BEST Inc. Announces Unaudited Second Quarter 2019 Financial Results

Published

HANGZHOU, China, Aug. 13, 2019 /PRNewswire/ -- 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 June 30, 2019.

"BEST's integrated supply chain and logistics networks continued to deliver strong results despite competitive market dynamics and ongoing industry consolidation. I am pleased to report we reduced net loss significantly year-over-year while achieved positive non-GAAP net income for the first time during a second quarter. Our core segments of Express, Freight, and Supply Chain Management continued to gain market shares, lower costs and improve operating efficiency, while Store+ continued to optimize its operation to reduce losses. Others segment delivered tremendous growth and is contributing to future growth of the Company," said Johnny Chou, Chairman and Chief Executive Officer of BEST. "Looking ahead, we are focused on executing our strategy of achieving solid revenue growth, market share gain, cost structure improvement, quality of service, profitability and investing in the future. I'm more confident than ever that our technology enabled integrated supply chain and logistics platform is the right formula for long-term success."       

"We had a strong second quarter. The Company's revenue was RMB8.8 billion, representing a year-over-year increase of 30.5%. Revenue ex-Store+ business increased by over 34.8% year-over-year. We recorded adjusted EBITDA of RMB148.2 million, an improvement of 256% year-over-year; adjusted EBITDA ex-Store+ was RMB 247.2 million. Non-GAAP net income was RMB6.5 million compared to non-GAAP net loss of RMB55.5 million year-over-year; non-GAAP net income ex-Store+ was RMB107.0 million," said Jenny Pan, BEST's principal accounting officer. "We believe our continued focus on top-line growth combined with operational efficiency and excellence will keep us on track to achieve our goal of turning net income positive for the full year 2019."     

FINANCIAL HIGHLIGHTS

For the Quarter Ended June 30, 2019:

  • Revenue was RMB8,788.1 million (US$1,280.1 million), an increase of 30.5% year-over-year ("YoY"). Revenue ex-Store+ was RMB7,997.6 million (US$1,165.0 million), an increase of 34.8% YoY.- Express Service Revenue increased 30.4% YoY to RMB5,446.4 million (US$793.4 million). - Freight Service Revenue increased 26.8% YoY to RMB1,305.8 million (US$190.2 million). - Supply Chain Management Service Revenue increased 20.1% YoY to RMB598.7 million (US$87.2 million). - Store+ Service Revenue decreased 1.0% YoY to RMB790.6 million (US$115.2 million). - Others[1] Service Revenue increased 183.1% YoY to RMB646.6 million (US$94.2 million).
  • Gross Profit was RMB520.1 million (US$75.8 million), an increase of 24.5% YoY; and Gross Profit Margin was 5.9%, a decrease of 0.3 percentage points YoY. Gross Profit ex-Store+ was RMB437.0 million (US$63.7 million), an increase of 23.5% YoY; and Gross Profit Margin ex-Store+ was 5.5%, a decrease of 0.5 percentage points YoY.
  • Net Loss was RMB22.4 million (US$3.3 million), an improvement of 76.1% YoY; and Non-GAAP Net Income[2][3] was RMB6.5 million (US$0.9 million), compared to Non-GAAP Net Loss of RMB55.5 million in the same period of 2018. Net Income ex-Store+ was RMB81.8 million (US$11.9 million); and Non-GAAP Net Income ex-Store+[2][3] was RMB107.0 million (US$15.6 million).
  • Diluted EPS[4] was negative RMB0.05 (US$0.01), compared to negative RMB0.25 in the same period of 2018; and Non-GAAP diluted EPS[3][5] was RMB0.02 (US$0.003), compared to negative RMB0.15 in the same period of 2018.
  • EBITDA[3][6] was RMB122.0 million (US$17.8 million), compared to RMB6.4 million in the same period of 2018; and Adjusted EBITDA[3][6] was RMB148.2 million (US$21.6 million), compared to RMB41.6 million in the same period of 2018. EBITDA[3][6] ex-Store+ was RMB222.9 million (US$32.5 million); and Adjusted EBITDA[3][6] ex-Store+ was RMB247.2 million (US$36.0 million).
  • Net Cash Generated from Operating Activities was RMB334.2 million (US$48.7 million), compared to RMB432.4 million in the same period of 2018.

BUSINESS HIGHLIGHTS[7]

BEST Express:

Table 1 – BEST Express Key Operating Metrics
Three Months Ended % Change
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY
Parcel Volume (in '000) 1,280,050 1,906,863 49.0%
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts
Average Revenue Per Parcel 3.26 2.86 (12.4%)
Average Cost Per Parcel 3.08 2.73 (11.6%)
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%)
Average Labor Cost Per Parcel 0.34 0.23 (31.5%)
Average Lease Cost Per Parcel 0.11 0.09 (15.0%)
Average Other Cost Per Parcel 0.19 0.14 (25.2%)
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%)
Gross Profit per Parcel  0.18 0.13 (28.4%)
Hubs & Sortation Centers (as of period end) 128 97 (24.2%)
  • Strong growth and market share gain: Express parcel volume increased by 49.0% in the second quarter of 2019, compared to industry wide YoY growth rate of 28.4%[9]; increased express market share to 12.2%, compared to 10.5% in the same period of 2018.
  • Continued unit cost reduction: Reduced average cost per parcel by 11.6% to RMB2.73 in the second quarter of 2019, compared to RMB3.08 in the same period of 2018.
  • Continued optimization of operating network: Further reduced the number of hubs and sorting centers to 97 from 128 as of June 30, 2018.
  • Technological advancement: Continued to invest in automation and digitalization in major hubs and sorting centers, with 75 automated sorting and 732 dimension and weight scanning systems in operation as of June 30, 2019. Digital waybill usage was 100% in the second quarter of 2019.

BEST Freight:

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics
Three Months Ended % Change Three Months Ended % Change
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6%
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1%
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%)
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%)
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%)
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5%
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7%
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5%
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5%
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%
  • Strong volume growth: Freight volume increased by 26.6% YoY in the second quarter of 2019, significantly higher than the industry-wide growth.
  • Continued network optimization: Consolidated and reduced total number of hubs and sortation centers by 20.5% to 101 as of June 30, 2019, resulting in lower transportation and labor cost, while shortened delivery time.
  • Gross profit margin improvement: Gross profit margin increased by 1.2 percentage points YoY to 6.4% in the second quarter of 2019.
  • Service coverage expansion: The total number of last-mile service stations operated by franchisee partners increased by 55.1% to 17,380 as of June 30, 2019.

BEST Supply Chain Management:

  • Continued solid growth: The total number of orders fulfilled by Cloud OFCs increased by 41.7% YoY to 86.7 million in the second quarter of 2019, of which the total number of orders fulfilled by franchised Cloud OFCs increased by 78.5% YoY to 36.6 million.
  • Gross profit margin improvement: The gross profit margin improved by 1.0 percentage points YoY to 8.7% in the second quarter of 2019.
  • Strong expansion of corporate customer base: Added 35 new customers in the second quarter of 2019, including major global brands, and increased the total number of corporate customers to 658.
  • Strong growth in franchised Cloud OFC business: Increased the total number of Cloud OFCs to 370 from 346, of which franchisees owned and operated 259 Cloud OFCs; managed over 2.8 million square meters of facilities as of June 30, 2019, compared to 2.4 million square meters as of June 30, 2018.

BEST Store+:

  • Profitability improvement: Continued to improve the profitability of the business by growing the number of higher quality franchised BEST-Neighbor stores while improving order quality of membership stores. As a result, total number of all orders fulfilled decreased by 13.2%, while gross profit margin improved by 2.5 percentage points YoY to 10.5%.
  • Strong network expansion: Total number of branded stores including franchised BEST-Neighbor and WoWo stores increased by 315.2% YoY to 3,106 as of June 30, 2019 of which the number of BEST-Neighbor stores increased to 2,761 from 476 as of June 30, 2018. Total number of membership stores increased to 438,140 as of June 30, 2019, compared to 397,289 as of June 30, 2018.
  • Significant increase in orders fulfilled for branded stores: Total number of orders fulfilled for branded stores increased by 62.9% YoY to 214,417 in the second quarter of 2019, accounting for 28.4% of total orders fulfilled. This represents a 13.3 percentage-point increase from the same period last year.

Others:

- BEST UCargo:

  • Rapid scaling of network: The number of registered agents on the platform increased by 22.4% YoY to 4,830 as of June 30, 2019 from 3,947 as of June 30, 2018; increased the number of registered trucks by 32.9% YoY to 295,440 as of June 30, 2019 from 222,362 as of June 30, 2018.
  • Significant increase in transaction volume and revenue: The number of total transactions increased by 19.4% YoY to 114,538, of which external transactions increased by more than 3.6 times to 94,406; revenue generated from external customers increased significantly to RMB521.8 million (US$76.0 million), which accounted for 5.9% of the Company's total revenue in the second quarter of 2019.

- BEST Global:

  • International service coverage expansion: Provided international service coverage in 18 countries and regions outside Mainland China as of June 30, 2019.
  • Continued expansion in Southeast Asia: BEST Global readied to launch nationwide express delivery service in Vietnam. Continued to develop and expand coverage in Thailand: self-operated six hubs and sortation centers, and one Cloud OFC, with 86 franchised last-mile service stations as of June 30, 2019.

- BEST Capital:

  • As of June 30, 2019, BEST Capital had cumulatively provided financing solutions for the purchase of 9,465 trucks, an increase of 84.6% compared to June 30, 2018.

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives.
[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).
Three Months Ended % Change Three Months Ended % Change [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.
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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.
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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).
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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).
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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.
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC.
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5%
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7%
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5%
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5%
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%

FINANCIAL RESULTS

For the Quarter Ended June 30, 2019:

Revenue

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

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives. Table 3 – Breakdown of Revenue by Business Segment
[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).
Three Months Ended % Change Three Months Ended % Change [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. Three Months Ended
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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. June 30, 2018 June 30, 2019
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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). (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % Change YoY
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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). Express 4,177,173 62.0% 5,446,395 793,357 61.9% 30.4%
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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. Freight 1,029,676 15.3% 1,305,785 190,209 14.9% 26.8%
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC. Supply Chain Mgmt. 498,521 7.4% 598,674 87,207 6.8% 20.1%
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html Others 228,470 3.4% 646,718 94,205 7.4% 183.1%
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5% Revenue ex-Store+ 5,933,840 88.1% 7,997,572 1,164,978 91.0% 34.8%
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7% Store+ 798,480 11.9% 790,558 115,158 9.0% (1.0%)
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5% Revenue 6,732,320 100.0% 8,788,130 1,280,136 100.0% 30.5%
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5%
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%
  • Express Service Revenue increased by 30.4% YoY to RMB5,446.4 million (US$793.4 million) from RMB4,177.2 million, primarily due to 49.0% YoY increase in parcel volume.
  • Freight Service Revenue increased by 26.8% YoY to RMB1,305.8 million (US$190.2 million) from RMB1,029.7 million, primarily due to 26.6% YoY increase in freight volume.
  • Supply Chain Management Service Revenue increased by 20.1% YoY to RMB598.7 million (US$87.2 million) from RMB498.5 million, primarily due to an increase in fulfillment and transportation revenue from both existing and new customers.
  • BEST Store+ Service Revenue decreased by 1.0% YoY to RMB790.6 million (US$115.2 million) from RMB798.5 million, primarily due to a decrease in the number of orders fulfilled for membership stores resulting from ongoing efforts to improve order quality and margins.
  • Others Service Revenues increased by 183.1% YoY to RMB646.7 million (US$94.2 million) from RMB228.5 million, primarily due to increased revenue generated from BEST UCargo's external customers, BEST Global's expanded operations and BEST Capital's financing solutions to ecosystem participants.

Cost of Revenue

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

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives. Table 3 – Breakdown of Revenue by Business Segment Table 4 – Breakdown of Cost of Revenue by Business Segment
[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).
Three Months Ended % Change Three Months Ended % Change [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. Three Months Ended Three Months Ended
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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. June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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). (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % Change YoY (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % of Revenue Change YoY
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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). Express 4,177,173 62.0% 5,446,395 793,357 61.9% 30.4% Express (3,948,228) 94.5% (5,202,070) (757,767) 95.5% 1.0ppts
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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. Freight 1,029,676 15.3% 1,305,785 190,209 14.9% 26.8% Freight (975,846) 94.8% (1,222,296) (178,047) 93.6% (1.2ppts)
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC. Supply Chain Mgmt. 498,521 7.4% 598,674 87,207 6.8% 20.1% Supply Chain Mgmt. (460,451) 92.4% (546,778) (79,647) 91.3%          (1.0ppts)
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html Others 228,470 3.4% 646,718 94,205 7.4% 183.1% Others (195,577) 85.6% (589,422) (85,859) 91.1% 5.5ppts
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5% Revenue ex-Store+ 5,933,840 88.1% 7,997,572 1,164,978 91.0% 34.8% Cost of Revenue ex-Store+ (5,580,102) 94.0% (7,560,566) (1,101,320) 94.5% 0.5ppts
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7% Store+ 798,480 11.9% 790,558 115,158 9.0% (1.0%) Store+ (734,572) 92.0% (707,497) (103,059) 89.5% (2.5ppts)
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5% Revenue 6,732,320 100.0% 8,788,130 1,280,136 100.0% 30.5% Cost of Revenue (6,314,674) 93.8% (8,268,063) (1,204,379) 94.1% 0.3ppts
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5%
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%

Cost of Revenue was RMB8,268.1 million (US$1,204.4 million) or 94.1% of revenue in the quarter ended June 30, 2019, compared to RMB6,314.7 million or 93.8% of revenue in the same quarter of 2018. The increase of 0.3 percentage point in cost of revenue as a percentage of revenue was primarily attributable to increased express market competition, which was partially offset by continued efforts in cost reduction, network optimization and operational improvement.

Gross Profit was RMB520.1 million (US$75.8 million), a YoY increase of 24.5% compared to RMB417.6 million in the same quarter of 2018. Gross Profit Margin was 5.9%, compared to 6.2% in the same quarter of 2018. Gross Profit ex-Store+ was RMB437.0 million (US$63.7 million), an increase of 23.5% YoY; and Gross Profit Margin ex-Store+ was 5.5%, a decrease of 0.5 percentage points YoY.

