s Jiangsu province branch, assumed the position of vice president, general manager of Express, replacing Mr. Shaohua Zhou, who took up a new role in the Company.

4.    Cost measures: As part of the company-wide strategic refocusing plan, the Company intends to optimize its SG&A and R&D expenses to focus its resources on core businesses, anticipating estimated cost savings of approximately RMB200 million by the end of 2021. The savings will create a leaner and more focused organization by prioritizing expense control as well as optimizing efficiencies across the organization.

Johnny Chou, Founder, Chairman and Chief Executive Officer of BEST, commented, "After a comprehensive review, we decided to take steps to refocus and streamline our operations, creating a leaner organization with greater financial flexibility. With a continued emphasis on our core capabilities, including Express, Freight and Supply Chain Management, we are evaluating strategic options available for our non-core businesses to eliminate or significantly reduce their capital requirements and capital losses. As we prioritize and deploy capital towards our core businesses, the goal is to improve our business fundamentals and competitive position. We believe with appropriate adjustments to our organization and cost structure, we can be on a path to profitability in the near future.

"As we look ahead, we remain confident in the strength of demand driven by e-commerce for integrated smart supply chain solutions and logistics services. We aim to achieve strong growth for Express and Freight, while seeking to further integrate our core business units. We expect this integration to create more cross-selling opportunities and maximize revenue and cost synergies, while also allowing us to focus on enhancing our product structure, stability and flexibility of our network, quality of services and overall operating efficiencies, which, taken as a whole, will enable BEST to deliver long-term value for our shareholders," concluded Mr. Chou.

BUSINESS HIGHLIGHTS[7]

Core Logistics and Supply Chain

BEST Express – The Express segment execution did not meet the fast-changing market dynamics in both operation and pricing strategy, which led to lower volume growth and margin. Parcel volume increased by 24.8% YoY, representing market share of 10.6% during the quarter, which was 0.1 ppt lower compared with the second quarter. Gross margin contracted by 7.2 ppts due to an ASP decline of 21.9% YoY, partially offset by a decrease in average cost per parcel of 15.9% YoY. 

BEST Freight – Freight continued its strong growth and achieved a growth rate higher than the industry average. Freight volume increased by 30.7% YoY in the third quarter of 2020. Its gross margin declined 5.3 ppts YoY, primarily due to a pricing lag after the government reinstated highway tolls in the second quarter. Average cost per tonne decreased by 12.6% YoY while ASP declined by 17.3% YoY.

BEST Supply Chain Management – Supply Chain Management focused on expanding the franchised Cloud OFC business, while targeting projects with higher margins and clients with strong credit profiles. Its gross margin decreased by 4.0 ppts YoY to 4.4%, primarily due to high cost structures associated with legacy key account customers, which are in the process of being terminated. The total number of orders fulfilled by Cloud OFCs increased by 18.3% YoY to 102.2 million in the third quarter of 2020, of which the total number of orders fulfilled by franchised Cloud OFCs increased by 32.0% YoY to 53.5 million. The number of franchised OFCs increased by 23.2% YoY to 345.

BEST UCargo – The number of registered drivers on the UCargo mobile app increased by 84.5% YoY to 288,322. The total number of transactions on the trucking brokerage platform increased by 37.2% YoY to 233,480.

BEST Capital – As of September 30, 2020, BEST Capital had provided financing solutions to 13,607 trucks in total, a quarter-over-quarter ("QoQ") increase of 10.0% compared to June 30, 2020.

BEST Store+

The Store+ business continued to execute on its strategy of partnership model and enhancing order quality, allowing it to improve gross margin and reduce losses. Gross margin increased by 2.9 ppts YoY to 13.4%, while adjusted EBITDA margin improved by 1.8 ppts YoY to negative 9.5%. Despite these improving results, we decided to wind down Store+ operations by the end of 2020, except for self-operated WoWo stores, which the Company plans to continue running while evaluating various strategic options.

BEST Global

Global continued its strong momentum in Southeast Asia. In the third quarter, parcel volume in Thailand increased by 513.5% YoY to approximately 10 million, while parcel volume in Vietnam increased by 932.4% YoY to 10.3 million. The Company also made progress in expanding its express delivery services in Malaysia, Cambodia and Singapore.

Key Operational Metrics

Three Months Ended

% Change YoY

 

 

Express Parcel Volume (in ‘000)

September 30,
2018

September 30,
2019

September 30,
2020

2019 vs
2018

2020 vs
2019

1,371,055

1,890,842

2,359,773

37.9%

24.8%

Freight Volume (Tonne in ‘000)

1,474

1,885

2,464

27.9%

30.7%

Supply Chain Management
Orders Fulfilled (in ‘000)

56,572

86,371

102,171

52.7%

18.3%

UCargo Number of
Transactions (in ‘000)

136

170

233

25.3%

37.2%

Store+ Total Number of Orders
Fulfilled (in ‘000)

935

903

820

(3.4%)

(9.2%)

Global Parcel Volume in
Southeast Asia (in ‘000)

–

2,607

20,754

–

696.0%

 

FINANCIAL RESULTS

For the Quarter Ended September 30, 2020:

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

September 30, 2019

September 30, 2020

(In ‘000, except for %)

RMB

% of
Revenue

RMB

US$

% of
Revenue

% Change
YoY

Core logistics and supply chain:

Express

5,209,139

59.5%

5,076,101

747,629

58.5%

(2.6%)

Freight

1,375,411

15.7%

1,487,654

219,108

17.1%

8.2%

Supply Chain Management

452,328

5.2%

452,691

66,674

5.2%

0.1%

UCargo

702,150

8.0%

688,951

101,472

7.9%

(1.9%)

Capital

48,672

0.6%

54,725

8,060

0.6%

12.4%

Total for core logistics
and supply chain

7,787,700

89.0%

7,760,122

1,142,943

89.3%

(0.4%)

Store+

861,964

9.9%

717,115

105,620

8.2%

(16.8%)

Global

95,632

1.1%

216,017

31,816

2.5%

125.9%

Total Revenue

8,745,296

100%

8,693,254

1,280,379

100%

(0.6%)

 

Core Logistics and Supply Chain

  • Express Service Revenue decreased by 2.6% YoY to RMB5,076.1 million (US$747.6 million) from RMB5,209.1 million, primarily due to a 21.9% YoY decrease in ASP per parcel, partially offset by a 24.8% YoY increase in parcel volume. The decrease in ASP is primarily attributable to competitive market dynamics.
  • Freight Service Revenue increased by 8.2% YoY to RMB1,487.7 million (US$219.1 million) from RMB1,375.4 million, primarily due to a 30.7% YoY increase in freight volume, partially offset by a 17.3% YoY decrease in ASP per tonne.
  • Supply Chain Management Service Revenue increased by 0.1% YoY to RMB452.7 million (US$66.7 million) from RMB452.3 million.
  • UCargo Service Revenue decreased by 1.9% YoY to RMB689.0 million (US$101.5 million) from RMB702.2 million, primarily due to discontinuation of several key account customers to minimize credit exposure.
  • Capital Service Revenue increased by 12.4% YoY to RMB54.7 million (US$8.1 million) from RMB48.7 million.

BEST Store+ – Revenue decreased by 16.8% YoY to RMB717.1 million (US$105.6 million) from RMB862.0 million, primarily due to efforts to enhance order quality to improve margins. 

BEST Global – Revenue increased by 125.9% YoY to RMB216.0 million (US$31.8 million) from RMB95.6 million, primarily due to strong growth in parcel volumes in Southeast Asia.

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

September 30, 2019

September 30, 2020

(In ‘000, except for %)

RMB

% of
Revenue

RMB

US$

% of
Revenue

Core logistics and supply chain:

Express

(4,962,151)

95.3%

(5,205,390)

(766,671)

102.5%

7.2 ppt

Freight

(1,289,098)

93.7%

(1,473,252)

(216,987)

99.0%

5.3 ppt

Supply Chain Management

(414,197)

91.6%

(432,945)

(63,766)

95.6%

4.0 ppt

UCargo

(688,305)

98.0%

(675,295)

(99,460)

98.0%

0.0 ppt

Capital

(16,522)

33.9%

(8,066)

(1,188)

14.7%

(19.2 ppt)

Total for core logistics
and supply chain

(7,370,273)

94.6%

(7,794,948)

(1,148,072)

100.4%

5.8 ppt

Store+

(771,078)

89.5%

(621,059)

(91,472)

86.6%

(2.9 ppt)

Global

(96,889)

101.3%

(239,653)

(35,297)

110.9%

9.6 ppt

Total Cost of Revenue

(8,238,240)

94.2%

(8,655,660)

(1,274,841)

99.6%

5.4 ppt

 

Cost of Revenue was RMB8,655.7 million (US$1,274.8 million) or 99.6% of revenue in the quarter ended September 30, 2020, compared to RMB8,238.2 million or 94.2% of revenue in the same quarter of 2019. The increase of 5.4 ppts in cost of revenue as a percentage of revenue was primarily attributable to increased costs of Express and Freight businesses.

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

Three Months Ended

% Change

(in RMB)

September 30, 2019

September 30, 2020

YoY

Express:

Average Cost Per Parcel

2.62

2.21

(15.9%)

Average Transportation Cost Per Parcel

0.75

0.65

(13.3%)

Average Labor Cost Per Parcel

0.23

0.18

(21.7%)

Average Lease Cost Per Parcel

0.10

0.10

(0.0%)

Average Other Cost Per Parcel

0.11

0.10

(9.1%)

Average Last-mile Cost Per Parcel

1.43

1.18

(17.5%)

Freight:

Average Cost Per Tonne

683.9

597.8

(12.6%)

 

  • Express Service Average Cost per Parcel decreased by 15.9%, primarily due to improved operating efficiency and economies of scale.
  • Freight Service Average Cost per Tonne decreased by 12.6% YoY, primarily due to improved operating efficiency, network optimization and economies of scale.

