Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document and Entity Information | |
Entity Registrant Name | BEST Inc. |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2020 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38198 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 2nd Floor, Block A, Huaxing Modern Industry Park |
Entity Address, Address Line Two | No. 18 Tangmiao Road, Xihu District, Hangzhou |
Entity Address, City or Town | Zhejiang Province |
Entity Address, Postal Zip Code | 310013 |
Entity Address, Country | CN |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001709505 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
ICFR Auditor Attestation Flag | true |
Business Contact | |
Document and Entity Information | |
Contact Personnel Name | Ms. Gloria Fan |
City Area Code | 86 |
Local Phone Number | 571-88995656 |
Contact Personnel Email Address | ir@best-inc.com |
Entity Address, Address Line One | 2nd Floor, Block A, Huaxing Modern Industry Park |
Entity Address, Address Line Two | No. 18 Tangmiao Road, Xihu District, Hangzhou |
Entity Address, City or Town | Zhejiang Province |
Entity Address, Postal Zip Code | 310013 |
Entity Address, Country | CN |
ADS | |
Document and Entity Information | |
Title of 12(b) Security | American Depositary Shares, each representing one Class A ordinary share |
Trading Symbol | BEST |
Security Exchange Name | NYSE |
Class A ordinary shares | |
Document and Entity Information | |
Title of 12(b) Security | Class A ordinary shares, par value $0.01 per share* |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | 250,648,452 |
Class B ordinary shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 94,075,249 |
Class C ordinary shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 47,790,698 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 1,383,317 | $ 212,003 | ¥ 1,985,413 |
Restricted cash | 2,102,426 | 322,211 | 1,786,832 |
Accounts and notes receivables, net of allowance of RMB86,152 and RMB249,484 (US$38,235) as of December 31, 2019 and 2020, respectively | 983,601 | 150,743 | 1,228,995 |
Inventories | 44,133 | 6,764 | 106,483 |
Prepayments and other current assets | 3,304,670 | 506,460 | 2,728,812 |
Short-term investments | 268,647 | 41,172 | 1,057,598 |
Lease rental receivables | 497,127 | 76,188 | 483,363 |
Assets held for sale | 509,395 | 78,068 | 64,195 |
Amounts due from related parties | 274,395 | 42,053 | 246,758 |
Total current assets | 9,367,711 | 1,435,662 | 9,688,449 |
Non-current assets: | |||
Property and equipment, net | 4,079,235 | 625,170 | 2,924,404 |
Intangible assets, net | 12,198 | 1,869 | 20,408 |
Goodwill | 295,758 | 45,327 | 289,318 |
Long-term investments | 221,426 | 33,935 | 230,855 |
Non-current deposits | 129,645 | 19,869 | 118,629 |
Other non-current assets | 543,949 | 83,364 | 346,645 |
Operating lease right-of-use assets | 3,863,375 | 592,088 | 4,209,015 |
Lease rental receivables | 647,678 | 99,261 | 993,260 |
Assets held for sale | 496,173 | ||
Restricted cash | 709,848 | 108,789 | 175,700 |
Total non-current assets | 10,503,112 | 1,609,672 | 9,804,407 |
Total assets | 19,870,823 | 3,045,334 | 19,492,856 |
Current liabilities (including current liabilities of the consolidated VIEs without recourse to the primary beneficiary of RMB5,967,835 and RMB6,959,968 (US$1,066,664) as of December 31, 2019 and 2020, respectively): | |||
Short-term bank loans | 3,082,537 | 472,419 | 2,510,500 |
Securitization debt | 95,149 | 14,582 | 104,899 |
Accounts and notes payable | 4,144,948 | 635,241 | 3,391,383 |
Accrued expenses and other liabilities | 2,507,917 | 384,355 | 2,006,049 |
Customer advances and deposits and deferred revenue | 1,526,051 | 233,878 | 1,488,630 |
Operating lease liabilities | 1,032,461 | 158,232 | 975,475 |
Financing lease liabilities | 1,581 | 242 | 1,363 |
Liabilities held for sale | 193,432 | 29,645 | 74,242 |
Amounts due to related parties | 35,623 | 5,459 | 9,769 |
Income tax payable | 14,550 | 2,230 | 7,358 |
Total current liabilities | 12,634,249 | 1,936,283 | 10,569,668 |
Non-current liabilities (including non-current liabilities of the consolidated VIEs without recourse to the primary beneficiary of RMB1,967,870 and RMB1,786,202 (US$273,746) as of December 31, 2019 and 2020, respectively): | |||
Convertible senior notes held by related parties | 1,617,846 | 247,946 | 680,104 |
Convertible senior notes held by third parties | 642,121 | 98,409 | 680,104 |
Operating lease liabilities | 2,995,173 | 459,030 | 3,388,908 |
Financing lease liabilities | 2,698 | 413 | 2,072 |
Long-term bank loans pledged by deposits | 78,548 | 12,038 | 0 |
Deferred tax liabilities | 828 | ||
Liabilities held for sale | 118,704 | ||
Other non-current liabilities | 175,584 | 26,907 | 137,184 |
Total non-current liabilities | 5,511,970 | 844,743 | 5,007,904 |
Total liabilities | 18,146,219 | 2,781,026 | 15,577,572 |
Commitments and contingencies | |||
Shareholders' equity: | |||
Treasury shares | (211,352) | (32,391) | |
Statutory reserves | 8,038 | 1,232 | 7,865 |
Additional paid in capital | 19,487,232 | 2,986,549 | 19,353,400 |
Accumulated deficit | (17,710,964) | (2,714,324) | (15,629,537) |
Accumulated other comprehensive income | 151,677 | 23,246 | 163,196 |
BEST Inc. shareholders' equity | 1,750,619 | 268,295 | 3,920,912 |
Non-controlling interests | (26,015) | (3,987) | (5,628) |
Total shareholders' equity | 1,724,604 | 264,308 | 3,915,284 |
Total liabilities and shareholders' equity | 19,870,823 | 3,045,334 | 19,492,856 |
Class A ordinary shares | |||
Shareholders' equity: | |||
Ordinary shares | 16,532 | 2,534 | 16,532 |
Class B ordinary shares | |||
Shareholders' equity: | |||
Ordinary shares | 6,178 | 947 | 6,178 |
Class C ordinary shares | |||
Shareholders' equity: | |||
Ordinary shares | ¥ 3,278 | $ 502 | ¥ 3,278 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares |
Allowance for doubtful accounts | ¥ 249,484 | $ 38,235 | ¥ 86,152 |
Current liabilities of consolidated VIE without recourse to primary beneficiary | 12,634,249 | 1,936,283 | 10,569,668 |
Non-current liabilities of consolidated VIE without recourse to primary beneficiary | 5,511,970 | 844,743 | 5,007,904 |
Consolidated VIEs | |||
Current liabilities of consolidated VIE without recourse to primary beneficiary | 10,636,934 | 1,630,183 | 8,491,555 |
Non-current liabilities of consolidated VIE without recourse to primary beneficiary | 1,786,202 | 273,746 | 1,967,870 |
Consolidated VIEs | Nonrecourse | |||
Current liabilities of consolidated VIE without recourse to primary beneficiary | 6,959,968 | 1,066,664 | 5,967,835 |
Non-current liabilities of consolidated VIE without recourse to primary beneficiary | ¥ 1,786,202 | $ 273,746 | ¥ 1,967,870 |
Class A ordinary shares | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.01 | ||
Ordinary shares, authorized shares | 1,858,134,053 | 1,858,134,053 | 1,858,134,053 |
Ordinary shares, issued shares | 250,648,452 | 250,648,452 | 250,648,452 |
Ordinary shares, outstanding shares | 250,648,452 | 250,648,452 | 250,648,452 |
Class B ordinary shares | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.01 | ||
Ordinary shares, authorized shares | 94,075,249 | 94,075,249 | 94,075,249 |
Ordinary shares, issued shares | 94,075,249 | 94,075,249 | 94,075,249 |
Ordinary shares, outstanding shares | 94,075,249 | 94,075,249 | 94,075,249 |
Class C ordinary shares | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.01 | ||
Ordinary shares, authorized shares | 47,790,698 | 47,790,698 | 47,790,698 |
Ordinary shares, issued shares | 47,790,698 | 47,790,698 | 47,790,698 |
Ordinary shares, outstanding shares | 47,790,698 | 47,790,698 | 47,790,698 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Revenue | ||||
Total revenue | ¥ 29,995,029 | $ 4,596,938 | ¥ 32,358,687 | ¥ 25,115,977 |
Cost of revenue | ||||
Total cost of revenue | (29,756,889) | (4,560,443) | (30,721,360) | (23,929,959) |
Gross profit | 238,140 | 36,495 | 1,637,327 | 1,186,018 |
Selling expenses | (477,902) | (73,242) | (432,939) | (370,987) |
General and administrative expenses | (1,262,232) | (193,446) | (932,718) | (886,638) |
Research and development expenses | (191,417) | (29,336) | (204,234) | (184,581) |
Total operating expenses | (1,931,551) | (296,024) | (1,569,891) | (1,442,206) |
(Loss)/Income from operations | (1,693,411) | (259,529) | 67,436 | (256,188) |
Interest income | 74,727 | 11,452 | 95,440 | 102,821 |
Interest expense | (174,607) | (26,760) | (79,486) | (75,060) |
Foreign exchange loss | (8,243) | (1,263) | (4,375) | (7,624) |
Other income | 165,346 | 25,340 | 145,853 | 168,363 |
Other expense | (24,576) | (3,766) | (31,784) | (28,602) |
(Loss)/Income before income tax and share of net loss of equity investees | (1,660,764) | (254,526) | 193,084 | (96,290) |
Income tax expense | (22,124) | (3,391) | (20,027) | (10,500) |
(Loss)/Income before share of net loss of equity investees | (1,682,888) | (257,917) | 173,057 | (106,790) |
Share of net loss of equity investees | (180) | (28) | (355) | (456) |
Net (loss)/Income from continuing operations | (1,683,068) | (257,945) | 172,702 | (107,246) |
Less: Loss from discontinued operations, net of tax | (368,156) | (56,422) | (391,770) | (401,145) |
Net loss | (2,051,224) | (314,367) | (219,068) | (508,391) |
Net loss from continuing operations attributable to non-controlling interests | (25,716) | (3,941) | (16,652) | (403) |
Net loss attributable to BEST Inc. | ¥ (2,025,508) | $ (310,426) | ¥ (202,416) | ¥ (507,988) |
Basic | ||||
Continuing operations | (per share) | ¥ (4.28) | $ (0.66) | ¥ 0.49 | ¥ (0.28) |
Discontinued operations | (per share) | (0.95) | (0.14) | (1.01) | (1.04) |
Diluted | ||||
Continuing operations | (per share) | (4.28) | (0.66) | 0.48 | (0.28) |
Discontinued operations | (per share) | (0.95) | (0.14) | (1.01) | (1.04) |
Basic net loss per share attributable to Class A, Class B and Class C ordinary shareholders | (per share) | (5.23) | (0.80) | (0.52) | (1.32) |
Diluted net loss per share attributable to Class A, Class B and Class C ordinary shareholders | (per share) | ¥ (5.23) | $ (0.80) | ¥ (0.52) | ¥ (1.32) |
Other comprehensive income/(loss), net of tax of nil | ||||
Foreign currency translation adjustments | ¥ (11,519) | $ (1,765) | ¥ 39,273 | ¥ 111,590 |
Comprehensive income/(loss) from continuing operations | (1,694,587) | (259,710) | 211,975 | 4,344 |
Comprehensive loss from discontinued operations | (368,156) | (56,422) | (391,770) | (401,145) |
Comprehensive loss from continuing operations attributable to non-controlling interests | (25,716) | (3,941) | (16,652) | (403) |
Comprehensive loss attributable to BEST Inc. | ¥ (2,037,027) | $ (312,191) | ¥ (163,143) | ¥ (396,398) |
Class A ordinary shares | ||||
Basic | ||||
Continuing operations | (per share) | ¥ (4.28) | $ (0.66) | ¥ 0.49 | ¥ (0.28) |
Diluted | ||||
Continuing operations | (per share) | (4.28) | (0.66) | 0.48 | (0.28) |
Discontinued operations | (per share) | (0.95) | (0.14) | (1.01) | (1.04) |
Basic net loss per share attributable to Class A, Class B and Class C ordinary shareholders | (per share) | (5.23) | (0.80) | ¥ (0.52) | ¥ (1.32) |
Diluted net loss per share attributable to Class A, Class B and Class C ordinary shareholders | (per share) | ¥ (5.23) | $ (0.80) | ||
Shares used in net loss per share computation: Ordinary shares: | ||||
Basic (in shares) | 245,626,959 | 245,626,959 | 246,614,615 | 242,542,728 |
Diluted (in shares) | 387,492,906 | 387,492,906 | 388,480,562 | 384,408,675 |
Class B ordinary shares | ||||
Basic | ||||
Continuing operations | (per share) | ¥ (4.28) | $ (0.66) | ¥ 0.49 | ¥ (0.28) |
Diluted | ||||
Continuing operations | (per share) | (4.28) | (0.66) | 0.48 | (0.28) |
Discontinued operations | (per share) | (0.95) | (0.14) | (1.01) | (1.04) |
Basic net loss per share attributable to Class A, Class B and Class C ordinary shareholders | (per share) | (5.23) | (0.80) | ¥ (0.52) | ¥ (1.32) |
Diluted net loss per share attributable to Class A, Class B and Class C ordinary shareholders | (per share) | ¥ (5.23) | $ (0.80) | ||
Shares used in net loss per share computation: Ordinary shares: | ||||
Basic (in shares) | 94,075,249 | 94,075,249 | 94,075,249 | 94,075,249 |
Diluted (in shares) | 94,075,249 | 94,075,249 | 94,075,249 | 94,075,249 |
Class C ordinary shares | ||||
Basic | ||||
Continuing operations | (per share) | ¥ (4.28) | $ (0.66) | ¥ 0.49 | ¥ (0.28) |
Diluted | ||||
Continuing operations | (per share) | (4.28) | (0.66) | 0.48 | (0.28) |
Discontinued operations | (per share) | (0.95) | (0.14) | (1.01) | (1.04) |
Basic net loss per share attributable to Class A, Class B and Class C ordinary shareholders | (per share) | (5.23) | (0.80) | ¥ (0.52) | ¥ (1.32) |
Diluted net loss per share attributable to Class A, Class B and Class C ordinary shareholders | (per share) | ¥ (5.23) | $ (0.80) | ||
Shares used in net loss per share computation: Ordinary shares: | ||||
Basic (in shares) | 47,790,698 | 47,790,698 | 47,790,698 | 47,790,698 |
Diluted (in shares) | 47,790,698 | 47,790,698 | 47,790,698 | 47,790,698 |
Express delivery | ||||
Cost of revenue | ||||
Total cost of revenue | ¥ (19,470,937) | $ (2,984,052) | ¥ (20,793,370) | ¥ (16,921,826) |
Freight delivery | ||||
Cost of revenue | ||||
Total cost of revenue | (5,063,236) | (775,975) | (4,934,937) | (3,946,032) |
Supply chain management | ||||
Cost of revenue | ||||
Total cost of revenue | (1,846,901) | (283,050) | (2,052,006) | (1,970,109) |
Global | ||||
Cost of revenue | ||||
Total cost of revenue | (875,733) | (134,212) | (371,404) | (167,053) |
UCargo | ||||
Cost of revenue | ||||
Total cost of revenue | (2,473,857) | (379,135) | (2,517,642) | (877,172) |
Capital | ||||
Cost of revenue | ||||
Total cost of revenue | (26,225) | (4,019) | (52,001) | (47,767) |
Third parties | ||||
Revenue | ||||
Total revenue | 29,061,160 | 4,453,816 | 31,533,135 | 24,463,625 |
Third parties | Express delivery | ||||
Revenue | ||||
Total revenue | 19,165,049 | 2,937,172 | 21,548,174 | 17,538,104 |
Third parties | Freight delivery | ||||
Revenue | ||||
Total revenue | 5,156,551 | 790,276 | 5,224,355 | 4,102,610 |
Third parties | Supply chain management | ||||
Revenue | ||||
Total revenue | 1,391,686 | 213,285 | 1,661,747 | 1,600,890 |
Third parties | Global | ||||
Revenue | ||||
Total revenue | 616,934 | 94,549 | 319,602 | 162,012 |
Third parties | UCargo | ||||
Revenue | ||||
Total revenue | 2,519,919 | 386,194 | 2,574,054 | 891,710 |
Third parties | Capital | ||||
Revenue | ||||
Total revenue | 211,021 | 32,340 | 205,203 | 168,299 |
Related parties | ||||
Revenue | ||||
Total revenue | 933,869 | 143,122 | 825,552 | 652,352 |
Related parties | Express delivery | ||||
Revenue | ||||
Total revenue | 252,510 | 38,699 | 274,268 | 176,420 |
Related parties | Supply chain management | ||||
Revenue | ||||
Total revenue | 520,637 | 79,791 | 534,012 | ¥ 475,932 |
Related parties | Global | ||||
Revenue | ||||
Total revenue | ¥ 160,722 | $ 24,632 | ¥ 17,272 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||
Other comprehensive income (loss), tax | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net loss | ¥ (2,051,224) | $ (314,367) | ¥ (219,068) | ¥ (508,391) |
Less: Loss from discontinued operations, net of tax | (368,156) | (56,422) | (391,770) | (401,145) |
(Loss)/Income from continuing operations | (1,683,068) | (257,945) | 172,702 | (107,246) |
Adjustments to reconcile net loss to net cash generated from/(used in) operating activities: | ||||
Share of net loss of equity investees | 180 | 28 | 355 | 456 |
Fair value change of equity investments without readily determinable fair values under the measurement alternative | (18,687) | (2,864) | (14,155) | (64,628) |
Deferred income tax | (828) | (127) | 2,187 | (4,306) |
Depreciation and amortization | 515,002 | 78,928 | 476,101 | 441,314 |
Lease expense to reduce operating lease right-of -use assets | 1,205,629 | 184,771 | 750,572 | |
Share-based compensation | 129,651 | 19,870 | 91,693 | 104,136 |
Accretion on secured bank borrowings and convertible senior notes held by third parties | 47,084 | 7,216 | 15,942 | |
Accretion on convertible senior notes held by related parties | 7,876 | 1,207 | 1,818 | |
Allowance for credit losses and inventory provision | 171,046 | 26,214 | 115,179 | 59,715 |
Loss on disposal of property and equipment | 74,587 | 11,432 | 7,851 | 12,345 |
Gain on disposal of long-term investments | (5,658) | (867) | (22) | |
Gain on disposal of a subsidiary | (4,040) | |||
Foreign exchange loss | 8,243 | 1,263 | 4,375 | 7,624 |
Changes in operating assets and liabilities: | ||||
Accounts and notes receivable | 52,904 | 8,108 | (275,277) | (415,463) |
Inventories | 3,631 | 556 | 12,244 | 4,760 |
Prepayment and other current assets | (388,010) | (59,461) | (410,405) | (284,450) |
Amounts due from related parties | (41,038) | (6,289) | (106,904) | 50,593 |
Non-current deposits | (10,650) | (1,632) | (40,779) | 68,138 |
Other non-current assets | 16,584 | 2,542 | (69,911) | (8,284) |
Lease rental receivables-interest portion | (5,648) | (866) | (6,738) | |
Accounts and notes payable | 918,502 | 140,767 | 639,654 | 606,518 |
Income tax payable | 7,192 | 1,102 | 992 | 4,102 |
Customer advances and deposits and deferred revenue | 40,491 | 6,206 | 266,100 | 286,507 |
Accrued expenses and other liabilities | 332,360 | 50,934 | 148,702 | 281,855 |
Amounts due to related parties | (20,226) | (3,100) | (15,900) | (64,093) |
Other non-current liabilities | (145,166) | (22,248) | (493) | 761 |
Operating lease liabilities | (1,200,795) | (184,030) | (630,617) | |
Net cash generated from continuing operating activities | 11,188 | 1,715 | 1,131,226 | 980,354 |
Net cash used in discontinued operating activities | (242,423) | (37,153) | (278,393) | (343,150) |
Net cash generated from/(used in) operating activities | (231,235) | (35,438) | 852,833 | 637,204 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of property and equipment | (1,585,401) | (242,975) | (1,497,723) | (1,061,951) |
Origination of lease rental and other financing receivables | (1,071,963) | (164,286) | (850,150) | (1,556,178) |
Receipt of repayment on lease and other financing receivables-principal portion | 876,230 | 134,288 | 697,380 | 309,403 |
Disposal of property and equipment and intangible assets | 28,155 | 4,315 | 19,452 | 40,943 |
Cash paid for business acquisitions (net of cash acquired of RMB nil, RMB5,176 and RMB562 (US$86) for the years ended December 31, 2018, 2019 and 2020 respectively) | (12,628) | (1,934) | (29,661) | (26,218) |
Acquisition of intangible assets | (2,089) | (320) | (4,711) | (1,235) |
Disposal of long-term investments | 26,896 | 4,122 | 450 | |
Acquisition of long-term investments | (3,144) | (113,000) | ||
Proceeds from disposal of a subsidiary | 100 | |||
Proceeds from maturities of short-term investments | 1,063,515 | 162,991 | 2,509,477 | 5,729,611 |
Purchase of short-term investments | (282,026) | (43,222) | (2,554,217) | (4,330,900) |
Other investing activities, net | 86,958 | 13,327 | (205,727) | (189,698) |
Net cash used in continuing investing activities | (872,353) | (133,694) | (1,918,474) | (1,199,223) |
Net cash (used in)/generated from discontinued investing activities | (580) | (89) | 5,992 | (31,730) |
Net cash used in investing activities | (872,933) | (133,783) | (1,912,482) | (1,230,953) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from short-term bank loans | 3,098,516 | 474,869 | 2,997,596 | 2,409,800 |
Proceeds from long-term bank loans | 75,838 | 11,623 | ||
Repayment of short-term bank loans | (2,341,900) | (358,912) | (2,034,586) | (2,211,184) |
Proceeds from convertible bond held by related parties, net of issuance costs | 1,061,421 | 162,670 | 687,677 | |
Proceeds from convertible bond held by third parties, net of issuance costs | 687,677 | |||
Purchase of capped calls | (159,138) | |||
Proceeds from issuance of asset-backed securities to external investors, net of issuance costs | 198,074 | 30,356 | 262,316 | |
Principal repayment of borrowings from external investors | (210,991) | (32,336) | (157,417) | |
Borrowings for machinery and electronic equipment | 160,000 | 24,521 | 94,000 | |
Principal repayment of borrowings for machinery and electronic equipment loans | (71,917) | (11,022) | (14,470) | |
Proceeds from other financing activities | 2,023 | 310 | 1,054 | |
Principal repayment of financing lease liabilities | (1,179) | (181) | (1,215) | (5,459) |
Contributions from non-controlling interest shareholders | 8,318 | 2,446 | ||
Payment of deferred initial public offering costs | (9,836) | |||
Proceeds from the exercise of share options | 2,151 | 330 | 5,400 | 3,482 |
Repurchase of ordinary shares | (211,352) | (32,391) | ||
Net cash generated from continuing financing activities | 1,760,684 | 269,837 | 2,377,212 | 189,249 |
Net cash generated from/(used in)discontinued financing activities | (212,500) | (32,567) | (365,400) | 367,900 |
Net cash generated from financing activities | 1,548,184 | 237,270 | 2,011,812 | 557,149 |
Exchange rate effect on cash, cash equivalents and restricted cash | (192,110) | (29,442) | 5,644 | 53,179 |
Net increase in cash, cash equivalents and restricted cash | 251,906 | 38,607 | 957,807 | 16,579 |
Cash, cash equivalents and restricted cash at the beginning of the year | 3,957,215 | 606,470 | 2,999,408 | 2,982,829 |
Cash, cash equivalents and restricted cash at the end of the year | 4,209,121 | 645,077 | 3,957,215 | 2,999,408 |
Supplemental disclosures of cash flow information: | ||||
Income taxes paid | 15,760 | 2,415 | 16,249 | 4,595 |
Interest expense paid | 102,682 | 15,737 | 68,846 | 74,611 |
Supplemental disclosures of non-cash investing and financing activities: | ||||
Purchase of property and equipment included in accrued expenses and other liabilities | 322,663 | 49,450 | 128,457 | 252,265 |
Acquisition of property and equipment through financing leases | 4,279 | 656 | 3,435 | 3,596 |
Purchase consideration for business acquisitions included in accrued expenses and other liabilities | ¥ 1,749 | $ 268 | ¥ 11,095 | ¥ 12,335 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
Cash acquired in business acquisitions, net | ¥ 562 | $ 86 | ¥ 5,176 | ¥ 0 | |
Reconciliation of cash, cash equivalents and restricted cash: | |||||
Cash and cash equivalents | 1,383,317 | 1,985,413 | 1,616,785 | $ 212,003 | |
Restricted cash - current | 2,102,426 | 1,786,832 | 1,278,326 | 322,211 | |
Restricted cash - non-current | 709,848 | 175,700 | 90,638 | 108,789 | |
Cash and cash equivalents included in asset held for sale | 13,530 | 9,270 | 13,659 | 2,074 | |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | ¥ 4,209,121 | ¥ 3,957,215 | ¥ 2,999,408 | $ 645,077 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/EQUITY ¥ in Thousands, $ in Thousands | Common StockCNY (¥)shares | Common StockUSD ($)shares | Treasury SharesCNY (¥)shares | Treasury SharesUSD ($)shares | Additional paid-in capitalCNY (¥) | Additional paid-in capitalUSD ($) | Statutory ReservesCNY (¥) | Statutory ReservesUSD ($) | Accumulated other comprehensive incomeCNY (¥) | Accumulated other comprehensive incomeUSD ($) | Accumulated deficitCumulative effect of accounting changeCNY (¥) | Accumulated deficitCNY (¥) | Accumulated deficitUSD ($) | Non-controlling interestsCumulative effect of accounting changeCNY (¥) | Non-controlling interestsCNY (¥) | Non-controlling interestsUSD ($) | Cumulative effect of accounting changeCNY (¥) | CNY (¥)shares | USD ($)shares |
Balance at beginning of the year at Dec. 31, 2017 | ¥ 24,786 | ¥ 19,240,912 | ¥ 12,333 | ¥ (14,886,214) | ¥ 678 | ¥ 4,392,495 | |||||||||||||
Balance at beginning of the year (in shares) at Dec. 31, 2017 | shares | 374,514,399 | 374,514,399 | |||||||||||||||||
Net loss for the year | (507,988) | (403) | (508,391) | ||||||||||||||||
Other comprehensive income/loss | 111,590 | 111,590 | |||||||||||||||||
Appropriation to Statutory Reserves | ¥ 3,771 | (3,771) | |||||||||||||||||
Share-based compensation | 109,107 | 109,107 | |||||||||||||||||
Contributions from non-controlling interest shareholders | 2,446 | 2,446 | |||||||||||||||||
Acquisition of non-controlling interests | (167) | (678) | (845) | ||||||||||||||||
Newly deposited and issued to depository bank-Citibank, N.A. ("Citi") (in shares) | shares | 18,000,000 | 18,000,000 | |||||||||||||||||
Settlement of exercised share options and vested restricted shares with shares held by Citi (Note 21) (in shares) | shares | (12,903,413) | (12,903,413) | |||||||||||||||||
Exercise of share options and vesting of restricted shares (Note 21) | ¥ 1,202 | 57,608 | ¥ 58,810 | ||||||||||||||||
Exercise of share options and vesting of restricted shares (Note 21) (in shares) | shares | 12,903,413 | 12,903,413 | 12,903,413 | 12,903,413 | |||||||||||||||
Balance at end of the year (ASU 2016-13) at Dec. 31, 2018 | ¥ (25,054) | ¥ (25,054) | |||||||||||||||||
Balance at end of the year at Dec. 31, 2018 | ¥ 25,988 | 19,407,460 | 3,771 | 123,923 | (15,423,027) | 2,043 | ¥ 4,140,158 | ||||||||||||
Balance at end of the year (in shares) at Dec. 31, 2018 | shares | 392,514,399 | 392,514,399 | |||||||||||||||||
Net loss for the year | (202,416) | (16,652) | (219,068) | ||||||||||||||||
Other comprehensive income/loss | 39,273 | 39,273 | |||||||||||||||||
Appropriation to Statutory Reserves | 4,094 | (4,094) | |||||||||||||||||
Share-based compensation | 98,504 | 98,504 | |||||||||||||||||
Purchase of capped calls | (159,138) | (159,138) | |||||||||||||||||
Contributions from non-controlling interest shareholders | 8,318 | 8,318 | |||||||||||||||||
Acquisition of non-controlling interests | 663 | 663 | |||||||||||||||||
Settlement of exercised share options and vested restricted shares with shares held by Citi (Note 21) (in shares) | shares | (2,056,804) | (2,056,804) | |||||||||||||||||
Exercise of share options and vesting of restricted shares (Note 21) | 6,574 | 6,574 | |||||||||||||||||
Exercise of share options and vesting of restricted shares (Note 21) (in shares) | shares | 2,056,804 | 2,056,804 | |||||||||||||||||
Balance at end of the year at Dec. 31, 2019 | ¥ 25,988 | 19,353,400 | 7,865 | 163,196 | (15,629,537) | (5,628) | 3,915,284 | ||||||||||||
Balance at end of the year (in shares) at Dec. 31, 2019 | shares | 392,514,399 | 392,514,399 | |||||||||||||||||
Net loss for the year | (2,025,508) | (25,716) | (2,051,224) | $ (314,367) | |||||||||||||||
Other comprehensive income/loss | (11,519) | (11,519) | |||||||||||||||||
Appropriation to Statutory Reserves | 173 | (173) | |||||||||||||||||
Share-based compensation | 138,201 | 138,201 | |||||||||||||||||
Repurchase of ordinary shares | (211,352) | ||||||||||||||||||
Repurchase of ordinary shares (in shares) | shares | (6,395,050) | (6,395,050) | (211,352,000) | (211,352,000) | |||||||||||||||
Contributions from non-controlling interest shareholders | (4,874) | 5,071 | 197 | ||||||||||||||||
Acquisition of non-controlling interests | 300 | 300 | |||||||||||||||||
Settlement of exercised share options and vested restricted shares with shares held by Citi (Note 21) (in shares) | shares | (2,869,291) | (2,869,291) | |||||||||||||||||
Exercise of share options and vesting of restricted shares (Note 21) | 505 | 505 | |||||||||||||||||
Exercise of share options and vesting of restricted shares (Note 21) (in shares) | shares | 2,869,291 | 2,869,291 | |||||||||||||||||
Balance at end of the year at Dec. 31, 2020 | ¥ 25,988 | $ 3,983 | ¥ (211,352) | $ (32,391) | ¥ 19,487,232 | $ 2,986,549 | ¥ 8,038 | $ 1,232 | ¥ 151,677 | $ 23,246 | ¥ (55,746) | ¥ (17,710,964) | $ (2,714,324) | ¥ (42) | ¥ (26,015) | $ (3,987) | ¥ (55,788) | ¥ 1,724,604 | $ 264,308 |
Balance at end of the year (in shares) at Dec. 31, 2020 | shares | 386,119,349 | 386,119,349 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION AND BASIS OF PRESENTATION | |
ORGANIZATION AND BASIS OF PRESENTATION | 1. ORGANIZATION AND BASIS OF PRESENTATION The Company is a limited liability company incorporated in the Cayman Islands on March 3, 2008. The Company does not conduct any substantive operations on its own but instead conducts its primary business operations through its subsidiaries, variable interest entities (the “VIEs”) and VIEs’ subsidiaries, which are mainly located in the People’s Republic of China (the “PRC”). The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries, VIEs and VIEs’ subsidiaries. The Company, its subsidiaries, VIEs and VIEs’ subsidiaries are hereinafter collectively referred to as the “Group”. The Group is principally engaged in the business of providing express delivery services, freight delivery services, supply chain management services, Store+ services, global logistic services, Ucargo services and capital services. The Group’s principal geographic market is in the PRC. On September 20, 2017, the Company completed its initial public offering (“IPO”) on the New York Stock Exchange (Note 21). In November 2020, the Company approved a disposal plan to wind down its Dianjia.com services business by the end of December 31, 2020 and committed to a plan to sell its Wowo convenience stores (“Store+ disposal plan”) in order to increase focus on the Company’s core businesses. As a result, Store + 1. ORGANIZATION AND BASIS OF PRESENTATION (CONTINUED) Details of the Company’s principal subsidiaries, VIEs and VIEs’ subsidiaries as of December 31, 2020 are as follows: Place of Percentage of incorporation, equity interest registration and Date of attributable Name of Company business incorporation/acquisition to the Company Principal activities Subsidiaries: Eight Hundred Logistics Technologies Corporation British Virgin Islands May 22, 2007 100 % Investment holding (“BEST BVI”) (“BVI”) BEST Logistics Technologies Limited Hong Kong May 29, 2007 100 % Investment holding (“BEST HK”) (“HK”) BEST Capital Inc (“BEST Capital”). Cayman Islands December 13, 2017 100 % Investment holding BEST Capital Holding Limited BVI December 13, 2017 100 % Investment holding (“BEST Capital BVI”) BEST Store Network Limited (“Store Cayman”) Cayman Islands July 24, 2017 100 % Investment holding BEST Store Network Holding Limited BVI November 13, 2018 100 % Investment holding (“Store BVI”) BEST Store Network Management Limited HK November 16, 2018 100 % Investment holding (“Store HK”) BEST Capital Management Limited HK December 20, 2017 100 % Investment holding (“BEST Capital HK”) BEST Logistics Technologies (China) Co., Ltd. PRC April 23, 2008 100 % Freight delivery and Supply chain (“BEST China”) management services BEST Store Network (Hangzhou) Co., Ltd. PRC May16, 2013 100 % Store + services (“BEST Store”) Zhejiang BEST Technology Co., Ltd. PRC July 26, 2007 100 % Logistics technical services (“BEST Technology”) Xinyuan Financial Leasing (Zhejiang) Co., Ltd. PRC January 15, 2015 100 % Financial services (“BEST Finance”) BEST Logistics Technologies (Ningbo Free Trade Zone) Co., Ltd. PRC May 22, 2015 100 % Supply chain (“BEST Ningbo”) management services VIEs Hangzhou BEST Network Technologies Co., Ltd. PRC August 22, 2007 Nil Express delivery services (“BEST Network”) Hangzhou BEST Information Technology Services Co., Ltd. (“BEST Information Technology”) PRC October 23, 2019 Nil Ucargo transportation services Hangzhou Baijia Commercial consulting Co., Ltd PRC December 20, 2019 Nil Convenience store operations (“Hangzhou Baijia”) VIE’s subsidiaries: Sichuan Wowo Supermarket Chain Co., Ltd. PRC May 4, 2017 Nil Convenience store operations (“Wowo”) Shanxi Wowo Supermarket Chain Co., Ltd. PRC October 15, 2018 Nil Convenience store operations (“Shanxi Wowo”) BEST UCargo Technologies (Hangzhou) Co., Ltd PRC September 8, 2017 Nil Ucargo transportation services (“BEST Ucargo”) 1. ORGANIZATION AND BASIS OF PRESENTATION (CONTINUED) To comply with PRC laws and regulations which prohibit foreign investors invest in any domestic mail delivery services, the Group operates its express delivery services in the PRC through its VIEs. Despite the lack of technical majority ownership, BEST Technology has effective control of BEST Network through a series of contractual arrangements (the “Contractual Agreements”) and a parent-subsidiary relationship exists between BEST Technology and BEST Network. The equity interests of BEST Network are legally held by PRC individuals (the ”nominee shareholders”). Through the Contractual Agreements, the nominee shareholders of BEST Network effectively assign all of their voting rights underlying their equity interests in BEST Network to BEST Technology. In addition, through the terms of the Contractual Agreements, BEST Technology demonstrates its ability and intention to continue to exercise the ability to absorb substantially all of the profits and all of the expected losses of BEST Network. As a result of the Contractual Agreements, the Company has the power to direct the activities of BEST Network that most significantly impact its economic performance and, is entitled to substantially all of the economic benefits from BEST Network through BEST Technology. Therefore, the Company consolidates BEST Network in accordance with SEC Regulation SX-3A-02 and Accounting Standards Codification (“ASC”) 810-10, Consolidation: Overall. The following is a summary of the Contractual Agreements. Loan Agreements BEST Technology has granted interest-free loans with an aggregate amount of RMB13,780 to the nominee shareholders of BEST Network for the purpose of providing funds necessary for the capital injection of BEST Network. The loans are only repayable by the nominee shareholders through a transfer of his or her equity interests in BEST Network to BEST Technology or its designated party unless the nominee shareholders are in breach of the agreement, in which BEST Technology can request immediate repayment of the loans. The loan agreements are effective until full repayment of the loans or BEST Technology agrees to waive the loan. Exclusive Technical Support and Service Agreement Pursuant to the Exclusive Technical Support and Service Agreement between BEST Technology and BEST Network, BEST Technology has the exclusive right to provide services to BEST Network related to BEST Network’s business, including but not limited to the management, development and maintenance of software, databases and websites, training and recruitment of employees and other services required by BEST Network. In return, BEST Network agrees to pay a service fee that is based on a predetermined formula based on the financial performance of BEST Network. BEST Technology has the right to unilaterally adjust the service fee. The Exclusive Technical Support and Service Agreement is valid for 20 years and will be automatically renewed on an annual basis unless terminated by BEST Technology at its sole discretion, whereas under no circumstances may BEST Network terminate this agreement. 1. ORGANIZATION AND BASIS OF PRESENTATION (CONTINUED) Exclusive Option Agreement Under the Exclusive Option Agreement among BEST Technology, BEST Network and nominee shareholders of BEST Network, BEST Technology has (i) an exclusive option to purchase, when and to the extent permitted under PRC laws, all or part of the equity interests in BEST Network or all or part of the assets held by BEST Network and (ii) an exclusive right to cause the nominee shareholders to transfer their equity interest in BEST Network to BEST Technology or any designated third party. BEST Technology has the sole discretion to decide when to exercise the option, whether in part or full. The exercise price of the option to purchase all or part of the equity interests in BEST Network or assets held by BEST Network will be the minimum amount of consideration permitted under the then-applicable PRC laws. Any proceeds received by the nominee shareholders from the exercise of the option exceeding the loan amount, distribution of profits or dividends, shall be remitted to BEST Technology, to the extent permitted under PRC laws. The Exclusive Option Agreement will remain in effect until all the equity interests or the assets held by BEST Network are transferred to BEST Technology or its designated party. BEST Technology may terminate the Exclusive Option Agreement at their sole discretion, whereas under no circumstances may BEST Network or its nominee shareholders terminate this agreement. To ensure that the cash flow requirements of BEST Network’s daily operations are met and/or to set off any losses that may be incurred, the Company is obliged, only to the extent permissible under PRC laws, to provide financial support to BEST Network, whether or not BEST Network actually incurs any such operational loss. The Company will not request repayment if BEST Network or its nominee shareholders are unable to do so. Without the Company’s prior consent, BEST Network and its nominee shareholders shall not enter into any material agreements outside of the ordinary course of business. The Company, at its sole discretion, has the right to decide whether the option and other rights granted under the agreement will be exercised by the Company, BEST Technology or its designated party. Proxy Agreement Pursuant to the Proxy Agreement between BEST Technology, BEST Network and its nominee shareholders, each of BEST Network’s shareholders agreed to entrust all the rights to exercise their voting power to the person designated by BEST Technology. The nominee shareholders irrevocably authorize the person designated by BEST Technology as its attorney-in-fact (“AIF”) to exercise on such nominee shareholder’s behalf any and all rights that such shareholder has in respect of its equity interests in BEST Network. BEST Technology has the right to replace the authorized AIF at any time upon written notice but not consent from the other parties. The appointment of any individuals to exercise the powers and rights assigned pursuant to the Proxy Agreement requires the approval of the Company. All the activities in relation to such powers and rights assigned are directed and approved by the Company. The Proxy Agreement is valid as long as the nominee shareholders remain shareholders of BEST Network. The nominee shareholders may not terminate the Proxy Agreement or revoke the appointment of the AIF without BEST Technology’s prior written consent. 1. ORGANIZATION AND BASIS OF PRESENTATION (CONTINUED) Proxy Agreement (continued) Under the Equity Pledge Agreement among BEST Technology, BEST Network and its nominee shareholders; the nominee shareholders of BEST Network have pledged all of their equity interests in BEST Network in favor of BEST Technology to secure the performance by BEST Network and its nominee shareholders under the various contractual agreements, including the Exclusive Technical Support and Service Agreement, Loan Agreements and Exclusive Option Agreement described above. The nominee shareholders further undertake that they will remit any distributions as a result in connection with such shareholder’s equity interests in BEST Network to BEST Technology, to the extent permitted by PRC laws. If BEST Network or any of their respective nominee shareholders breach any of their respective contractual obligations under the above agreements, BEST Technology, as pledgee, will be entitled to certain rights, including the right to sell, transfer or dispose the pledged equity interest. The nominee shareholders of BEST Network agree not to create any encumbrance on or otherwise transfer or dispose of their respective equity interest in BEST Network, without the prior consent of BEST Technology. The Equity Pledge Agreement will be valid until BEST Network and their respective shareholders fulfill all contractual obligations under the above agreements. Through the design of the Contractual Agreements, the nominee shareholders of BEST Network effectively assigned their full voting rights to the Company, which gives the Company the power to direct the activities that most significantly impact BEST Network’s economic performance. In addition, BEST Technology is entitled to substantially all of the economic benefits from BEST Network. The Company and BEST Technology, as a group of related parties, hold all of the variable interests of BEST Network. The Company has been determined to be most closely associated with BEST Network within the group of related parties. As a result of these Contractual Agreements, the Company is determined to be the primary beneficiary of BEST Network. To comply with changes to PRC laws and regulations that became effective in 2020 which prohibit foreign ownership of more than 50% of the equity interests in companies that engage in value-added telecommunication services, the Group effected a restructuring of its UCargo transportation services business. In October 2019, BEST China, the nominee shareholders of BEST Information Technology and the Company signed a series of Contractual Arrangements, through which, the Company obtained the power to direct the activities of BEST Information Technology that most significantly impact its economic performance and, is entitled to substantially all of the economic benefits from and is also obligated to absorb the expected losses of BEST Information Technology through BEST China. The Contractual Agreements executed by BEST China, the nominee shareholders of BEST Information Technology and the Company have similar terms as those described above between BEST Technology, BEST Network and its nominee shareholders. As a result, the Company is the primary beneficiary of BEST Information Technology and consolidates the entity in accordance with ASC810-10. At the same time, BEST China transferred its equity interests in BEST Ucargo and its subsidiaries to BEST Information Technology. As the restructuring transaction to transfer the assets and liabilities relating to the UCargo transportation services business described above are between entities under common control and do not change the control at the ultimate parent level, the transaction was accounted for as a common control transaction based on the carrying amount of the net assets transferred. 1. ORGANIZATION AND BASIS OF PRESENTATION (CONTINUED) Proxy Agreement (continued) To comply with changes to PRC laws and regulations which prohibit foreign ownership of the equity interests in companies that engage in tobacco business, the Group effected a restructuring of its convenience store business. In April 2020, BEST Store, the nominee shareholders of Hangzhou Baijia and the Company signed a series of contractual arrangements (“Contractual Arrangements”), through which, the Company obtained the power to direct the activities of Hangzhou Baijia that most significantly impact its economic performance and, is entitled to substantially all of the economic benefits from and is also obligated to absorb the expected losses of Hangzhou Baijia through Best Store. The Contractual Agreements executed by Best Store, the nominee shareholders of Hangzhou Baijia and the Company have similar terms as those described above between BEST Technology, BEST Network and its nominee shareholders. As a result, the Company is the primary beneficiary of Hangzhou Baijia and consolidates the entity in accordance with ASC810-10. At the same time, Best Network transferred its equity interests in Wowo and Shanxi Wowo to Hangzhou Baijia. Best Store, In the opinion of the Company’s PRC legal counsel, (i) the ownership structure relating to the VIEs complies with current PRC laws and regulations; and (ii) the Company, BEST Technology, BEST China and Best Store’s contractual arrangements with the respective VIEs and VIEs’ nominee shareholders are valid, binding and enforceable on all parties to these arrangements and do not violate current PRC laws or regulations. 1. ORGANIZATION AND BASIS OF PRESENTATION (CONTINUED) Proxy Agreement (continued) The carrying amounts of the assets, liabilities and the results of operations of the VIEs and VIEs’ subsidiaries included in the Company’s consolidated balance sheets and statements of comprehensive loss are as follows: As at December 31 2019 2020 2020 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 610,189 265,500 40,689 Restricted cash 412,134 104,103 15,954 Accounts and notes receivables, net 224,705 213,851 32,774 Inventories 24,004 15,868 2,432 Prepayments and other current assets 1,415,859 1,924,356 294,921 Short-term investments 150,692 40,276 6,173 Amounts due from related parties 195,811 189,093 28,980 Assets held for sale 64,195 509,419 78,072 Total current assets 3,097,589 3,262,466 499,995 Non-current assets: Property and equipment, net 2,258,215 3,334,139 510,978 Intangible assets, net 2,838 3,314 508 Goodwill 229,096 229,096 35,110 Non-current deposits 37,191 35,149 5,387 Other non-current assets 269 169 26 Operating lease right-of-use assets 2,051,547 2,003,301 307,019 Restricted cash 38,096 376,535 57,707 Assets held for sale 496,173 — — Total non-current assets 5,113,425 5,981,703 916,735 Total assets 8,211,014 9,244,169 1,416,730 LIABILITIES Current liabilities: Short-term bank loans 819,000 954,250 146,245 Accounts and notes payable 2,071,644 2,696,142 413,203 Accrued expenses and other liabilities 1,183,998 1,255,516 192,417 Customer advances and deposits and deferred revenue 1,277,064 1,254,966 192,333 Operating lease liabilities 434,067 508,829 77,981 Amounts due to related parties 2,631,540 3,773,795 578,359 Income tax payable — 4 — Liabilities held for sale 74,242 193,432 29,645 Total current liabilities 8,491,555 10,636,934 1,630,183 Long-term bank loan — 961 147 Operating lease liabilities 1,716,027 1,610,698 246,850 Deferred tax liabilities 102 102 16 Other non-current liabilities 133,037 174,441 26,733 Liabilities held for sale 118,704 — — Total non-current liabilities 1,967,870 1,786,202 273,746 Total liabilities 10,459,425 12,423,136 1,903,929 The revenue-producing assets that are held by the VIEs comprise mainly of machinery and electronic equipment, express delivery software and consumer goods to be sold in convenience store operations. The VIEs contributed an aggregate of 71%, 69% and 73% of the Group’s consolidated revenue for the years ended December 31, 2018, 2019 and 2020, respectively, after elimination of inter-company transactions. 1. ORGANIZATION AND BASIS OF PRESENTATION (CONTINUED) Proxy Agreement (continued) As of December 31, 2019 and 2020, RMB450,230 and RMB480,638 (US$73,661) of the VIEs’ restricted cash was pledged for notes payable, short-term loans and long-term loans, respectively, RMB61,488 and RMB69,675 (US$10,678) of the VIEs’ property and equipment was pledged for borrowings from third parties, respectively. Other than the amounts due to related parties (which are eliminated upon consolidation) all remaining liabilities of the VIEs are without recourse to the primary beneficiary. The Company did not provide or intend to provide financial or other supports not previously contractually required to the VIEs during the years presented. For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Revenue from continuing operations 17,870,056 22,332,789 21,846,838 3,348,174 Revenue from discontinued operations 592,378 715,106 636,600 97,563 Total revenue 18,462,434 23,047,895 22,483,438 3,445,737 Net income/(loss) from continuing operations 142,063 97,916 (869,592) (133,271) Net loss from discontinued operations (25,174) (51,212) (66,250) (10,153) Net cash generated from/(used in) continuing operating activities 801,640 1,006,301 (65,529) (10,043) Net cash generated from/(used in) discontinued operating activities 26,743 (3,770) 381 58 Net cash used in continuing investing activities (804,205) (1,289,195) (1,166,284) (178,741) Net cash used in discontinued investing activities (16,285) (4,758) (735) (113) Net cash generated from continuing financing activities 165,376 1,030,277 917,146 140,559 Net cash generated from discontinued financing activities — — 5,000 766 In June 2019 and September 2020, BEST Finance transferred certain lease rental and other financing receivables to a securitization vehicle through Xinyuan Leasing Asset Backed Special Plan I and Plan II (collectively the “Plans”), respectively. The Group acts as the servicer of the Plans by providing payment collection services for the underlying lease rental receivables and holds significant variable interests in the Plans through holding the subordinated tranche of asset-backed debt securities and the guarantee provided, from which the Group has the obligation to absorb losses of the Plan that could potentially be significant to the Plans. 1. ORGANIZATION AND BASIS OF PRESENTATION (CONTINUED) Proxy Agreement (continued) Accordingly, the Group is considered the primary beneficiary of the Plans and has consolidated the Plans’ assets, liabilities, results of operations, and cash flows in the accompanying consolidated financial statements. As at December 31, As at December 31, 2019 2020 2020 RMB RMB US$ Amounts due from related parties 157,345 301,914 46,271 Total current assets 157,345 301,914 46,271 Restricted cash 40,000 90,000 13,793 Amounts due from related parties 140,000 230,000 35,249 Total non-current assets 180,000 320,000 49,042 Total assets 337,345 621,914 95,313 Securitization debt 107,820 96,829 14,840 Amounts due to related parties 49,525 205,085 31,431 Total current liabilities 157,345 301,914 46,271 Amounts due to related parties 180,000 320,000 49,042 Total non-current liabilities 180,000 320,000 49,042 Total liabilities 337,345 621,914 95,313 As at December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Net cash used in operating activities — (297,345) (234,569) (35,949) Net cash generated from financing activities — 337,345 284,569 43,612 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). Principles of Consolidation The consolidated financial statements of the Group include the financial statements of the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries for which the Company is the primary beneficiary. All significant intercompany balances and transactions between the Company, its subsidiaries and VIEs have been eliminated on consolidation. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Liquidity and Going Concern As reflected in the Group’s financial statements, for the year ended December 31, 2020, the Group has incurred net losses from continuing operations of RMB 1,638,068 These adverse conditions indicate there is substantial doubt about the Group’s ability to continue as a going concern. Management has developed the following plans to improve these conditions: (i) implement various measures in its strategic refocusing plan which includes execution of the wind-down plan for the Store+ segment from late 2020 and suspension of the provision of certain fleet and equipment lease services under BEST Capital for the foreseeable future; (ii) realign its businesses to adapt to the evolving competitive market conditions and execute additional measures to manage and reduce its costs and expenditures to better improve operating cash flows; and (iii) seek other strategic alternatives in certain business segments or raise additional financing in the near term. There is uncertainty surrounding the Group’s ability to successfully execute its strategic refocusing plan and generate sufficient operating cashflows in the current environment due to the unpredictability of the continued impact of the COVID-19 outbreak to the PRC and global economy and the duration of the current price war in the express delivery services segment. Further, as described in Note 28, subsequent to December 31, 2020, the Group secured borrowings of RMB465,661 (US$71,366) through the securitization of certain financing receivables pertaining to its BEST Capital business and about RMB578,136 (US$88,603) of short-term bank loans maturing in one year, which allows the Group to reinforce its refocusing plan and enhance liquidity. Although the Group has achieved encouraging initial results from the execution of its strategic refocusing plan and reduced its costs and expenditures in the first quarter of 2021 for certain business segments, if the Group is unsuccessful in its efforts or is unable to seek other strategic alternatives or raise additional financing in the near term, the Group may be required to significantly reduce or scale back its operations. The accompanying consolidated financial statements have been prepared assuming the Company will continue to operate as a going concern, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classifications of liabilities that may be necessary should the Group be unable to continue as a going concern. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in the Group’s financial statements include, but are not limited to, allowance for credit losses, the estimated fair value less costs to sell for assets and liabilities of a business or asset group held for sale, cashflow projections used by the Group in its going concern assessment, fair value measurements of equity instruments without readily determinable fair values, incremental borrowing rates for operating lease liabilities, standalone selling prices related to lease and non-lease components in the Company’s lease arrangements, useful lives of long-lived assets, the purchase price allocation with respect to business combinations, impairment of long-lived assets and goodwill, realization of deferred tax assets, uncertain tax positions and share-based compensation. Management bases the estimates on historical experience and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from those estimates. Assets held for sale A long-lived asset (or disposal group) to be disposed of by sale (including an asset group considered a component of an entity) is considered held for sale when all of the following criteria for a qualifying plan of sale are met: ● Management, having the authority to approve the action, commits to a plan to sell the asset or disposal group; ● The asset or disposal group is available for immediate sale (i.e., a seller currently has the intent and ability to transfer the asset (group) to a buyer) in its present condition, subject only to conditions that are usual and customary for sales of such assets or disposal groups; ● An active program to locate a buyer and other actions required to complete the plan to sell have been initiated; ● The sale of the asset or disposal group is probable (i.e., likely to occur) and the transfer is expected to qualify for recognition as a completed sale within one year; ● The long-lived asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and ● Actions necessary to complete the plan indicate that it is unlikely significant changes to the plan will be made or that the plan will be withdrawn. The Group initially measures the assets and liabilities of a business or asset group that are held for sale at the lower of their carrying amount or fair value less costs to sell. A loss is recognized for any initial adjustment of the disposal group’s carrying amount to its fair value less costs to sell in the period the held for sale criteria are met. Long-lived assets are not depreciated/amortized while they are classified as held for sale. The Group continues to accrue interest and other expenses attributable to the liabilities of a disposal group classified as held for sale. The fair value less costs to sell of the asset or disposal group is assessed each reporting period it remains classified as held for sale and subsequent changes in fair value less costs to sell (increases or decreases) are reported as an adjustment to it carrying amount, except that the adjusted carrying amount should not exceed the carrying amount of the asset or disposal group at the time it was initially classified as held for sale. The Group presents assets and liabilities as held for sale in the period that a disposal group meets the held for sale criteria and for all prior periods presented. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Discontinued operations The Group classifies the results of a component (or group of components) to be disposed (“disposal group”) as a discontinued operation when the disposal group meets the held for sale criteria, is disposed of by sale or is disposed of other than by sale (e.g. abandonment) and when the disposal group represents a strategic shift that has, or will have, a major effect on the Group’s operations and its financial results. The Group reports the operating results and cash flows related to the disposal group as discontinued operations for all periods presented in the consolidated statements of comprehensive loss and consolidated statements of cash flows, respectively. Convenience translation Amounts in U.S. dollars are presented for the convenience of the reader and are translated at the noon buying rate of RMB6.5250 per US$1.00 on December 31, 2020 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. Foreign currency The functional currency of the Company’s subsidiaries located outside the PRC is determined based on the criteria of ASC Topic 830, Foreign Currency Matters . The Company’s subsidiaries, VIEs and VIEs’ subsidies located in the PRC determined their functional currency to be Renminbi (the “RMB”). The Company uses the RMB as its reporting currency. Each entity in the Group maintains its financial records in its own functional currency. Transactions denominated in foreign currencies are measured at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are remeasured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical cost in foreign currency are remeasured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included in the consolidated statements of comprehensive loss. The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive income, a component of shareholders’ equity. Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits or other highly liquid investments placed with banks or other financial institutions which are unrestricted as to withdrawal and use and have original maturities of less than three months. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Restricted cash The Group’s restricted cash mainly represents (a) deposits held in designated bank accounts for issuance of notes payable, short-term loans and long-term loans; (b) security deposits required by the Group’s operating leases for sortation centers and warehouses; and (c) deposits held in a designated bank account of the Plans which can only be utilized for repayment of Plans when there is default of the underlying lease rental and other financing receivables (Note 15). As of December 31, 2019 and December 31,2020, the restricted cash related to the deposits held in designated bank accounts as pledged security of notes payable was RMB135,663 and RMB847,326 (US$129,858), respectively. The restricted cash related to deposits held in designated bank accounts as pledged security of short-term loans and long-term loans are disclosed in Note 13. Short-term investments The Group’s short-term investments comprise primarily of cash deposits at fixed or floating rates based on daily bank deposit rates with maturities ranging from three months to one year. Adoption of ASU 2016-13 On January 1,2020, the Group adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Accounts receivable and notes receivable, and allowance for credit losses Prior to the Company’s adoption of ASU 2016-13, accounts and notes receivable are carried at net realizable value. An allowance for credit losses is recorded when collection of the full amount is no longer probable. In evaluating the collectability of receivable balances, the Group considers specific evidence including the aging of the receivable, the customer’s payment history, its current credit-worthiness and current economic trends. Accounts receivable are recognized and carried at the original invoiced amount less an allowance for credit losses. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Accounts receivable and notes receivable, and allowance for credit losses (continued) After the adoption of ASU 2016-13, The Company maintains an allowance for credit losses and records the allowance for credit losses as an offset to accounts receivable and contract assets and the estimated credit losses charged to the allowance is classified as “General and administrative expenses” in the consolidated statements of comprehensive loss.The Company assesses collectability by reviewing accounts receivable and contract assets on a collective basis where similar characteristics exist, primarily based on similar business line, service or product offerings and on an individual basis when the Company identifies specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status, the age of the accounts receivable balances and contract assets balances, credit quality of the Company’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. Accounts and notes receivable are written off after all collection efforts have ceased. Property and equipment, net Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated Useful Life Machinery and electronic equipment 3 - 10 years Motor vehicles 3 years Leasehold improvements Lesser of useful life or lease term Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterments that extend the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive loss. Direct costs that are related to the construction of property and equipment, and incurred in connection with bringing the assets to their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property and equipment, and the depreciation of these assets commences when the assets are ready for their intended use. Change in estimated useful lives of certain machinery and electronic equipment In accordance with its policy, the Group reviews the estimated useful lives of its property and equipment on an ongoing basis. This review indicated that the actual lives of certain machinery and electronic equipment at its hubs and sortation centers were longer than the estimated useful lives used for depreciation purposes. As a result, effective July 1, 2019, the Group changed the estimated useful lives of these machinery and equipment from five years to ten years to better reflect the periods for which these assets are expected to remain in service. The effect of this change in estimate reduced depreciation expense, net loss, basic loss per share and diluted loss per share by RMB94,984, RMB94,984, RMB0.24 and RMB0.24, respectively in 2019. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Business Combinations The Group accounts for its business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines the discount rates to be used based on the risk inherent in the related entity’s current business model and industry comparisons. Goodwill The Group assesses goodwill for impairment in accordance with ASC 350 20, Intangibles—Goodwill and Other: Goodwill The Group has determined it has six reporting units (that also represent operating segments) in 2020, which excludes the former Store+ reporting unit which is reported as discontinue operations in the consolidated statements of comprehensive loss and the corresponding goodwill allocated to the Store+ reporting unit is classified as assets held for sale on the consolidated balance sheets (Note 4). Goodwill was allocated to four reporting units, including the Store+ reporting unit as of December 31, 2019 while the goodwill is allocated to three reporting units as of December 31, 2020, respectively (Note 12). The Company has the option to assess qualitative factors first to determine whether it is necessary to perform the quantitative test in accordance with ASC 350-20. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. If the Company believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test described above is required. Otherwise, no further testing is required. The Group adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Goodwill (continued) Prior to the adoption of ASU 2017-04, the Group performs two-step quantitative impairment test. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss in general and administrative expenses. Subsequent to the adoption of ASU 2017-04, the quantitative impairment test compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess. Intangible assets Intangible assets with finite lives are carried at cost less accumulated amortization. All intangible assets with finite lives are amortized using the straight-line method over the estimated useful lives. Intangible assets have weighted average estimated useful lives from the date of purchase as follows: Category Estimated Useful Life Customer relationships 3.89 years Software 3.50 years Domain name 10 years Brand name 20 years Others 2.23 years Impairment of long-lived assets held for use other than goodwill The Group evaluates its long-lived assets, including fixed assets and intangible assets with finite lives, for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Impairment losses if any, are included in general and administrative expense. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fair value measurements of financial instruments The Company applies ASC 820, Fair Value Measurements and Disclosures ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Includes other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial instruments include cash and cash equivalents, restricted cash, accounts and notes receivables, certain other current assets, short-term investments, due from related parties, long-term investments, certain other non-current assets, accounts and notes payable, short-term bank loans, long-term bank loans, securitization debt, convertible senior notes and amounts due to related parties, certain other current liabilities and certain other non-current liabilities. The carrying values of the financial instruments included in current assets and liabilities approximate their fair values due to their short-term maturities. The carrying amount of other non-current financial assets, long-term bank loans, convertible senior notes and other non-current financial liabilities approximates its fair value due to the fact that the related interest rates approximate market rates for similar debt instruments of comparable maturities. The Group adopted ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Inventories Inventories are comprised of finished goods. The Group’s finished goods consists of low value consumables used in performing express delivery services, freight delivery services and supply chain management services such as handheld terminals, packing materials and uniforms emblazoned with the logo “BEST” (“accessories”). Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Cost of accessories are accounted for using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated market value due to the slow-moving merchandise and damaged goods. Write-downs are recorded in cost of revenue in the consolidated statements of comprehensive loss. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue recognition Revenue is recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. The Group presents value-added taxes as a reduction from revenues. The Group does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Group recognizes revenue at the amount to which it has the right to invoice for services performed. The Group’s revenue recognition policies are as follows: Express delivery services The Group provides express services that comprise of sorting, line-haul and feeder transportation services to its franchisee service stations, which are also the Group’s customers, when parcels (under 15 kg) are dropped off by the Group’s franchisee service station customers at the Group’s first hub or sortation center. The Group offers an integrated service to the franchised service stations that includes last-mile delivery service to end recipients and acts as the principal that is directly responsible for all parcels sent through its network, from the point when customers drop off the parcels at the Group’s first hub or sortation center all the way through to the point when the parcels are delivered to end recipients. Customers are required to prepay for express delivery services and the Group records such amounts as “customer advances and deposits and deferred revenue” in the consolidated balance sheets. The transaction price the Group earns from its customers are based on the parcel’s weight and route to the end recipient’s destination. In addition, the Group provides certain discounts, incentives and rebates based on explicitly agreed upon terms with its customers that can decrease the transaction price and estimates variable consideration based on the most likely amount to be provided. The amount of variable consideration included in the transaction price is limited to the amount that will not result in a significant revenue reversal. The Group reviews the estimate of variable consideration and updates the transaction price at the end of each reporting period as necessary. Uncertainties related to the estimates of variable consideration are resolved in a short time frame. Adjustments to variable consideration are recognized in the period the adjustments are identified and were insignificant for the periods presented. The Group’s express delivery services contracts with customers include only one performance obligation. Performance obligations are generally short-term in nature and with transit days being a week or less for each parcel. The Group recognizes revenue over time as customers receive the benefit of the Group’s services as the goods are delivered from one location to another. As such, express delivery services revenue is recognized proportionally as a parcel moves from origin to destination and the related costs are recognized as incurred. The Group uses an output method of progress based on time-in-transit as it best depicts the transfer of control to the customer. A minor percentage of the Group’s express delivery services are performed by the group through its integrated express delivery service network for direct customers (“direct customer express delivery services”), who are the senders of the parcels. The Group is directly responsible for the parcel from the point it is received from the senders all the way through the point when the parcels are delivered to end recipients. Direct customer express delivery services revenue is recognized proportionally as parcels are transported to end recipients and the related costs are recognized as incurred. Express delivery services revenue also includes initial non-refundable franchise fees. The initial non-refundable franchise fees are recognized over the franchise period due to the franchisees’ rights to access the Group’s logos and brand names which are considered symbolic intellectual properties. The initial non-refundable franchise fees are negotiated under a separate agreement and represent a very small percentage of revenue for all periods presented. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Freight delivery services Similar to express delivery services, the Group provides freight services that comprise of sorting, line-haul and feeder transportation services mainly to its franchisees, which are also the Group’s customers. The Group offers an integrated service to franchisee service stations that includes last-mile delivery service to end recipients and acts as the principal that is directly responsible for all shipments sent through its network, from the point when customers drop off the shipments at the Group’s first hub or sortation center all the way through to the point when the shipments are delivered to end recipients. Customers are required to prepay for freight delivery services and the Group records such amounts as “Customer advances and deposits and deferred revenue” in the consolidated balance sheets. The transaction price the Group earns from its customers are based on the shipment’s weight and route to the end recipient’s destination. The Group’s freight delivery services contracts with customers include only one performance obligation. Performance obligations are generally short-term in nature with transit days being a week or less for each shipment. The Group recognizes revenue over time as customers receive the benefit of the Group’s services as the goods are shipped from one location to another. As such, freight delivery services revenue is recognized proportionally as a shipment moves from origin to destination and the related costs are recognized as incurred. The Group uses an output method of progress based on time-in-transit as it best depicts the transfer of control to the customer. Freight delivery services revenue also includes initial non-refundable franchise fees. The initial non-refundable franchise fees are recognized over the franchise period due to the franchisees’ rights to access the Group’s logos and brand names which are considered symbolic intellectual properties. The initial non-refundable franchise fees are negotiated under a separate agreement and represent a very small percentage of revenue for all periods presented. Supply chain management services The Group provide warehouse management, order fulfillment services and transportation services to its offline and online enterprise customers (“enterprise customers”). The Group enters into supply chain warehouse management service agreements with these customers to provide warehouse management and order fulfillment services through its self-operated order fulfillment centers and also enters into transportation services agreements to provide transportation services. The majority of these contracts having an effective term of one year. Order fulfillment services revenue is generated from various service fees charged on a volume basis in connection with various order fulfillment services, which may include in-warehouse processing, order fulfillment, express delivery, freight delivery and other value-added services. Pursuant to the warehouse management service agreements and transportation services agreements, enterprise customers have the right to terminate the contracts by providing a one-month advance notice. Therefore, even though the contract term for the majority of the contracts is one year, due to the termination rights provided to enterprise customers, warehouse management service agreements and transportation services agreements are considered month-to-month service contracts. Enterprise customers are billed on a monthly basis and make payments according to their granted credit terms which ranges from 5 to 120 days. Under some situations, enterprise customers may request to add a transportation route or increase the warehouse rental space by entering into a separate contract with the Group. The additional services are considered distinct and the service fees are priced at their standalone selling prices, i.e. they cannot be purchased at a significant or incremental discount. Therefore, the Group accounts for this type of contract modification as a separate contract and the revenue recognized to date on the original contract is not adjusted. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue recognition (continued) Supply chain management services (continued) The warehouse management service agreements comprise various service offerings that can be purchased at the option of the customer. Although the service options are interrelated, none of the services modify the other services and they |
CONCENTRATION OF RISKS
CONCENTRATION OF RISKS | 12 Months Ended |
Dec. 31, 2020 | |
CONCENTRATION OF RISKS | |
CONCENTRATION OF RISKS | 3. CONCENTRATION OF RISKS Concentration of credit risk Assets that potentially subject the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, restricted cash, accounts receivable and lease rental and other financing receivables. As of December 31, 2019, and 2020, RMB3,775,790 and RMB3,393,638 (US$ 520,098), respectively, of the Group’s cash and cash equivalents and restricted cash were primarily deposited in financial institutions located in the PRC, which management believes are of high credit quality. Accounts receivable are typically unsecured and derived from revenue earned from customers mainly in the PRC, which are exposed to credit risk. The risk is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances. The Group maintains reserves for estimated credit losses, which have generally been within its expectations. The Group is exposed to default risk on its lease rental and other financing receivables amounting to RMB2,136,847 and RMB2,331,109 (US$357,258) as of December 31, 2019 and 2020. The Group regularly reviews the creditworthiness and lease rental and other financing receivables are fully collateralized by assets the Group can repossess in the event of default. The Group assesses the allowance for credit losses related to lease rental and other financing receivables on a quarterly basis, either on an individual or collective basis. The Group maintains reserves for estimated credit losses, which have generally been within its expectations. The Group is able to take as collateral certain operating assets which it is able to monitor and repossess for rapid utilization and/or monetization in the event of a default. In addition, as most of the parties to which the Group provides financial services are the Group’s ecosystem participants, the Group has substantial knowledge about their business and operations and can monitor their financial position and their usage of collateralized assets. Business, customer, political, social and economic risks The Group participates in a dynamic logistics and supply chain management industry and believes that changes in any of the following areas could have a material adverse effect on the Group’s future financial position, results of operations or cash flows: changes in the overall demand for services; competitive pressures due to new entrants; advances and new trends in new technologies and industry standards; changes in certain strategic relationships or customer relationships; regulatory considerations; and risks associated with the Group’s ability to attract and retain employees necessary to support its growth. The Group’s operations could be also adversely affected by significant political, economic and social uncertainties in the PRC. 3. CONCENTRATION OF RISKS (CONTINUED) Business, customer, political, social and economic risks (continued) Domestic mail delivery service-related businesses and planned value-added telecommunication services in connection with UCargo business since 2020 are subject to significant restrictions under current PRC laws and regulations. Specifically, foreign investors are not allowed to invest in any domestic mail delivery service business. Currently, the Group conducts its operations in China through contractual arrangements entered between the Company, its PRC subsidiaries and VIEs. The relevant regulatory authorities may find the current contractual arrangements and businesses to be in violation of any existing or future PRC laws or regulations. If so, the relevant regulatory authorities would have broad discretion in dealing with such violations. In addition, if the current ownership structure of the Company and its contractual arrangements with the VIEs are found to be in violation of any existing or future PRC laws and regulations, the Company may be required to restructure its ownership structure and operations in the PRC to comply with the changing and new PRC laws and regulations. The Company may not be able to operate or control the VIEs, which may result in deconsolidation of the VIEs. No single customer or supplier accounted for more than 10% of revenues or cost of revenues for the years ended December 31, 2018, 2019 and 2020. Currency convertibility risk The Group primarily transacts all of its business in RMB, which is not freely convertible into foreign currencies. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the PBOC. However, the unification of the exchange rates does not imply that the RMB may be readily convertible into United States dollars or other foreign currencies. All foreign exchange transactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the PBOC. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. Foreign currency exchange rate risk From July 21, 2005, the RMB is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. For RMB against U.S. dollars, there was depreciation of 5.0% and 1.6% in the years ended December 31, 2018 and 2019 and appreciation of 6.5% in the years ended December 31, 2020, respectively. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollars in the future. To the extent that the Company needs to convert U.S. dollars into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against the U.S. dollar would have an adverse effect on the RMB amount the Company would receive from the conversion. Conversely, if the Company decides to convert RMB into U.S. dollars for the purpose of making payments for dividends on ordinary shares, strategic acquisitions or investments or other business purposes, appreciation of the U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available to the Company. In addition, a significant depreciation of the RMB against the U.S. dollar may significantly reduce the U.S. dollar equivalent of the Company’s earnings or losses. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2020 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | 4. DISCONTINUED OPERATIONS In November 2020, the Company approved a disposal plan to wind down its Dianjia.com services business by the end of December 31, 2020 and committed to a plan to sell its Wowo convenience stores (“Store+ disposal plan”) in order to increase focus on the Company’s core businesses. All of the components of the Store+ segment are reported as discontinued operations in the consolidated statements of comprehensive loss for the current year and all comparative periods in accordance with ASC 210-05, Discontinued Operations as the disposal plan of the Store+ segment represented a strategic shift that had a major effect on the Group’s operations and financial results. Further, the related current and non-current assets and liabilities associated with the Store+ disposal group are reflected as held for sale in the consolidated balance sheets at December 31, 2019 and 2020. The numbers in all of the relevant footnote disclosures are also adjusted for the current year and comparative periods. No loss was recognized on the initial measurement of the disposal group as held for sale. The approval of the Store+ disposal plan was determined to be an event that would more likely than not reduce the fair value of the reporting unit below its carrying amount and the Company performed an interim impairment test of goodwill for the Store+ reporting unit by estimating the fair value of the reporting unit based on an income approach, which is sensitive to significant assumptions such as discount rate, revenue growth rates and operating margins. As the fair value of the Store+ reporting unit exceeded its carrying value, management concluded that goodwill was not impaired. The following tables set forth the assets, liabilities, statement of operations and cash flows of discontinued operations which were included in the Company’s consolidated financial statements: As at December 31 2019 2020 2020 RMB RMB US$ Cash and cash equivalents 9,270 13,530 2,074 Accounts receivable, net 88 — — Inventories 33,523 34,015 5,213 Prepayments and other current assets 21,314 21,559 3,304 Property and equipment, net — 11,699 1,793 Intangible assets, net — 95,234 14,595 Goodwill — 201,668 30,907 Operating lease right-of-use assets — 126,937 19,454 Non-current deposits — 4,753 728 Total current assets classified as held for sale 64,195 509,395 78,068 Property and equipment, net 14,975 — — Intangible assets, net 101,179 — — Goodwill 201,668 — — Operating Lease right-of-use assets 169,789 — — Non-current Deposits 8,562 — — Total non-current assets classified as held for sale 496,173 — — 4. DISCONTINUED OPERATIONS (CONTINUED) As at December 31 2019 2020 2020 RMB RMB US$ Accounts and notes payable — 40,460 6,202 Customer advances and deposits and deferred revenue 880 1,515 232 Accrued expenses and other liabilities 13,585 18,142 2,780 Operating lease liabilities 59,777 109,822 16,831 Deferred tax liabilities — 23,493 3,600 Total current liabilities classified as held for sale 74,242 193,432 29,645 Operating lease liabilities 93,726 — — Deferred tax liabilities 24,978 — — Total non-current liabilities classified as held for sale 118,704 — — For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Revenue 2,845,002 2,817,202 2,200,559 337,250 Cost of revenue (2,589,883) (2,495,503) (1,918,462) (294,018) Gross profit 255,119 321,699 282,097 43,232 Selling expenses (522,872) (498,975) (444,845) (68,175) General and administrative expenses (134,033) (176,827) (171,454) (26,276) Research and development expenses — (39,158) (32,319) (4,953) Total operating expenses (656,905) (714,960) (648,618) (99,404) Loss from discontinued operations (401,786) (393,261) (366,521) (56,172) Foreign exchange gain/(loss) 1,091 (2,045) (3,715) (569) Other income 3,007 6,452 4,511 691 Other expense (2,070) (4,653) (3,916) (600) Loss before income taxes (399,758) (393,507) (369,641) (56,650) Income tax expense (1,387) 1,737 1,485 228 Net loss from discontinued operations (401,145) (391,770) (368,156) (56,422) |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2020 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | 5. BUSINESS COMBINATIONS On May 4, 2017, the Group acquired a 79.17% equity interest in Chengdu Yidanshi Food Co. Ltd (“YDS”), and YDS became a subsidiary of the Group. On March 14, 2018, the Group acquired the remaining non-controlling interest of YDS and became the sole shareholder of YDS for a total cash consideration of RMB 845 . The acquisition of the non-controlling interest by the Group was accounted for as an equity transaction. On December 2, 2019, the Group disposed all of their equity interests in YDS and recognized a gain on disposal of its subsidiary of RMB4,040 which was recorded in “Other income” in the consolidated statement of comprehensive loss. 5. BUSINESS COMBINATIONS (CONTINUED) During the year ended December 31, 2018, the Group completed an acquisition of a convenience store operation to complement its existing businesses and achieve synergies in its former Store+ reportable segment. The purchase consideration was not significant. Results of the acquired business have been included in the Group’s consolidated financial statements since the acquisition date. Goodwill recognized in 2018 represents the expected synergies from integrating the convenience store operations and is not tax deductible. During the year ended December 31, 2019 and 2020, the Group completed multiple acquisitions of global logistics service operations to complement its existing businesses and achieve synergies in southeast Asia. The purchase consideration was not significant. Results of the acquired business have been included in the Group’s consolidated financial statements since the acquisition date. Goodwill recognized in 2019 and 2020 represents the expected synergies from integrating the global logistics service and is not tax deductible. The actual results of operations after the acquisition date and pro-forma results of operations for these acquisitions have not been presented because the effects of these acquisitions were insignificant. |
ACCOUNTS AND NOTES RECEIVABLE,
ACCOUNTS AND NOTES RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS AND NOTES RECEIVABLE, NET | |
ACCOUNTS AND NOTES RECEIVABLE, NET | 6. ACCOUNTS AND NOTES RECEIVABLE, NET Accounts and notes receivable, net, consists of the following: As at December 31 2019 2020 2020 RMB RMB US$ Accounts receivable 1,287,144 1,184,339 181,507 Notes receivable 28,003 48,746 7,471 Allowance for credit losses (86,152) (249,484) (38,235) Accounts and notes receivable, net 1,228,995 983,601 150,743 The movements in the allowance for credit losses were as follows: As at December 31 2018 2019 2020 2020 RMB RMB RMB US$ Balance at beginning of the year (5,794) (25,105) (86,152) (13,203) Adoption of ASU 2016-13 — — (43,724) (6,701) Additions (60,183) (105,984) (159,083) (24,381) Write-offs 40,872 44,937 39,475 6,050 Balance at end of the year (25,105) (86,152) (249,484) (38,235) |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
PREPAYMENTS AND OTHER CURRENT ASSETS. | |
PREPAYMENTS AND OTHER CURRENT ASSETS | 7. PREPAYMENTS AND OTHER CURRENT ASSETS As of December 31, 2019, and 2020, VAT prepayments amounting to RMB1,065,031 and RMB1,325,624 (US$203,161), respectively, are included in prepayments and other current assets. The effect of adopting ASU 2016-13 was RMB3,793 (US$545) to the opening balance of prepayments and other current assets. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 8. PROPERTY AND EQUIPMENT, NET As at December 31 2019 2020 2020 RMB RMB US$ Machinery and electronic equipment 2,555,217 3,390,586 519,630 Leasehold improvements 1,176,201 1,331,472 204,057 Motor vehicles 4,952 121,072 18,555 Construction in progress 725,147 946,721 145,091 4,461,517 5,789,851 887,333 Less: accumulated depreciation (1,537,113) (1,710,616) (262,163) 2,924,404 4,079,235 625,170 The Group acquired certain machinery and electronic equipment by entering into financing leases. The gross amount and the accumulated depreciation of these machinery and electronic equipment were RMB30,462 and RMB22,566, respectively, as of December 31, 2019 and RMB32,314 (US$ 4,952) and RMB25,914 (US$ 3,971), respectively, as of December 31, 2020. Future minimum lease payments are disclosed in Note 10. Depreciation expense of property and equipment, including assets under financing leases, was RMB426,450, RMB456,382 and RMB502,183 (US$76,963) for the years ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2019 and 2020, the balances of construction in progress were RMB725,147 and RMB946,721 (US$145,091), respectively, which were related to the construction of warehouses, hubs and sortation centers and related equipment. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2020 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 9. INTANGIBLE ASSETS, NET As at December 31 2019 2020 2020 RMB RMB US$ Customer relationships 10,449 10,449 1,601 Software 61,870 64,883 9,942 72,319 75,332 11,543 Less: accumulated amortization (51,911) (63,134) (9,674) 20,408 12,198 1,869 Amortization expense of intangible assets was RMB14,864, RMB19,719 and RMB12,819 (US$1,965) for the years ended December 31, 2018, 2019 and 2020, respectively. Estimated amortization expense relating to the existing intangible assets with finite lives for each of the next five years is as follows: RMB USD 2021 6,241 957 2022 2,476 380 2023 1,001 153 2024 447 68 2025 448 69 10,613 1,627 No impairment losses were recognized for the years ended December 31, 2018, 2019 and 2020, respectively. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
LEASES | |
LEASES | 10. LEASES Leases of motor vehicles and logistic equipment as Lessor The Group provides direct financing and sales-type leases of motor vehicles and logistic equipment, primarily to transportation service providers that meet the Group’s credit assessment requirements. The lease terms range two The net investment in direct financing and sales-type leases are presented as “Lease rental receivables” on the consolidated balance sheets as follows: As at December 31 2019 2020 2020 RMB RMB US$ Current assets: Direct financing leases 402,633 369,147 56,574 Sales-type leases 80,730 127,980 19,614 483,363 497,127 76,188 Non-current assets: Direct financing leases 775,420 344,425 52,785 Sales-type leases 217,840 303,253 46,476 993,260 647,678 99,261 Total 1,476,623 1,144,805 175,449 10. LEASES (CONTINUED) Leases of motor vehicles and logistic equipment as Lessor (continued) The net investment in direct financing and sales-type leases consisted of: As at December 31 2019 2020 2020 RMB RMB US$ Total minimum lease payments receivable 1,693,161 1,296,869 198,754 Less: Executory costs — — — Minimum lease payments receivable 1,693,161 1,296,869 198,754 Less: Allowance for credit losses (11,014) (14,296) (2,191) Net minimum lease payments receivable 1,682,147 1,282,573 196,563 Unguaranteed residuals — — — Less: Unearned income (205,524) (137,768) (21,114) Net investment in financing leases 1,476,623 1,144,805 175,449 Current portion 483,363 497,127 76,188 Non-current portion 993,260 647,678 99,261 For the years ended December 31, 2018, 2019 and 2020, the Group recorded RMB94,172, RMB106,040 and RMB85,285 (US$13,071) of interest income from direct financing and sales-type leases as a lessor in “Revenue - Capital” on its consolidated statements of comprehensive loss. Losses incurred with respect to default on lease receivables were insignificant for all periods presented. As of December 31, 2019 and 2020, the allowance for credit losses recorded against lease rental receivables were RMB11,014 and RMB14,296 (US$2,191), respectively. Accordingly, risk of default with respect to these receivables is remote. The effect of adopting ASU 2016-13 was RMB5,065 (US$776) to the opening balance of lease rental receivables. Future minimum lease payments to be received for the direct financing and sales-type leases for each of the five succeeding fiscal years as of the December 31, 2020 are as follows: As at December 31 2020 RMB US$ For the year ending December 31, 2021 464,432 71,179 For the year ending December 31, 2022 457,386 70,097 For the year ending December 31, 2023 195,797 30,007 For the year ending December 31, 2024 101,447 15,547 For the year ending December 31, 2025 46,974 7,199 Thereafter 16,537 2,534 Total minimum lease payments 1,282,573 196,563 Unearned income (137,768) (21,114) Net investment in direct financing and sales-type leases 1,144,805 175,449 10. LEASES (CONTINUED) Failed sale-leaseback transactions as buyer-lessor The Group has certain failed sales-leaseback transactions of certain motor vehicles and logistic equipment in which the Group acts as buyer-lessor but the seller-lessee does not transfer the control of the leased asset to the Group. The internal rate of return is used in the computation of interest income which is recorded in “Revenue - Capital” in the Group’s consolidated statement of comprehensive loss and was insignificant for the years ended December 31, 2018, 2019 and 2020. As of December 31, 2019, and 2020, the Group recorded RMB357,191 and RMB695,543 (US$ 106,597) under “Prepayments and other current assets”, respectively, RMB303,033 and RMB490,761 (US$75,212) under “Other non-current assets”, respectively. Prior year’s comparative figures of RMB167,549 and RMB84,516 under “Lease rental receivables” and “Lease rental receivables non-current” respectively as of December 31, 2019 have been reclassified to “Prepayments and other current assets and “Other non-current assets” of RMB167,549 and RMB84,516 respectively to conform to the current year’s presentation. Financing and operating leases as Lessee The Group has operating leases for certain offices, warehouses, hub and sortation center facilities and equipment and financing leases for certain machinery and electronic equipment as a lessee. The Group’s lease agreements include lease payments that are fixed, do not contain material residual value guarantees or variable lease payments. The leases have remaining lease terms of up to twenty years. Certain lease agreements include terms with options to extend the lease, however none of these have been recognized in the Company’s operating lease ROU assets or operating lease liabilities since those options were not reasonably certain to be exercised. The Group’s leases do not contain restrictions or covenants that restrict the Group from incurring other financial obligations. The Group’s lease agreements may contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. Consideration for lease and non-lease components are allocated on a relative standalone selling price basis. For the years ended December 31 2019 2020 2020 RMB RMB US$ Operating lease cost 1,194,534 1,276,501 195,632 Short-term lease cost 124,269 162,342 24,880 Financing lease cost: Amortization of ROU assets 3,390 3,355 514 Interest 304 245 38 Total lease cost 1,322,497 1,442,443 221,064 10. LEASES (CONTINUED) Financing and operating leases as Lessee (continued) For the years ended December 31 2019 2020 2020 Other information RMB RMB US$ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1,191,587 1,429,951 219,150 Operating cash flows from financing leases 304 245 38 Financing cash flows from financing leases 1,215 1,179 181 ROU assets obtained in exchange for new operating lease liabilities 1,512,448 908,441 139,225 ROU obtained in exchange for new finance lease liabilities 1,054 2,023 310 Weighted-average remaining lease term (in years): Operating leases 5.41 3.94 Financing leases 2.75 3.25 Weighted-average discount rate: Operating leases 7.74 % 7.64 % Financing leases 7.38 % 5.19 % For the year ended December 31, 2019, total lease costs of RMB1,269,946, RMB15,575,and RMB33,282 were recorded in cost of revenue, selling expenses, general and administrative expenses, respectively. For the year ended December 31, 2020, total lease costs of RMB1,382,741 (US$211,914), RMB13,220 (US$2,026), and RMB42,882 (US$6,572) were recorded in cost of revenue, selling expenses, general and administrative expenses, respectively. Future minimum lease payments for operating and financing leases as of December 31, 2020 are as follows: Operating Leases Financing leases RMB US$ RMB US$ For the year ended December 31,2021 1,207,647 185,080 1,753 267 For the year ended December 31,2022 1,033,372 158,371 1,231 189 For the year ended December 31,2023 876,146 134,275 989 152 For the year ended December 31,2024 672,721 103,099 532 81 For the year ended December 31,2025 422,324 64,724 115 18 Thereafter 571,516 87,589 — — Total minimum lease payments 4,783,726 733,138 4,620 707 Less: imputed interest 756,092 115,876 341 52 Total lease liability balance 4,027,634 617,262 4,279 655 Minimum payments related to leases not yet commenced as of December 31, 2020 749,130 114,809 — — |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
LONG-TERM INVESTMENTS | |
LONG-TERM INVESTMENTS | 11 . LONG-TERM INVESTMENTS Equity investments without readily determinable fair value As of December 31, 2019 and 2020, the carrying amount of the Company’s equity investments without readily determinable fair value was RMB224,927 and RMB215,677 (US$33,054), net of RMB nil and RMB nil (US$ nil) in accumulated impairment, respectively. During the years ended December 31, 2019 and 2020, certain equity investments were remeasured based on observable price changes in orderly transactions for an identical or similar investment of the same issuer and the aggregate carrying amount of these investments was RMB119,927 and RMB110,677 (US$16,962) as of December 31, 2019 and 2020, respectively. In 2020, the Group disposed part of its equity interest in an equity investment without readily determinable fair value with the carrying amount of RMB27,937 (US$4,282) for RMB33,595 (US$5,149) and realized a gain on disposal of RMB5,658 (US$867 ) which was included in “Other income” in the consolidated statement of comprehensive loss for the year ended December 31, 2020. Unrealized gains (upward adjustments) and losses (downward adjustments and impairment) resulting from observable price changes of equity securities without readily determinable fair values for the years ended December 31, 2018, 2019 and 2020 were RMB64,628 and RMB nil, RMB14,155 and RMB nil, and RMB18,687 (US$2,864) and RMB nil (US$ nil), respectively. Net unrealized gains and losses for equity securities held were RMB64,628, RMB14,155 and RMB18,687 (US$2,864) for the years ended December 31, 2018, 2019 and 2020. Net realized gains and losses on equity securities sold were RMB nil, RMB nil, and RMB5,658 (US$867) for the years ended December 31, 2018, 2019 and 2020 , respectively. Equity method investments In 2015, the Group completed the investment in Hangzhou Dezhi Logistic Co., Ltd. (“Dezhi”) through the subscription of newly issued ordinary shares representing 30% equity interest in Dezhi. Total consideration for the investment in Dezhi was RMB300 in cash. The Group accounts for the investment in Dezhi as an equity method investment due to its significant influence over the entity. On October 29, 2019, the Group disposed of its equity interest in Dezhi for RMB450 and realized a gain on disposal of RMB22 (US$3). On January 22, 2017, the Group completed the investment in Hangzhou Jinye Technology Co., Ltd. (“Jinye”) through the subscription of newly issued ordinary shares representing a 13.73% equity interest in Jinye. Total consideration for the investment in Jinye was RMB7,652 in cash. The Group accounts for the investment in Jinye as an equity method investment due to its significant influence over the entity, as the Group has one board seat out of five in Jinye. During the year ended December 31, 2018, the Group’s investment was diluted to 13.04% due to Jinye’s closing of equity financing raised from investors. The carrying amount of the equity method investments were RMB5,928 and RMB5,749 (US$881) as of December 31, 2019 and 2020, respectively. There were no impairment indicators for the equity method investments and no impairment losses were recognized for the years ended December 31, 2018, 2019 and 2020, respectively. Selected financial information of the equity method investees was not presented as the effects were not material. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL | |
GOODWILL | 12. GOODWILL Express Freight delivery delivery Global Total Balance as of December 31, 2019 241,623 5,580 42,115 289,318 Goodwill acquired — — 6,440 6,440 Balance as of December 31, 2020 241,623 5,580 48,555 295,758 Balance as of December 31, 2020 (US$) 37,030 855 7,442 45,327 The Group performed a qualitative assessment for the Freight delivery services reporting unit for the years ended December 31, 2018, 2019 and 2020, and for the Express delivery services reporting unit for the years ended December 31, 2018 and 2019 based on the requirements of ASC 350-20. The Group evaluated all relevant factors, weighed all factors in their entirety and concluded that it was not more‑likely‑than‑not that the fair values of the Express delivery and Freight delivery services reporting units were less than their respective carrying amounts. Therefore, further impairment testing on goodwill was unnecessary as of December 31, 2019 and 2020, respectively. For the years ended December 31, 2018, 2019 and 2020, the Group performed a quantitative assessment for the Global reporting unit and for the year ended December 2020, the Group performed a quantitative assessment for the Express delivery services reporting unit by estimating the fair value of the reporting units based on an income approach which involved significant management judgment, estimates and assumptions such as the discount rate, revenue growth rates and operating margin. The fair values of the remaining reporting units exceeded their respective carrying values and therefore, goodwill related to these reporting units was not impaired. No impairment losses were recognized for the years ended December 31, 2018, 2019 and 2020. |
SHORT-TERM AND LONG-TERM BANK L
SHORT-TERM AND LONG-TERM BANK LOANS | 12 Months Ended |
Dec. 31, 2020 | |
SHORT-TERM AND LONG-TERM BANK LOANS | |
SHORT-TERM AND LONG-TERM BANK LOANS | 13. SHORT-TERM AND LONG-TERM BANK LOANS As at December 31 2019 2020 2020 RMB RMB US$ Short-term bank loans guaranteed by subsidiaries within the Group 960,000 954,000 146,207 Pledged short term bank loans 1,159,000 1,357,287 208,013 Secured bank borrowings 391,500 771,250 118,199 2,510,500 3,082,537 472,419 Long-term bank loans pledged by deposits — 78,548 12,038 Total 2,510,500 3,161,085 484,457 During 2019 and 2020, the Group factored certain intercompany notes receivables with a total face value of RMB471,500 and RMB848,537 (US$130,044) to several domestic banks for total proceeds of RMB458,864 and RMB821,130 (US$125,844) at effective interest rates ranging from 1.92% to 5.19% (“the receivable factoring transaction”). As the factoring of notes receivables was with recourse, the receivable factoring transaction did not qualify as a transfer of financial assets to be considered as a sale under ASC 860 and was accounted for as a secured borrowing and are recognized as secured bank borrowings included in “Short-term bank loans”. 13. SHORT-TERM AND LONG-TERM BANK LOANS (CONTINUED) Short-term bank loans consisted of several bank loans denominated in RMB. The total deposits in restricted cash pledged for short-term bank loans and secured bank borrowings was RMB1,590,025 and RMB1,582,977 (US$242,602) as of December 31, 2019 and December 31, 2020, respectively. The total account receivables pledged for short-term bank loans were RMB nil and RMB77,287 (US$11,845) as of December 31, 2019 and December 31, 2020, respectively. The weighted average interest rate for the outstanding borrowings as of December 31, 2019 and December 31, 2020, was 4.27% and 4.42% respectively. The total intercompany notes receivables pledged for secured bank borrowings was RMB391,500 and RMB771,250 (US$118,199) as of December 31, 2019 and 2020. Long-term bank loans were denominated in RMB. The deposits in restricted cash pledged for long-term bank loans was RMB nil and RMB81,500 (US$12,490) as of December 31, 2019 and December 31, 2020, respectively. The weighted average interest rate for the outstanding borrowings as of December 31, 2019 and December 31, 2020, was nil and 4.02% respectively. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER LIABILITIES. | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 14. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following: As at December 31 2019 2020 2020 RMB RMB US$ Salary and welfare payable 1,222,363 1,253,014 192,033 Accrual for purchases of property and equipment 128,457 322,663 49,450 Accrued expenses 77,946 85,970 13,175 Borrowings for electronic machinery and equipment 40,036 106,911 16,385 Payable for business acquisitions 11,095 1,749 268 Others 526,152 737,610 113,044 2,006,049 2,507,917 384,355 Payable for business acquisitions mainly represents the amount to be paid to the original shareholders at the end of the escrow periods or consideration to be paid for other acquisitions based on their respective payment schedules. In the year ended December 31, 2018, 2019 and 2020, the Group received total proceeds of RMB nil, RMB94,000 and RMB160,000 (US$24,521) from third-party financing lease companies (buyer-lessor) for which the Group acts as seller-lessee but did not transfer the control of leased machinery and electronic equipment to the buyer-lessor. These failed sales-leaseback transactions were accounted for as financing transactions. Pursuant to the terms of the agreements, the weighted average effective interest rate of the outstanding borrowings was 8.06% and 7.95% and repayments are to be made over a weighted average period of 2.47 and 1.67 years for the years ended December 31, 2019 and 2020, respectively. At the end of the repayment schedule, the Group is entitled to obtain ownership of these equipment for nominal consideration. For the years ended December 31, 2019 and 2020, interest costs incurred was not material. As of December 31, 2019 and 2020, the Group recorded the current portion of the borrowings of RMB40,036 and RMB106,911 (US$16,385) in “Accrued expenses and other liabilities” and the non-current portion of borrowings of RMB41,451 and RMB67,821 (US$10,394) in “Other non-current liabilities”, respectively. As of December 31, 2020, RMB116,292 (US$17,823) and RMB66,097 (US$10,130) of the borrowings are due in 2021 and 2022, respectively. These borrowings were partially collateralized by the Company’s electronic machinery and equipment with a total carrying value of RMB61,488 and RMB53,302 (US$8,169) as of December 31, 2019 and 2020, respectively. |
SECURITIZATION DEBT
SECURITIZATION DEBT | 12 Months Ended |
Dec. 31, 2020 | |
SECURITIZATION DEBT.. | |
SECURITIZATION DEBT | 15. SECURITIZATION DEBT In June 2019, BEST Finance transferred certain lease rental and other financing receivables totaling RMB 705,033 with remaining lease terms ranging from 23 months to 59 months originating from its finance leasing services business to a securitization vehicle. The securitization vehicle created Xinyuan Leasing Asset Backed Special Plan I (the “Plan I”) and contemporaneously issued debt securities securitized by the transferred lease rental receivables (“asset-backed securities”) to qualified institution investors on the Shanghai Stock Exchange and raised total proceeds of RMB 262,316 under the Plan I, net of issuance costs for the securitization transaction of RMB 6,684 . The Plan I consists of three tranches: Series A tranche with a stated interest of 5.5% maturing no later than 2020, Series B tranche with a stated interest of 6.5% maturing no later than 2020 and a subordinated tranche maturing no later than 2023. The Group also provided a guarantee to the Plan I to secure the full repayment of the principal and interest of the Series A and B tranches of the Plan I issued to external investors. In September 2020, BEST Finance transferred certain lease rental and other financing receivables totaling 751,469 (US$ 115,168 ) with remaining lease terms ranging from 4 months to 59 months originating from its finance leasing services business to a securitization vehicle. The securitization vehicle created Xinyuan Leasing Asset Backed Special Plan II (the “Plan II”) and contemporaneously issued debt securities securitized by the transferred lease rental receivables (“asset-backed securities”) to qualified institution investors on the Shanghai Stock Exchange and raised total proceeds of RMB 198,074 (US$ 30,356 ) under the Plan II, net of issuance costs for the securitization transaction of RMB 1,926 (US$ 295 ). The Plan II consists of three tranches: Series A tranche with a stated interest of 4.95% maturing no later than 2021, Series B tranche with a stated interest of 6.0% maturing no later than 2022 and a subordinated tranche maturing no later than 2023. The Group also provided a guarantee to the Plan II to secure the full repayment of the principal and interest of the Series A tranche of the Plan II issued to external investors. The Group acts as the servicer of the Plans by providing payment collection services for the underlying lease rental receivables and holds significant variable interests in the Plans through holding all of the subordinated tranche of asset-backed debt securities maturing no later than 2023 and the guarantee provided, from which the Group has the obligation to absorb losses of the Plans that could potentially be significant to the Plans. Accordingly, the Group is considered the primary beneficiary of the Plans and has consolidated the Plans’ assets, liabilities, results of operations, and cash flows in the accompanying consolidated financial statements. As a result of the series of transactions described above, the Series A and B tranches of the Plans issued to external investors were considered borrowings from external investors. The proceeds from borrowings from external investors is a financing activity and reported as “Proceeds from issuance of asset-backed securities to external investors, net of issuance costs” on the consolidated statements of cash flows. Repayments on the borrowings totaled RMB 157,417 and RMB 210,991 (US$ 32,336 ) during 2019 and 2020 from external investors were made according to the payment schedule. As of December 31, 2019 and 2020, the total outstanding borrowings from external investors were RMB104,899 and RMB95,149 (US$14,582), respectively, which are repayable within one year and are included in current “Securitization debt” on the consolidated balance sheets. The weighted average effective interest rate for the outstanding securitization debt was 11.36% for Plan I as of December 31, 2019, 7.17% for Plan II as of December 31, 2020, respectively. |
CONVERTIBLE SENIOR NOTES
CONVERTIBLE SENIOR NOTES | 12 Months Ended |
Dec. 31, 2020 | |
CONVERTIBLE SENIOR NOTES. | |
CONVERTIBLE SENIOR NOTES | 16. CONVERTIBLE SENIOR NOTES 1) 2024 Convertible Notes On September 17, 2019, the Company issued US$200,000 convertible senior notes (the “2024 Convertible Notes”) to several initial purchasers, US$100,000 and US$100,000 to Alibaba.com Hong Kong Limited (“Alibaba.com”), an entity affiliated with Alibaba Group Holding Limited (“Alibaba Group”), a principal shareholder of the Company and to third parties, respectively. The 2024 Convertible Notes are senior, unsecured obligations of the Company, and interest is payable semi-annually in arrears at a rate of 1.75% per annum on April 1 and October 1 of each year, beginning on April 1, 2020. The 2024 Convertible Notes will mature on October 1, 2024 unless redeemed, repurchased or converted prior to such date. The 2024 Convertible Notes holders have the right, at their option, to convert the outstanding principal amount of the 2024 Convertible Notes, in whole or in part in integral multiples of $1 principal amount (i) upon satisfaction of one or more of the conversion conditions as defined in the indenture for the 2024 Convertible Notes prior to the close of business day immediately preceding October 1, 2024; or (ii) anytime on or after October 1, 2024 until the close of business on the second scheduled trading day immediately preceding the maturity date (the “Conversion Option”). The initial conversion rate for the 2024 Convertible Notes is 141.844 of the Company’s American depositary shares (“ADSs”) per US$1,000 principal amount of the Notes, which is equivalent to an initial conversion price of US$7.05 per ADS, subject to certain anti-dilution and make-whole fundamental change adjustments but is not adjusted for any accrued and unpaid interest. Upon conversion, the Company is required to deliver ADSs to such converting holders and both issuer and holders have no other settlement options. The holders may require the Company to repurchase all or a portion of the 2024 Convertible Notes for cash on September 30, 2022 at a repurchase price equal to 100% of the principal amount of the 2024 Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date. If certain events of default, changes in tax laws of the relevant taxing jurisdiction or fundamental change as defined in the indenture for the 2024 Convertible Notes were to occur, the outstanding obligations under the 2024 Convertible Notes could be immediately due and payable (the “Contingent Redemption Options”). The Company will pay additional interest, at its election, as the sole remedy relating to the failure to comply with certain reporting obligations as defined in the indenture of the 2024 Convertible Notes. In addition, the 2024 Convertible Notes provide its holders with additional interest equal to the fair value of any dividends received by the holders of the Company’s ordinary shares (the “Contingent Interest Features”). The Company evaluated the embedded conversion features contained in the 2024 Convertible Notes and determined that the Conversion Option was not required to be bifurcated because it met the scope exception provided for under ASC 815-10-15-74(a). The Company also evaluated the embedded Contingent Redemption Options and Contingent Interest Features contained in the 2024 Convertible Notes in accordance with ASC 815 to determine if these features require bifurcation. The Contingent Redemption Options were not required to be bifurcated because they are considered to be clearly and closely related to the debt host, as the 2024 Convertible Notes were not issued at a substantial discount and are redeemable at par. The Contingent Interest Features are not considered to be clearly and closely related to the debt host and met the definition of a derivative. However, the fair value of the Contingent Interest Features on the issuance date and at December 31, 2019 and 2020 was not significant. In addition, the Company assessed whether the additional interest payments need to be accrued as a liability in accordance with ASC 450. Since the likelihood of the occurrence of such default events is determined to be remote, the Company did not accrue additional interest expense for the years ended December 31, 2019 and 2020. The Company will continue to assess the accrual for these additional interest payment liabilities at each reporting date. 16. CONVERTIBLE SENIOR NOTES (CONTINUED) 1) 2024 Convertible Notes (continued) Furthermore, no beneficial conversion feature was recognized for the 2024 Convertible Notes as the fair value per ADS at the commitment date was US$5.53, which was less than the most favorable conversion price. In connection with the issuance of the 2024 Convertible Notes, the Company also purchased capped call options on the Company’s ADS with certain counterparties at a price of US$22,500 (equivalent to RMB159,138), which was recorded as a reduction of the Company’s additional paid-in capital on the consolidated balance sheet with no subsequent changes in fair value recorded. The capped call exercise price is equal to the 2024 Convertible Notes’ initial conversion price and the cap price is US$10.0 per ADS, subject to certain adjustments under the terms of the capped call transactions. The capped call transactions are expected to reduce potential dilution to existing holders of the ordinary shares and ADSs of the Company upon conversion of the 2024 Convertible Notes with such reduction subject to a cap. The net proceeds from the issuance of the 2024 Convertible Notes were US$194,457 (equivalent to RMB1,375,355), after deducting underwriting discounts and offering expenses of US$5,543 (equivalent to RMB39,205) from the initial proceeds of US$200,000. As of December 31, 2019 and 2020, the principal amount of the 2024 Convertible Notes was RMB1,395,240 and RMB1,304,980 (US$200,000) respectively, unamortized debt discount was RMB35,032 and RMB20,688 (US$3,174) respectively, and the net carrying amount of the 2024 Convertible Notes was RMB1,360,208 and RMB1,284,292 (US$196,826) respectively. As of December 31, 2019 and 2020, the Group recorded RMB680,104 and RMB642,121 (US$98,409) under “Convertible senior notes held by related parties”, RMB680,104 and RMB642,121 (US$98,409) under “Convertible senior notes held by third parties”, respectively. For the years ended December 31, 2019 and 2020, the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the discount on the 2024 Convertible Notes was RMB10,894 and RMB37,103 (US$5,686). As of December 31, 2020, the 2024 Convertible Notes will be accreted up to the principal amount of US$200,000 (equivalent to RMB1,304,980) over a remaining period of 1.75 years. The aggregate scheduled maturities of RMB1,304,980 (US$200,000 million) of the 2024 Convertible Notes will be repaid when they become due in 2024, after assuming no conversion, redemption prior to the maturity and both convertible senior notes bondholders hold the 2024 Convertible Notes until their respective maturities. 2) 2025 Convertible Notes On June 3, 2020, the Company issued US$150,000 convertible senior notes (the “2025 Convertible Notes”) to Alibaba.com. The 2025 Convertible Notes are senior, unsecured obligations of the Company, and interest is payable semi-annually in arrears at a rate of 4.5% per annum on July 1 and January 1 of each year, beginning on January 1, 2021. The 2025 Convertible Notes will mature on June 3, 2025 unless redeemed, repurchased or converted prior to such date. The 2025 Convertible Notes holders have the right to convert all or any portion of the 2025 Convertible Notes held by it into ordinary shares, or at the sole discretion of the noteholder, into ordinary shares in the form of ADS at any time on or after the thirty-first trading day after May 27, 2020 up to the close of business of the second business day immediately preceding June 3, 2025 (“the 2025 Convertible Notes Conversion Option”). 16. CONVERTIBLE SENIOR NOTES (CONTINUED) 2) 2025 Convertible Notes (continued) The initial conversion rate for the 2025 Convertible Notes is 16,474.46 of the Company’s American depositary shares (“ADSs”) per US$100,000 principal amount of the 2025 Convertible Notes, which is equivalent to an initial conversion price of US$6.07 per ADS, subject to certain anti-dilution and make-whole fundamental change adjustments but is not adjusted for any accrued and unpaid interest. Upon conversion, the Company is required to deliver ADSs to such converting holders and both issuer and holders have no other settlement options. The holders may require the Company to repurchase all or a portion of the 2025 Convertible Notes for cash within a period of ninety days starting from June 3, 2023 at a repurchase price equal to 100% of the principal amount of the 2025 Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date. The Contingent Redemption Options and Contingent Interest Features are similar with the terms described for the 2024 Convertible Notes issued in 2019. If certain events of default, changes in tax laws of the relevant taxing jurisdiction or fundamental change as defined in the indenture for the 2025 Convertible Notes were to occur, the outstanding obligations under the 2025 Convertible Notes could be immediately due and payable (the “2025 Convertible Notes Contingent Redemption Options”). The Company will pay additional interest, at its election, as the sole remedy relating to the failure to comply with certain reporting obligations as defined in the indenture of the 2025 Convertible Notes. In addition, the 2025 Convertible Notes provide its holders with additional interest equal to the fair value of any dividends received by the holders of the Company’s ordinary shares (the “2025 Convertible Notes Contingent Interest Features”). The Company evaluated the embedded conversion features contained in the 2025 Convertible Notes and determined that the 2025 Convertible Notes Conversion Option was not required to be bifurcated because it met the scope exception provided for under ASC 815-10-15-74(a). The Company also evaluated the embedded 2025 Convertible Notes Contingent Redemption Options and 2025 Convertible Notes Contingent Interest Features in accordance with ASC 815 to determine if these features require bifurcation. The 2025 Convertible Notes Contingent Redemption Options were not required to be bifurcated because they are considered to be clearly and closely related to the debt host, as the 2025 Convertible Notes were not issued at a substantial discount and are redeemable at par. The 2025 Convertible Notes Contingent Interest Features are not considered to be clearly and closely related to the debt host and met the definition of a derivative. However, the fair value of the 2025 Convertible Notes Contingent Interest Features on the issuance date and at December 31, 2020 was not significant. In addition, the Company assessed whether the additional interest payments need to be accrued as a liability in accordance with ASC 450. Since the likelihood of the occurrence of such default events is determined to be remote, the Company did not accrue additional interest expense for the year ended December 31, 2020. The Company will continue to assess the accrual for these additional interest payment liabilities at each reporting date. Furthermore, no beneficial conversion feature was recognized for the 2025 Convertible Notes as the fair value per ADS at the commitment date was US$5.49, which was less than the most favorable conversion price. The net proceeds from the issuance of the 2025 Convertible Notes were US$149,340 (equivalent to RMB1,061,421), after deducting offering expenses of US$660 (equivalent to RMB4,689) from the initial proceeds of US$150,000 (equivalent to RMB1,066,110). 16. CONVERTIBLE SENIOR NOTES (CONTINUED) 2) 2025 Convertible Notes (continued) As of December 31, 2020, the principal amount of the 2025 Convertible Notes was RMB978,735(US$150,000), unamortized debt discount was RMB3,060 (US$471) and the net carrying amount of the 2025 Convertible Notes was RMB975,675(US$149,529). As of December 31, 2020, the Group recorded RMB975,725 (US$149,537) under “Convertible senior notes held by related parties”. For the year ended December 31, 2020, the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the discount on the 2025 Convertible Notes was RMB27,908 (US$4,277). As of December 31, 2020, the 2025 Convertible Notes will be accreted up to the principal amount of US$150,000 (equivalent to RMB978,735) over a remaining period of 2.42 years. The aggregate scheduled maturities of RMB978,735 (US$150,000) of the 2025 Convertible Notes will be repaid when they become due in 2025, assuming no conversion, redemption prior to the maturity and convertible senior note bondholders hold the 2025 Convertible Notes until maturity. |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2020 | |
TAXATION | |
TAXATION | 17. TAXATION Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. British Virgin Islands Under the current laws of the British Virgin Islands, BEST BVI, Best Capital BVI and Store BVI are not subject to tax on income or capital gains. In addition, upon payments of dividends by BEST BVI, Best Capital BVI and Store BVI to its shareholders, no withholding tax is imposed. Hong Kong The subsidiaries incorporated in Hong Kong are subject to income tax at the rate of 16.5% on the estimated assessable profits arising in Hong Kong. For the years ended December 31, 2018, 2019 and 2020, the Group did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong for any of the periods presented. Under the Hong Kong tax law, BEST HK, BEST Capital HK and Store HK are exempted from income tax on their foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. China The current enterprise income tax law (“EIT Law”) applies a uniform 25% enterprise income tax (“EIT”) rate to both foreign invested enterprises and domestic enterprises. 17. TAXATION (CONTINUED) China (continued) The EIT Law treats enterprises established outside of the PRC with “effective management and control” located in the PRC as PRC resident enterprises for tax purposes. The term “effective management and control” is generally defined as exercising management and control over the business, personnel, accounting, properties, etc. of an enterprise. Any companies located in jurisdictions outside of the PRC, if considered a PRC resident enterprise for tax purposes, would be subject to the PRC enterprise income tax at the rate of 25% on their worldwide income commencing on January 1, 2008. As of December 31, 2020, the Company has not accrued for PRC tax on such basis as the Group’s non-PRC entities had zero assessable profits in the PRC for the period after January 1, 2008. The Group will continue to monitor the tax status of its non-PRC entities with regards to the PRC tax resident enterprise rules. Pursuant to relevant laws and regulations in the PRC and with approval from tax authorities in charge, one of the Group’s subsidiaries, BEST Technology. BEST Technology meets the requirements of “high and new technology enterprise” (“HNTE”) and could enjoy the preferential tax rate of 15%. BEST Technology has renewed the HNTE certificate in 2019 and is subject to an enterprise income tax (“EIT”) rate of 15% from calendar years 2019 through 2021. Withholding tax on undistributed dividends The EIT law also imposes a withholding income tax of 10% on dividends distributed by a foreign invested enterprise (“FIE”) to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. According to the Arrangement between the Mainland of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes On Income in August 2006, dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% (if the foreign investor directly owns at least 25% of the shares of the FIE). The Group’s loss before income taxes and share of net loss of equity investees consists of the following: For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ PRC (69,117) 205,593 (1,408,800) (215,914) Non-PRC (27,173) (12,509) (251,964) (38,612) (96,290) 193,084 (1,660,764) (254,526) 17. TAXATION (CONTINUED) Withholding tax on undistributed dividends (continued) The current and deferred components of income tax expense appearing in the consolidated statements of comprehensive loss are as follows: For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Current income tax (14,806) (17,840) (22,952) (3,518) Deferred income tax 4,306 (2,187) 828 127 (10,500) (20,027) (22,124) (3,391) A reconciliation of the differences between the PRC statutory tax rate and the Group’s effective tax rate for enterprise income tax from continuing operations is as follows: For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Loss before income taxes and share of net loss of equity investees (96,290) 193,084 (1,660,764) (254,526) Income tax computed at the statutory tax rate of 25% 24,073 (48,271) 415,191 63,631 Non-deductible expenses (65,862) (57,784) (91,696) (14,054) Effect of different tax rates in different jurisdictions and preferential tax rate (4,826) (9,949) (48,650) (7,456) Research and development expenses deduction 12,248 19,552 21,834 3,346 Non-taxable income 17,097 17,489 11,152 1,709 Provision to return (8,319) (1,728) (7,426) (1,138) Deferred tax expense (4,598) 3,932 5,195 796 Tax rate change 16,771 (4,578) 18,594 2,850 Expired tax loss (13,482) — (70,662) (10,829) Change in valuation allowance 16,398 61,310 (275,656) (42,246) (10,500) (20,027) (22,124) (3,391) 17. TAXATION (CONTINUED) Deferred tax As at December 31 2019 2020 2020 RMB RMB US$ Deferred tax assets, non-current Accrued expenses 295,818 302,615 46,378 Customer advances and deposits 34,571 28,177 4,318 Allowance for credit losses and inventory provision 28,165 73,186 11,216 Depreciation and amortization expense 101,565 53,606 8,215 Net operating losses carrying forward 452,014 722,348 110,705 Lease liabilities 1,091,096 1,006,909 154,316 Total deferred tax assets 2,003,229 2,186,841 335,148 Valuation allowance* (903,353) (1,179,009) (180,691) Total deferred tax assets net of valuation allowance 1,099,876 1,007,832 154,457 * The Group operates through subsidiaries, VIEs and subsidiaries of VIEs and valuation allowance is considered for each of the entities on an individual basis. The Group recorded valuation allowance against deferred tax assets of those entities that are in a three-year cumulative financial loss position and are not forecasting profits in the near future as of December 31, 2019 and 2020. In making such determination, the Group also evaluates a variety of factors including the Group’s operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. As at December 31 2019 2020 2020 RMB RMB US$ Deferred tax liabilities Fair value changes of equity investments (19,696) (18,900) (2,897) Accrued revenue recognition difference (27,926) (23,088) (3,538) Operating lease right-of-use assets (1,052,254) (965,844) (148,022) Long-lived assets arising from acquisitions (828) — — Total deferred tax liabilities (1,100,704) (1,007,832) (154,457) As of December 31, 2019 and 2020, the Company has net operating losses from continuing operations of RMB2,122,341 and RMB3,410,610 (US$522,699) primarily from its subsidiaries and VIEs in the PRC, which can be carried forward per tax regulation to offset future net profit for income tax purposes. The net operating loss carry forwards as of December 31, 2020 will expire in years 2021 to 2030 if not utilized. As of December 31, 2020, the Company intends to permanently reinvest the undistributed earnings from foreign subsidiaries to fund future operations. As of December 31, 2020, the total amount of undistributed earnings from its PRC subsidiaries as well as VIEs was RMB89,605 (US$8,961). The amount of unrecognized deferred tax liabilities for temporary differences related to investments in foreign subsidiaries are not determined because such a determination is not practicable. 17. TAXATION (CONTINUED) Unrecognized tax benefits As of December 31, 2019 and 2020, the Company recorded an unrecognized tax benefit of RMB191,473 and RMB168,650 (US$25,846) respectively, of which RMB nil and RMB nil (US$ nil), respectively, are presented on a net basis against the deferred tax assets related to tax loss carry forwards on the consolidated balance sheets. This primarily represents the estimated income tax expense the Group would pay should its income tax returns have been prepared in accordance with the current PRC tax laws and regulations. It is possible that the amount of uncertain tax position will change in the next twelve months; however, an estimate of the range of the possible outcomes cannot be made at this time. As of December 31, 2019 and 2020, unrecognized tax benefits of RMB (1,446) and RMB24,025 (US$3,682), respectively, if ultimately recognized, will impact the effective tax rate. A roll-forward of unrecognized tax benefits is as follows: As at December 31 2019 2020 2020 RMB RMB US$ Beginning balance 132,808 191,473 29,345 Additions 64,410 24,691 3,783 Decreases (5,745) (47,514) (7,282) Ending balance 191,473 168,650 25,846 During the years ended December 31, 2018, 2019 and 2020, the Company recorded insignificant late payment interest expense as part of income tax expense and did not incur any penalties. In general, the PRC tax authority has up to five years to conduct examinations of the Company’s tax filings. Accordingly, |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
RESTRICTED NET ASSETS | |
RESTRICTED NET ASSETS | 18. RESTRICTED NET ASSETS The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s PRC subsidiaries only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s PRC subsidiaries. In accordance with the Regulations on Enterprises with Foreign Investment of China and its Articles of Association, the Company’s PRC subsidiaries, being a foreign-invested enterprise established in the PRC, are required to provide certain statutory reserves, namely the general reserve fund, enterprise expansion fund and staff welfare and bonus fund, all of which are appropriated from net profit as reported in its PRC statutory accounts. The Company’s PRC subsidiaries are required to allocate at least 10% of its annual after-tax profit to the general reserve fund until such fund has reached 50% of its registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the Board of Directors of the PRC subsidiaries. These reserves can only be used for specific purposes and are not transferable to the Company in the form of loans, advances, or cash dividends. 18. RESTRICTED NET ASSETS (CONTINUED) In accordance with the PRC Company Laws, the Company’s VIEs and its subsidiaries must make appropriations from their annual after-tax profits as reported in their PRC statutory accounts to non-distributable reserve funds, namely statutory surplus fund, statutory public welfare fund and discretionary surplus fund. The VIEs and its subsidiaries are required to allocate at least 10% of their after-tax profits to the statutory surplus fund until such fund has reached 50% of their respective registered capital. Appropriations to the discretionary surplus fund are made at the discretion of the Board of Directors of the VIEs and its subsidiaries. These reserves can only be used for specific purposes and are not transferable to the Company in the form of loans, advances, or cash dividends. For the years ended December 31, 2018, 2019 and 2020, the Company’s PRC subsidiaries had appropriated RMB3,771, RMB4,094 and RMB173 (US$27) of statutory reserves, respectively, which are included in shareholder’s equity. Under PRC laws and regulations, there are restrictions on the Company’s PRC subsidiaries, the VIEs and its subsidiaries with respect to transferring certain of their net assets to the Company either in the form of dividends, loans, or advances. Amounts restricted include paid-in capital and surplus reserves of the Company’s PRC subsidiaries and the VIEs and its subsidiaries, totaling RMB5,081,767 (US$778,815) as of December 31, 2020; therefore in accordance with Rules 504 and 4.08(e)(3) of Regulation S-X, the condensed parent company only financial statements as of December 31, 2019 and 2020 and for each of the three years in the period ended December 31, 2020 are disclosed in Note 29. Furthermore, cash transfers from the Company’s PRC subsidiaries to its subsidiaries outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the PRC subsidiaries and consolidated VIEs to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. |
Earnings_(LOSS) PER SHARE
Earnings/(LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings/(LOSS) PER SHARE | |
Earnings/(LOSS) PER SHARE | 19. Earnings/(LOSS) PER SHARE Basic and diluted loss per share for each of the years presented are calculated as follows: 2018 2018 2018 2019 2019 2019 2020 2020 2020 2020 2020 2020 Class A Class B Class C Class A Class B Class C Class A Class A Class B Class B Class C Class C RMB RMB RMB RMB RMB RMB RMB US$ RMB US$ RMB US$ Basic loss per share: Numerator: Net (loss)/Income from continuing operations attributable to ordinary shareholders—basic (67,413) (26,147) (13,283) 120,206 45,854 23,294 (1,050,575) (161,011) (402,371) (61,665) (204,406) (31,328) Loss from discontinued operations, net of tax (253,101) (98,172) (49,872) (248,704) (94,871) (48,195) (233,369) (35,765) (89,381) (13,699) (45,406) (6,958) Net loss attributable to ordinary shareholders—basic (320,514) (124,319) (63,155) (128,498) (49,017) (24,901) (1,283,944) (196,776) (491,752) (75,364) (249,812) (38,286) Denominator: Weighted average number of ordinary shares outstanding—basic 242,542,728 94,075,249 47,790,698 246,614,615 94,075,249 47,790,698 245,626,959 245,626,959 94,075,249 94,075,249 47,790,698 47,790,698 Continuing operations (0.28) (0.28) (0.28) 0.49 0.49 0.49 (4.28) (0.66) (4.28) (0.66) (4.28) (0.66) Discontinued operations (1.04) (1.04) (1.04) (1.01) (1.01) (1.01) (0.95) (0.14) (0.95) (0.14) (0.95) (0.14) Basic loss per share (1.32) (1.32) (1.32) (0.52) (0.52) (0.52) (5.23) (0.80) (5.23) (0.80) (5.23) (0.80) 19. Earnings/(LOSS) PER SHARE (CONTINUED) 2018 2018 2018 2019 2019 2019 2020 2020 2020 2020 2020 2020 Class A Class B Class C Class A Class B Class C Class A Class A Class B Class B Class C Class C RMB RMB RMB RMB RMB RMB RMB US$ RMB US$ RMB US$ Diluted loss per share: Numerator: Net (loss)/Income from continuing operations attributable to ordinary shareholders—basic (67,413) (26,147) (13,283) 120,206 45,854 23,294 (1,050,575) (161,011) (402,371) (61,665) (204,406) (31,328) Loss from discontinued operations, net of tax (253,101) (98,172) (49,872) (248,704) (94,871) (48,195) (233,369) (35,765) (89,381) (13,699) (45,406) (6,958) Net loss attributable to ordinary shareholders—basic (320,514) (124,319) (63,155) (128,498) (49,017) (24,901) (1,283,944) (196,776) (491,752) (75,364) (249,812) (38,286) Reallocation of net (loss)/income from continuing operations attributable to ordinary shareholders as a result of conversion of Class C and Class B to Class A ordinary shares (Note 21) (39,430) — — 69,148 — — (606,777) (92,993) — — — — Reallocation of net loss from discontinued operations, net of tax attributable to ordinary shareholders as a result of conversion of Class C and Class B to Class A ordinary shares (Note 21) (148,044) — — (143,066) — — (134,787) (20,657) — — — — Reallocation of net loss attributable to ordinary shareholders as a result of conversion of Class C and Class B to Class A ordinary shares (Note 21) (187,474) — — (73,918) — — (741,564) (113,650) — — — — Net loss attributable to ordinary shareholders—diluted (507,988) (124,319) (63,155) (202,416) (49,017) (24,901) (2,025,508) (310,426) (491,752) (75,364) (249,812) (38,286) Denominator: Weighted average number of ordinary shares outstanding—basic 242,542,728 94,075,249 47,790,698 246,614,615 94,075,249 47,790,698 245,626,959 245,626,959 94,075,249 94,075,249 47,790,698 47,790,698 Conversion of all outstanding share options, restricted share units (Note 20) — — — 4,673,685 — — — — — — — — Conversion of Class C and Class B to Class A ordinary shares (Note 21) 141,865,947 — — 141,865,947 — — 141,865,947 141,865,947 — — — — Weighted average number of ordinary shares for continuing operations outstanding - diluted 384,408,675 94,075,249 47,790,698 393,154,247 94,075,249 47,790,698 387,492,906 387,492,906 94,075,249 94,075,249 47,790,698 47,790,698 Weighted average number of ordinary shares for discontinued operations outstanding - diluted 384,408,675 94,075,249 47,790,698 388,480,562 94,075,249 47,790,698 387,492,906 387,492,906 94,075,249 94,075,249 47,790,698 47,790,698 Weighted average number of ordinary shares outstanding - diluted 384,408,675 94,075,249 47,790,698 388,480,562 94,075,249 47,790,698 387,492,906 387,492,906 94,075,249 94,075,249 47,790,698 47,790,698 Continuing operations (0.28) (0.28) (0.28) 0.48 0.48 0.48 (4.28) (0.66) (4.28) (0.66) (4.28) (0.66) Discontinued operations (1.04) (1.04) (1.04) (1.01) (1.01) (1.01) (0.95) (0.14) (0.95) (0.14) (0.95) (0.14) Diluted loss per share (1.32) (1.32) (1.32) (0.52) (0.52) (0.52) (5.23) (0.80) (5.23) (0.80) (5.23) (0.80) 19. Earnings/(LOSS) PER SHARE (CONTINUED) For the years ended December 31, 2018, 2019 and 2020, the two-class method is applicable because the Company has three classes of ordinary shares outstanding, Class A, Class B and Class C ordinary shares, respectively (Note 21). The effects of all outstanding share options, restricted share units and convertible senior notes were excluded from the computation of diluted loss per share for the years ended December 31, 2018 and 2020 as their effects would be anti-dilutive. The effects of all outstanding share options and restricted share units were included from the computation of diluted loss per share for the years ended December 31, 2019 as their effects would be dilutive The effects of convertible senior notes were excluded from the computation of diluted loss per share for the year ended December 31, 2019 as their effects would be anti-dilutive. |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2020 | |
SHARE-BASED PAYMENTS | |
SHARE-BASED PAYMENTS | 20. SHARE-BASED PAYMENTS 2008 Stock Incentive Plan (the “2008 Plan”) On June 4, 2008, the shareholders and Board of Directors of the Company approved the 2008 Plan, which is administrated by the Board of Directors and has a term of 10 years from the date of adoption. Under the 2008 Plan, the Company reserved 10,000,000 ordinary shares of the Company to its eligible employees, directors and officers of the Group and consultants. The purpose of the 2008 Plan is to attract and retain key employees, directors, officers and consultants of outstanding ability and to motivate them to exert their best efforts on behalf of the Group by providing incentives through granting awards. On October 25, 2011 and January 15, 2015, the shareholders and Board of Directors of the Company approved a resolution to increase the share option pool under the 2008 Plan to 16,239,033 and 20,934,684 ordinary shares, respectively. The options granted under the 2008 Plan have a contractual term of 15 years and will become vested (but not exercisable) either (i) immediately upon grant; or (ii) with respect to 25% of the options on the first anniversary of the vesting period, and thereafter in thirty-six equal monthly installments of 2.09% each on the last day of every month that has elapsed following the first anniversary of the vesting period until the options are 100% vested. The grantee can exercise vested options after the commencement date of exercise and before the earlier of: 1) its contractual term (i.e. 15 years after its grant date); or 2) 90 days after the grantee terminates their employment if the vested options have not been exercised. The commencement date of exercise is upon the Company’s IPO. In July 2017, 12,599,520 vested options were exercised pursuant to a conditional one-time waiver of the “exercisable upon the Company’s IPO” condition by the Group (the “early exercise”). The early exercise was not considered substantive for accounting purposes in accordance with ASC 718-10-55-31. 2017 Stock Incentive Plan In September 2017, the Company’s shareholders and Board of Directors approved the 2017 Equity Incentive Plan (the “2017 Plan”). The 2017 Plan provides for an aggregate amount of no more than 10,000,000 Class A ordinary shares to be issued. In addition, the number of Class A ordinary shares available to be issued under the 2017 Plan will automatically be increased by a maximum of 2% of the Company’s total outstanding shares at the end of the preceding calendar year on January 1, 2019 and on every January 1 thereafter for eight years , provided that the aggregate amount of shares which may be subject to awards granted under the 2017 Plan does not exceed 10% of the Company’s total outstanding shares at the end of the preceding calendar year. The options granted under the 2017 Plan have a contractual term no more than 10 years and will become vested with respect to 25% of the options on the first anniversary of the vesting period, and thereafter in thirty six The grantee can exercise vested options after the commencement date of exercise and before the earlier of: 1) its contractual term (i.e. 10 years after its grant date); or 2) 90 days after the grantee terminates their employment if the vested options have not been exercised. The restricted Class A ordinary shares (“Restricted Shares”) granted under the 2017 Plan have the same terms as the share options except that Restricted Shares do not require exercise and will become vested with respect to 25% of the Restricted Shares on the first, second, third and fourth anniversary of the vesting period until the Restricted Shares are 100% vested. 20. SHARE-BASED PAYMENTS (CONTINUED) Options granted to employees A summary of the employee share option activity under the 2008 Plan is stated below: Weighted- Weighted- average Weighted- average remaining Aggregate Number of average grant-date contractual intrinsic options exercise price fair value term Value US$ US$ Years US$ Outstanding, December 31, 2019 2,791,458 0.75 6.65 12.95 14,430 Granted — — — Exercised (919,822) 0.75 6.52 Forfeited/Expired (67,180) 0.75 8.21 Outstanding, December 31, 2020 1,804,456 0.75 6.93 11.05 2,329 Vested and expected to vest at December 31, 2020 17,237,326 0.67 2.37 7.67 23,681 Exercisable at December 31, 2020 1,625,059 0.75 6.71 10.99 2,097 The aggregate intrinsic value in the table above represents the difference between the closing share price on the last trading day in 2020 and the option’s respective exercise price. Total intrinsic value of options exercised for the years ended December 31, 2018, 2019 and 2020 was RMB792,192, RMB860,607 and RMB881,376 (US$135,077) respectively. The total weighted average grant-date fair value of the share option awards granted during the years ended December 31, 2018, 2019 and 2020 were US$9.55, US$ nil and US$ nil per option, respectively. No share option awards were granted during the years ended December 31, 2018, 2019 and 2020. The total fair value of the equity awards vested during the years ended December 31, 2018, 2019 and 2020 were RMB101,966, RMB48,452 and RMB34,671 (US$5,314) respectively. There were no new grants of share option awards during the years ended December 31, 2018, 2019 and 2020 or any outstanding share options under the 2017 Plan as of December 31, 2019 and 2020, respectively. As of December 31, 2020, the unrecognized compensation cost related to 144,723 unvested share options expected to vest was RMB5,690 (US$872). This unrecognized compensation will be recognized over an estimated weighted-average amortization period of 0.58 years. Total unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future. 20. SHARE-BASED PAYMENTS (CONTINUED) Options granted to non-employees A summary of the non-employee share option activity under the 2008 Plan is stated below: Weighted ‑ Weighted ‑ average Weighted ‑ average remaining Aggregate Number of average grant ‑ date contractual intrinsic options exercise price fair value term Value US$ US$ Years US$ Outstanding, December 31, 2019 1,471,677 0.70 2.47 9.67 4,657 Granted — — — Exercised (30,500) 0.75 2.20 Forfeited — — — Outstanding, December 31, 2020 1,441,177 0.70 2.46 7.67 7,645 Vested and expected to vest at December 31, 2020 1,838,173 0.65 2.46 7.67 7,645 Exercisable at December 31, 2020 1,410,677 0.70 2.49 7.64 6,856 The aggregate intrinsic value in the table above represents the difference between the closing stock price on the last trading day in 2020 and the option’s respective exercise price. Total intrinsic value of options exercised for the years ended December 31, 2018, 2019 and 2020 was RMB15,703, RMB19,677 and RMB20,448 (US$3,134), respectively. The total weighted average grant date fair value of the non-employee share option awards granted during the years ended December 31, 2018, 2019 and 2020 were US$9.06, US$ nil and US$ nil per option, respectively. The Company did not grant any non-employee share option awards for the year ended December 31, 2020. The total fair value of the equity awards vested during the years ended December 31, 2018, 2019 and 2020 were RMB21,199, RMB770 and RMB nil (US$ nil), respectively. There were no new grants of non-employee share option awards during the years ended December 31, 2019 and 2020 or any outstanding non-employee share options under the 2017 Plan as of December 31, 2018, 2019 and 2020, respectively. As of December 31, 2020, there was no remaining unrecognized non-employee share-based compensation expenses. Grant date fair value of employee and non-employee share options The grant date fair value of share options was determined using the binomial option valuation model, with the assistance from an independent third-party appraiser. The binomial model requires the input of subjective assumptions, including the expected share price volatility and the suboptimal early exercise factor. For expected volatilities, the Company has made reference to historical volatilities of several comparable companies. The suboptimal early exercise factor was estimated based on the Company’s expectation of exercise behavior of the grantees. The risk-free rate for periods within the contractual life of the share options is based on the market yield of U.S. treasury bonds in effect at the time of grant. Subsequent to the IPO, the fair value of the ordinary shares is the price of the Company’s publicly traded shares. The Company’s management is ultimately responsible for the determination of the estimated fair value of its ordinary shares. 20. SHARE-BASED PAYMENTS (CONTINUED) Grant date fair value of employee and non-employee share options (continued) The assumptions used to estimate the grant date fair value of the share options granted to employees and non-employees are as follows: For the years ended December 31, 2018 2019 2020 Risk-free interest rate 2.74% ~ 2.78% — — Expected volatility range 44.3% ~ 46.9% — — Suboptimal exercise factor 2.20 — — Fair market value per ordinary share US$8.30 ~ $9.55 — — Restricted Shares The following table summarizes the Company’s Restricted Shares activity under the 2017 Plan: Weighted- average Number of grant-date fair shares value US$ Outstanding, December 31, 2019 6,331,464 7.29 Granted 4,599,432 5.23 Vested and issued (1,729,254) 7.60 Forfeited (913,502) 6.79 Outstanding, December 31, 2020 8,288,140 6.14 Vested and expected to vest at December 31, 2020 6,581,734 The weighted average grant-date fair value of Restricted Shares granted during the year ended December 31, 2018, 2019 and 2020 was US$10.41, US$5.65 and US$5.23, which was derived from the fair value of the underlying ordinary shares. As of December 31, 2020, there was RMB266,208 (US$40,798) of total unrecognized share-based compensation expenses related to unvested Restricted Shares expected to vest which are expected to be recognized over a weighted-average period of 2.54 years. Total unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future. During the year ended December 31, 2018, 2019 and 2020, the Group granted 6,000, 9,413 and 189,715 Restricted Shares to non-employees, which were fully vested and issued during the year. 20. SHARE-BASED PAYMENTS (CONTINUED) Restricted Shares(Continued) The following table summarizes the total share-based compensation expense recognized by the Company: For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Cost of revenue 2,003 1,771 2,400 368 Selling expenses 6,007 8,788 7,715 1,182 General and administrative expenses 87,011 73,925 111,773 17,130 Research and development expenses 9,115 7,209 7,763 1,190 Share-based compensation expenses from continuing operations 104,136 91,693 129,651 19,870 Share-based compensation expenses from discontinued operations 4,971 6,811 8,550 1,310 Total share-based compensation expenses 109,107 98,504 138,201 21,180 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | 21. SHAREHOLDERS’ EQUITY The Company has three classes of ordinary shares, Class A, Class B and Class C. The participating rights (liquidation and dividend rights) of the Class A, Class B and Class C ordinary shares are identical, except with respect to voting and conversion rights. Holders of Class A, Class B and Class C ordinary shares shall vote together as one class on all resolutions submitted to a vote by the shareholders (except with respect to the modification of the rights of any class of ordinary shares). Each share of Class A, Class B and Class C ordinary shares entitle the holder thereof to one vote per share, fifteen votes per share and thirty votes per share on all matters subject to vote at the Company’s general meetings, respectively, and each share of Class B and Class C ordinary share is convertible into one Class A ordinary share at any time at the option of the holder thereof. Each holder of Class B ordinary shares or Class C ordinary shares can exercise their conversion right by delivering a written notice to the Company that specifies the number of Class B or Class C ordinary shares they elect to convert into Class A ordinary shares. In no event shall Class A ordinary shares be convertible into Class B or Class C ordinary shares, Class B ordinary shares be convertible into Class C ordinary shares, nor shall Class C ordinary shares be convertible into Class B ordinary shares. On February 1, 2018 and September 5, 2018, the Company issued and transferred 16,000,000 and 2,000,000 Class A ordinary shares respectively to Citi, its depositary bank to be issued to employees and non-employees upon the exercise of vested share options and vesting of Restricted Shares under the 2008 Stock Incentive Plan and 2017 Stock Incentive Plan. For the years ended December 31, 2018, 2019 and 2020, 12,903,413, 2,056,804 and 2,869,291 Class A ordinary shares were issued pursuant to exercise of share options and vesting of Restricted Shares, respectively. As of December 31, 2019 and 2020, 14,960,217 and 17,829,508 ordinary shares out of these 18,000,000 ordinary shares had been issued to employees and non-employees. Therefore, as of December 31, 2018, 2019 and 2020, 5,096,587, 3,039,783 and 170,492 Class A ordinary shares remain available for future issuance. These shares are legally issued but not outstanding for the purpose of accounting thus are excluded from the basic earnings/(loss) per share calculation. As of December 31, 2019 and 2020, the Company had ordinary shares outstanding comprising of 250,648,452 Class A ordinary shares, 94,075,249 Class B ordinary shares and 47,790,698 of Class C ordinary shares, respectively. No Class B or Class C ordinary shares were converted into Class A ordinary shares for the years ended December 31, 2018, 2019 and 2020, respectively. 21. SHAREHOLDERS’ EQUITY (CONTINUED) In November 2019, the Board of Directors of the Company authorized a share repurchase program (“2019 Share Repurchase Program”), pursuant to which the Company is authorized to repurchase its own issued and outstanding ADSs up to an aggregate value of US$100 million from the open market over a period of 18 months in accordance with applicable securities laws from time to time. As of December 31, 2019, the Company had not repurchased any ADSs under the 2019 Share Repurchase Program. During the year ended and as of December 31, 2020, the Company repurchased an aggregate of 6,395,050 ADSs, representing 6,395,050 Class A ordinary shares under the 2019 Share Repurchase Program, at an average price of US$4.69 per ADS, for RMB211,352 (US$32,391). These shares are recorded as Treasury shares on the consolidated balance sheets. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 22. RELATED PARTY TRANSACTIONS a) Related Parties Name of Related Parties Relationship with the Group Zhejiang Cainiao Supply Chain Management Co. Ltd (“Cainiao”) Entity controlled by a principal shareholder of the Group Alibaba Cloud Computing Co. Ltd (“Ali Cloud”) Entity controlled by a principal shareholder of the Group Alibaba.com Hong Kong Limited (“Alibaba.com”) Entity controlled by a principal shareholder of the Group Lazada Express Limited (“Lazada”) Entity controlled by a principal shareholder of the Group b) The Group had the following related party transactions: For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Rendering of express delivery and supply chain management services: Cainiao 652,352 814,855 808,308 123,879 Lazada — 10,697 125,561 19,243 652,352 825,552 933,869 143,122 For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Rental of warehouse as a lessee: Cainiao 9,076 9,916 18,061 2,768 22. RELATED PARTY TRANSACTIONS (CONTINUED) b) The Group had the following related party transactions: (continued) For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Operating costs paid on behalf of the Company: Cainiao 16,433 9,874 4,045 620 Ali Cloud — — 2,768 424 16,433 9,874 6,813 1,044 For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Commission fee paid to related party: Cainiao 3,489 160 — — For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Operating costs paid to related party: Ali Cloud 4,756 9,669 14,901 2,284 Cainiao — — 37,374 5,728 4,756 9,669 52,275 8,012 For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Issue convertible senior notes to related party: Alibaba.com — 687,677 1,061,421 162,670 For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Interest expense of convertible senior notes accrued to related party: Alibaba.com — 5,447 46,460 7,120 c) The Group had the following related party balances at the end of the year: As at December 31 2019 2020 2020 RMB RMB US$ Amounts due from related parties: Cainiao 241,021 232,110 35,573 Ali Cloud 388 8 1 Lazada 5,349 42,277 6,479 246,758 274,395 42,053 22. RELATED PARTY TRANSACTIONS (CONTINUED) c) The Group had the following related party balances at the end of the year: (continued) As at December 31 2019 2020 2020 RMB RMB US$ Amounts due to related parties: Cainiao 6,140 6,139 941 Alibaba.com 3,629 28,275 4,333 Ali Cloud — 1,209 185 9,769 35,623 5,459 As at December 31 2019 2020 2020 RMB RMB US$ Convertible senior notes held by related parties: Alibaba.com 680,104 1,617,846 247,946 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | 23. SEGMENT REPORTING Prior to December 31, 2019, the Group has determined that it operates in five operating segments: (1) Supply chain management services, (2) Express delivery services, (3) Freight delivery services, (4) Store+ services, and (5) Others. The “Others” category principally relates to finance leasing services, cross-border logistic coordination services and Ucargo transportation services. The operating segments also represented the reporting segments. The chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer. The CODM assess the performance of the operating segments based on the measures of revenues, costs of revenues and gross profit. Commencing on January 1, 2020, the Group changed its segment disclosure to separate “Others” segment into Global logistics services, Capital service and Ucargo service. In addition, the CODM added the net profit as the performance measurement when evaluating operating segments performance. As a result, the Group reports segments as six operating segments: (1) Express delivery services(“Express delivery”), (2) Freight delivery services(“Freight delivery”), (3) Supply chain management services(“Supply chain management”), (4) Global logistic services(“Global”), (5) Ucargo services(“Ucargo”), and (6) Capital services(“Capital”). This change in segment reporting aligns with the manner in which the Group’s CODM currently receives and uses financial information to allocate resource and evaluate the performance of reporting segments. Other than the information provided below, the CODM does not use any other measures by segments. The Group currently does not allocate assets to its operating segments, as the CODM does not use such information to allocate resources to or evaluate the performance of the operating segments. As most of the Group’s long-lived assets are located in the PRC and most of the Group’s revenues are derived from the PRC, no geographical information is presented. The Group retrospectively revised prior period segment information to conform to current period presentation. Further, because the results from our Store+ service business formerly reported as a separate reportable segment are currently reflected in our consolidated financial statements as discontinued operations for all periods presented, they are not reflected in the segment disclosures below. For further information, refer to Note 4. 23. SEGMENT REPORTING (CONTINUED) The table below provides a summary of the Group’s operating segment results for the years ended December 31, 2018, 2019 and 2020: For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Revenue: Express delivery 17,751,830 21,853,951 19,434,485 2,978,465 Freight delivery 4,115,606 5,233,542 5,163,882 791,400 Supply chain management 2,101,304 2,198,536 1,912,323 293,076 Global 162,968 336,874 777,657 119,181 Ucargo 2,414,169 3,233,887 2,871,850 440,130 Capital 168,299 205,203 211,021 32,340 Inter-segment* (1,598,199) (703,306) (376,189) (57,654) Total revenue 25,115,977 32,358,687 29,995,029 4,596,938 Cost of revenue: Express delivery 16,959,276 20,824,800 19,487,863 2,986,646 Freight delivery 3,963,172 4,944,124 5,070,567 777,098 Supply chain management 2,000,470 2,059,202 1,846,901 283,050 Global 167,963 371,404 875,734 134,212 Ucargo 2,387,839 3,175,187 2,825,775 433,069 Capital 48,015 52,001 26,225 4,019 Inter-segment* (1,596,776) (705,358) (376,176) (57,651) Total cost of revenue 23,929,959 30,721,360 29,756,889 4,560,443 Gross (loss)/profit: Express delivery 792,554 1,029,151 (53,378) (8,181) Freight delivery 152,434 289,418 93,315 14,302 Supply chain management 100,834 139,334 65,422 10,026 Global (4,995) (34,530) (98,077) (15,031) Ucargo 26,330 58,700 46,075 7,061 Capital 120,284 153,202 184,796 28,321 Inter-segment* (1,423) 2,052 (13) (3) Total gross profit 1,186,018 1,637,327 238,140 36,495 Net (loss)/profit: Express 377,684 461,490 (755,305) (115,756) Freight (13,536) 18,684 (199,826) (30,625) Supply Chain (44,348) (122,312) (175,072) (26,831) Global (74,812) (167,600) (251,511) (38,546) Ucargo (12,292) (22,056) (116,782) (17,898) Capital 110,064 125,966 93,981 14,403 Unallocated** (450,006) (121,470) (278,553) (42,692) Total net loss from continuing operations (107,246) 172,702 (1,683,068) (257,945) (*) (**) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 24. FAIR VALUE MEASUREMENTS The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments: Fair value measurements as at December 31, 2019 using Quoted prices in Significant Significant active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total RMB RMB RMB RMB Non-recurring fair value measurement for: Long-term investments — — 119,927 119,927 Fair value measurements as at December 31, 2020 using Quoted prices in Significant Significant active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total RMB RMB RMB RMB Non-recurring fair value measurement for: Long-term investments — — 110,677 110,677 For equity securities accounted for under the measurement alternative, when there are observable price changes in orderly transactions for identical or similar investments of the same issuer, the investments are re-measured to fair value (Note 11). The non-recurring fair value measurements to the carrying amount of an investment usually requires management to estimate a price adjustment for the different rights and obligations between a similar instrument of the same issuer with an observable price change in an orderly transaction and the investment held by the Company. These non-recurring fair value measurements were measured as of the observable transaction dates. The valuation methodologies involved require management to use the observable transaction price at the transaction date and other unobservable inputs (level 3) such as expected volatility and probability of exit events as it relates to liquidation and redemption preferences. When there is impairment of equity securities accounted for under the measurement alternative and equity method investments, the non-recurring fair value measurements are measured at the date of impairment. Estimating the fair value of investees without observable market prices is highly judgmental due to the subjectivity of the unobservable inputs (level 3) used in the valuation methodologies used to determine fair value, especially considering the increased market volatility in the global financial markets after the COVID-19 outbreak. The Company uses valuation methodologies, primarily the Black-Scholes model, which requires management to use unobservable inputs (level 3) such as selection of comparable companies, expected volatility, and probability of exit events as it relates to liquidation and redemption preferences when applicable. These unobservable inputs and resulting fair value estimates may be affected by unexpected changes in future market or economic conditions. The fair value information presented is not as of the period’s end, and is sensitive to changes in the unobservable inputs used to determine fair value and such changes could result in the fair value at the reporting date to be different from the fair value presented. The Group recognized an unrealized gain of RMB64,628, RMB14,155 and RMB18,687 (US$2,864) for measuring equity investments at fair value using the measurement alternative resulting from the observable price changes occurring in the years ended December 31, 2018, 2019 and 2020, respectively. The Group had no financial assets and liabilities measured and recorded at fair value on a recurring basis as of December 31, 2019 and 2020. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 25. COMMITMENTS AND CONTINGENCIES Capital expenditure commitments The Group has commitments for the construction of warehouses and equipment of RMB1,316,659 (US$201,787) at December 31, 2020, which are scheduled to be paid within one year. Contingencies From time to time, the Group is subject to legal proceedings, investigations, and claims incidental to the conduct of its business. The Group is currently not involved in any legal or administrative proceedings that may have a material adverse impact on the Group’s business, financial position or results of operations. |
EMPLOYEE DEFINED CONTRIBUTION P
EMPLOYEE DEFINED CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2020 | |
EMPLOYEE DEFINED CONTRIBUTION PLAN | |
EMPLOYEE DEFINED CONTRIBUTION PLAN | 26. EMPLOYEE DEFINED CONTRIBUTION PLAN Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the Group’s PRC subsidiaries, VIEs and its subsidiaries make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were RMB185,395, RMB182,927 and RMB170,351 (US$26,107) for the years ended December 31, 2018, 2019 and 2020, respectively. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME. | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | 27. ACCUMULATED OTHER COMPREHENSIVE INCOME RMB Balance as of January 1 , 2018 12,333 Foreign currency translation adjustments, net of tax of nil 111,590 Balance as of December 31, 2018 123,923 Foreign currency translation adjustments, net of tax of nil 39,273 Balance as of December 31, 2019 163,196 Foreign currency translation adjustments, net of tax of nil (11,519) Balance as of December 31, 2020 151,677 Balance as of December 31, 2020 (US$) 23,246 There have been no reclassifications out of accumulated other comprehensive income to net loss for all the periods presented. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENT | |
SUBSEQUENT EVENT | 28. SUBSEQUENT EVENTS On March 12, 2021, the Company entered into a strategic partnership agreement with an external asset management company through its subsidiary, BEST Finance. According to the agreement, the Company secured borrowings of RMB465,661 (US$71,366) through the securitization of certain financing receivables pertaining to its Capital business. Subsequent to year-end and up to the issuance date of these financial statements, the Company secured RMB580,000 (US$88,889) of short-term loans maturing in one year. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Dec. 31, 2020 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 29. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY