BEST Inc. (NYSE: BEST) is a leading integrated smart supply chain and logistics solutions provider in China. Through its proprietary technology platform and extensive networks, BEST offers a comprehensive set of logistics and value-added services, including express and freight delivery, supply chain management, truckload capacity brokerage, international logistics, and financial services. BEST's mission is to create a smarter, more efficient supply chain in the new e-commerce -driven retail era by leveraging superior technology and innovative solutions.
BEST has been publicly traded on the New York Stock Exchange since September 2017. Among its shareholders are Alibaba Investment Ltd. and Cainiao Smart Logistics Investment Ltd., entities controlled by China’s top e-commerce platform, Alibaba Group Holding Ltd. (NYSE: BABA; HKEX: 9988). BEST and Cainiao have partnered on numerous projects, including the launch of the China-Malaysia cross-border e-commerce logistics service ahead of the 2020 Double 11 shopping festival. The service covered customs clearance, sea freight forwarding, overseas warehousing and last-mile delivery.
In November 2020, BEST Inc. announced a strategic shift towards an increased focus on its core logistics and supply chain management businesses while reducing expenses associated with its early-stage business, Store+, a supply-chain-to-business-to-customer platform for convenience stores. Through the optimization of SG&A and R&D expenses, the company anticipates cost savings of about 200 million yuan by the end of 2021.
BEST recently shifted its core focus to its rapidly growing Express business, which the company believes will generate sustained long-term growth and profitability. The company continues to gain market share in the Express segment through investing in improving operating efficiency, optimizing its product architecture and pricing, enhancing service quality and customer experience.
In the Freight segment, BEST will continue to emphasize the e-commerce aspect of its freight services to solidify its competitive position and build value for its shareholders by continuing to gain market share, improve operating efficiency and increase profitability. In supply chain management, BEST plans to continue to implement an improved asset-light model and grow its franchised Cloud order-fulfillment center (OFC) business.
While expanding its foothold in China’s vast e-commerce market (the largest in the world) BEST has gained a strong foothold in a number of countries outside its home market. The company is in a unique position to capitalize on these fast-growing, high-potential markets, and will continue to aggressively identify and exploit other key market opportunities for its cross-border logistics services. In 2019, it established efficient express networks in Thailand and Vietnam. In July 2020, it launched express delivery services in Malaysia, Cambodia and Singapore. Globally, the company serves about 20 countries and regions.
In the third quarter of 2020, the BEST Express segment saw parcel volume growth of 24.8% year-over-year. The Freight line achieved a growth rate higher than the industry average, and its volume increased by 30.7%. Supply chain management focused on expanding the franchised Cloud OFC business while targeting projects with higher margins and clients with strong credit profiles. The number of orders fulfilled by Cloud OFCs grew 18.3% to 102.2 million in the third quarter of 2020, of which franchised Cloud OFCs were 53.5 million. The number of franchised OFCs increased by 23.2% year-over-year to 345. The number of drivers on the UCargo mobile app increased by 84.5% to 288,322. The trucking brokerage platform counted 233,480 transactions, up 37.2% in the third quarter.
Investor relations team
The Piacente Group, Inc.