Gross Profit was RMB37.6 million (US$5.5 million), compared to gross profit of RMB507.1 million in the same quarter of 2019; Gross Margin was 0.4%, compared to 5.8% 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 periods indicated.

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

Three Months Ended

September 30, 2019

September 30, 2020

(In ‘000, except for %)

RMB

% of
Revenue

RMB

US$

% of
Revenue

% of Revenue
Change
YoY

Selling, General and
Administrative Expenses

(488,381)

5.6%

(612,849)

(90,263)

7.0%

1.4 ppt

    Adjusted for SBC
  Expenses

(18,166)

0.2%

(32,256)

(4,751)

0.3%

0.1 ppt

Adjusted Selling, General
and
Administrative Expenses

(470,215)

5.4%

(580,593)

(85,512)

6.7%

1.3 ppt

Research and
Development Expenses

(64,522)

0.7%

(53,361)

(7,859)

0.6%

(0.1 ppt)

    Adjusted for
  SBC Expenses

(2,291)

0.0%

(2,135)

(314)

0.0%

0.0 ppt

Adjusted Research and
Development Expenses

(62,231)

0.7%

(51,226)

(7,545)

0.6%

(0.1 ppt)

Total Operating Expenses

(552,903)

6.3%

(666,210)

(98,122)

7.6%

1.3 ppt

   Adjusted for
    SBC Expenses

(20,457)

0.2%

(34,391)

(5,065)

0.3%

0.1 ppt

Adjusted Total
Operating Expenses

(532,446)

6.1%

(631,819)

(93,057)

7.3%

1.2 ppt

 

Selling, General and Administrative Expenses were RMB612.8 million (US$90.3 million) or 7.0% of revenue in the quarter ended September 30, 2020, compared to RMB488.4 million or 5.6% of revenue in the same quarter of 2019. The increase in selling, general and administrative expenses was primarily attributable to an accrued provision for certain trade receivables and losses on disposal of fixed assets due to an upgrade of Express’s equipment.

Research and Development Expenses were RMB53.4 million (US$7.9 million) or 0.6% of revenue in the quarter ended September 30, 2020, compared to RMB64.5 million, or 0.7% of revenue in the same quarter of 2019. The decrease in research and development expenses was primarily attributable to capitalization of certain research and development expenditure to intangible assets, as well as reduction in travel expenses.

Share-based Compensation ("SBC") Expenses included in the cost and expense items above in the quarter ended September 30, 2020 were RMB35.0 million (US$5.2 million), compared to RMB21.0 million in the same quarter of 2019. In the third quarter of 2020, RMB0.6 million (US$0.1 million) was allocated to cost of revenue, RMB1.5 million (US$0.2 million) was allocated to selling expenses, RMB30.8 million (US$4.6 million) was allocated to general and administrative expenses, and RMB2.1 million (US$0.3 million) was allocated to research and development expenses.

Net Loss and Non-GAAP Net Income 

Net Loss in the quarter ended September 30, 2020 was RMB639.5 million (US$94.2 million), compared to Net Loss of RMB6.7 million in the same period of 2019. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment (if any for a given period), non-GAAP Net Loss in the quarter ended September 30, 2020 was RMB612.0 million (US$90.1 million), compared to non-GAAP Net Income of RMB16.7 million in the same quarter of 2019.

The following table sets forth a breakdown of non-GAAP net loss for the three months ended September 30, 2020 by segment.

Table 5 – Breakdown of non-GAAP Net Loss by Segment

Three Months Ended September 30, 2020

Core logistics and supply chain

(In RMB’000)

Express

Freight

Supply Chain

UCargo

Capital

Store+

Global

Unallocated[8]

Total

Non-GAAP Net
Income/(Loss)

(311,199)

(61,000)

(36,781)

(31,368)

28,447

(70,013)

(63,830)

(66,209)

(611,953)

 

Diluted EPS and non-GAAP diluted EPS

Diluted EPS in the quarter ended September 30, 2020 was negative RMB1.64 (US$0.24), based on a weighted average of 385.4 million diluted shares outstanding during the quarter. This is compared to negative RMB0.01 on a weighted average of 388.8 million diluted shares outstanding in the same period of 2019. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment (if any for a given period), non-GAAP diluted EPS in the quarter ended September 30, 2020 was negative RMB1.57 (US$0.23), compared to RMB0.05 in the same period of 2019. A reconciliation of non-GAAP diluted EPS to diluted EPS is included at the end of this results announcement.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA was negative RMB437.7 million (US$64.5 million), compared to RMB114.3 million in the quarter ended September 30, 2019. Adjusted EBITDA Margin was negative 5.0%, compared to 1.3% in the quarter September 30, 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 September 30, 2020 by segment.

Table 6 – Breakdown of Adjusted EBITDA and Adjusted EBITDA Margin by Segment

Three Months Ended September 30, 2020

Core logistics and supply chain

(In RMB’000)

Express

Freight

Supply Chain

UCargo

Capital

Store+

Global

Unallocated[9]

Total

Adjusted EBITDA

(211,289)

(44,643)

(26,661)

(29,976)

34,482

(68,213)

(60,699)

(30,727)

(437,726)

Adjusted EBITDA
Margin

(4.2%)

(3.0%)

（5.9%）

(4.4%)

63.0%

(9.5%)

(28.1%)

–

(5.0%)

Core Logistics and Supply Chain – Adjusted EBITDA was negative RMB278.1 million (US$41.0 million), compared to RMB266.9 million in the quarter ended September 30, 2019. Adjusted EBITDA Margin was negative 3.6%, compared to 3.4% in the quarter ended September 30, 2019.

Store+ – Adjusted EBITDA was negative RMB68.2 million (US$10.0 million), compared to negative RMB97.6 million in the quarter ended September 30, 2019. Adjusted EBITDA Margin was negative 9.5%, compared to negative 11.3% in the quarter ended September 30, 2019.

Global – Adjusted EBITDA was negative RMB60.7 million (US$8.9 million), compared to negative RMB30.9 million in the quarter ended September 30, 2019. Adjusted EBITDA Margin was negative 28.1%, compared to negative 32.3% in the quarter ended September  30, 2019.  

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

As of September 30, 2020, cash and cash equivalents, restricted cash and short-term investments were RMB4,756.3 million (US$700.5 million), compared to RMB5,141.9 million as of June 30, 2020.

Net Cash Generated from Operating Activities

Net cash generated from operating activities was RMB115.4 million (US$17.0 million), compared to RMB237.3 million in the same period of 2019. The decrease in net cash generated from operating activities was mainly due to decreasing ASP in Express and Freight businesses.

Capital Expenditures ("CAPEX")

CAPEX was RMB486.6 million (US$71.7 million), or 5.6% of total revenue in the quarter ended September 30, 2020, compared to CAPEX of RMB523.0 million, or 6.0% of total revenue, in the same period of 2019. The decrease in CAPEX was primarily due to payment timing differences.

SHARES OUTSTANDING

As of the date of this press release, the Company had approximately 385.4 million ordinary shares outstanding[10]. Each American Depositary Share represents one Class A ordinary share.

FINANCIAL GUIDANCE

Due to its ongoing strategic refocusing plan, BEST is unable to provide financial guidance at this time. The Company currently plans to resume providing financial guidance in 2021.

WEBCAST AND CONFERENCE CALL INFORMATION

The Company will hold a conference call at 9:00 pm U.S. Eastern Time on November 19, 2020 (10:00 am Beijing Time on November 20), to discuss its financial results and operating performance for the third 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          

: 6127097

A replay of the conference call will be accessible through November 26, 2020 by dialing the following numbers:

United States                                      

: +1-877-344-7529

International                                        

: +1-412-317-0088

Replay Access Code                         

: 10149943

Please visit the Company’s investor relations website http://ir.best-inc.com/ on November 19, 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 same site.

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/.  