Operating Expenses

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

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives. Table 3 – Breakdown of Revenue by Business Segment Table 4 – Breakdown of Cost of Revenue by Business Segment Table 5 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category 
[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).
Three Months Ended % Change Three Months Ended % Change [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. Three Months Ended Three Months Ended Three Months Ended
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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. June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 % of Revenue
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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). (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % Change YoY (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % of Revenue Change YoY (In '000, except for %) RMB % of RMB US$ % of Change
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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). Express 4,177,173 62.0% 5,446,395 793,357 61.9% 30.4% Express (3,948,228) 94.5% (5,202,070) (757,767) 95.5% 1.0ppts Revenue Revenue YoY
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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. Freight 1,029,676 15.3% 1,305,785 190,209 14.9% 26.8% Freight (975,846) 94.8% (1,222,296) (178,047) 93.6% (1.2ppts) Selling Expenses  (205,736) 3.1% (213,222) (31,059) 2.4% (0.7ppts)
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC. Supply Chain Mgmt. 498,521 7.4% 598,674 87,207 6.8% 20.1% Supply Chain Mgmt. (460,451) 92.4% (546,778) (79,647) 91.3%          (1.0ppts)     Adjusted for SBC  (1,128) 0.1% (1,791) (261) 0.0% (0.1ppts)
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html Others 228,470 3.4% 646,718 94,205 7.4% 183.1% Others (195,577) 85.6% (589,422) (85,859) 91.1% 5.5ppts     Expenses
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5% Revenue ex-Store+ 5,933,840 88.1% 7,997,572 1,164,978 91.0% 34.8% Cost of Revenue ex-Store+ (5,580,102) 94.0% (7,560,566) (1,101,320) 94.5% 0.5ppts Adjusted Selling (204,608) 3.0% (211,431) (30,798) 2.4% (0.6ppts)
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7% Store+ 798,480 11.9% 790,558 115,158 9.0% (1.0%) Store+ (734,572) 92.0% (707,497) (103,059) 89.5% (2.5ppts) Expenses
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5% Revenue 6,732,320 100.0% 8,788,130 1,280,136 100.0% 30.5% Cost of Revenue (6,314,674) 93.8% (8,268,063) (1,204,379) 94.1% 0.3ppts General and (271,108) 4.0% (301,169) (43,870) 3.4% (0.6ppts)
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5% Administrative Expenses 
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)     Adjusted for SBC (31,518) 0.4% (21,778) (3,172) 0.2% (0.2ppts)
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%     Expenses
Adjusted General and (239,590) 3.6% (279,391) (40,698) 3.2% (0.4ppts)
Administrative Expenses
Research and (51,499) 0.8% (62,517) (9,107) 0.7% (0.1ppts)
Development Expenses 
    Adjusted for (2,204) 0.1% (2,388) (348) 0.0% (0.1ppts)
    SBC Expenses
Adjusted Research and (49,295) 0.7% (60,129) (8,759) 0.7%  0.0ppts
Development Expenses
Total Operating  (528,343) 7.8% (576,908) (84,036) 6.6% (1.2ppts)
Expenses
   Adjusted for (34,850) 0.5% (25,957) (3,781) 0.3% (0.2ppts)
    SBC Expenses
Adjusted Total (493,493) 7.3% (550,951) (80,255) 6.3% (1.0ppts)
Operating Expenses

Selling Expenses were RMB213.2 million (US$31.1 million) or 2.4% of revenue in the quarter ended June 30, 2019, compared to RMB205.7 million or 3.1% of revenue in the same quarter of 2018. The decrease in selling expenses as a percentage of revenue was primarily attributable to economies of scale and improved operating efficiencies. Selling Expenses ex-Store+ were RMB79.6 million, representing 1.0% of ex-Store+ revenue.

General and Administrative Expenses were RMB301.2 million (US$43.9 million) or 3.4% of revenue in the quarter ended June 30, 2019, compared to RMB271.1 million or 4.0% of revenue in the same quarter of 2018. The decrease in general and administrative expenses as a percentage of revenue was primarily attributable to economies of scale and improved operating efficiencies. General and Administrative Expenses ex-Store+ was RMB257.8 million, representing 3.2% of ex-Store+ revenue.

Research and Development Expenses were RMB62.5 million (US$9.1 million) or 0.7% of revenue in the quarter ended June 30, 2019, compared to RMB51.5 million, or 0.8% of revenue in the same quarter of 2018. The increase in research and development expenses was primarily attributable to the hiring of additional IT professionals. Research and Development Expenses ex-Store+ were RMB52.6 million, representing 0.7% of ex-Store+ revenue.

Share-based compensation ("SBC") Expenses included in the cost and expense items above in the quarter ended June 30, 2019 were RMB26.2 million (US$3.8 million), compared to RMB35.3 million in the same quarter of 2018. In the second quarter of 2019, approximately RMB0.2 million (US$0.04 million) was allocated to cost of revenue, RMB1.8 million (US$0.3 million) was allocated to selling expenses, RMB21.8 million (US$3.2 million) was allocated to general and administrative expenses, and RMB2.4 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 June 30, 2019 was RMB22.4 million (US$3.3 million), an improvement of 76.1% compared to RMB93.7 million in the same quarter of 2018. Excluding the impact of SBC expense and amortization of intangible assets resulting from business acquisitions, non-GAAP Net Income in the quarter ended June 30, 2019 was RMB6.5 million (US$0.9 million), compared to non-GAAP Net Loss of RMB55.5 million in the same quarter of 2018. Ex-Store+ non-GAAP Net Income in the quarter ended June 30, 2019 was RMB107.0 million (US$15.6 million), compared to ex-Store+ non-GAAP Net Income of RMB44.9 million in the same quarter of 2018.

Diluted EPS and non-GAAP diluted EPS

Diluted EPS in the quarter ended June 30, 2019 was negative RMB0.05 (US$0.01) based on a weighted average of 388.2 million diluted shares outstanding during the quarter, an improvement of 79.8% compared to negative RMB0.25 on a weighted average of 381.6 million diluted shares outstanding during the same period of 2018. Excluding SBC expense and amortization of intangible assets resulting from business acquisitions, non-GAAP diluted EPS in the quarter ended June 30, 2019 was RMB0.02 (US$0.00), compared to negative RMB0.15 in the same period of 2018. A reconciliation of diluted EPS to non-GAAP diluted EPS is included at the end of this results announcement.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA was RMB148.2 million (US$21.6 million), improved from RMB41.6 million in the quarter ended June 30, 2018. Adjusted EBITDA Margin was 1.7%, improved from 0.6% in the quarter ended June 30, 2018. The improvement of RMB106.6 million (US$15.5 million), or 1.1 percentage points, was primarily attributable to strong revenue growth and improved operating efficiency. Adjusted EBITDA[3][6] ex-Store+ was RMB247.2 million (US$36.0 million), improved from RMB141.0 million in the quarter ended June 30, 2018. Adjusted EBITDA Margin ex-Store+ was 3.1%, improved from 2.4% in the quarter ended June 30, 2018.

The following table sets forth a breakdown of adjusted EBITDA and adjusted EBITDA margin for the three months ended June 30, 2019 by segment[10], and a reconciliation of the Company's net loss by segment[11] to EBITDA, adjusted EBITDA and adjusted EBITDA margin.

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives. Table 3 – Breakdown of Revenue by Business Segment Table 4 – Breakdown of Cost of Revenue by Business Segment Table 5 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category  Table 6 – Breakdown and Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment[11]
[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).
Three Months Ended % Change Three Months Ended % Change [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. Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, 2019
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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. June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 % of Revenue (In RMB'000) BEST (ex-Store+) Store+ Unallocated[11] Total
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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). (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % Change YoY (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % of Revenue Change YoY (In '000, except for %) RMB % of RMB US$ % of Change Net Income/(Loss) 132,766 (104,158) (50,979) (22,371)
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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). Express 4,177,173 62.0% 5,446,395 793,357 61.9% 30.4% Express (3,948,228) 94.5% (5,202,070) (757,767) 95.5% 1.0ppts Revenue Revenue YoY Add
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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. Freight 1,029,676 15.3% 1,305,785 190,209 14.9% 26.8% Freight (975,846) 94.8% (1,222,296) (178,047) 93.6% (1.2ppts) Selling Expenses  (205,736) 3.1% (213,222) (31,059) 2.4% (0.7ppts) Depreciation & Amortization 138,542 3,666 9,042 151,250
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC. Supply Chain Mgmt. 498,521 7.4% 598,674 87,207 6.8% 20.1% Supply Chain Mgmt. (460,451) 92.4% (546,778) (79,647) 91.3%          (1.0ppts)     Adjusted for SBC  (1,128) 0.1% (1,791) (261) 0.0% (0.1ppts) Interest Expense - - 14,696 14,696
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html Others 228,470 3.4% 646,718 94,205 7.4% 183.1% Others (195,577) 85.6% (589,422) (85,859) 91.1% 5.5ppts     Expenses Income Tax Expense 4,844 (434) - 4,410
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5% Revenue ex-Store+ 5,933,840 88.1% 7,997,572 1,164,978 91.0% 34.8% Cost of Revenue ex-Store+ (5,580,102) 94.0% (7,560,566) (1,101,320) 94.5% 0.5ppts Adjusted Selling (204,608) 3.0% (211,431) (30,798) 2.4% (0.6ppts) Subtract
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7% Store+ 798,480 11.9% 790,558 115,158 9.0% (1.0%) Store+ (734,572) 92.0% (707,497) (103,059) 89.5% (2.5ppts) Expenses Interest Income - - (26,024) (26,024)
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5% Revenue 6,732,320 100.0% 8,788,130 1,280,136 100.0% 30.5% Cost of Revenue (6,314,674) 93.8% (8,268,063) (1,204,379) 94.1% 0.3ppts General and (271,108) 4.0% (301,169) (43,870) 3.4% (0.6ppts) EBITDA 276,152 (100,926) (53,265) 121,961
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5% Administrative Expenses  Add
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)     Adjusted for SBC (31,518) 0.4% (21,778) (3,172) 0.2% (0.2ppts) Share-basedCompensation Expenses 13,337 1,922 10,953 26,212
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%     Expenses Adjusted EBITDA 289,489 (99,004) (42,312) 148,173
Adjusted General and (239,590) 3.6% (279,391) (40,698) 3.2% (0.4ppts) Adjusted EBITDA Margin 3.6% (12.5%) n/m 1.7%
Administrative Expenses
Research and (51,499) 0.8% (62,517) (9,107) 0.7% (0.1ppts)
Development Expenses 
    Adjusted for (2,204) 0.1% (2,388) (348) 0.0% (0.1ppts)
    SBC Expenses
Adjusted Research and (49,295) 0.7% (60,129) (8,759) 0.7%  0.0ppts
Development Expenses
Total Operating  (528,343) 7.8% (576,908) (84,036) 6.6% (1.2ppts)
Expenses
   Adjusted for (34,850) 0.5% (25,957) (3,781) 0.3% (0.2ppts)
    SBC Expenses
Adjusted Total (493,493) 7.3% (550,951) (80,255) 6.3% (1.0ppts)
Operating Expenses

 

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives. Table 3 – Breakdown of Revenue by Business Segment Table 4 – Breakdown of Cost of Revenue by Business Segment Table 5 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category  Table 6 – Breakdown and Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment[11] [10]Segments consist of all business units other than BEST Store+, BEST Store+ and unallocated expenses.
[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). [11]Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
Three Months Ended % Change Three Months Ended % Change [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. Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, 2019
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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. June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 % of Revenue (In RMB'000) BEST (ex-Store+) Store+ Unallocated[11] Total
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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). (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % Change YoY (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % of Revenue Change YoY (In '000, except for %) RMB % of RMB US$ % of Change Net Income/(Loss) 132,766 (104,158) (50,979) (22,371)
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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). Express 4,177,173 62.0% 5,446,395 793,357 61.9% 30.4% Express (3,948,228) 94.5% (5,202,070) (757,767) 95.5% 1.0ppts Revenue Revenue YoY Add
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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. Freight 1,029,676 15.3% 1,305,785 190,209 14.9% 26.8% Freight (975,846) 94.8% (1,222,296) (178,047) 93.6% (1.2ppts) Selling Expenses  (205,736) 3.1% (213,222) (31,059) 2.4% (0.7ppts) Depreciation & Amortization 138,542 3,666 9,042 151,250
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC. Supply Chain Mgmt. 498,521 7.4% 598,674 87,207 6.8% 20.1% Supply Chain Mgmt. (460,451) 92.4% (546,778) (79,647) 91.3%          (1.0ppts)     Adjusted for SBC  (1,128) 0.1% (1,791) (261) 0.0% (0.1ppts) Interest Expense - - 14,696 14,696
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html Others 228,470 3.4% 646,718 94,205 7.4% 183.1% Others (195,577) 85.6% (589,422) (85,859) 91.1% 5.5ppts     Expenses Income Tax Expense 4,844 (434) - 4,410
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5% Revenue ex-Store+ 5,933,840 88.1% 7,997,572 1,164,978 91.0% 34.8% Cost of Revenue ex-Store+ (5,580,102) 94.0% (7,560,566) (1,101,320) 94.5% 0.5ppts Adjusted Selling (204,608) 3.0% (211,431) (30,798) 2.4% (0.6ppts) Subtract
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7% Store+ 798,480 11.9% 790,558 115,158 9.0% (1.0%) Store+ (734,572) 92.0% (707,497) (103,059) 89.5% (2.5ppts) Expenses Interest Income - - (26,024) (26,024)
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5% Revenue 6,732,320 100.0% 8,788,130 1,280,136 100.0% 30.5% Cost of Revenue (6,314,674) 93.8% (8,268,063) (1,204,379) 94.1% 0.3ppts General and (271,108) 4.0% (301,169) (43,870) 3.4% (0.6ppts) EBITDA 276,152 (100,926) (53,265) 121,961
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5% Administrative Expenses  Add
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)     Adjusted for SBC (31,518) 0.4% (21,778) (3,172) 0.2% (0.2ppts) Share-basedCompensation Expenses 13,337 1,922 10,953 26,212
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%     Expenses Adjusted EBITDA 289,489 (99,004) (42,312) 148,173
Adjusted General and (239,590) 3.6% (279,391) (40,698) 3.2% (0.4ppts) Adjusted EBITDA Margin 3.6% (12.5%) n/m 1.7%
Administrative Expenses
Research and (51,499) 0.8% (62,517) (9,107) 0.7% (0.1ppts)
Development Expenses 
    Adjusted for (2,204) 0.1% (2,388) (348) 0.0% (0.1ppts)
    SBC Expenses
Adjusted Research and (49,295) 0.7% (60,129) (8,759) 0.7%  0.0ppts
Development Expenses
Total Operating  (528,343) 7.8% (576,908) (84,036) 6.6% (1.2ppts)
Expenses
   Adjusted for (34,850) 0.5% (25,957) (3,781) 0.3% (0.2ppts)
    SBC Expenses
Adjusted Total (493,493) 7.3% (550,951) (80,255) 6.3% (1.0ppts)
Operating Expenses

The following table sets forth a breakdown of non-GAAP net income/loss for the three months ended June 30, 2019 by segment, and a reconciliation of the Company's net loss by segment to non-GAAP net income.

