Following the completion of sale of its business in China, BEST Inc. (BEST) was up by 6.81% at $0.9399 premarket at the last check on Friday.
In the previous trading session, the stock traded between $0.8800 and $0.9400 at a volume of 1.41M shares. BEST closed the session with a loss of 4.01% at $0.8800 on December 16. Upon the emergence of the news, the stock entered green in the premarket session today. At the time of writing the stock had increased by $0.0591 at 2.8 thousand shares.
More about BEST
The China-based holding company, BEST Inc. works in the smart supply chain services sector. Currently, the company has a market capitalization of $353.99 million.
In the past five days, the BEST stock has lost a value of 20.00% and 38.03% in the past three months. Moreover, the year-to-date loss of the stock stands at 56.86%.
Express Business Sale
On December 17, the company announced that it has closed and completed express delivery business in China. Further, BEST sold the business to J&T Express Co., Ltd. At RMB6.8 billion or US$1.1 billion approx. The limited liability company, J&T Express provides logistics services in China. Moreover, the companies had entered into a definitive agreement for the transaction on October 29, 2021. Hence, the express delivery business is transferred to J&T Express, China.
In addition, the Founder, Chairman, and CEO of BEST, Johnny Chou shared the company’s satisfaction with the transaction. According to him, the completion of this transaction will allow BEST to focus on supply chain-based logistics solutions. Moreover, it will also improve the company’s balance sheet and profitability.’
The company intends to focus on integrated supply chain, freight, and global logistics services in the future.
BEST’s Q3 Earnings Results
On November 16. BEST announced its unaudited financial results for the third quarter of 2021. According to this, the company generated a revenue of RMB6,812.4 million (US$1,057.3 million) in the third quarter of 2021. This shows a 14.6% year-over-year decrease, due to a decrease in the average selling price in the Express and Freight segments.
Moreover, the non-GAAP net loss incurred in the Q3 of 2021, was $684.2 million (US$106.2 million). Comparatively, the non-GAAP net loss was RMB541.9 million in the Q3 of 2020.
Consequently, the non-GAAP diluted EPS was RMB(1.73) (US$-0.27) and RMB(1.39) in Q3 of 2021 and 2020, respectively.
The company subjected the year-over-year decrease in the revenue and increase in the net loss to the impacts of Covid-19.