For investor and media inquiries, please contact:

BEST Inc.
Investor relations team                         
ir@best-inc.com

The Piacente Group, Inc.
Yang Song
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 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/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 September 30,

Nine Months Ended September 30,

2019

2020

2019

2020

RMB

RMB

US$

RMB

RMB

US$

Revenue

Express

5,209,139

5,076,101

747,629

14,925,574

13,594,633

2,002,273

Freight

1,375,411

1,487,654

219,108

3,669,126

3,536,163

520,821

Supply Chain Management

452,328

452,691

66,674

1,587,176

1,369,991

201,778

Store+

861,964

717,115

105,620

2,206,044

1,837,314

270,607

Global

95,632

216,017

31,816

201,451

524,305

77,222

UCargo

702,150

688,951

101,472

1,665,167

1,562,054

230,066

Capital

48,672

54,725

8,060

153,462

152,524

22,464

Total Revenue

8,745,296

8,693,254

1,280,379

24,408,000

22,576,984

3,325,231

Cost of Revenue

Express

(4,962,151)

(5,205,390)

(766,671)

(14,303,701)

(13,570,902)

(1,998,778)

Freight

(1,289,098)

(1,473,252)

(216,987)

(3,466,109)

(3,532,534)

(520,286)

Supply Chain Management

(414,197)

(432,945)

(63,766)

(1,474,029)

(1,297,689)

(191,129)

Store+

(771,078)

(621,059)

(91,472)

(1,962,020)

(1,594,696)

(234,873)

Global

(96,889)

(239,653)

(35,297)

(215,376)

(602,511)

(88,740)

UCargo

(688,305)

(675,295)

(99,460)

(1,620,980)

(1,528,280)

(225,091)

Capital

(16,522)

(8,066)

(1,188)

(45,956)

(19,668)

(2,897)

Total Cost of Revenue

(8,238,240)

(8,655,660)

(1,274,841)

(23,088,171)

(22,146,280)

(3,261,794)

Gross Profit

507,056

37,594

5,538

1,319,829

430,704

63,437

Selling Expenses

(212,714)

(244,925)

(36,074)

(619,203)

(694,135)

(102,235)

General and Administrative
Expenses

(275,667)

(367,924)

(54,189)

(863,913)

(993,627)

(146,345)

Research and
Development Expenses

(64,522)

(53,361)

(7,859)

(181,058)

(164,175)

(24,180)

Total Operating Expenses

(552,903)

(666,210)

(98,122)

(1,664,174)

(1,851,937)

(272,760)

Loss from Operations

(45,847)

(628,616)

(92,584)

(344,345)

(1,421,233)

(209,323)

Interest Income

21,242

18,106

2,667

71,291

58,106

8,558

Interest Expense

(12,023)

(46,583)

(6,861)

(52,767)

(121,134)

(17,841)

Foreign Exchange

Gain/(Loss)

661

(9,199)

(1,355)

(3,405)

(9,014)

(1,328)

Other Income

38,225

40,700

5,994

91,860

112,569

16,580

Other Expense

(5,216)

(7,244)

(1,067)

(13,136)

(25,605)

(3,771)

Loss before Income Tax
   and Share of Net Loss
   of Equity Investees

(2,958)

(632,836)

(93,206)

(250,502)

(1,406,311)

(207,125)

Income Tax Expense

(3,691)

(6,633)

(977)

(11,793)

(14,735)

(2,170)

Loss before Share of Net
   loss of Equity Investees

(6,649)

(639,469)

(94,183)

(262,295)

(1,421,046)

(209,295)

Share of Net Loss of Equity Investees

(47)

(40)

(6)

(183)

(114)

(17)

Net Loss

(6,696)

(639,509)

(94,189)

(262,478)

(1,421,160)

(209,312)

Net Loss attributable to non-
   controlling interests

(3,214)

(5,959)

(878)

(8,644)

(20,390)

(3,003)

Net loss attributable to
   Best Inc.

(3,482)

(633,550)

(93,311)

(253,834)

(1,400,770)

(206,309)

Net loss attributable to
   ordinary shareholders

(3,482)

(633,550)

(93,311)

(253,834)

(1,400,770)

(206,309)

 

 

Summary of Unaudited Condensed Consolidated Balance Sheets

(in thousands)

As of December 31, 2019

As of September 30, 2020

RMB

RMB

US$

Assets

Current Assets

Cash and Cash Equivalents

1,994,683

1,814,016

267,176

Restricted Cash

1,786,832

2,008,550

295,827

Accounts and Notes Receivables

1,229,083

931,411

137,180

Inventories

140,006

166,402

24,508

Prepayments and Other Current Assets

2,750,126

3,383,635

498,356

Short–term Investments

1,057,598

306,490

45,141

Lease Rental Receivables

483,363

528,317

77,813

Amounts Due from Related Parties

246,758

156,522

23,053

Total Current Assets

9,688,449

9,295,343

1,369,054

Non–current Assets

Property and Equipment, Net

2,939,379

3,836,048

564,989

Intangible Assets, Net

121,587

111,800

16,466

Goodwill

490,986

499,433

73,559

Long–term Investments

230,855

240,580

35,434

Non–current Deposits

127,191

137,525

20,255

Other Non–current Assets

346,645

584,015

86,016

Operating Lease Right-of-use Assets

4,378,804

4,123,906

607,386

Lease Rental Receivables

993,260

784,057

115,479

Restricted Cash

175,700

627,218

92,379

Total non–current Assets

9,804,407

10,944,582

1,611,963

Total Assets

19,492,856

20,239,925

2,981,017

Liabilities and Shareholders’ Equity

Current Liabilities 

Short–term Bank Loans

2,510,500

3,099,750

456,544

Securitization Debt

104,899

193,260

28,464

Accounts and Notes Payable

3,391,383

3,770,913

555,395

Accrued Expenses and Other Liabilities

2,019,634

2,264,224

333,484

Customer Advances and Deposits and
   Deferred Revenue

1,489,510

1,585,970

233,588

Operating Lease Liabilities

1,035,252

1,104,411

162,662

Financing Lease Liabilities

1,363

529

78

Amounts Due to Related Parties

9,769

21,919

3,228

Income Tax Payable

7,358

10,662

1,570

Total Current Liabilities

10,569,668

12,051,638

1,775,013

Non-current Liabilities

Securitization Debt

–

23,766

3,500

Convertible senior notes held by
   related parties

680,104

1,684,166

248,051

Convertible Senior Notes held by third
   parties

680,104

668,630

98,479

Operating Lease Liabilities

3,482,634

3,167,567

466,532

Financing Lease Liabilities

2,072

4,366

643

Deferred Tax Liabilities

25,806

23,857

3,514

Other Non–current Liabilities

137,184

196,585

28,954

Long-term Bank Loans

–

79,333

11,684

Total Non–current Liabilities

5,007,904

5,848,270

861,357

Total Liabilities

15,577,572

17,899,908

2,636,370

Shareholders’ Equity

Ordinary Shares

25,988

25,988

3,828

Treasury Shares

–

(211,352)

(31,129)

Additional Paid–In Capital

19,353,400

19,458,478

2,865,924

Statutory reserves

7,865

10,267

1,512

Accumulated Deficit

(15,629,537)

 (17,088,455) [11]  

(2,516,857)

Accumulated Other
   Comprehensive Income

163,196

165,778

24,416

BEST Inc. Shareholders’ Equity

3,920,912

2,360,704

347,694

Non-controlling Interests

(5,628)

(20,687)

(3,047)

Total Shareholders’ Equity

3,915,284

2,340,017

344,647

Total Liability and Shareholders’
   Equity

19,492,856

20,239,925

2,981,017

 

 

Summary of Unaudited Condensed Consolidated Statements of Cash Flows

(In Thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

2019

2020

2019

2020

RMB

RMB

US$

RMB

RMB

US$

Net Cash Generated from/
  (Used in) Operating Activities

237,337

115,351

16,989

366,029

(455,556)

(67,096)

Net Cash Used in
Investing Activities

(556,306)

(539,659)

(79,483)

(1,383,557)

(708,826)

(104,399)

Net Cash  Generated from
Financing Activities

897,235

371,217

54,674

1,558,732

1,738,283

256,021

Exchange Rate Effect on Cash,
Cash Equivalents, and
Restricted Cash

41,930

(106,521)

(15,689)

41,860

(81,332)

(11,979)

Net Increase/(Decrease) in
Cash and Cash Equivalents,
and Restricted Cash

620,196

(159,612)

(23,509)

583,064

492,569

72,547

Cash and Cash Equivalents,
and Restricted Cash at
Beginning of Period

2,962,276

4,609,396

678,891

2,999,408

3,957,215

582,835

Cash and Cash Equivalents,
and Restricted Cash at End
of Period

3,582,472

4,449,784

655,382

3,582,472

4,449,784

655,382

 

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 September 30, 2020

Core logistics and supply chain

(In RMB’000)

Express

Freight

Supply Chain

UCargo

Capital

Store+

Global

Unallocated[12]

Total

Net Income/(Loss)

(314,911)

(63,702)

(39,729)

(32,235)

28,379

(73,582)

(66,984)

(76,745)

(639,509)

Add

Depreciation &
Amortization

98,294

16,357

10,120

1,392

381

3,622

4,320

7,005

141,491

Interest Expense

–

–

–

–

–

–

–

46,583

46,583

Income Tax Expense

1,616

–

–

–

5,654

(364)

(273)

–

6,633

Subtract

Interest Income

–

–

–

–

–

–

–

(18,106)

(18,106)

EBITDA

(215,001)

(47,345)

(29,609)

(30,843)

34,414

(70,324)

(62,937)

(41,263)

(462,908)

Add

Share-based
Compensation
Expenses

3,712

2,702

2,948

867

68

2,111

2,238

20,374

35,020

Subtract

Gain from
appreciation of
investments

–

–

–

–

–

–

–

(9,838)

(9,838)

Adjusted EBITDA

(211,289)

(44,643)

(26,661)

(29,976)

34,482

(68,213)

(60,699)

(30,727)

(437,726)

Adjusted EBITDA
Margin

(4.2%)

(3.0%)

(5.9%)

(4.4%)

63.0%

(9.5%)

(28.1%)

–

(5.0%)

 

Three Months Ended September 30, 2019

Core logistics and supply chain

(In RMB’000)

Express

Freight

Supply Chain

UCargo

Capital

Store+

Global

Unallocated[13]

Total

Net Income/(Loss)

117,440

26,579

(10,651)

(7,033)

28,534

(102,365)

(35,275)

(23,925)

(6,696)

Add

Depreciation &
Amortization

63,765

13,492

13,895

72

530

3,570

2,373

7,904

105,601

Interest Expense

–

–

–

–

–

–

–

12,023

12,023

Income Tax Expense

–

–

9

–

4,345

(385)

(278)

–

3,691

Subtract

Interest Income

–

–

–

–

–

–

–

(21,242)

(21,242)

EBITDA

181,205

40,071

3,253

(6,961)