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives. Table 3 – Breakdown of Revenue by Business Segment Table 4 – Breakdown of Cost of Revenue by Business Segment Table 5 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category  Table 6 – Breakdown and Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment[11] [10]Segments consist of all business units other than BEST Store+, BEST Store+ and unallocated expenses. Table 7 – Breakdown and Reconciliation of non-GAAP net income by Segment
[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). [11]Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
Three Months Ended % Change Three Months Ended % Change [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. Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, 2019 Three Months Ended June 30, 2019
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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. June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 % of Revenue (In RMB'000) BEST (ex-Store+) Store+ Unallocated[11] Total (In RMB'000) BEST (ex-Store+) Store+ Unallocated Total
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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). (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % Change YoY (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % of Revenue Change YoY (In '000, except for %) RMB % of RMB US$ % of Change Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Net Income/(Loss) 132,766 (104,158) (50,979) (22,371)
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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). Express 4,177,173 62.0% 5,446,395 793,357 61.9% 30.4% Express (3,948,228) 94.5% (5,202,070) (757,767) 95.5% 1.0ppts Revenue Revenue YoY Add Add
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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. Freight 1,029,676 15.3% 1,305,785 190,209 14.9% 26.8% Freight (975,846) 94.8% (1,222,296) (178,047) 93.6% (1.2ppts) Selling Expenses  (205,736) 3.1% (213,222) (31,059) 2.4% (0.7ppts) Depreciation & Amortization 138,542 3,666 9,042 151,250 Share-based Compensation Expenses 13,337 1,922 10,953 26,212
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC. Supply Chain Mgmt. 498,521 7.4% 598,674 87,207 6.8% 20.1% Supply Chain Mgmt. (460,451) 92.4% (546,778) (79,647) 91.3%          (1.0ppts)     Adjusted for SBC  (1,128) 0.1% (1,791) (261) 0.0% (0.1ppts) Interest Expense - - 14,696 14,696 Amortization of Intangible Assets Resulting from Business Acquisitions 907 1,737 -- 2,644
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html Others 228,470 3.4% 646,718 94,205 7.4% 183.1% Others (195,577) 85.6% (589,422) (85,859) 91.1% 5.5ppts     Expenses Income Tax Expense 4,844 (434) - 4,410 Non-GAAP Net Income/(Loss) 147,010 (100,499) (40,026) 6,485
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5% Revenue ex-Store+ 5,933,840 88.1% 7,997,572 1,164,978 91.0% 34.8% Cost of Revenue ex-Store+ (5,580,102) 94.0% (7,560,566) (1,101,320) 94.5% 0.5ppts Adjusted Selling (204,608) 3.0% (211,431) (30,798) 2.4% (0.6ppts) Subtract
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7% Store+ 798,480 11.9% 790,558 115,158 9.0% (1.0%) Store+ (734,572) 92.0% (707,497) (103,059) 89.5% (2.5ppts) Expenses Interest Income - - (26,024) (26,024)
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5% Revenue 6,732,320 100.0% 8,788,130 1,280,136 100.0% 30.5% Cost of Revenue (6,314,674) 93.8% (8,268,063) (1,204,379) 94.1% 0.3ppts General and (271,108) 4.0% (301,169) (43,870) 3.4% (0.6ppts) EBITDA 276,152 (100,926) (53,265) 121,961
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5% Administrative Expenses  Add
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)     Adjusted for SBC (31,518) 0.4% (21,778) (3,172) 0.2% (0.2ppts) Share-basedCompensation Expenses 13,337 1,922 10,953 26,212
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%     Expenses Adjusted EBITDA 289,489 (99,004) (42,312) 148,173
Adjusted General and (239,590) 3.6% (279,391) (40,698) 3.2% (0.4ppts) Adjusted EBITDA Margin 3.6% (12.5%) n/m 1.7%
Administrative Expenses
Research and (51,499) 0.8% (62,517) (9,107) 0.7% (0.1ppts)
Development Expenses 
    Adjusted for (2,204) 0.1% (2,388) (348) 0.0% (0.1ppts)
    SBC Expenses
Adjusted Research and (49,295) 0.7% (60,129) (8,759) 0.7%  0.0ppts
Development Expenses
Total Operating  (528,343) 7.8% (576,908) (84,036) 6.6% (1.2ppts)
Expenses
   Adjusted for (34,850) 0.5% (25,957) (3,781) 0.3% (0.2ppts)
    SBC Expenses
Adjusted Total (493,493) 7.3% (550,951) (80,255) 6.3% (1.0ppts)
Operating Expenses

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

As of June 30, 2019, cash and cash equivalents, restricted cash and short-term investments were RMB4,045.7 million (US$589.3 million), compared to RMB3,861.2 million as of March 31, 2019.

Net Cash Generated from Operating Activities

Net cash generated from operating activities was RMB334.2 million (US$48.7 million) for the second quarter of 2019, compared to RMB432.4 million in the same period of 2018. Net cash generated from operating activities was RMB128.7 million (US$18.7 million) for the first six months of 2019, compared to negative RMB178.1 million in the same period of 2018.

Capital Expenditures ("CAPEX")

CAPEX was RMB380.9 million (US$55.5 million), or 4.3% of total revenue in the quarter ended June 30, 2019, compared to CAPEX of RMB230.3 million, or 3.4% of total revenue, in the same period of 2018. The increase in CAPEX was primarily due to the upgrade of automation systems in major hubs, sortation centers and Cloud OFCs, including investments in high-speed automated sorting, dimension and weight scanning systems.

SHARES OUTSTANDING

As of the date of this press release, the Company had approximately 388.7 million ordinary shares outstanding[12]. Each ADS represents one Class A ordinary share.

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives. Table 3 – Breakdown of Revenue by Business Segment Table 4 – Breakdown of Cost of Revenue by Business Segment Table 5 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category  Table 6 – Breakdown and Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment[11] [10]Segments consist of all business units other than BEST Store+, BEST Store+ and unallocated expenses. Table 7 – Breakdown and Reconciliation of non-GAAP net income by Segment [12] 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.
[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). [11]Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
Three Months Ended % Change Three Months Ended % Change [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. Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, 2019 Three Months Ended June 30, 2019
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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. June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 % of Revenue (In RMB'000) BEST (ex-Store+) Store+ Unallocated[11] Total (In RMB'000) BEST (ex-Store+) Store+ Unallocated Total
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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). (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % Change YoY (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % of Revenue Change YoY (In '000, except for %) RMB % of RMB US$ % of Change Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Net Income/(Loss) 132,766 (104,158) (50,979) (22,371)
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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). Express 4,177,173 62.0% 5,446,395 793,357 61.9% 30.4% Express (3,948,228) 94.5% (5,202,070) (757,767) 95.5% 1.0ppts Revenue Revenue YoY Add Add
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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. Freight 1,029,676 15.3% 1,305,785 190,209 14.9% 26.8% Freight (975,846) 94.8% (1,222,296) (178,047) 93.6% (1.2ppts) Selling Expenses  (205,736) 3.1% (213,222) (31,059) 2.4% (0.7ppts) Depreciation & Amortization 138,542 3,666 9,042 151,250 Share-based Compensation Expenses 13,337 1,922 10,953 26,212
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC. Supply Chain Mgmt. 498,521 7.4% 598,674 87,207 6.8% 20.1% Supply Chain Mgmt. (460,451) 92.4% (546,778) (79,647) 91.3%          (1.0ppts)     Adjusted for SBC  (1,128) 0.1% (1,791) (261) 0.0% (0.1ppts) Interest Expense - - 14,696 14,696 Amortization of Intangible Assets Resulting from Business Acquisitions 907 1,737 -- 2,644
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html Others 228,470 3.4% 646,718 94,205 7.4% 183.1% Others (195,577) 85.6% (589,422) (85,859) 91.1% 5.5ppts     Expenses Income Tax Expense 4,844 (434) - 4,410 Non-GAAP Net Income/(Loss) 147,010 (100,499) (40,026) 6,485
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5% Revenue ex-Store+ 5,933,840 88.1% 7,997,572 1,164,978 91.0% 34.8% Cost of Revenue ex-Store+ (5,580,102) 94.0% (7,560,566) (1,101,320) 94.5% 0.5ppts Adjusted Selling (204,608) 3.0% (211,431) (30,798) 2.4% (0.6ppts) Subtract
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7% Store+ 798,480 11.9% 790,558 115,158 9.0% (1.0%) Store+ (734,572) 92.0% (707,497) (103,059) 89.5% (2.5ppts) Expenses Interest Income - - (26,024) (26,024)
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5% Revenue 6,732,320 100.0% 8,788,130 1,280,136 100.0% 30.5% Cost of Revenue (6,314,674) 93.8% (8,268,063) (1,204,379) 94.1% 0.3ppts General and (271,108) 4.0% (301,169) (43,870) 3.4% (0.6ppts) EBITDA 276,152 (100,926) (53,265) 121,961
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5% Administrative Expenses  Add
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)     Adjusted for SBC (31,518) 0.4% (21,778) (3,172) 0.2% (0.2ppts) Share-basedCompensation Expenses 13,337 1,922 10,953 26,212
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%     Expenses Adjusted EBITDA 289,489 (99,004) (42,312) 148,173
Adjusted General and (239,590) 3.6% (279,391) (40,698) 3.2% (0.4ppts) Adjusted EBITDA Margin 3.6% (12.5%) n/m 1.7%
Administrative Expenses
Research and (51,499) 0.8% (62,517) (9,107) 0.7% (0.1ppts)
Development Expenses 
    Adjusted for (2,204) 0.1% (2,388) (348) 0.0% (0.1ppts)
    SBC Expenses
Adjusted Research and (49,295) 0.7% (60,129) (8,759) 0.7%  0.0ppts
Development Expenses
Total Operating  (528,343) 7.8% (576,908) (84,036) 6.6% (1.2ppts)
Expenses
   Adjusted for (34,850) 0.5% (25,957) (3,781) 0.3% (0.2ppts)
    SBC Expenses
Adjusted Total (493,493) 7.3% (550,951) (80,255) 6.3% (1.0ppts)
Operating Expenses

FINANCIAL GUIDANCE

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

WEBCAST AND CONFERENCE CALL INFORMATION

The Company will hold a conference call at 7:30 am U.S. Eastern Time on August 13, 2019 (7:30 pm Beijing Time, the same day), to discuss its financial results and operating performance for the second quarter 2019.

Participants may access the call by dialing the following numbers:

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives. Table 3 – Breakdown of Revenue by Business Segment Table 4 – Breakdown of Cost of Revenue by Business Segment Table 5 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category  Table 6 – Breakdown and Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment[11] [10]Segments consist of all business units other than BEST Store+, BEST Store+ and unallocated expenses. Table 7 – Breakdown and Reconciliation of non-GAAP net income by Segment [12] 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. United States: +1-888-317-6003
[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). [11]Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments. Hong Kong: 800-963976 or +852-5808-1995
Three Months Ended % Change Three Months Ended % Change [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. Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, 2019 Three Months Ended June 30, 2019 China: 4001-206115
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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. June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 % of Revenue (In RMB'000) BEST (ex-Store+) Store+ Unallocated[11] Total (In RMB'000) BEST (ex-Store+) Store+ Unallocated Total International: +1-412-317-6061
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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). (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % Change YoY (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % of Revenue Change YoY (In '000, except for %) RMB % of RMB US$ % of Change Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Participant Elite Entry Number: 2624939
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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). Express 4,177,173 62.0% 5,446,395 793,357 61.9% 30.4% Express (3,948,228) 94.5% (5,202,070) (757,767) 95.5% 1.0ppts Revenue Revenue YoY Add Add
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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. Freight 1,029,676 15.3% 1,305,785 190,209 14.9% 26.8% Freight (975,846) 94.8% (1,222,296) (178,047) 93.6% (1.2ppts) Selling Expenses  (205,736) 3.1% (213,222) (31,059) 2.4% (0.7ppts) Depreciation & Amortization 138,542 3,666 9,042 151,250 Share-based Compensation Expenses 13,337 1,922 10,953 26,212
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC. Supply Chain Mgmt. 498,521 7.4% 598,674 87,207 6.8% 20.1% Supply Chain Mgmt. (460,451) 92.4% (546,778) (79,647) 91.3%          (1.0ppts)     Adjusted for SBC  (1,128) 0.1% (1,791) (261) 0.0% (0.1ppts) Interest Expense - - 14,696 14,696 Amortization of Intangible Assets Resulting from Business Acquisitions 907 1,737 -- 2,644
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html Others 228,470 3.4% 646,718 94,205 7.4% 183.1% Others (195,577) 85.6% (589,422) (85,859) 91.1% 5.5ppts     Expenses Income Tax Expense 4,844 (434) - 4,410 Non-GAAP Net Income/(Loss) 147,010 (100,499) (40,026) 6,485
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5% Revenue ex-Store+ 5,933,840 88.1% 7,997,572 1,164,978 91.0% 34.8% Cost of Revenue ex-Store+ (5,580,102) 94.0% (7,560,566) (1,101,320) 94.5% 0.5ppts Adjusted Selling (204,608) 3.0% (211,431) (30,798) 2.4% (0.6ppts) Subtract
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7% Store+ 798,480 11.9% 790,558 115,158 9.0% (1.0%) Store+ (734,572) 92.0% (707,497) (103,059) 89.5% (2.5ppts) Expenses Interest Income - - (26,024) (26,024)
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5% Revenue 6,732,320 100.0% 8,788,130 1,280,136 100.0% 30.5% Cost of Revenue (6,314,674) 93.8% (8,268,063) (1,204,379) 94.1% 0.3ppts General and (271,108) 4.0% (301,169) (43,870) 3.4% (0.6ppts) EBITDA 276,152 (100,926) (53,265) 121,961
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5% Administrative Expenses  Add
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)     Adjusted for SBC (31,518) 0.4% (21,778) (3,172) 0.2% (0.2ppts) Share-basedCompensation Expenses 13,337 1,922 10,953 26,212
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%     Expenses Adjusted EBITDA 289,489 (99,004) (42,312) 148,173
Adjusted General and (239,590) 3.6% (279,391) (40,698) 3.2% (0.4ppts) Adjusted EBITDA Margin 3.6% (12.5%) n/m 1.7%
Administrative Expenses
Research and (51,499) 0.8% (62,517) (9,107) 0.7% (0.1ppts)
Development Expenses 
    Adjusted for (2,204) 0.1% (2,388) (348) 0.0% (0.1ppts)
    SBC Expenses
Adjusted Research and (49,295) 0.7% (60,129) (8,759) 0.7%  0.0ppts
Development Expenses
Total Operating  (528,343) 7.8% (576,908) (84,036) 6.6% (1.2ppts)
Expenses
   Adjusted for (34,850) 0.5% (25,957) (3,781) 0.3% (0.2ppts)
    SBC Expenses
Adjusted Total (493,493) 7.3% (550,951) (80,255) 6.3% (1.0ppts)
Operating Expenses

A replay of the conference call will be accessible through August 20, 2019 by dialing the following numbers:

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives. Table 3 – Breakdown of Revenue by Business Segment Table 4 – Breakdown of Cost of Revenue by Business Segment Table 5 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category  Table 6 – Breakdown and Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment[11] [10]Segments consist of all business units other than BEST Store+, BEST Store+ and unallocated expenses. Table 7 – Breakdown and Reconciliation of non-GAAP net income by Segment [12] 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. United States: +1-888-317-6003 United States: +1-877-344-7529
[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). [11]Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments. Hong Kong: 800-963976 or +852-5808-1995 International: +1-412-317-0088
Three Months Ended % Change Three Months Ended % Change [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. Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, 2019 Three Months Ended June 30, 2019 China: 4001-206115 Replay Access Code: 10134132
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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. June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 % of Revenue (In RMB'000) BEST (ex-Store+) Store+ Unallocated[11] Total (In RMB'000) BEST (ex-Store+) Store+ Unallocated Total International: +1-412-317-6061
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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). (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % Change YoY (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % of Revenue Change YoY (In '000, except for %) RMB % of RMB US$ % of Change Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Participant Elite Entry Number: 2624939
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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). Express 4,177,173 62.0% 5,446,395 793,357 61.9% 30.4% Express (3,948,228) 94.5% (5,202,070) (757,767) 95.5% 1.0ppts Revenue Revenue YoY Add Add
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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. Freight 1,029,676 15.3% 1,305,785 190,209 14.9% 26.8% Freight (975,846) 94.8% (1,222,296) (178,047) 93.6% (1.2ppts) Selling Expenses  (205,736) 3.1% (213,222) (31,059) 2.4% (0.7ppts) Depreciation & Amortization 138,542 3,666 9,042 151,250 Share-based Compensation Expenses 13,337 1,922 10,953 26,212
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC. Supply Chain Mgmt. 498,521 7.4% 598,674 87,207 6.8% 20.1% Supply Chain Mgmt. (460,451) 92.4% (546,778) (79,647) 91.3%          (1.0ppts)     Adjusted for SBC  (1,128) 0.1% (1,791) (261) 0.0% (0.1ppts) Interest Expense - - 14,696 14,696 Amortization of Intangible Assets Resulting from Business Acquisitions 907 1,737 -- 2,644
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html Others 228,470 3.4% 646,718 94,205 7.4% 183.1% Others (195,577) 85.6% (589,422) (85,859) 91.1% 5.5ppts     Expenses Income Tax Expense 4,844 (434) - 4,410 Non-GAAP Net Income/(Loss) 147,010 (100,499) (40,026) 6,485
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5% Revenue ex-Store+ 5,933,840 88.1% 7,997,572 1,164,978 91.0% 34.8% Cost of Revenue ex-Store+ (5,580,102) 94.0% (7,560,566) (1,101,320) 94.5% 0.5ppts Adjusted Selling (204,608) 3.0% (211,431) (30,798) 2.4% (0.6ppts) Subtract
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7% Store+ 798,480 11.9% 790,558 115,158 9.0% (1.0%) Store+ (734,572) 92.0% (707,497) (103,059) 89.5% (2.5ppts) Expenses Interest Income - - (26,024) (26,024)
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5% Revenue 6,732,320 100.0% 8,788,130 1,280,136 100.0% 30.5% Cost of Revenue (6,314,674) 93.8% (8,268,063) (1,204,379) 94.1% 0.3ppts General and (271,108) 4.0% (301,169) (43,870) 3.4% (0.6ppts) EBITDA 276,152 (100,926) (53,265) 121,961
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5% Administrative Expenses  Add
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)     Adjusted for SBC (31,518) 0.4% (21,778) (3,172) 0.2% (0.2ppts) Share-basedCompensation Expenses 13,337 1,922 10,953 26,212
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%     Expenses Adjusted EBITDA 289,489 (99,004) (42,312) 148,173
Adjusted General and (239,590) 3.6% (279,391) (40,698) 3.2% (0.4ppts) Adjusted EBITDA Margin 3.6% (12.5%) n/m 1.7%
Administrative Expenses
Research and (51,499) 0.8% (62,517) (9,107) 0.7% (0.1ppts)
Development Expenses 
    Adjusted for (2,204) 0.1% (2,388) (348) 0.0% (0.1ppts)
    SBC Expenses
Adjusted Research and (49,295) 0.7% (60,129) (8,759) 0.7%  0.0ppts
Development Expenses
Total Operating  (528,343) 7.8% (576,908) (84,036) 6.6% (1.2ppts)
Expenses
   Adjusted for (34,850) 0.5% (25,957) (3,781) 0.3% (0.2ppts)
    SBC Expenses
Adjusted Total (493,493) 7.3% (550,951) (80,255) 6.3% (1.0ppts)
Operating Expenses

Please visit the Company's investor relations website http://ir.best-inc.com/ on August 13, 2019 to view the earnings release prior to the conference call. A live and archived webcast of the conference call and an accompanying slide presentation will be available at the 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/

SAFE HARBOR STATEMENT

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

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives. Table 3 – Breakdown of Revenue by Business Segment Table 4 – Breakdown of Cost of Revenue by Business Segment Table 5 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category  Table 6 – Breakdown and Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment[11] [10]Segments consist of all business units other than BEST Store+, BEST Store+ and unallocated expenses. Table 7 – Breakdown and Reconciliation of non-GAAP net income by Segment [12] 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. United States: +1-888-317-6003 United States: +1-877-344-7529 BEST INC.
[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). [11]Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments. Hong Kong: 800-963976 or +852-5808-1995 International: +1-412-317-0088 Summary of Unaudited Condensed Consolidated Income Statements
Three Months Ended % Change Three Months Ended % Change [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. Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, 2019 Three Months Ended June 30, 2019 China: 4001-206115 Replay Access Code: 10134132 (In Thousands)
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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. June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 % of Revenue (In RMB'000) BEST (ex-Store+) Store+ Unallocated[11] Total (In RMB'000) BEST (ex-Store+) Store+ Unallocated Total International: +1-412-317-6061
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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). (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % Change YoY (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % of Revenue Change YoY (In '000, except for %) RMB % of RMB US$ % of Change Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Participant Elite Entry Number: 2624939 Three Months Ended June 30, Six Months Ended June 30,
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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). Express 4,177,173 62.0% 5,446,395 793,357 61.9% 30.4% Express (3,948,228) 94.5% (5,202,070) (757,767) 95.5% 1.0ppts Revenue Revenue YoY Add Add 2018 2019 2018 2019
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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. Freight 1,029,676 15.3% 1,305,785 190,209 14.9% 26.8% Freight (975,846) 94.8% (1,222,296) (178,047) 93.6% (1.2ppts) Selling Expenses  (205,736) 3.1% (213,222) (31,059) 2.4% (0.7ppts) Depreciation & Amortization 138,542 3,666 9,042 151,250 Share-based Compensation Expenses 13,337 1,922 10,953 26,212 RMB RMB US$ RMB RMB US$
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC. Supply Chain Mgmt. 498,521 7.4% 598,674 87,207 6.8% 20.1% Supply Chain Mgmt. (460,451) 92.4% (546,778) (79,647) 91.3%          (1.0ppts)     Adjusted for SBC  (1,128) 0.1% (1,791) (261) 0.0% (0.1ppts) Interest Expense - - 14,696 14,696 Amortization of Intangible Assets Resulting from Business Acquisitions 907 1,737 -- 2,644 Revenue
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html Others 228,470 3.4% 646,718 94,205 7.4% 183.1% Others (195,577) 85.6% (589,422) (85,859) 91.1% 5.5ppts     Expenses Income Tax Expense 4,844 (434) - 4,410 Non-GAAP Net Income/(Loss) 147,010 (100,499) (40,026) 6,485 Express 4,177,173 5,446,395 793,357 7,401,961 9,709,833 1,414,397
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5% Revenue ex-Store+ 5,933,840 88.1% 7,997,572 1,164,978 91.0% 34.8% Cost of Revenue ex-Store+ (5,580,102) 94.0% (7,560,566) (1,101,320) 94.5% 0.5ppts Adjusted Selling (204,608) 3.0% (211,431) (30,798) 2.4% (0.6ppts) Subtract Freight 1,029,676 1,305,785 190,209 1,792,697 2,293,715 334,117
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7% Store+ 798,480 11.9% 790,558 115,158 9.0% (1.0%) Store+ (734,572) 92.0% (707,497) (103,059) 89.5% (2.5ppts) Expenses Interest Income - - (26,024) (26,024) Supply Chain Management 498,521 598,674 87,207 897,029 1,132,454 164,961
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5% Revenue 6,732,320 100.0% 8,788,130 1,280,136 100.0% 30.5% Cost of Revenue (6,314,674) 93.8% (8,268,063) (1,204,379) 94.1% 0.3ppts General and (271,108) 4.0% (301,169) (43,870) 3.4% (0.6ppts) EBITDA 276,152 (100,926) (53,265) 121,961 Store+ 798,480 790,558 115,158 1,343,918 1,344,080 195,787
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5% Administrative Expenses  Add Others 228,470 646,718 94,205 300,490 1,182,622 172,268
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)     Adjusted for SBC (31,518) 0.4% (21,778) (3,172) 0.2% (0.2ppts) Share-basedCompensation Expenses 13,337 1,922 10,953 26,212 Total Revenue 6,732,320 8,788,130 1,280,136 11,736,095 15,662,704 2,281,530
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%     Expenses Adjusted EBITDA 289,489 (99,004) (42,312) 148,173 Cost of Revenue
Adjusted General and (239,590) 3.6% (279,391) (40,698) 3.2% (0.4ppts) Adjusted EBITDA Margin 3.6% (12.5%) n/m 1.7% Express (3,948,228) (5,202,070) (757,767) (7,143,725) (9,338,694) (1,360,334)
Administrative Expenses Freight (975,846) (1,222,296) (178,047) (1,755,874) (2,177,011) (317,117)
Research and (51,499) 0.8% (62,517) (9,107) 0.7% (0.1ppts) Supply Chain Management (460,451) (546,778) (79,647) (838,976) (1,059,832) (154,382)
Development Expenses  Store+ (734,572) (707,497) (103,059) (1,224,656) (1,190,942) (173,480)
    Adjusted for (2,204) 0.1% (2,388) (348) 0.0% (0.1ppts) Others (195,577) (589,422) (85,859) (245,704) (1,083,452) (157,823)
    SBC Expenses Total Cost of Revenue (6,314,674) (8,268,063) (1,204,379) (11,208,935) (14,849,931) (2,163,136)
Adjusted Research and (49,295) 0.7% (60,129) (8,759) 0.7%  0.0ppts Gross Profit 417,646 520,067 75,757 527,160 812,773 118,394
Development Expenses Selling Expenses (205,736) (213,222) (31,059) (420,094) (406,489) (59,212)
Total Operating  (528,343) 7.8% (576,908) (84,036) 6.6% (1.2ppts) General and Administrative Expenses (271,108) (301,169) (43,870) (482,397) (588,246) (85,688)
Expenses Research and Development Expenses (51,499) (62,517) (9,107) (83,514) (116,536) (16,975)
   Adjusted for (34,850) 0.5% (25,957) (3,781) 0.3% (0.2ppts) Total Operating Expenses (528,343) (576,908) (84,036) (986,005) (1,111,271) (161,875)
    SBC Expenses Loss from Operations (110,697) (56,841) (8,279) (458,845) (298,498) (43,481)
Adjusted Total (493,493) 7.3% (550,951) (80,255) 6.3% (1.0ppts) Interest Income 31,675 26,024 3,791 48,690 50,049 7,290
Operating Expenses Interest Expense (21,836) (14,696) (2,141) (34,799) (40,744) (5,935)
Foreign Exchange Loss (4,318) (2,198) (320) (7,232) (4,066) (592)
Other Income 17,650 33,076 4,818 31,422 53,635 7,813
Other Expense (2,681) (3,225) (470) (8,296) (7,920) (1,154)
Loss before Income Tax and Share of Net Loss of Equity Investees (90,207) (17,860) (2,601) (429,060) (247,544) (36,059)
Income Tax Expense (3,440) (4,410) (642) (4,000) (8,102) (1,180)
Loss before Share of Net Loss of Equity Investees (93,647) (22,270) (3,243) (433,060) (255,646) (37,239)
Share of Net Loss of Equity Investees (101) (101) (15) (290) (136) (20)
Net Loss (93,748) (22,371) (3,258) (433,350) (255,782) (37,259)

 

 

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives. Table 3 – Breakdown of Revenue by Business Segment Table 4 – Breakdown of Cost of Revenue by Business Segment Table 5 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category  Table 6 – Breakdown and Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment[11] [10]Segments consist of all business units other than BEST Store+, BEST Store+ and unallocated expenses. Table 7 – Breakdown and Reconciliation of non-GAAP net income by Segment [12] 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. United States: +1-888-317-6003 United States: +1-877-344-7529 BEST INC. Summary of Unaudited Condensed Consolidated Balance Sheets
[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). [11]Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments. Hong Kong: 800-963976 or +852-5808-1995 International: +1-412-317-0088 Summary of Unaudited Condensed Consolidated Income Statements (in thousands)
Three Months Ended % Change Three Months Ended % Change [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. Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, 2019 Three Months Ended June 30, 2019 China: 4001-206115 Replay Access Code: 10134132 (In Thousands)
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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. June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 % of Revenue (In RMB'000) BEST (ex-Store+) Store+ Unallocated[11] Total (In RMB'000) BEST (ex-Store+) Store+ Unallocated Total International: +1-412-317-6061 As of December 31, 2018 As of June 30, 2019
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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). (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % Change YoY (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % of Revenue Change YoY (In '000, except for %) RMB % of RMB US$ % of Change Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Participant Elite Entry Number: 2624939 Three Months Ended June 30, Six Months Ended June 30, RMB RMB US$
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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). Express 4,177,173 62.0% 5,446,395 793,357 61.9% 30.4% Express (3,948,228) 94.5% (5,202,070) (757,767) 95.5% 1.0ppts Revenue Revenue YoY Add Add 2018 2019 2018 2019 Assets
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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. Freight 1,029,676 15.3% 1,305,785 190,209 14.9% 26.8% Freight (975,846) 94.8% (1,222,296) (178,047) 93.6% (1.2ppts) Selling Expenses  (205,736) 3.1% (213,222) (31,059) 2.4% (0.7ppts) Depreciation & Amortization 138,542 3,666 9,042 151,250 Share-based Compensation Expenses 13,337 1,922 10,953 26,212 RMB RMB US$ RMB RMB US$ Current Assets
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC. Supply Chain Mgmt. 498,521 7.4% 598,674 87,207 6.8% 20.1% Supply Chain Mgmt. (460,451) 92.4% (546,778) (79,647) 91.3%          (1.0ppts)     Adjusted for SBC  (1,128) 0.1% (1,791) (261) 0.0% (0.1ppts) Interest Expense - - 14,696 14,696 Amortization of Intangible Assets Resulting from Business Acquisitions 907 1,737 -- 2,644 Revenue Cash and Cash Equivalents 1,630,444 1,575,254 229,462
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html Others 228,470 3.4% 646,718 94,205 7.4% 183.1% Others (195,577) 85.6% (589,422) (85,859) 91.1% 5.5ppts     Expenses Income Tax Expense 4,844 (434) - 4,410 Non-GAAP Net Income/(Loss) 147,010 (100,499) (40,026) 6,485 Express 4,177,173 5,446,395 793,357 7,401,961 9,709,833 1,414,397 Restricted Cash 1,278,326 1,223,996 178,295
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5% Revenue ex-Store+ 5,933,840 88.1% 7,997,572 1,164,978 91.0% 34.8% Cost of Revenue ex-Store+ (5,580,102) 94.0% (7,560,566) (1,101,320) 94.5% 0.5ppts Adjusted Selling (204,608) 3.0% (211,431) (30,798) 2.4% (0.6ppts) Subtract Freight 1,029,676 1,305,785 190,209 1,792,697 2,293,715 334,117 Accounts and Notes Receivables 1,046,844 1,026,171 149,479
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7% Store+ 798,480 11.9% 790,558 115,158 9.0% (1.0%) Store+ (734,572) 92.0% (707,497) (103,059) 89.5% (2.5ppts) Expenses Interest Income - - (26,024) (26,024) Supply Chain Management 498,521 598,674 87,207 897,029 1,132,454 164,961 Inventories 151,031 175,294 25,534
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5% Revenue 6,732,320 100.0% 8,788,130 1,280,136 100.0% 30.5% Cost of Revenue (6,314,674) 93.8% (8,268,063) (1,204,379) 94.1% 0.3ppts General and (271,108) 4.0% (301,169) (43,870) 3.4% (0.6ppts) EBITDA 276,152 (100,926) (53,265) 121,961 Store+ 798,480 790,558 115,158 1,343,918 1,344,080 195,787 Prepayments and Other Current Assets 1,904,846 1,999,878 291,315
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5% Administrative Expenses  Add Others 228,470 646,718 94,205 300,490 1,182,622 172,268 Short‑term Investments 1,007,329 1,083,465 157,824
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)     Adjusted for SBC (31,518) 0.4% (21,778) (3,172) 0.2% (0.2ppts) Share-basedCompensation Expenses 13,337 1,922 10,953 26,212 Total Revenue 6,732,320 8,788,130 1,280,136 11,736,095 15,662,704 2,281,530 Lease Rental Receivables 613,439 715,180 104,178
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%     Expenses Adjusted EBITDA 289,489 (99,004) (42,312) 148,173 Cost of Revenue Amounts Due from Related Parties 197,488 153,737 22,394
Adjusted General and (239,590) 3.6% (279,391) (40,698) 3.2% (0.4ppts) Adjusted EBITDA Margin 3.6% (12.5%) n/m 1.7% Express (3,948,228) (5,202,070) (757,767) (7,143,725) (9,338,694) (1,360,334) Total Current Assets 7,829,747 7,952,975 1,158,481
Administrative Expenses Freight (975,846) (1,222,296) (178,047) (1,755,874) (2,177,011) (317,117) Non‑current Assets
Research and (51,499) 0.8% (62,517) (9,107) 0.7% (0.1ppts) Supply Chain Management (460,451) (546,778) (79,647) (838,976) (1,059,832) (154,382) Property and Equipment, Net 2,064,657 2,410,140 351,076
Development Expenses  Store+ (734,572) (707,497) (103,059) (1,224,656) (1,190,942) (173,480) Intangible Assets, Net 143,810 129,905 18,923
    Adjusted for (2,204) 0.1% (2,388) (348) 0.0% (0.1ppts) Others (195,577) (589,422) (85,859) (245,704) (1,083,452) (157,823) Long‑term Investments 214,339 214,203 31,202
    SBC Expenses Total Cost of Revenue (6,314,674) (8,268,063) (1,204,379) (11,208,935) (14,849,931) (2,163,136) Goodwill 469,076 469,076 68,329
Adjusted Research and (49,295) 0.7% (60,129) (8,759) 0.7%  0.0ppts Gross Profit 417,646 520,067 75,757 527,160 812,773 118,394 Non‑current Deposits 77,043 103,052 15,011
Development Expenses Selling Expenses (205,736) (213,222) (31,059) (420,094) (406,489) (59,212) Other Non‑current Assets 45,531 69,525 10,127
Total Operating  (528,343) 7.8% (576,908) (84,036) 6.6% (1.2ppts) General and Administrative Expenses (271,108) (301,169) (43,870) (482,397) (588,246) (85,688) Lease Rental Receivables 1,431,441 1,352,958 197,081
Expenses Research and Development Expenses (51,499) (62,517) (9,107) (83,514) (116,536) (16,975) Restricted Cash 90,638 163,026 23,747
   Adjusted for (34,850) 0.5% (25,957) (3,781) 0.3% (0.2ppts) Total Operating Expenses (528,343) (576,908) (84,036) (986,005) (1,111,271) (161,875) Operating Lease Right-of-use Assets -- 4,036,752 588,019
    SBC Expenses Loss from Operations (110,697) (56,841) (8,279) (458,845) (298,498) (43,481) Total non‑current Assets 4,536,535 8,948,637 1,303,515
Adjusted Total (493,493) 7.3% (550,951) (80,255) 6.3% (1.0ppts) Interest Income 31,675 26,024 3,791 48,690 50,049 7,290 Total Assets 12,366,282 16,901,612 2,461,996
Operating Expenses Interest Expense (21,836) (14,696) (2,141) (34,799) (40,744) (5,935) Liabilities and Shareholders' Equity
Foreign Exchange Loss (4,318) (2,198) (320) (7,232) (4,066) (592) Current Liabilities 
Other Income 17,650 33,076 4,818 31,422 53,635 7,813 Securitization Debt -- 145,359 21,174
Other Expense (2,681) (3,225) (470) (8,296) (7,920) (1,154) Short‑term Bank Loans 1,782,900 2,271,500 330,881
Loss before Income Tax and Share of Net Loss of Equity Investees (90,207) (17,860) (2,601) (429,060) (247,544) (36,059) Accounts and Notes Payable 2,851,557 2,849,868 415,130
Income Tax Expense (3,440) (4,410) (642) (4,000) (8,102) (1,180) Income Tax Payable 5,767 4,969 724
Loss before Share of Net Loss of Equity Investees (93,647) (22,270) (3,243) (433,060) (255,646) (37,239) Customer Advances and Deposits and Deferred Revenue 1,219,230 1,329,016 193,593
Share of Net Loss of Equity Investees (101) (101) (15) (290) (136) (20) Accrued Expenses and Other Liabilities 2,238,785 2,016,272 293,703
Net Loss (93,748) (22,371) (3,258) (433,350) (255,782) (37,259) Capital Lease Obligation 2,851 1,884 274
Operating Lease Liabilities -- 776,510 113,111
Amounts Due to Related Parties 12,429 597 87
Total Current Liabilities 8,113,519 9,395,975 1,368,677
Non-current Liabilities
Securitization Debt -- 67,272 9,799
Capital Lease Obligation 745 2,095 305
Deferred Tax Liabilities 25,356 23,843 3,473
Other Non‑current Liabilities 86,504 91,032 13,260
Operating Lease Liabilities -- 3,380,525 492,429
Total Non‑current Liabilities 112,605 3,564,767 519,266

 

 

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives. Table 3 – Breakdown of Revenue by Business Segment Table 4 – Breakdown of Cost of Revenue by Business Segment Table 5 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category  Table 6 – Breakdown and Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment[11] [10]Segments consist of all business units other than BEST Store+, BEST Store+ and unallocated expenses. Table 7 – Breakdown and Reconciliation of non-GAAP net income by Segment [12] 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. United States: +1-888-317-6003 United States: +1-877-344-7529 BEST INC. Summary of Unaudited Condensed Consolidated Balance Sheets Summary of Unaudited Condensed Consolidated Balance Sheets (Cont'd)
[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). [11]Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments. Hong Kong: 800-963976 or +852-5808-1995 International: +1-412-317-0088 Summary of Unaudited Condensed Consolidated Income Statements (in thousands) (In Thousands)
Three Months Ended % Change Three Months Ended % Change [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. Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, 2019 Three Months Ended June 30, 2019 China: 4001-206115 Replay Access Code: 10134132 (In Thousands)
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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. June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 % of Revenue (In RMB'000) BEST (ex-Store+) Store+ Unallocated[11] Total (In RMB'000) BEST (ex-Store+) Store+ Unallocated Total International: +1-412-317-6061 As of December 31, 2018 As of June 30, 2019 As of December 31, 2018 As of June 30, 2019
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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). (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % Change YoY (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % of Revenue Change YoY (In '000, except for %) RMB % of RMB US$ % of Change Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Participant Elite Entry Number: 2624939 Three Months Ended June 30, Six Months Ended June 30, RMB RMB US$ RMB RMB US$
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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). Express 4,177,173 62.0% 5,446,395 793,357 61.9% 30.4% Express (3,948,228) 94.5% (5,202,070) (757,767) 95.5% 1.0ppts Revenue Revenue YoY Add Add 2018 2019 2018 2019 Assets Total Liabilities 8,226,124 12,960,742 1,887,943
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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. Freight 1,029,676 15.3% 1,305,785 190,209 14.9% 26.8% Freight (975,846) 94.8% (1,222,296) (178,047) 93.6% (1.2ppts) Selling Expenses  (205,736) 3.1% (213,222) (31,059) 2.4% (0.7ppts) Depreciation & Amortization 138,542 3,666 9,042 151,250 Share-based Compensation Expenses 13,337 1,922 10,953 26,212 RMB RMB US$ RMB RMB US$ Current Assets Shareholders' Equity
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC. Supply Chain Mgmt. 498,521 7.4% 598,674 87,207 6.8% 20.1% Supply Chain Mgmt. (460,451) 92.4% (546,778) (79,647) 91.3%          (1.0ppts)     Adjusted for SBC  (1,128) 0.1% (1,791) (261) 0.0% (0.1ppts) Interest Expense - - 14,696 14,696 Amortization of Intangible Assets Resulting from Business Acquisitions 907 1,737 -- 2,644 Revenue Cash and Cash Equivalents 1,630,444 1,575,254 229,462 Ordinary Shares 25,988 25,988 3,786
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html Others 228,470 3.4% 646,718 94,205 7.4% 183.1% Others (195,577) 85.6% (589,422) (85,859) 91.1% 5.5ppts     Expenses Income Tax Expense 4,844 (434) - 4,410 Non-GAAP Net Income/(Loss) 147,010 (100,499) (40,026) 6,485 Express 4,177,173 5,446,395 793,357 7,401,961 9,709,833 1,414,397 Restricted Cash 1,278,326 1,223,996 178,295 Additional Paid‑In Capital 19,407,460 19,458,333 2,834,426
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5% Revenue ex-Store+ 5,933,840 88.1% 7,997,572 1,164,978 91.0% 34.8% Cost of Revenue ex-Store+ (5,580,102) 94.0% (7,560,566) (1,101,320) 94.5% 0.5ppts Adjusted Selling (204,608) 3.0% (211,431) (30,798) 2.4% (0.6ppts) Subtract Freight 1,029,676 1,305,785 190,209 1,792,697 2,293,715 334,117 Accounts and Notes Receivables 1,046,844 1,026,171 149,479 Accumulated Deficit (15,419,256)  (15,669,608)[13] (2,282,536)
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7% Store+ 798,480 11.9% 790,558 115,158 9.0% (1.0%) Store+ (734,572) 92.0% (707,497) (103,059) 89.5% (2.5ppts) Expenses Interest Income - - (26,024) (26,024) Supply Chain Management 498,521 598,674 87,207 897,029 1,132,454 164,961 Inventories 151,031 175,294 25,534 Accumulated Other Comprehensive Income 123,923 126,299 18,398
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5% Revenue 6,732,320 100.0% 8,788,130 1,280,136 100.0% 30.5% Cost of Revenue (6,314,674) 93.8% (8,268,063) (1,204,379) 94.1% 0.3ppts General and (271,108) 4.0% (301,169) (43,870) 3.4% (0.6ppts) EBITDA 276,152 (100,926) (53,265) 121,961 Store+ 798,480 790,558 115,158 1,343,918 1,344,080 195,787 Prepayments and Other Current Assets 1,904,846 1,999,878 291,315 BEST Inc. Shareholders' Equity 4,138,115 3,941,012 574,074
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5% Administrative Expenses  Add Others 228,470 646,718 94,205 300,490 1,182,622 172,268 Short‑term Investments 1,007,329 1,083,465 157,824 Non-controlling Interests 2,043 (142) (21)
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)     Adjusted for SBC (31,518) 0.4% (21,778) (3,172) 0.2% (0.2ppts) Share-basedCompensation Expenses 13,337 1,922 10,953 26,212 Total Revenue 6,732,320 8,788,130 1,280,136 11,736,095 15,662,704 2,281,530 Lease Rental Receivables 613,439 715,180 104,178 Total Shareholders' Equity 4,140,158 3,940,870 574,053
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%     Expenses Adjusted EBITDA 289,489 (99,004) (42,312) 148,173 Cost of Revenue Amounts Due from Related Parties 197,488 153,737 22,394 Total Liabilities and Shareholders' Equity 12,366,282 16,901,612 2,461,996
Adjusted General and (239,590) 3.6% (279,391) (40,698) 3.2% (0.4ppts) Adjusted EBITDA Margin 3.6% (12.5%) n/m 1.7% Express (3,948,228) (5,202,070) (757,767) (7,143,725) (9,338,694) (1,360,334) Total Current Assets 7,829,747 7,952,975 1,158,481
Administrative Expenses Freight (975,846) (1,222,296) (178,047) (1,755,874) (2,177,011) (317,117) Non‑current Assets
Research and (51,499) 0.8% (62,517) (9,107) 0.7% (0.1ppts) Supply Chain Management (460,451) (546,778) (79,647) (838,976) (1,059,832) (154,382) Property and Equipment, Net 2,064,657 2,410,140 351,076
Development Expenses  Store+ (734,572) (707,497) (103,059) (1,224,656) (1,190,942) (173,480) Intangible Assets, Net 143,810 129,905 18,923
    Adjusted for (2,204) 0.1% (2,388) (348) 0.0% (0.1ppts) Others (195,577) (589,422) (85,859) (245,704) (1,083,452) (157,823) Long‑term Investments 214,339 214,203 31,202
    SBC Expenses Total Cost of Revenue (6,314,674) (8,268,063) (1,204,379) (11,208,935) (14,849,931) (2,163,136) Goodwill 469,076 469,076 68,329
Adjusted Research and (49,295) 0.7% (60,129) (8,759) 0.7%  0.0ppts Gross Profit 417,646 520,067 75,757 527,160 812,773 118,394 Non‑current Deposits 77,043 103,052 15,011
Development Expenses Selling Expenses (205,736) (213,222) (31,059) (420,094) (406,489) (59,212) Other Non‑current Assets 45,531 69,525 10,127
Total Operating  (528,343) 7.8% (576,908) (84,036) 6.6% (1.2ppts) General and Administrative Expenses (271,108) (301,169) (43,870) (482,397) (588,246) (85,688) Lease Rental Receivables 1,431,441 1,352,958 197,081
Expenses Research and Development Expenses (51,499) (62,517) (9,107) (83,514) (116,536) (16,975) Restricted Cash 90,638 163,026 23,747
   Adjusted for (34,850) 0.5% (25,957) (3,781) 0.3% (0.2ppts) Total Operating Expenses (528,343) (576,908) (84,036) (986,005) (1,111,271) (161,875) Operating Lease Right-of-use Assets -- 4,036,752 588,019
    SBC Expenses Loss from Operations (110,697) (56,841) (8,279) (458,845) (298,498) (43,481) Total non‑current Assets 4,536,535 8,948,637 1,303,515
Adjusted Total (493,493) 7.3% (550,951) (80,255) 6.3% (1.0ppts) Interest Income 31,675 26,024 3,791 48,690 50,049 7,290 Total Assets 12,366,282 16,901,612 2,461,996
Operating Expenses Interest Expense (21,836) (14,696) (2,141) (34,799) (40,744) (5,935) Liabilities and Shareholders' Equity
Foreign Exchange Loss (4,318) (2,198) (320) (7,232) (4,066) (592) Current Liabilities 
Other Income 17,650 33,076 4,818 31,422 53,635 7,813 Securitization Debt -- 145,359 21,174
Other Expense (2,681) (3,225) (470) (8,296) (7,920) (1,154) Short‑term Bank Loans 1,782,900 2,271,500 330,881
Loss before Income Tax and Share of Net Loss of Equity Investees (90,207) (17,860) (2,601) (429,060) (247,544) (36,059) Accounts and Notes Payable 2,851,557 2,849,868 415,130
Income Tax Expense (3,440) (4,410) (642) (4,000) (8,102) (1,180) Income Tax Payable 5,767 4,969 724
Loss before Share of Net Loss of Equity Investees (93,647) (22,270) (3,243) (433,060) (255,646) (37,239) Customer Advances and Deposits and Deferred Revenue 1,219,230 1,329,016 193,593
Share of Net Loss of Equity Investees (101) (101) (15) (290) (136) (20) Accrued Expenses and Other Liabilities 2,238,785 2,016,272 293,703
Net Loss (93,748) (22,371) (3,258) (433,350) (255,782) (37,259) Capital Lease Obligation 2,851 1,884 274
Operating Lease Liabilities -- 776,510 113,111
Amounts Due to Related Parties 12,429 597 87
Total Current Liabilities 8,113,519 9,395,975 1,368,677
Non-current Liabilities
Securitization Debt -- 67,272 9,799
Capital Lease Obligation 745 2,095 305
Deferred Tax Liabilities 25,356 23,843 3,473
Other Non‑current Liabilities 86,504 91,032 13,260
Operating Lease Liabilities -- 3,380,525 492,429
Total Non‑current Liabilities 112,605 3,564,767 519,266

 

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives. Table 3 – Breakdown of Revenue by Business Segment Table 4 – Breakdown of Cost of Revenue by Business Segment Table 5 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category  Table 6 – Breakdown and Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment[11] [10]Segments consist of all business units other than BEST Store+, BEST Store+ and unallocated expenses. Table 7 – Breakdown and Reconciliation of non-GAAP net income by Segment [12] 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. United States: +1-888-317-6003 United States: +1-877-344-7529 BEST INC. Summary of Unaudited Condensed Consolidated Balance Sheets Summary of Unaudited Condensed Consolidated Balance Sheets (Cont'd) [13] 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 RMB6,175,801.
[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). [11]Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments. Hong Kong: 800-963976 or +852-5808-1995 International: +1-412-317-0088 Summary of Unaudited Condensed Consolidated Income Statements (in thousands) (In Thousands)
Three Months Ended % Change Three Months Ended % Change [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. Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, 2019 Three Months Ended June 30, 2019 China: 4001-206115 Replay Access Code: 10134132 (In Thousands)
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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. June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 % of Revenue (In RMB'000) BEST (ex-Store+) Store+ Unallocated[11] Total (In RMB'000) BEST (ex-Store+) Store+ Unallocated Total International: +1-412-317-6061 As of December 31, 2018 As of June 30, 2019 As of December 31, 2018 As of June 30, 2019
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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). (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % Change YoY (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % of Revenue Change YoY (In '000, except for %) RMB % of RMB US$ % of Change Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Participant Elite Entry Number: 2624939 Three Months Ended June 30, Six Months Ended June 30, RMB RMB US$ RMB RMB US$
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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). Express 4,177,173 62.0% 5,446,395 793,357 61.9% 30.4% Express (3,948,228) 94.5% (5,202,070) (757,767) 95.5% 1.0ppts Revenue Revenue YoY Add Add 2018 2019 2018 2019 Assets Total Liabilities 8,226,124 12,960,742 1,887,943
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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. Freight 1,029,676 15.3% 1,305,785 190,209 14.9% 26.8% Freight (975,846) 94.8% (1,222,296) (178,047) 93.6% (1.2ppts) Selling Expenses  (205,736) 3.1% (213,222) (31,059) 2.4% (0.7ppts) Depreciation & Amortization 138,542 3,666 9,042 151,250 Share-based Compensation Expenses 13,337 1,922 10,953 26,212 RMB RMB US$ RMB RMB US$ Current Assets Shareholders' Equity
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC. Supply Chain Mgmt. 498,521 7.4% 598,674 87,207 6.8% 20.1% Supply Chain Mgmt. (460,451) 92.4% (546,778) (79,647) 91.3%          (1.0ppts)     Adjusted for SBC  (1,128) 0.1% (1,791) (261) 0.0% (0.1ppts) Interest Expense - - 14,696 14,696 Amortization of Intangible Assets Resulting from Business Acquisitions 907 1,737 -- 2,644 Revenue Cash and Cash Equivalents 1,630,444 1,575,254 229,462 Ordinary Shares 25,988 25,988 3,786
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html Others 228,470 3.4% 646,718 94,205 7.4% 183.1% Others (195,577) 85.6% (589,422) (85,859) 91.1% 5.5ppts     Expenses Income Tax Expense 4,844 (434) - 4,410 Non-GAAP Net Income/(Loss) 147,010 (100,499) (40,026) 6,485 Express 4,177,173 5,446,395 793,357 7,401,961 9,709,833 1,414,397 Restricted Cash 1,278,326 1,223,996 178,295 Additional Paid‑In Capital 19,407,460 19,458,333 2,834,426
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5% Revenue ex-Store+ 5,933,840 88.1% 7,997,572 1,164,978 91.0% 34.8% Cost of Revenue ex-Store+ (5,580,102) 94.0% (7,560,566) (1,101,320) 94.5% 0.5ppts Adjusted Selling (204,608) 3.0% (211,431) (30,798) 2.4% (0.6ppts) Subtract Freight 1,029,676 1,305,785 190,209 1,792,697 2,293,715 334,117 Accounts and Notes Receivables 1,046,844 1,026,171 149,479 Accumulated Deficit (15,419,256)  (15,669,608)[13] (2,282,536)
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7% Store+ 798,480 11.9% 790,558 115,158 9.0% (1.0%) Store+ (734,572) 92.0% (707,497) (103,059) 89.5% (2.5ppts) Expenses Interest Income - - (26,024) (26,024) Supply Chain Management 498,521 598,674 87,207 897,029 1,132,454 164,961 Inventories 151,031 175,294 25,534 Accumulated Other Comprehensive Income 123,923 126,299 18,398
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5% Revenue 6,732,320 100.0% 8,788,130 1,280,136 100.0% 30.5% Cost of Revenue (6,314,674) 93.8% (8,268,063) (1,204,379) 94.1% 0.3ppts General and (271,108) 4.0% (301,169) (43,870) 3.4% (0.6ppts) EBITDA 276,152 (100,926) (53,265) 121,961 Store+ 798,480 790,558 115,158 1,343,918 1,344,080 195,787 Prepayments and Other Current Assets 1,904,846 1,999,878 291,315 BEST Inc. Shareholders' Equity 4,138,115 3,941,012 574,074
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5% Administrative Expenses  Add Others 228,470 646,718 94,205 300,490 1,182,622 172,268 Short‑term Investments 1,007,329 1,083,465 157,824 Non-controlling Interests 2,043 (142) (21)
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)     Adjusted for SBC (31,518) 0.4% (21,778) (3,172) 0.2% (0.2ppts) Share-basedCompensation Expenses 13,337 1,922 10,953 26,212 Total Revenue 6,732,320 8,788,130 1,280,136 11,736,095 15,662,704 2,281,530 Lease Rental Receivables 613,439 715,180 104,178 Total Shareholders' Equity 4,140,158 3,940,870 574,053
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%     Expenses Adjusted EBITDA 289,489 (99,004) (42,312) 148,173 Cost of Revenue Amounts Due from Related Parties 197,488 153,737 22,394 Total Liabilities and Shareholders' Equity 12,366,282 16,901,612 2,461,996
Adjusted General and (239,590) 3.6% (279,391) (40,698) 3.2% (0.4ppts) Adjusted EBITDA Margin 3.6% (12.5%) n/m 1.7% Express (3,948,228) (5,202,070) (757,767) (7,143,725) (9,338,694) (1,360,334) Total Current Assets 7,829,747 7,952,975 1,158,481
Administrative Expenses Freight (975,846) (1,222,296) (178,047) (1,755,874) (2,177,011) (317,117) Non‑current Assets
Research and (51,499) 0.8% (62,517) (9,107) 0.7% (0.1ppts) Supply Chain Management (460,451) (546,778) (79,647) (838,976) (1,059,832) (154,382) Property and Equipment, Net 2,064,657 2,410,140 351,076
Development Expenses  Store+ (734,572) (707,497) (103,059) (1,224,656) (1,190,942) (173,480) Intangible Assets, Net 143,810 129,905 18,923
    Adjusted for (2,204) 0.1% (2,388) (348) 0.0% (0.1ppts) Others (195,577) (589,422) (85,859) (245,704) (1,083,452) (157,823) Long‑term Investments 214,339 214,203 31,202
    SBC Expenses Total Cost of Revenue (6,314,674) (8,268,063) (1,204,379) (11,208,935) (14,849,931) (2,163,136) Goodwill 469,076 469,076 68,329
Adjusted Research and (49,295) 0.7% (60,129) (8,759) 0.7%  0.0ppts Gross Profit 417,646 520,067 75,757 527,160 812,773 118,394 Non‑current Deposits 77,043 103,052 15,011
Development Expenses Selling Expenses (205,736) (213,222) (31,059) (420,094) (406,489) (59,212) Other Non‑current Assets 45,531 69,525 10,127
Total Operating  (528,343) 7.8% (576,908) (84,036) 6.6% (1.2ppts) General and Administrative Expenses (271,108) (301,169) (43,870) (482,397) (588,246) (85,688) Lease Rental Receivables 1,431,441 1,352,958 197,081
Expenses Research and Development Expenses (51,499) (62,517) (9,107) (83,514) (116,536) (16,975) Restricted Cash 90,638 163,026 23,747
   Adjusted for (34,850) 0.5% (25,957) (3,781) 0.3% (0.2ppts) Total Operating Expenses (528,343) (576,908) (84,036) (986,005) (1,111,271) (161,875) Operating Lease Right-of-use Assets -- 4,036,752 588,019
    SBC Expenses Loss from Operations (110,697) (56,841) (8,279) (458,845) (298,498) (43,481) Total non‑current Assets 4,536,535 8,948,637 1,303,515
Adjusted Total (493,493) 7.3% (550,951) (80,255) 6.3% (1.0ppts) Interest Income 31,675 26,024 3,791 48,690 50,049 7,290 Total Assets 12,366,282 16,901,612 2,461,996
Operating Expenses Interest Expense (21,836) (14,696) (2,141) (34,799) (40,744) (5,935) Liabilities and Shareholders' Equity
Foreign Exchange Loss (4,318) (2,198) (320) (7,232) (4,066) (592) Current Liabilities 
Other Income 17,650 33,076 4,818 31,422 53,635 7,813 Securitization Debt -- 145,359 21,174
Other Expense (2,681) (3,225) (470) (8,296) (7,920) (1,154) Short‑term Bank Loans 1,782,900 2,271,500 330,881
Loss before Income Tax and Share of Net Loss of Equity Investees (90,207) (17,860) (2,601) (429,060) (247,544) (36,059) Accounts and Notes Payable 2,851,557 2,849,868 415,130
Income Tax Expense (3,440) (4,410) (642) (4,000) (8,102) (1,180) Income Tax Payable 5,767 4,969 724
Loss before Share of Net Loss of Equity Investees (93,647) (22,270) (3,243) (433,060) (255,646) (37,239) Customer Advances and Deposits and Deferred Revenue 1,219,230 1,329,016 193,593
Share of Net Loss of Equity Investees (101) (101) (15) (290) (136) (20) Accrued Expenses and Other Liabilities 2,238,785 2,016,272 293,703
Net Loss (93,748) (22,371) (3,258) (433,350) (255,782) (37,259) Capital Lease Obligation 2,851 1,884 274
Operating Lease Liabilities -- 776,510 113,111
Amounts Due to Related Parties 12,429 597 87
Total Current Liabilities 8,113,519 9,395,975 1,368,677
Non-current Liabilities
Securitization Debt -- 67,272 9,799
Capital Lease Obligation 745 2,095 305
Deferred Tax Liabilities 25,356 23,843 3,473
Other Non‑current Liabilities 86,504 91,032 13,260
Operating Lease Liabilities -- 3,380,525 492,429
Total Non‑current Liabilities 112,605 3,564,767 519,266

 

 

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives. Table 3 – Breakdown of Revenue by Business Segment Table 4 – Breakdown of Cost of Revenue by Business Segment Table 5 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category  Table 6 – Breakdown and Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment[11] [10]Segments consist of all business units other than BEST Store+, BEST Store+ and unallocated expenses. Table 7 – Breakdown and Reconciliation of non-GAAP net income by Segment [12] 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. United States: +1-888-317-6003 United States: +1-877-344-7529 BEST INC. Summary of Unaudited Condensed Consolidated Balance Sheets Summary of Unaudited Condensed Consolidated Balance Sheets (Cont'd) [13] 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 RMB6,175,801. Summary of Unaudited Condensed Consolidated Statements of Cash Flows
[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). [11]Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments. Hong Kong: 800-963976 or +852-5808-1995 International: +1-412-317-0088 Summary of Unaudited Condensed Consolidated Income Statements (in thousands) (In Thousands) (In Thousands)
Three Months Ended % Change Three Months Ended % Change [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. Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, 2019 Three Months Ended June 30, 2019 China: 4001-206115 Replay Access Code: 10134132 (In Thousands)
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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. June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 % of Revenue (In RMB'000) BEST (ex-Store+) Store+ Unallocated[11] Total (In RMB'000) BEST (ex-Store+) Store+ Unallocated Total International: +1-412-317-6061 As of December 31, 2018 As of June 30, 2019 As of December 31, 2018 As of June 30, 2019 Three Months Ended June 30, Six Months Ended June 30,
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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). (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % Change YoY (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % of Revenue Change YoY (In '000, except for %) RMB % of RMB US$ % of Change Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Participant Elite Entry Number: 2624939 Three Months Ended June 30, Six Months Ended June 30, RMB RMB US$ RMB RMB US$ 2018 2019 2018 2019
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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). Express 4,177,173 62.0% 5,446,395 793,357 61.9% 30.4% Express (3,948,228) 94.5% (5,202,070) (757,767) 95.5% 1.0ppts Revenue Revenue YoY Add Add 2018 2019 2018 2019 Assets Total Liabilities 8,226,124 12,960,742 1,887,943 RMB RMB US$ RMB RMB US$
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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. Freight 1,029,676 15.3% 1,305,785 190,209 14.9% 26.8% Freight (975,846) 94.8% (1,222,296) (178,047) 93.6% (1.2ppts) Selling Expenses  (205,736) 3.1% (213,222) (31,059) 2.4% (0.7ppts) Depreciation & Amortization 138,542 3,666 9,042 151,250 Share-based Compensation Expenses 13,337 1,922 10,953 26,212 RMB RMB US$ RMB RMB US$ Current Assets Shareholders' Equity Net Cash Generated from /(Used in) Operating Activities 432,412 334,242 48,688 (178,094) 128,692 18,746
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC. Supply Chain Mgmt. 498,521 7.4% 598,674 87,207 6.8% 20.1% Supply Chain Mgmt. (460,451) 92.4% (546,778) (79,647) 91.3%          (1.0ppts)     Adjusted for SBC  (1,128) 0.1% (1,791) (261) 0.0% (0.1ppts) Interest Expense - - 14,696 14,696 Amortization of Intangible Assets Resulting from Business Acquisitions 907 1,737 -- 2,644 Revenue Cash and Cash Equivalents 1,630,444 1,575,254 229,462 Ordinary Shares 25,988 25,988 3,786 Net Cash (Used in)/Generated from Investing Activities (369,276) (638,496) (93,007) 266,714 (827,251) (120,503)
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html Others 228,470 3.4% 646,718 94,205 7.4% 183.1% Others (195,577) 85.6% (589,422) (85,859) 91.1% 5.5ppts     Expenses Income Tax Expense 4,844 (434) - 4,410 Non-GAAP Net Income/(Loss) 147,010 (100,499) (40,026) 6,485 Express 4,177,173 5,446,395 793,357 7,401,961 9,709,833 1,414,397 Restricted Cash 1,278,326 1,223,996 178,295 Additional Paid‑In Capital 19,407,460 19,458,333 2,834,426 Net Cash (Used in) / Generated from Financing Activities (331,583) 304,705 44,385 79,552 661,497 96,358
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5% Revenue ex-Store+ 5,933,840 88.1% 7,997,572 1,164,978 91.0% 34.8% Cost of Revenue ex-Store+ (5,580,102) 94.0% (7,560,566) (1,101,320) 94.5% 0.5ppts Adjusted Selling (204,608) 3.0% (211,431) (30,798) 2.4% (0.6ppts) Subtract Freight 1,029,676 1,305,785 190,209 1,792,697 2,293,715 334,117 Accounts and Notes Receivables 1,046,844 1,026,171 149,479 Accumulated Deficit (15,419,256)  (15,669,608)[13] (2,282,536) Exchange Rate Effect on Cash, Cash Equivalents, and Restricted Cash 75,231 27,331 3,981 1,262 (70) (10)
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7% Store+ 798,480 11.9% 790,558 115,158 9.0% (1.0%) Store+ (734,572) 92.0% (707,497) (103,059) 89.5% (2.5ppts) Expenses Interest Income - - (26,024) (26,024) Supply Chain Management 498,521 598,674 87,207 897,029 1,132,454 164,961 Inventories 151,031 175,294 25,534 Accumulated Other Comprehensive Income 123,923 126,299 18,398 Net (Decrease)/Increase in Cash and Cash Equivalents, and Restricted Cash (193,216) 27,782 4,047 169,434 (37,132) (5,409)
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5% Revenue 6,732,320 100.0% 8,788,130 1,280,136 100.0% 30.5% Cost of Revenue (6,314,674) 93.8% (8,268,063) (1,204,379) 94.1% 0.3ppts General and (271,108) 4.0% (301,169) (43,870) 3.4% (0.6ppts) EBITDA 276,152 (100,926) (53,265) 121,961 Store+ 798,480 790,558 115,158 1,343,918 1,344,080 195,787 Prepayments and Other Current Assets 1,904,846 1,999,878 291,315 BEST Inc. Shareholders' Equity 4,138,115 3,941,012 574,074 Cash and Cash Equivalents, and Restricted Cash at Beginning of Period 3,345,479 2,934,494 427,457 2,982,829 2,999,408 436,913
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5% Administrative Expenses  Add Others 228,470 646,718 94,205 300,490 1,182,622 172,268 Short‑term Investments 1,007,329 1,083,465 157,824 Non-controlling Interests 2,043 (142) (21) Cash and Cash Equivalents, and Restricted Cash at End of Period 3,152,263 2,962,276 431,504 3,152,263 2,962,276 431,504
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)     Adjusted for SBC (31,518) 0.4% (21,778) (3,172) 0.2% (0.2ppts) Share-basedCompensation Expenses 13,337 1,922 10,953 26,212 Total Revenue 6,732,320 8,788,130 1,280,136 11,736,095 15,662,704 2,281,530 Lease Rental Receivables 613,439 715,180 104,178 Total Shareholders' Equity 4,140,158 3,940,870 574,053
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%     Expenses Adjusted EBITDA 289,489 (99,004) (42,312) 148,173 Cost of Revenue Amounts Due from Related Parties 197,488 153,737 22,394 Total Liabilities and Shareholders' Equity 12,366,282 16,901,612 2,461,996
Adjusted General and (239,590) 3.6% (279,391) (40,698) 3.2% (0.4ppts) Adjusted EBITDA Margin 3.6% (12.5%) n/m 1.7% Express (3,948,228) (5,202,070) (757,767) (7,143,725) (9,338,694) (1,360,334) Total Current Assets 7,829,747 7,952,975 1,158,481
Administrative Expenses Freight (975,846) (1,222,296) (178,047) (1,755,874) (2,177,011) (317,117) Non‑current Assets
Research and (51,499) 0.8% (62,517) (9,107) 0.7% (0.1ppts) Supply Chain Management (460,451) (546,778) (79,647) (838,976) (1,059,832) (154,382) Property and Equipment, Net 2,064,657 2,410,140 351,076
Development Expenses  Store+ (734,572) (707,497) (103,059) (1,224,656) (1,190,942) (173,480) Intangible Assets, Net 143,810 129,905 18,923
    Adjusted for (2,204) 0.1% (2,388) (348) 0.0% (0.1ppts) Others (195,577) (589,422) (85,859) (245,704) (1,083,452) (157,823) Long‑term Investments 214,339 214,203 31,202
    SBC Expenses Total Cost of Revenue (6,314,674) (8,268,063) (1,204,379) (11,208,935) (14,849,931) (2,163,136) Goodwill 469,076 469,076 68,329
Adjusted Research and (49,295) 0.7% (60,129) (8,759) 0.7%  0.0ppts Gross Profit 417,646 520,067 75,757 527,160 812,773 118,394 Non‑current Deposits 77,043 103,052 15,011
Development Expenses Selling Expenses (205,736) (213,222) (31,059) (420,094) (406,489) (59,212) Other Non‑current Assets 45,531 69,525 10,127
Total Operating  (528,343) 7.8% (576,908) (84,036) 6.6% (1.2ppts) General and Administrative Expenses (271,108) (301,169) (43,870) (482,397) (588,246) (85,688) Lease Rental Receivables 1,431,441 1,352,958 197,081
Expenses Research and Development Expenses (51,499) (62,517) (9,107) (83,514) (116,536) (16,975) Restricted Cash 90,638 163,026 23,747
   Adjusted for (34,850) 0.5% (25,957) (3,781) 0.3% (0.2ppts) Total Operating Expenses (528,343) (576,908) (84,036) (986,005) (1,111,271) (161,875) Operating Lease Right-of-use Assets -- 4,036,752 588,019
    SBC Expenses Loss from Operations (110,697) (56,841) (8,279) (458,845) (298,498) (43,481) Total non‑current Assets 4,536,535 8,948,637 1,303,515
Adjusted Total (493,493) 7.3% (550,951) (80,255) 6.3% (1.0ppts) Interest Income 31,675 26,024 3,791 48,690 50,049 7,290 Total Assets 12,366,282 16,901,612 2,461,996
Operating Expenses Interest Expense (21,836) (14,696) (2,141) (34,799) (40,744) (5,935) Liabilities and Shareholders' Equity
Foreign Exchange Loss (4,318) (2,198) (320) (7,232) (4,066) (592) Current Liabilities 
Other Income 17,650 33,076 4,818 31,422 53,635 7,813 Securitization Debt -- 145,359 21,174
Other Expense (2,681) (3,225) (470) (8,296) (7,920) (1,154) Short‑term Bank Loans 1,782,900 2,271,500 330,881
Loss before Income Tax and Share of Net Loss of Equity Investees (90,207) (17,860) (2,601) (429,060) (247,544) (36,059) Accounts and Notes Payable 2,851,557 2,849,868 415,130
Income Tax Expense (3,440) (4,410) (642) (4,000) (8,102) (1,180) Income Tax Payable 5,767 4,969 724
Loss before Share of Net Loss of Equity Investees (93,647) (22,270) (3,243) (433,060) (255,646) (37,239) Customer Advances and Deposits and Deferred Revenue 1,219,230 1,329,016 193,593
Share of Net Loss of Equity Investees (101) (101) (15) (290) (136) (20) Accrued Expenses and Other Liabilities 2,238,785 2,016,272 293,703
Net Loss (93,748) (22,371) (3,258) (433,350) (255,782) (37,259) Capital Lease Obligation 2,851 1,884 274
Operating Lease Liabilities -- 776,510 113,111
Amounts Due to Related Parties 12,429 597 87
Total Current Liabilities 8,113,519 9,395,975 1,368,677
Non-current Liabilities
Securitization Debt -- 67,272 9,799
Capital Lease Obligation 745 2,095 305
Deferred Tax Liabilities 25,356 23,843 3,473
Other Non‑current Liabilities 86,504 91,032 13,260
Operating Lease Liabilities -- 3,380,525 492,429
Total Non‑current Liabilities 112,605 3,564,767 519,266

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 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives. Table 3 – Breakdown of Revenue by Business Segment Table 4 – Breakdown of Cost of Revenue by Business Segment Table 5 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category  Table 6 – Breakdown and Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment[11] [10]Segments consist of all business units other than BEST Store+, BEST Store+ and unallocated expenses. Table 7 – Breakdown and Reconciliation of non-GAAP net income by Segment [12] 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. United States: +1-888-317-6003 United States: +1-877-344-7529 BEST INC. Summary of Unaudited Condensed Consolidated Balance Sheets Summary of Unaudited Condensed Consolidated Balance Sheets (Cont'd) [13] 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 RMB6,175,801. Summary of Unaudited Condensed Consolidated Statements of Cash Flows Table 8 – Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
[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). [11]Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments. Hong Kong: 800-963976 or +852-5808-1995 International: +1-412-317-0088 Summary of Unaudited Condensed Consolidated Income Statements (in thousands) (In Thousands) (In Thousands)
Three Months Ended % Change Three Months Ended % Change [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. Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, 2019 Three Months Ended June 30, 2019 China: 4001-206115 Replay Access Code: 10134132 (In Thousands) Three Months Ended June 30, Six Months Ended June 30,
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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. June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 % of Revenue (In RMB'000) BEST (ex-Store+) Store+ Unallocated[11] Total (In RMB'000) BEST (ex-Store+) Store+ Unallocated Total International: +1-412-317-6061 As of December 31, 2018 As of June 30, 2019 As of December 31, 2018 As of June 30, 2019 Three Months Ended June 30, Six Months Ended June 30, 2018 2019 2018 2019
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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). (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % Change YoY (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % of Revenue Change YoY (In '000, except for %) RMB % of RMB US$ % of Change Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Participant Elite Entry Number: 2624939 Three Months Ended June 30, Six Months Ended June 30, RMB RMB US$ RMB RMB US$ 2018 2019 2018 2019 (In '000) RMB RMB US$ RMB RMB US$
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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). Express 4,177,173 62.0% 5,446,395 793,357 61.9% 30.4% Express (3,948,228) 94.5% (5,202,070) (757,767) 95.5% 1.0ppts Revenue Revenue YoY Add Add 2018 2019 2018 2019 Assets Total Liabilities 8,226,124 12,960,742 1,887,943 RMB RMB US$ RMB RMB US$ Net Loss (93,748) (22,371) (3,258) (433,350) (255,782) (37,259)
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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. Freight 1,029,676 15.3% 1,305,785 190,209 14.9% 26.8% Freight (975,846) 94.8% (1,222,296) (178,047) 93.6% (1.2ppts) Selling Expenses  (205,736) 3.1% (213,222) (31,059) 2.4% (0.7ppts) Depreciation & Amortization 138,542 3,666 9,042 151,250 Share-based Compensation Expenses 13,337 1,922 10,953 26,212 RMB RMB US$ RMB RMB US$ Current Assets Shareholders' Equity Net Cash Generated from /(Used in) Operating Activities 432,412 334,242 48,688 (178,094) 128,692 18,746 Add
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC. Supply Chain Mgmt. 498,521 7.4% 598,674 87,207 6.8% 20.1% Supply Chain Mgmt. (460,451) 92.4% (546,778) (79,647) 91.3%          (1.0ppts)     Adjusted for SBC  (1,128) 0.1% (1,791) (261) 0.0% (0.1ppts) Interest Expense - - 14,696 14,696 Amortization of Intangible Assets Resulting from Business Acquisitions 907 1,737 -- 2,644 Revenue Cash and Cash Equivalents 1,630,444 1,575,254 229,462 Ordinary Shares 25,988 25,988 3,786 Net Cash (Used in)/Generated from Investing Activities (369,276) (638,496) (93,007) 266,714 (827,251) (120,503) Depreciation & Amortization 106,515 151,250 22,032 216,907 277,825 40,470
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html Others 228,470 3.4% 646,718 94,205 7.4% 183.1% Others (195,577) 85.6% (589,422) (85,859) 91.1% 5.5ppts     Expenses Income Tax Expense 4,844 (434) - 4,410 Non-GAAP Net Income/(Loss) 147,010 (100,499) (40,026) 6,485 Express 4,177,173 5,446,395 793,357 7,401,961 9,709,833 1,414,397 Restricted Cash 1,278,326 1,223,996 178,295 Additional Paid‑In Capital 19,407,460 19,458,333 2,834,426 Net Cash (Used in) / Generated from Financing Activities (331,583) 304,705 44,385 79,552 661,497 96,358 Interest Expense 21,836 14,696 2,141 34,799 40,744 5,935
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5% Revenue ex-Store+ 5,933,840 88.1% 7,997,572 1,164,978 91.0% 34.8% Cost of Revenue ex-Store+ (5,580,102) 94.0% (7,560,566) (1,101,320) 94.5% 0.5ppts Adjusted Selling (204,608) 3.0% (211,431) (30,798) 2.4% (0.6ppts) Subtract Freight 1,029,676 1,305,785 190,209 1,792,697 2,293,715 334,117 Accounts and Notes Receivables 1,046,844 1,026,171 149,479 Accumulated Deficit (15,419,256)  (15,669,608)[13] (2,282,536) Exchange Rate Effect on Cash, Cash Equivalents, and Restricted Cash 75,231 27,331 3,981 1,262 (70) (10) Income Tax Expense 3,440 4,410 642 4,000 8,102 1,180
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7% Store+ 798,480 11.9% 790,558 115,158 9.0% (1.0%) Store+ (734,572) 92.0% (707,497) (103,059) 89.5% (2.5ppts) Expenses Interest Income - - (26,024) (26,024) Supply Chain Management 498,521 598,674 87,207 897,029 1,132,454 164,961 Inventories 151,031 175,294 25,534 Accumulated Other Comprehensive Income 123,923 126,299 18,398 Net (Decrease)/Increase in Cash and Cash Equivalents, and Restricted Cash (193,216) 27,782 4,047 169,434 (37,132) (5,409) Subtract
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5% Revenue 6,732,320 100.0% 8,788,130 1,280,136 100.0% 30.5% Cost of Revenue (6,314,674) 93.8% (8,268,063) (1,204,379) 94.1% 0.3ppts General and (271,108) 4.0% (301,169) (43,870) 3.4% (0.6ppts) EBITDA 276,152 (100,926) (53,265) 121,961 Store+ 798,480 790,558 115,158 1,343,918 1,344,080 195,787 Prepayments and Other Current Assets 1,904,846 1,999,878 291,315 BEST Inc. Shareholders' Equity 4,138,115 3,941,012 574,074 Cash and Cash Equivalents, and Restricted Cash at Beginning of Period 3,345,479 2,934,494 427,457 2,982,829 2,999,408 436,913 Interest Income (31,675) (26,024) (3,791) (48,690) (50,049) (7,290)
Average Last-mile Cost Per Parcel 1.57 1.56 (2.1%) Gross Profit Per Tonne 39.4 48.3 22.5% Administrative Expenses  Add Others 228,470 646,718 94,205 300,490 1,182,622 172,268 Short‑term Investments 1,007,329 1,083,465 157,824 Non-controlling Interests 2,043 (142) (21) Cash and Cash Equivalents, and Restricted Cash at End of Period 3,152,263 2,962,276 431,504 3,152,263 2,962,276 431,504 EBITDA 6,368 121,961 17,766 (226,334) 20,840 3,036
Gross Profit per Parcel  0.18 0.13 (28.4%) Hubs & Sortation Centers (as of period end) 127 101 (20.5%)     Adjusted for SBC (31,518) 0.4% (21,778) (3,172) 0.2% (0.2ppts) Share-basedCompensation Expenses 13,337 1,922 10,953 26,212 Total Revenue 6,732,320 8,788,130 1,280,136 11,736,095 15,662,704 2,281,530 Lease Rental Receivables 613,439 715,180 104,178 Total Shareholders' Equity 4,140,158 3,940,870 574,053 Add
Hubs & Sortation Centers (as of period end) 128 97 (24.2%) Last-mile Service Stations (as of period end) 11,209 17,380 55.1%     Expenses Adjusted EBITDA 289,489 (99,004) (42,312) 148,173 Cost of Revenue Amounts Due from Related Parties 197,488 153,737 22,394 Total Liabilities and Shareholders' Equity 12,366,282 16,901,612 2,461,996 Share-basedCompensation Expenses 35,251 26,212 3,818 56,742 48,255 7,029
Adjusted General and (239,590) 3.6% (279,391) (40,698) 3.2% (0.4ppts) Adjusted EBITDA Margin 3.6% (12.5%) n/m 1.7% Express (3,948,228) (5,202,070) (757,767) (7,143,725) (9,338,694) (1,360,334) Total Current Assets 7,829,747 7,952,975 1,158,481 Adjusted EBITDA 41,619 148,173 21,584 (169,592) 69,095 10,065
Administrative Expenses Freight (975,846) (1,222,296) (178,047) (1,755,874) (2,177,011) (317,117) Non‑current Assets Adjusted EBITDA Margin 0.6% 1.7% 1.7% (1.4%) 0.4% 0.4%
Research and (51,499) 0.8% (62,517) (9,107) 0.7% (0.1ppts) Supply Chain Management (460,451) (546,778) (79,647) (838,976) (1,059,832) (154,382) Property and Equipment, Net 2,064,657 2,410,140 351,076
Development Expenses  Store+ (734,572) (707,497) (103,059) (1,224,656) (1,190,942) (173,480) Intangible Assets, Net 143,810 129,905 18,923
    Adjusted for (2,204) 0.1% (2,388) (348) 0.0% (0.1ppts) Others (195,577) (589,422) (85,859) (245,704) (1,083,452) (157,823) Long‑term Investments 214,339 214,203 31,202
    SBC Expenses Total Cost of Revenue (6,314,674) (8,268,063) (1,204,379) (11,208,935) (14,849,931) (2,163,136) Goodwill 469,076 469,076 68,329
Adjusted Research and (49,295) 0.7% (60,129) (8,759) 0.7%  0.0ppts Gross Profit 417,646 520,067 75,757 527,160 812,773 118,394 Non‑current Deposits 77,043 103,052 15,011
Development Expenses Selling Expenses (205,736) (213,222) (31,059) (420,094) (406,489) (59,212) Other Non‑current Assets 45,531 69,525 10,127
Total Operating  (528,343) 7.8% (576,908) (84,036) 6.6% (1.2ppts) General and Administrative Expenses (271,108) (301,169) (43,870) (482,397) (588,246) (85,688) Lease Rental Receivables 1,431,441 1,352,958 197,081
Expenses Research and Development Expenses (51,499) (62,517) (9,107) (83,514) (116,536) (16,975) Restricted Cash 90,638 163,026 23,747
   Adjusted for (34,850) 0.5% (25,957) (3,781) 0.3% (0.2ppts) Total Operating Expenses (528,343) (576,908) (84,036) (986,005) (1,111,271) (161,875) Operating Lease Right-of-use Assets -- 4,036,752 588,019
    SBC Expenses Loss from Operations (110,697) (56,841) (8,279) (458,845) (298,498) (43,481) Total non‑current Assets 4,536,535 8,948,637 1,303,515
Adjusted Total (493,493) 7.3% (550,951) (80,255) 6.3% (1.0ppts) Interest Income 31,675 26,024 3,791 48,690 50,049 7,290 Total Assets 12,366,282 16,901,612 2,461,996
Operating Expenses Interest Expense (21,836) (14,696) (2,141) (34,799) (40,744) (5,935) Liabilities and Shareholders' Equity
Foreign Exchange Loss (4,318) (2,198) (320) (7,232) (4,066) (592) Current Liabilities 
Other Income 17,650 33,076 4,818 31,422 53,635 7,813 Securitization Debt -- 145,359 21,174
Other Expense (2,681) (3,225) (470) (8,296) (7,920) (1,154) Short‑term Bank Loans 1,782,900 2,271,500 330,881
Loss before Income Tax and Share of Net Loss of Equity Investees (90,207) (17,860) (2,601) (429,060) (247,544) (36,059) Accounts and Notes Payable 2,851,557 2,849,868 415,130
Income Tax Expense (3,440) (4,410) (642) (4,000) (8,102) (1,180) Income Tax Payable 5,767 4,969 724
Loss before Share of Net Loss of Equity Investees (93,647) (22,270) (3,243) (433,060) (255,646) (37,239) Customer Advances and Deposits and Deferred Revenue 1,219,230 1,329,016 193,593
Share of Net Loss of Equity Investees (101) (101) (15) (290) (136) (20) Accrued Expenses and Other Liabilities 2,238,785 2,016,272 293,703
Net Loss (93,748) (22,371) (3,258) (433,350) (255,782) (37,259) Capital Lease Obligation 2,851 1,884 274
Operating Lease Liabilities -- 776,510 113,111
Amounts Due to Related Parties 12,429 597 87
Total Current Liabilities 8,113,519 9,395,975 1,368,677
Non-current Liabilities
Securitization Debt -- 67,272 9,799
Capital Lease Obligation 745 2,095 305
Deferred Tax Liabilities 25,356 23,843 3,473
Other Non‑current Liabilities 86,504 91,032 13,260
Operating Lease Liabilities -- 3,380,525 492,429
Total Non‑current Liabilities 112,605 3,564,767 519,266

 

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

Table 1 – BEST Express Key Operating Metrics Table 2 – BEST Freight Key Operating Metrics [1]Others include BEST Global, BEST Capital, BEST UCargo and other new initiatives. Table 3 – Breakdown of Revenue by Business Segment Table 4 – Breakdown of Cost of Revenue by Business Segment Table 5 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category  Table 6 – Breakdown and Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin by Segment[11] [10]Segments consist of all business units other than BEST Store+, BEST Store+ and unallocated expenses. Table 7 – Breakdown and Reconciliation of non-GAAP net income by Segment [12] 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. United States: +1-888-317-6003 United States: +1-877-344-7529 BEST INC. Summary of Unaudited Condensed Consolidated Balance Sheets Summary of Unaudited Condensed Consolidated Balance Sheets (Cont'd) [13] 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 RMB6,175,801. Summary of Unaudited Condensed Consolidated Statements of Cash Flows Table 8 – Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin Table 9 – Reconciliation of non-GAAP Net Loss and Non-GAAP Net Loss Margin
[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). [11]Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments. Hong Kong: 800-963976 or +852-5808-1995 International: +1-412-317-0088 Summary of Unaudited Condensed Consolidated Income Statements (in thousands) (In Thousands) (In Thousands)
Three Months Ended % Change Three Months Ended % Change [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. Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, 2019 Three Months Ended June 30, 2019 China: 4001-206115 Replay Access Code: 10134132 (In Thousands) Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30,
(in RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY (In RMB, unless otherwise noted) June 30, 2018 June 30, 2019 YoY [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. June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 % of Revenue (In RMB'000) BEST (ex-Store+) Store+ Unallocated[11] Total (In RMB'000) BEST (ex-Store+) Store+ Unallocated Total International: +1-412-317-6061 As of December 31, 2018 As of June 30, 2019 As of December 31, 2018 As of June 30, 2019 Three Months Ended June 30, Six Months Ended June 30, 2018 2019 2018 2019 2018 2019 2018 2019
Parcel Volume (in '000) 1,280,050 1,906,863 49.0% Freight Volume (Tonne in '000) 1,366 1,730 26.6% [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). (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % Change YoY (In '000, except for %) RMB % of Revenue RMB US$ % of Revenue % of Revenue Change YoY (In '000, except for %) RMB % of RMB US$ % of Change Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Net Income/(Loss) 132,766 (104,158) (50,979) (22,371) Participant Elite Entry Number: 2624939 Three Months Ended June 30, Six Months Ended June 30, RMB RMB US$ RMB RMB US$ 2018 2019 2018 2019 (In '000) RMB RMB US$ RMB RMB US$ (In '000) RMB RMB US$ RMB RMB US$
BEST Express Market Share[8] (%) 10.53% 12.20% 1.7ppts Average Revenue per Tonne 753.8 755.0 0.1% [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). Express 4,177,173 62.0% 5,446,395 793,357 61.9% 30.4% Express (3,948,228) 94.5% (5,202,070) (757,767) 95.5% 1.0ppts Revenue Revenue YoY Add Add 2018 2019 2018 2019 Assets Total Liabilities 8,226,124 12,960,742 1,887,943 RMB RMB US$ RMB RMB US$ Net Loss (93,748) (22,371) (3,258) (433,350) (255,782) (37,259) Net Loss (93,748) (22,371) (3,258) (433,350) (255,782) (37,259)
Average Revenue Per Parcel 3.26 2.86 (12.4%) Average Cost Per Tonne 714.4 706.7 (1.1%) [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. Freight 1,029,676 15.3% 1,305,785 190,209 14.9% 26.8% Freight (975,846) 94.8% (1,222,296) (178,047) 93.6% (1.2ppts) Selling Expenses  (205,736) 3.1% (213,222) (31,059) 2.4% (0.7ppts) Depreciation & Amortization 138,542 3,666 9,042 151,250 Share-based Compensation Expenses 13,337 1,922 10,953 26,212 RMB RMB US$ RMB RMB US$ Current Assets Shareholders' Equity Net Cash Generated from /(Used in) Operating Activities 432,412 334,242 48,688 (178,094) 128,692 18,746 Add Add
Average Cost Per Parcel 3.08 2.73 (11.6%) Average Transportation Cost Per Tonne 382.1 351.7 (8.0%) [8] Express market share calculated as the Company's parcel volume as a percentage of aggregate national express delivery parcel volume for the relevant period, based on data published by State Post Bureau of the PRC. Supply Chain Mgmt. 498,521 7.4% 598,674 87,207 6.8% 20.1% Supply Chain Mgmt. (460,451) 92.4% (546,778) (79,647) 91.3%          (1.0ppts)     Adjusted for SBC  (1,128) 0.1% (1,791) (261) 0.0% (0.1ppts) Interest Expense - - 14,696 14,696 Amortization of Intangible Assets Resulting from Business Acquisitions 907 1,737 -- 2,644 Revenue Cash and Cash Equivalents 1,630,444 1,575,254 229,462 Ordinary Shares 25,988 25,988 3,786 Net Cash (Used in)/Generated from Investing Activities (369,276) (638,496) (93,007) 266,714 (827,251) (120,503) Depreciation & Amortization 106,515 151,250 22,032 216,907 277,825 40,470 Share-based Compensation Expenses 35,251 26,212 3,818 56,742 48,255 7,029
Average Transportation Cost Per Parcel 0.87 0.71 (17.7%) Average Labor Cost Per Tonne 100.9 93.7 (7.2%) [9] Based on data published by State Post Bureau of the PRC. - For April 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for April 2019, State Post Bureau of the PRC, May 14, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201905/t20190514_1831389.html - For May 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for May 2019, State Post Bureau of the PRC, June 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201906/t20190612_1852679.html - For June 2019 data, see State Post Bureau of the PRC Published Post Industry Operation Statistics for first half of 2019, State Post Bureau of the PRC, July 12, 2019, available in Chinese at http://www.spb.gov.cn/xw/dtxx_15079/201907/t20190712_1880575.html Others 228,470 3.4% 646,718 94,205 7.4% 183.1% Others (195,577) 85.6% (589,422) (85,859) 91.1% 5.5ppts     Expenses Income Tax Expense 4,844 (434) - 4,410 Non-GAAP Net Income/(Loss) 147,010 (100,499) (40,026) 6,485 Express 4,177,173 5,446,395 793,357 7,401,961 9,709,833 1,414,397 Restricted Cash 1,278,326 1,223,996 178,295 Additional Paid‑In Capital 19,407,460 19,458,333 2,834,426 Net Cash (Used in) / Generated from Financing Activities (331,583) 304,705 44,385 79,552 661,497 96,358 Interest Expense 21,836 14,696 2,141 34,799 40,744 5,935 Amortization of Intangible Assets Resulting from Business Acquisitions 2,981 2,644 385 5,951 5,662 825
Average Labor Cost Per Parcel 0.34 0.23 (31.5%) Average Lease Cost Per Tonne 54.6 55.4 1.5% Revenue ex-Store+ 5,933,840 88.1% 7,997,572 1,164,978 91.0% 34.8% Cost of Revenue ex-Store+ (5,580,102) 94.0% (7,560,566) (1,101,320) 94.5% 0.5ppts Adjusted Selling (204,608) 3.0% (211,431) (30,798) 2.4% (0.6ppts) Subtract Freight 1,029,676 1,305,785 190,209 1,792,697 2,293,715 334,117 Accounts and Notes Receivables 1,046,844 1,026,171 149,479 Accumulated Deficit (15,419,256)  (15,669,608)[13] (2,282,536) Exchange Rate Effect on Cash, Cash Equivalents, and Restricted Cash 75,231 27,331 3,981 1,262 (70) (10) Income Tax Expense 3,440 4,410 642 4,000 8,102 1,180 Non-GAAP (Loss)/ Net Income (55,516) 6,485 945 (370,657) (201,865) (29,405)
Average Lease Cost Per Parcel 0.11 0.09 (15.0%) Average Other Cost Per Tonne 40.5 44.5 9.7% Store+ 798,480 11.9% 790,558 115,158 9.0% (1.0%) Store+ (734,572) 92.0% (707,497) (103,059) 89.5% (2.5ppts) Expenses Interest Income - - (26,024) (26,024) Supply Chain Management 498,521 598,674 87,207 897,029 1,132,454 164,961 Inventories 151,031 175,294 25,534 Accumulated Other Comprehensive Income 123,923 126,299 18,398 Net (Decrease)/Increase in Cash and Cash Equivalents, and Restricted Cash (193,216) 27,782 4,047 169,434 (37,132) (5,409) Subtract Non-GAAP Net (Loss)/ Profit Margin (0.8%) 0.1% 0.1% (3.2%) (1.3%) (1.3%)
Average Other Cost Per Parcel 0.19 0.14 (25.2%) Average Last-mile Cost Per Tonne 136.3 161.4 18.5% Revenue 6,732,320 100.0% 8,788,130 1,280,136 100.0% 30.5% Cost of Revenue (6,314,674) 93.8% (8,268,063) (1,204,379) 94.1% 0.3ppts General and (271,108) 4.0% (301,169) (43,870) 3.4% (0.6ppts) EBITDA 276,152 (100,926) (53,265)