33,409

(99,180)

(33,180)

(25,240)

93,377

Add

Share-based
Compensation
Expenses

10,363

2,332

2,474

655

60

1,617

2,263

1,195

20,959

Adjusted EBITDA

191,568

42,403

5,727

(6,306)

33,469

(97,563)

(30,917)

(24,045)

114,336

Adjusted EBITDA
Margin

3.7%

3.1%

1.3%

(0.9%)

68.8%

(11.3%)

(32.3%)

–

1.3%

 

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

Three Months Ended September 30, 2020

Core logistics and supply chain

(In RMB’000)

Express

Freight

Supply Chain

UCargo

Capital

Store+

Global

Unallocated[14]

Total

Net Income/(Loss)

(314,911)

(63,702)

(39,729)

(32,235)

28,379

(73,582)

(66,984)

(76,745)

(639,509)

Add

Share-based
Compensation
Expenses

3,712

2,702

2,948

867

68

2,111

2,238

20,374

35,020

Amortization of
Intangible Assets
Resulting from
Business
Acquisition

–

–

–

–

–

1,458

916

–

2,374

Subtract

Gain from
appreciation of
investments

–

–

–

–

–

–

–

(9,838)

(9,838)

Non-GAAP Net
Income/(Loss)

(311,199)

(61,000)

(36,781)

(31,368)

28,447

(70,013)

(63,830)

(66,209)

(611,953)

Non-GAAP Net
Income/(Loss)
Margin

(6.1%)

(4.1%)

(8.1%)

(4.6%)

52.0%

(9.8%)

(29.5%)

–

(7.0%)

 

Three Months Ended September 30, 2019

Core logistics and supply chain

(In RMB’000)

Express

Freight

Supply Chain

UCargo

Capital

Store+

Global

Unallocated

Total

Net Income/(Loss)

117,440

26,579

(10,651)

(7,033)

28,534

(102,365)

(35,275)

(23,925)

(6,696)

Add

Share-based Compensation Expenses

10,363

2,332

2,474

655

60

1,617

2,263

1,195

20,959

Amortization of Intangible Assets Resulting from Business Acquisitions

–

–

–

–

–

1,541

930

–

2,471

Non-GAAP Net Income/(Loss)

127,803

28,911

(8,177)

(6,378)

28,594

(99,207)

(32,082)

(22,730)

16,734

Non-GAAP Net Loss Margin

2.5%

2.1%

(1.8%)

(0.9%)

58.7%

(11.5%)

(33.5%)

–

0.2%

 

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 September 30,

Nine Months Ended September 30,

2020

2020

(In ‘000)

        RMB

       US$

RMB

US$

Net Loss Attributable to Ordinary
Shareholders

(633,550)

(93,311)

(1,400,770)

(206,309)

Add

Share-based Compensation
Expenses

35,020

5,158

110,954

16,342

Amortization of Intangible Assets
Resulting from Business
Acquisitions

2,374

350

7,266

1,070

Subtract

Gain from appreciation of
investments

(9,838)

(1,449)

(9,838)

(1,449)

Non-GAAP Net Loss Attributable to
Ordinary Shareholders for
Computing
Non-GAAP Diluted EPS

(605,994)

(89,252)

(1,292,388)

(190,346)

Weighted Average Diluted Shares
Outstanding During the Quarter

Diluted

385,430,134

385,430,134

388,136,651

388,136,651

Diluted (Non-GAAP)

385,430,134

385,430,134

388,136,651

388,136,651

Diluted EPS

(1.64)

(0.24)

(3.61)

(0.53)

Add

Non-GAAP adjustment to net loss
per share

0.07

0.01

0.28

0.04

Non-GAAP Diluted EPS

(1.57)

(0.23)

(3.33)

(0.49)

 

 

[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] 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).

[3] 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.

[4] 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.

[5] Non-GAAP diluted earnings per share, or non-GAAP diluted EPS, represents diluted earnings per share excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and fair value change of equity investments (if any).

[6] 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).

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

[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] Including accumulated accretion to redemption value and deemed dividend in relation to redeemable convertible preferred shares of RMB9,493,807, and accumulated loss from operations of RMB7,594,648   

[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.

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

 

 

Related Links :

https://www.best-inc.com/

PR Newswire

Firmenich marks its 125th anniversary with new customer-focused website

Leave a comment

GENEVA, Nov. 19, 2020 — Firmenich is today marking its 125th anniversary by offering unprecedented insight into the world’s largest privately-owned Fragrance and Taste company with the launch of its redesigned website. Firmenich.com opens new digital avenues for direct customer engagement and showcases the Group’s creativity, world-class science and top-rated sustainability performance in greater depth than ever before.

 

 

"This year we are marking a historic milestone, our 125th anniversary," said Patrick Firmenich, Chairman of the Board. "Only the greatest companies, the ones that reinvent themselves era after era, make it so far. Our new website brings to life our legacy of responsible business and enduring family values that are the foundation of our success for more than five generations."

"Firmenich.com takes our online experience to the next level, harnessing the latest technology to drive successful partnerships with an ever broader range of customers in the new normal," said Gilbert Ghostine, CEO Firmenich. "For 125 years, Firmenich has helped shape the future of fragrance and taste, sustainably; today we are opening fresh insights into our fragrance, flavors and ingredients innovation and offering businesses worldwide single-click access to our trends and expertise."

"Firmenich has increased the amount of compelling content online by nearly doubling the number of pages and investing in new digital tools to enhance the user experience, such as powerful predictive search and personalized content," said Eric Saracchi, Chief Digital and Information Officer. "And this is just the beginning: we will be rolling out ever more dynamic functionality to better engage with customers, investors, the media and future prospects, understanding their preferences and driving business-specific journeys across our digital platforms."

Refreshed and animated content adapted for a wide range of mobile and desktop devices is spread over 450 pages, and easily navigated through optimized search functions as well as a new single-click architecture. Four distinctive homepage experiences cover the Group’s businesses: Fragrances, Taste & Beyond, and Ingredients, as well as corporate affairs including careers. These sections allow the user to engage faster with their specific area of interest and offer direct business contact through a new digital tool.

A new media room brings together all Firmenich press releases as well as other resources and content to help journalists build their stories.

The website also features a new online magazine with curated content and shares the stories of the diverse and global teams of researchers and creators who are behind Firmenich’s innovation in perfume and taste. The Group’s sustainability journey is profiled across the website, reflecting the way Environmental, Social and Governance (ESG)  is embedded throughout all of the Group’s activities.

Firmenich.com is optimized for the visually impaired and is ADA-compliant, encouraging accessibility in line with the company’s Diversity & Inclusion policy. To discover Firmenich’s new website, we invite you to visit www.firmenich.com.

About Firmenich

Firmenich is the world’s largest privately-owned fragrance and taste company, founded in Geneva, Switzerland, in 1895 and has been family-owned for 125 years. Firmenich is a leading business-to-business company specialized in the research, creation, manufacture and sale of perfumes, flavors and ingredients. Renowned for its world-class research and creativity, as well as its leadership in sustainability, Firmenich offers its customers superior innovation in formulation, a broad and high-quality palette of ingredients, and proprietary technologies including biotechnology, encapsulation, olfactory science and taste modulation. Firmenich had an annual turnover of 3.9 billion Swiss Francs at end June 2020. More information about Firmenich is available at www.firmenich.com.

Logo – https://techent.tv/wp-content/uploads/2020/11/firmenich-marks-its-125th-anniversary-with-new-customer-focused-website.jpg

 

 

 

 

PR Newswire

SmallRig Kicks off Black Friday and Cyber Monday Promotion

Leave a comment

SHENZHEN, China, Nov. 19, 2020 — SmallRig, a professional accessory specialist based on cameras, gimbals and smartphones, announces its Black Friday and Cyber Monday promotion, which is the biggest sale of the year.

SmallRig Black Friday and Cyber Monday Sale
SmallRig Black Friday and Cyber Monday Sale

"SmallRig is aiming to create the best co-creation platform with our global users, and we are very excited to see how we enhanced the shooting experience and efficiency of filmmakers and content creators," said Yang Zhou, the founder of SmallRig.

To thank customers for the constant support, SmallRig wants to invite them to explore more possibilities of film production and independent shooting with SmallRig accessory solutions with attractive prices.

From November 26th to December 2nd, all sales channels of SmallRig will release the best discounts simultaneously. Exclusive discounts will be provided via the direct website, amazon, eBay stores and our authorized resellers globally. For more details, please contact our channels accordingly.

Direct Website: www.smallrig.com
Amazon: www.amazon.com/smallrig (US) https://www.amazon.de/smallrig (Germany)
eBay: www.ebaystores.com/smallrig20092018  
Find Your Nearby Resellers: https://www.smallrigreseller.com/authorized-reseller

Featured products in the Black Friday sale include:

  • Master Kit for Sony Alpha 7S III: Integrating a form-fitting full cage, a NATO rail, a NATO top handle and a cable clamp, the Master Kit provides quick release system to allow the most efficient assembly and disassembly, which satisfies the shooting needs under multiple scenarios.
  • Seamless Kit for Canon R5: Designed to realize fast switch between handheld shooting, tripod shooting and gimbal shooting, the kit enables filmmakers to discover the full potential of Canon R5 with impressive shooting experience.
  • Lightweight Matte Box: Top flag is made of ultra-light carbon fiber, and the net weight of the Matte Box is only 295g. SmallRig Matte Box helps prevent glare interference, unveil the scene clearly and protect the lens during outdoor shooting while providing various mounting options.

About SmallRig

Founded in 2009, SmallRig is an innovation-driven manufacturer that designs and builds premium rigs and accessories for all kinds of cameras and gimbals. Our sales network is spreading to over 200 countries and regions while our products are well-supported by over 500k filmmakers and photographers worldwide.

PR Newswire

Black Friday & Cyber Monday Deal: Four Months Of TIDAL For Only $0.99 (Premium) And $1.99 (HiFi)

Leave a comment

New Customers Can Take Advantage of Limited-Time Offer From November 24-December 2

NEW YORK, Nov. 19, 2020 — Today, global music streaming and entertainment platform, TIDAL, announced a Black Friday and Cyber Monday limited-time offer. From November 24 through December 2, 2020, new customers can receive four months of TIDAL at $0.99 for Premium or $1.99 for a HiFi membership (a value of $39.96 (Premium) and $79.96 (HiFi) for four months.) To take advantage of the offer this holiday season, new members can head to TIDAL.com/blackfriday.

TIDAL’s Premium and HiFi tiers offer music fans unlimited access to its extensive catalog of over 70 million tracks across all genres, thousands of expertly curated playlists by TIDAL’s seasoned editorial team, and endless artist radio stations. HiFi members have the added benefit of listening to the best quality of sound available, including TIDAL Masters and immersive sound experiences from Dolby Atmos Music and Sony 360 Reality Audio. Recently announced improvements including the expansion of TIDAL’s Masters catalog and TIDAL Connect, give HiFi members even more ways to enjoy the platform’s unparalleled lossless audio quality.

TIDAL brings its members closer to their favorite artists through virtual album experiences. Both Premium and HiFi members can sit back, relax and enjoy elevated listening with album commentary from artists like Alicia Keys and U2, animated artwork and performances with more interaction and dimension. Whether on the go or on the couch, members can tap into TIDAL’s full array of features across platforms and devices like: Plex, Roku, Amazon Alexa, Apple TV/Android TV, Apple CarPlay, Samsung Wearables and direct control with Sonos (Complete list here).

Following the four-month limited holiday membership, members can continue their subscription at $9.99/month for Premium and $19.99/month for HiFi – discounts are available for students (-50%), military (-40%), first responders (-40%) and families (6 accounts for $14.99 (Premium) or $29.99 (HiFi)). 

Additionally, Best Buy customers can purchase 12 months of TIDAL HiFi Standard or Family for the price of 6 months through the end of December 2020 both in-store and online.

About TIDAL

TIDAL is an artist-owned global music and entertainment platform that brings artists and fans closer together through unique original content and exclusive events. Available in 56 countries, the streaming service has more than 70 million songs and 250,000 high quality videos in its catalog along with original video series, podcasts, thousands of expertly curated playlists and artist discovery via TIDAL Rising. With the commitment of its owners to create a more sustainable model for the music industry, TIDAL is available in Premium and HiFi tiers—recordings which includes Master Quality Authenticated (MQA), Sony’s 360 Reality Audio recordings, and Dolby Atmos Music.

 

Related Links :

https://tidal.com/

Consumer Electronics, Lifestyle, News

Google’s New Nest Thermostat is designed with Simplicity in Mind

Leave a comment

Google’s Nest has just received an update and is ready to launch a new model after three years. Surprisingly, this new iteration released with a lower price tag and enhanced capabilities. The available colours are white, dark grey, light pink and light green at pricing of $14.99.

The new thermostat is designed to be simple and user friendly, with voice control through the Nest app on your devices via the Google Assistant or Amazon’s Alexa. With a swipe or tap of the touch strip on the edge of the thermostat, you can control the climate of your home. The design of the interface is minimalist and has a mirrored finish.

Source: Google

The Nest Thermostat has less functionality than its previous iterations, which allows for the lower price. It lacks the signature learning function that identifies the optimal climate conditions for you current living situation. However it still has some useful features such as alerts for issues with your HVAC system and prompts to adjust temperature levels for better efficiency. Moreover, Google stated that the process of installing is similar to other models and is compatible with many HVAC systems currently in use.

The new Nest Thermostat is currently retailing in the US and Canada for $129.99, with no news of availability in Malaysia just yet.

Android, Mobile, News

HUAWEI Freebuds Pro, Watch GT 2 Pro & MatePad T 10s is now Available in Malaysia

Leave a comment

Huawei is rolling out new products aimed to enhance the quality of your lifestyle with the new Huawei Freebuds Pro, Watch GT 2 Pro and MatePad T. They are currently retailing nationwide, with Huawei is giving out amazing deals for Malaysian fans.

The Huawei FreeBuds Pro has turned some heads due to its stunning design and the world’s first intelligent Dynamic Noise cancellation with hybrid active noise-cancellation to avoid in-ear noise environments. To ensure an immersive audio experience, it identifies the nature of the environmental noise and automatically switches to the appropriate noise-cancellation mode.

The new Huawei Watch GT 2 Pro is designed with a premium titanium body enhanced by a sapphire glass surface. It is created for users to experience a perfect blend of aesthetics and performance in a smartwatch. It also features fitness-based sensors enabling heart rate, speed and slope measurements while giving alerts if you have exceedingly high values of those data to keep you safe. What is astonishing about this smartwatch is that it provides up to 2 weeks of usage on a single charge.

Last but not least is the Huawei MatePad T10s. The tablet is powered by the Kirin 710a octa-core processor and runs Huawei’s EMUI 10.1. The MatePad T10s packs a 10.1 inch FHD display with vivid colors thanks to the HUAWEI ClariVu™ technology. The display has Eye Comfort certification for its low blue light emission. The display is coupled with cinematic surround sound tuned by Harman Kardon, perfect tablet for your next Netflix binge.

Pricing & Availability

The Huawei FreeBuds Pro is priced at RM699 and comes with a free cover and mini Bluetooth speaker.

The Huawei Watch GT 2 Pro is priced at RM1,199 and comes witha free dark green strap.

It is RM999 for the Huawei MatePad T 10s and it comes with a free flip cover, 15GB Huawei Cloud Storage, Huawei Video and Huawei Books.

You can grab these incredible products via the Huawei Store online, Lazada or Shopee.

PR Newswire

111, Inc. Announces Third Quarter 2020 Unaudited Financial Results

Leave a comment

SHANGHAI, Nov. 19, 2020 — 111, Inc. ("111" or the "Company") (NASDAQ: YI), a leading digital healthcare platform committed to digitally connecting patients with medicine and healthcare services in China, today announced its unaudited financial results for the third quarter ended September 30, 2020.

Third Quarter 2020 Highlights

  • Net revenues were RMB2.36 billion (US$348.0 million), representing an increase of 112.8% year-over-year.
  • Operating expenses [1] were RMB212.1 million (US$31.2 million), representing an increase of 28.2% year-over-year. Operating expenses accounted for 9.0% of net revenue this quarter as compared to 14.9% in the same quarter of last year.
  • Number of pharmacies served increased to more than 300,000 (representing 57% of the total numbers of pharmacies in China) as of September 30, 2020, compared to more than 210,000 pharmacies as of September 30, 2019.
  • B2B net revenue increased to RMB2.2 billion (US$324.3 million) this quarter as compared to RMB1.45 billion in Q2 2020. Revenue from existing customers [2] were up 38.9% quarter-over-quarter and newly added customers contributed 12.5% of the growth quarter-over-quarter.
  • Cash and cash equivalents, restricted cash and short-term investments amounted to RMB1,213.1 million (US$178.7 million) as of September 30, 2020, achieving positive cash flow from operating activities, which amounted to RMB25 million for the quarter.

[1] Operating expense consists of fulfillment expenses, selling and marketing expenses, general and administrative expenses, technology expenses and other operating expenses.

[2] We define existing customers as the customers who have placed orders from 111 prior to third quarter 2020

"In Q3 2020, we exceeded the top end of our guidance and continued the strong momentum built since the IPO. In the 8th consecutive quarter of revenue growth, we delivered net revenue of RMB2.36 billion, an increase of 113% year-over-year. Gross profit rose 90% year-over-year to RMB90 million. Non-GAAP net loss attributable to ordinary share[3] as a percentage of net revenue continued to narrow, from approximately 10% in Q3 2019 to 4% this quarter, showing a trajectory towards profitability," said Mr. Junling Liu, Co-Founder, Chairman, and Chief Executive Officer of 111.

"The robust performance is a strong validation of the successful execution of our multifaceted growth strategy to deliver the mission of digitally connecting patients with medicine and healthcare services. We have made solid progress in strengthening our digital capabilities. Our cloud-based solutions in the areas of patient management, doctor-patient interaction, education for doctors, patients and pharmacists, and other related services received excellent response from our customers. Our smart supply-chain management is making our operation more and more efficient. The omni-channel drug commercialization platform is laying a strong foundation for our future growth in one of China’s fastest growing industries."

"Over the last few quarters, we made significant progress in strengthening the infrastructure of our digital healthcare platform that  brings together key stakeholders in the healthcare ecosystem – retail pharmacies, online platform partners, doctors, insurance companies and pharmaceutical companies to the benefit of all." He continued, "For our retail pharmacy customers, part of our 300,000+ strong network representing 57% of China’s total number of pharmacies and the largest in China, our smart sourcing system, machine-learning and cloud-based solutions translate into effective sourcing, better inventory management, optimal product assortment, and broader market reach, resulting in greater cost efficiency, higher earning potential and an enhanced ability to serve our end consumers. For doctors, our smart technology puts the power of the latest medical innovations in their hands to achieve better health outcomes for their patients. For patients, our holistic disease management platform gives them access to the best doctors across the country, follow-up consultations, disease education materials, medication guides, and the benefits of obtaining medications at home through our e-prescription service."

"The most significant progress is in establishing 111 as partner of choice for pharmaceutical companies with our omni-channel drug commercialization capability." Commenting on the partnership with pharmaceutical companies, he said, "With our broad consumer reach, vast virtual pharmacy network, and smart technology-enabled omni-channel commercialization platform, we have been helping them to gain additional commercialization channels, expand reach, optimize their sales and marketing functions, enhance patient services and support programs, resulting in greater commercial success for new and existing products. In the quarter, we have expanded the number of partnerships to over 300, up 101% over the same period last year. New partners include major multinational and domestic pharmaceutical companies, such as Bayer Healthcare, Huluwa Pharmaceutical, Xiangxue Pharmaceutical and Baiyunshan Pharmaceutical."

"We’ve also broadened our partnership with insurance companies to further enhance the digital healthcare value chain. In the quarter, we added another insurance partner, Shanghai Uniondrug. This partnership will give us the power to offer to consumers better access to healthcare and pharmaceutical products at lower prices. In addition, consumers will also gain tools and supporting services that are personalized to their needs and that emphasize preventive, rather than curative care."

"As China successfully keeps the COVID-19 pandemic in check and its economy resumes growth, we are confident about the Company’s ability to take advantage of the immense opportunities that ensue. With our market-leading digital healthcare platform, we have built a healthcare ecosystem where all key stakeholders – drug manufacturers, retailers, insurance companies and end consumers are in a virtuous circle of value creation."

"Looking toward the last quarter, we’ll continue to leverage this ecosystem and enhance its value as we work to increase sales from our existing base of retail pharmacies while gaining new ones, enhance ‘stickiness’ of our customers, and expand and deepen strategic partnerships. We’ll focus on narrowing net loss, drive growth, and continue the ascent to delivering sustainable and long-term profitability to our shareholders," he concluded.

[3] Non-GAAP net loss attributable to ordinary shareholders represents net loss attributable to ordinary shareholders excluding share-based compensation expenses and impairment loss of long-term investment.

Share Repurchase Program

On August 14, 2019, the Company’s Board of Directors approved a share repurchase program of up to US$10 million, as a vote of confidence in the Company’s prospects. As of September 30, 2020, the Company had repurchased 998,810 ADSs for a total consideration of US$4.9 million. No new repurchase happened in the third quarter.

Third Quarter 2020 Financial Results

Net revenues were RMB2.36 billion (US$348.0 million), representing an increase of 112.8% from RMB1.11 billion in the same quarter of last year.

As of September 30, 2020, the Group has two reporting segments that includes B2B segment and B2C segment. Revenue contribution from E-Channel was previously disclosed as a separate segment, but was incorporated in B2B segment in this quarter. The Company revised prior comparative periods to conform to the current period segment presentation as follows:

(In thousands RMB)

For the three months ended September 30,

2019

2020

YoY

B2B Net Revenue

Product

939,434

2,197,915

134.0%

Service

1,128

3,710

228.9%

Sub-Total

940,562

2,201,625

134.1%

Cost of Products Sold[4]

927,564

2,143,845

131.1%

Segment Profit

12,998

57,780

344.5%

Segment Profit %

1.4%

2.6%

 

(In thousands RMB)

For the three months ended September 30,

2019

2020

YoY

B2C Net Revenue

Product

164,348

152,939

(6.9%)

Service

5,541

8,159

47.2%

Sub-Total

169,889

161,098

(5.2%)

Cost of Products Sold[4]

135,558

128,943

(4.9%)

Segment Profit

34,331

32,155

(6.3%)

Segment Profit %

20.2%

20.0%

 

[4]   For segment reporting purposes, purchase rebate is allocated to B2B segment and B2C segment primarily based on the amount of cost of products sold for each segment. Cost of products sold does not include other direct costs related to cost of product sales such as shipping and handling expense, payroll and benefits of logistic staff, logistic centers rental expenses and depreciation expenses, which are recorded in the fulfillment expenses.

Operating costs and expenses were RMB2.48 billion (US$366.0 million), representing an increase of 102.3% from RMB1.23 billion in the same quarter of last year.

  • Cost of products sold was RMB2.27 billion (US$334.7 million), representing an increase of 113.8% from RMB1.06 billion in the same quarter of last year. The increase was primarily due to our rapid revenue growth in B2B business, which increased by 134.1% as compared to the same quarter last year.
  • Fulfillment expenses were RMB58.2 million (US$8.6 million), representing an increase of 83.8% from RMB31.6 million in the same quarter of last year. Fulfillment expenses accounted for 2.5% of net revenues this quarter as compared to 2.8% in the same quarter of last year.
  • Selling and marketing expenses were RMB104.3 million (US$15.4 million), representing an increase of 19.7% from RMB87.1 million in the same quarter of last year, mainly due to increase in the number of sales staffs and expenses associated with the expansion of the B2B business. As a percentage of net revenues, selling and marketing expense further reduced to 4.4% in the quarter from 7.8% in the same quarter of last year.
  • General and administrative expenses were RMB28.5 million (US$4.2 million), representing a drop of 10.8% from RMB32.0 million in the same quarter of last year. As a percentage of net revenues, general and administrative expense reduced to 1.2% in the quarter from 2.9% in the same quarter of last year.
  • Technology expenses were RMB22.0 million (US$3.2 million), representing an increase of 49.4% from RMB14.7 million in the same quarter of last year, mainly due to our increased investment in technology. Technology expenses accounted for 0.9% of net revenues this quarter as compared to 1.3% in the same quarter of last year.

Loss from operations was RMB122.2 million (US$18.0 million), compared to RMB118.1 million in the same quarter of last year. As a percentage of net revenues, loss from operations further decreased to 5.2% in the quarter from 10.6% in same quarter of last year.

Non-GAAP loss from operations [5] was RMB108.0 million (US$15.9 million), compared to RMB104.5 million in the same quarter of last year. As a percentage of net revenues, non-GAAP loss from operations decreased to 4.6% in the quarter from 9.4% in same quarter of last year.

Net loss attributable to ordinary shareholders was RMB108.6 million (US$16.0 million), compared to RMB123.3 million in the same quarter of last year. As a percentage of net revenues, net loss attributable to ordinary shareholders decreased to 4.6% in the quarter from 11.1% in same quarter of last year.

Non-GAAP net loss attributable to ordinary shareholders was RMB94.4 million (US$13.9 million), compared to RMB109.7 million in the same quarter of last year. As a percentage of net revenues, non-GAAP net loss attributable to ordinary shareholders decreased to 4.0% in the quarter from 9.9% in same quarter of last year. 

Loss per ADS was RMB1.32 (US$0.20), compared to RMB1.50 for the same quarter of last year.

Non-GAAP loss per ADS [6] was RMB1.15 (US$0.17), compared to RMB1.34 for the same quarter of last year.

As of September 30, 2020, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB 1,213.1 million (US$178.7 million), compared to RMB697.7 million as of December 31, 2019.

[5]   Non-GAAP loss from operations represents loss from operations excluding share-based compensation expenses.

[6]   Non-GAAP loss per ADS represents loss per ADS excluding share-based compensation expenses and impairment loss of long-term investment per ADS.

Business Outlook

For the fourth quarter of 2020, the Company expects its total net revenues to be between RMB2.44 billion and RMB2.56 billion, representing a year-over-year growth of approximately 81% to 90%.

The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to changes.

Conference Call

111’s management team will host an earnings conference call at 7:30 AM U.S. Eastern Time on Thursday, November 19, 2020 (8:30 PM Beijing Time on November 19, 2020).

Details for the conference call are as follows:

Event Title:                       111, Inc. Third Quarter 2020 Earnings Conference Call
Registration Link:             http://apac.directeventreg.com/registration/event/1679252

All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique Registration ID, which can be used to join the conference call.

Please dial in 15 minutes before the call is scheduled to begin and provide the Direct Event passcode and unique Registration ID you have received upon registering to join the call.

A telephone replay of the call will be available after the conclusion of the conference call until November 27, 2020, 7:59 P.M. ET on:

United States:                     +1-855-452-5696
International:                       +61-2-8199-0299
Conference ID:                    1679252

A live and archived webcast of the conference call will be available on the Investor Relations section of 111’s website at http://ir.111.com.cn/.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP loss from operations, non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS, non-GAAP measures, as supplemental measures to review and assess its operating performance. The Company defines non-GAAP loss from operations as loss from operations excluding share-based compensation expenses. The Company defines non-GAAP net loss attributable to ordinary shareholders as net loss attributable to ordinary shareholders excluding share-based compensation expenses and impairment loss of long-term investment. The Company defines non-GAAP loss per ADS as loss per ADS excluding share-based compensation expenses and impairment loss of long-term investment per ADS. 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.

The Company believes that non-GAAP loss from operations, non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that it includes in loss from operations and net loss. Share-based compensation expenses is a non-cash expense that varies from period to period. Impairment loss of long-term investment is a non-cash, non-recurring expense that occurred in the historical period. As a result, management excludes these two items from its internal operating forecasts and models. Management believes that the adjustments for share-based compensation expenses and impairment loss of long-term investment provide investors with a reasonable basis to measure the company’s core operating performance, in a more meaningful comparison with the performance of other companies. The Company believes that non-GAAP loss from operations, non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS provide useful information about its operating results, enhances the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the management in their financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP loss from operations, non-GAAP net loss attributable to ordinary shareholders, or non-GAAP loss per ADS is that it does not reflect all items of income and expense that affect the Company’s operations. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP measures, all of which should be considered when evaluating the Company’s performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliation of the non-GAAP financial measures to the most comparable U.S. GAAP measures is included at the end of this press release.

Exchange Rate Information Statement

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.7896 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2020.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in 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," "target," "confident" and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as 111’s strategic and operational plans, contain forward-looking statements. 111 may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, 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. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements involve inherent risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to the Company’s ability comply with extensive and evolving regulatory requirements, its ability to compete effectively in the evolving PRC general health and wellness market, its ability to manage the growth of its business and expansion plans, its ability to achieve or maintain profitability in the future, its ability to control the risks associated with its pharmaceutical retail and wholesale businesses, and the Company’s ability to meet the standards necessary to maintain listing of its ADSs on the Nasdaq Global Market, including its ability to cure any non-compliance with Nasdaq’s continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and 111 does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About 111, Inc.

111, Inc. (NASDAQ: YI) ("111" or the "Company") is a leading digital healthcare platform committed to digitally connecting patients with medicine and healthcare services in China. The Company provides consumers with better access to pharmaceutical products and healthcare services directly through its online retail pharmacy, 1 Drugstore, and indirectly through its offline virtual pharmacy network. The Company also offers online healthcare services through its internet hospital, 1 Clinic, which provides consumers with cost-effective and convenient online consultation, electronic prescription service, and patient management service. In addition, the Company’s online wholesale pharmacy, 1 Drug Mall, serves as a one-stop shop for pharmacies to source a vast selection of pharmaceutical products. With the largest virtual pharmacy network in China, 111 enables offline pharmacies to better serve their customers with cloud-based services. 111 also provides an omni-channel drug commercialization platform to its strategic partners, which includes services such as digital marketing, patient education, data analytics, and pricing monitoring.

For more information on 111, please visit: http://ir.111.com.cn/.

For more information, please contact:

111, Inc.
Investor Relations
Email: ir@111.com.cn

111, Inc.
Media Relations 
Email: press@111.com.cn 
Phone: +86-021-2053 6666 (China)

GCM Strategic Communications
IR Counsel
Email: 111.ir@gcm.international

 

 

111, Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share data)

As of

As of

December 31, 2019

September 30, 2020

RMB

RMB

US$

ASSETS

Current Assets:

Cash and cash equivalents

581,281

1,030,771

151,816

Restricted cash

116,441

82,170

12,102

Short-term investments

–

100,159

14,752

Accounts receivable, net 

65,247

140,113

20,636

Note Receivables, net

23,587

22,842

3,364

Inventories

486,271

922,919

135,931

Prepayments and other current assets

208,604

292,501

43,083

Total current assets

1,481,431

2,591,475

381,684

Property and equipment

29,836

29,034

4,276

Intangible assets

8,022

7,043

1,037

Long-term investments

140

140

21

Other non-current assets

3,009

4,687

690

Operating lease right-of-use asset

87,855

88,679

13,061

Total Assets

1,610,293

2,721,058

400,769

LIABILITIES AND EQUITY

Current liabilities including amounts of the
consolidated VIE without recourse to the Company

Short-term borrowings

95,081

179,100

26,379

Accounts payable

444,334

1,302,637

191,858

Accrued expense and other current liabilities 

234,008

287,425

42,332

Total Current liabilities

773,423

1,769,162

260,569

Operating lease liabilities

57,011

51,946

7,651

Other non-current liabilities

5,936

4,286

631

Total Liabilities

836,370

1,825,394

268,851

Mezzanine Equity

Redeemable non-controlling interests[7]

–

417,194

61,446

Shareholders’ Equity

Ordinary shares Class A 

30

30

4

Ordinary shares Class B 

25

25

4

Treasury shares 

(22,991)

(34,972)

(5,151)

Additional paid in capital

2,606,486

2,654,792

391,009

Accumulated deficit

(1,883,335)

(2,209,244)

(325,386)

Accumulated other comprehensive Income

76,441

71,763

10,570

Total shareholders’ equity

776,656

482,394

71,050

Non-controlling interest

(2,733)

(3,924)

(578)

Total equity

773,923

478,470

70,472

Total liabilities, mezzanine equity and equity

1,610,293

2,721,058

400,769

[7] In August 2020, the Company’s subsidiary, Yao Fang Information Technology (Shanghai) Co., Ltd ("Yao Fang Shanghai") completed the private fund raising. Since the new investors have
redeemable rights, the redeemable non-controlling interests are classified as Mezzanine Equity.

 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands, except for share, per share and per ADS data)

For the three months ended September 30,

For the nine months ended September 30,

2019

2020

2019

2020

RMB

RMB

US$

RMB

RMB

US$

Net revenues

1,110,451

2,362,723

347,991

2,604,213

5,560,207

818,929

Operating costs and expenses:

Cost of product sold

(1,063,122)

(2,272,788)

(334,745)

(2,481,522)

(5,297,929)

(780,301)

Fulfillment expenses

(31,639)

(58,161)

(8,566)

(80,313)

(157,380)

(23,181)

Selling and marketing expenses

(87,131)

(104,252)

(15,355)

(237,631)

(281,202)

(41,417)

General and administrative expenses

(31,956)

(28,504)

(4,198)

(88,000)

(96,450)

(14,206)

Technology expenses

(14,695)

(21,953)

(3,233)

(42,024)

(61,394)

(9,042)

Other operating (expenses)/income, net

(3)

754

112

(164)

5,560

819

Total operating costs and expenses

(1,228,546)

(2,484,904)

(365,985)

(2,929,654)

(5,888,795)

(867,328)

Loss from operations

(118,095)

(122,181)

(17,994)

(325,441)

(328,588)

(48,399)

Interest income

1,117

2,684

395

4,477

4,093

603

Interest expense

(2,109)

(2,532)

(373)

(2,458)

(6,203)

(914)

Foreign exchange (loss)/gain

(9,301)

10,295

1,516

(15,311)

(671)

(99)

Other income/(expense), net

4,473

543

80

(4,781)

1,642

242

Loss before income taxes

(123,915)

(111,191)

(16,376)

(343,514)

(329,727)

(48,567)

Income tax expense

–

–

–

–

–

–

Net loss

(123,915)

(111,191)

(16,376)

(343,514)

(329,727)

(48,567)

Net loss attributable to non-controlling
interest

616

2,627

387

1,499

3,818

562

Net loss attributable to ordinary
shareholders

(123,299)

(108,564)

(15,989)

(342,015)

(325,909)

(48,005)

Other comprehensive loss

Unrealized gains of available-for-sale
securities, net of tax

2,465

60

9

6,685

60

9

Realized gains of available-for-sale
securities, net of tax

(511)

–

–

(1,109)

–

–

Foreign currency translation adjustments,
net of tax

19,173

(18,486)

(2,713)

15,773

(4,738)

(698)

Comprehensive loss

(102,172)

(126,990)

(18,693)

(320,666)

(330,587)

(48,694)

Loss per share:

Basic and diluted

(0.75)

(0.66)

(0.10)

(2.09)

(1.98)

(0.29)

Loss per ADS:

Basic and diluted

(1.50)

(1.32)

(0.20)

(4.18)

(3.96)

(0.58)

Weighted average number of shares
used in computation of loss per
share

Basic and diluted

164,162,090

164,866,965

164,866,965

163,676,671

164,667,259

164,667,259

 

 

111, Inc.

UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS

(In thousands)

For the three months ended September 30,

For the nine months ended September 30,

2019

2020

2019

2020

RMB

RMB

US$

RMB

RMB

US$

Net cash (used in)/provided by
operating activities 

(288,023)

25,217

3,714

(440,838)

39,306

5,789

Net cash provided by/(used in) in
investing activities 

186,857

(101,255)

(14,913)

127,858

(108,346)

(15,958)

Net cash provided by financing
activities 

57,645

466,050

68,642

99,935

496,745

73,163

Effect of exchange rate changes on
cash and cash equivalents 

22,033

(20,571)

(3,030)

16,038

(12,486)

(1,839)

Net (decrease)/increase in cash and
cash equivalents 

(21,488)

369,441

54,413

(197,007)

415,219

61,155

Cash and cash equivalents, and
restricted cash at the beginning of
the period 

678,221

743,500

109,505

853,740

697,722

102,763

Cash and cash equivalents, and
restricted cash at the end of the
period   

656,733

1,112,941

163,918

656,733

1,112,941

163,918

 

 

111, Inc.

Unaudited Reconciliation of GAAP and Non-GAAP Results

(In thousands, except for share, per share and per ADS data)

For the three months ended September 30,

For the nine months ended September 30,

2019

2020

2019

2020

RMB

RMB

US$

RMB

RMB

US$

Loss from operations

(118,095)

(122,181)

(17,994)

(325,441)

(328,588)

(48,399)

Add:Share-based compensation
expenses

13,569

14,171

2,087

40,372

43,278

6,374

Non-GAAP loss from operations 

(104,526)

(108,010)

(15,907)

(285,069)

(285,310)

(42,025)

Net Loss attributable to ordinary
shareholders 

(123,299)

(108,564)

(15,988)

(342,015)

(325,909)

(48,005)

Add:Share-based compensation
expenses, net of tax

13,569

14,171

2,087

40,372

43,278

6,374

Impairment loss of long-term
investment

–

–

–

11,000

–

–

Non-GAAP net Loss attributable to
ordinary shareholders 

(109,730)

(94,393)

(13,901)

(290,643)

(282,631)

(41,631)

Loss per ADS: 

  Basic and diluted

(1.50)

(1.32)

(0.20)

(4.18)

(3.96)

(0.58)

Add:Share-based compensation
expenses and impairment loss of long-
term investment per ADS, net of tax

0.16

0.17

0.03

0.63

0.53

0.08

Non-GAAP Loss per ADS

(1.34)

(1.15)

(0.17)

(3.55)

(3.43)

(0.50)

 

 

Related Links :

http://www.yiyaowang.com

Android, Business, Mobile, News

Sony’s Xperia 1 II & Xperia 5 II are Available in Malaysia

Leave a comment

Sony’s Xperia line up is one of the longest lasting line up of smartphones. It continues to be Sony’s go to brand with their newly launched flagships the Xperia 1 II and the Xperia 5 II. The Xperia 1 II will be available starting in November and the Xperia 5 II a little later after that, with prices starting at MYR4099. Let’s take a peek at bells and whistles of models to retail in Malaysia.

Both of these new Xperia models share some key specs. Chiefly, they are both powered by a Qualcomm Snapdragon 865. They both have a triple 12MP camera setup with ZEISS optics for quality images. They also have good life battery with 4,000mAh battery supported by USB-PD and charging via USB-C. They also retain the 3.5 headphone jack for your audio needs.

The key difference between these devices is their size. The Xperia 1 II is slightly bigger with a 6.5 inch screen compared to the Xperia 5 II and its 6.1 inch screen. The Xperia 1 II also has a better OLED display with higher resolution of 1644 x 3840 and and a higher pixel density, while the Xperia 1 II has a lower 1080 x 2520 resolution.

Both models have IP65/IP68 certification for water and dust resistance. They also come with stereo speakers and support PS4 Remote Play. Only the Xperia 1 II comes along with wireless charging as is expected of the flagship variant. However, the Xperia 5 II with its lower price tag and similar core features will give it a run for its money.

The Xperia 1 II is listed for retail at MYR4,999 while the Xperia 5 II is listed at MYR4,099 in the official Sony Online Store. With this announcement, the original Xperia 1 and Xperia 5 are now retailing for MYR3,099 and MYR2,799 respectively.

PR Newswire

LU Hong Kong Launches First Batch of USD-denominated Fund Products

Leave a comment

Committed to Providing Diversified Products to Meet Various Investment Needs

HONG KONG, Nov. 19, 2020 — Lu International (Hong Kong) Limited ("LU Hong Kong" or the "Company"), a subsidiary of Lufax Holding ("Lufax"), will launch the first batch of USD Fund Products distributed through its online investment and wealth management platform, the LU Hong Kong App, which aims to provide investors with a more diversified portfolio of currency fund products catering to different risk appetites and investment needs.

The first batch of the USD-denominated fund products distributed on the LU Hong Kong App consists of five different fund products, namely "BNY Mellon Emerging Market Corporate Debt Fund", "BNY Mellon Mobility Innovation Fund", "BNY Mellon Long-Term Global Equity Fund", "Franklin Technology Fund" and "Franklin Biotechnology Discovery Fund".

The LU Hong Kong App currently offers a selection of diverse and extensive high-quality Hong Kong dollar-denominated funds for Hong Kong retail investors. With the new addition of the five featured USD-denominated funds, LU Hong Kong is expected to expand its coverage of different market indexes and asset classes to enrich its product portfolio and provide investors with more diverse and comprehensive investment and wealth management options.

Mr. Cai Hua, CEO of LU Hong Kong, said, "LU Hong Kong has always been keeping a close eye on the global market conditions. By introducing a selection of fund products in a timely manner, we help users stay ahead of the latest investment trends to seize market opportunities. We are thrilled to launch our first batch of USD-denominated fund products. Not only will it enrich our fund product offerings on the platform, it can also satisfy the risk appetite of different investors. Our equity fund offerings also include many highly sought-after sectors such as technology, alternative-fueled vehicles (AFVs) and biotech."

"Given the market expectation of low US Federal Reserve rates to maintain in the foreseeable future, and the continuation of the global quantitative easing cycle, investors who prefer steady returns may choose value stocks with high performance potential on the LU Hong Kong App. Going forward, we will continue capitalizing on Ping An and Lufax’s ‘Finance + Technology’ strengths while selecting high quality fund to enrich and optimize ‘LU Hong Kong’ fund product portfolio and offer an efficient, high-quality and integrated wealth management experience to our customers."

Disclaimer:

Investment involves risks. The prices of investment products may rise or fall, sometimes fluctuate sharply, and may even become worthless. The past performance of the relevant assets does not reflect future performance. Before making any investment decisions, investors should read the relevant offering documents and risk disclosure statements in detail or obtain independent professional advice and carefully consider all relevant risk factors.

The content of this material is for informational purpose only and does not constitute any investment advice, recommendation, offer, solicitation, advertisement, inducement or invitation. The relevant fund information in this material is provided by the relevant manager, fund or product issuer. Lu International (Hong Kong) Limited has made reasonable effort to ensure that the information provided is complete, accurate and reliable but does not make any explicit or implicit claims regarding its completeness, accuracy, or reliability and does not assume any responsibility for any loss or damage caused by, arisen out of, or related to any inaccuracy or omission of information. Lu International (Hong Kong) Limited also does not assume any responsibility for any prospectus or any other materials prepared or issued by any manager, fund or product issuer nor for any intentional act or omission, breach of contract, fraud or gross negligence of any manager, fund or product issuer.

Lu International (Hong Kong) Limited is a licensed corporation under the Securities and Futures Ordinance (CE: BIN669) licensed for Type 1 (dealing in securities), Type 4 (advising on securities) and Type 9 (asset management) regulated activities. This promotional material has not been reviewed by the Securities and Futures Commission of Hong Kong.

About LU Hong Kong

Lu International (Hong Kong) Limited ("LU Hong Kong"), is a subsidiary of Lufax Holding. LU Hong Kong is incorporated in Hong Kong and is an SFC-licensed corporation licensed to carry on Types 1, 4 and 9 regulated activities (CE: BIN669). The LUHK mobile application is an online wealth management platform launched on 8 August 2020 in Hong Kong to offer around-the-clock wealth management services.

Official website: http://www.lu-hk.com

Related Links :

http://www.lu-hk.com

Android, Mobile, News

5G Gets More Affordable with the Samsung Galaxy A42 5G

Leave a comment

The latest generation of mobile network, 5G, is slowly making its way to the masses around the world. With that in mind, more major players in the mobile device market pumping out their own compatible devices. After introducing their 5G capable flagships, Samsung has announced another 5G device- the Galaxy A42 which is priced lower at $450 internationally and only MYR1,599 in Malaysia. It is equipped with all the innovation consumers have come to expect with the Galaxy A series, including a Quad Camera, Infinity-U Display and a long lasting battery.

The Galaxy A42 5G comes with the Snapdragon 750G which brings support for 5G on both mmWave and Sub6 bands according to Qualcomm. However, actual connectivity support has not been revealed by Samsung. The new smartphone comes with a 6.6-inch HD+ Super AMOLED Infinity-U Display; which should provide ample viewing space for an immersive media experience. It also has a large 5,000mAh battery with support for Fast Charge which should keep you going for at least one full day. The sleek design of the phone is also ergonomic, with rounded edges to make it more comfortable to grip.

Here comes the catchy features of the Galaxy A42 5G, a powerful multi role Quad Camera that captures images and records videos with enhanced clarity. This consists of 48MP main camera supported by a an 8MP Ultra Wide Camera, a 5MP Macro Camera and a 5MP Depth Camera to capture more detail. Plus, the front-facing camera is a 20MP Selfie Camera, a great addition for selfie enthusiasts. Other Galaxy A42 5G specs include 4GB of RAM and 128GB of internal storage, expandable up to 1TB.

Pricing & Availability

The Samsung Galaxy A42 will be available in Prism Dot Black, Prism Dot White and Prism Dot Grey. It is available in Europe for €369 starting from 7 November and is already available in Malaysia via Samsung’s online store for MYR1,599.

Official Specifications

Galaxy A42 5G Product Specifications1

Display26.6-inch HD+ Super AMOLED
Infinity-U Display
Rear CameraQuad Camera
Main: 48MP, F1.8
Ultra Wide: 8MP, F2.2
Depth: 5MP, F2.4
Macro: 5MP, F2.4
Front
Camera		20MP, F2.2
Body75.9 x 164.4 x 8.6mm
193g3,7
APOcta-Core
(Dual 2.2GHz + Hexa 1.8GHz)
Memory44/6/8GB RAM
128GB Internal Storage
MicroSD slot (up to 1TB)
Battery55,000mAh (typical)
15W Adaptive Fast Charging
Biometric AuthenticationOn-Screen Fingerprint
Colors6Prism Dot Black
Prism Dot White
Prism Dot Gray

1 All functionality, features, specifications and other product information provided in this table including, but not limited to, the benefits, design, pricing, components, performance, availability, and capabilities of the product are subject to change without notice.
2 Screen measured diagonally as a full rectangle without accounting for the rounded corners. Actual viewable area is less due to the rounded corners and the camera cut out.
3 Device weight may vary by region and market.
4 Available RAM may vary by country and region.
5 Typical value tested under third-party laboratory condition. Typical value is the estimated average value considering the deviation in battery capacity among the battery samples tested under IEC 61960 standard. Rated (minimum) capacity is 4,680mAh. Actual battery life may vary depending on network environment, usage patterns and other factors. All functionality, features, specifications and other product information provided in this table including, but not limited to, the benefits, design, pricing, components, performance, availability and capabilities of the product are subject to change without notice.
6 Availability may vary by country. 
7The disclaimer for weight specifications has been revised on October 22, 2020 to provide more accurate information.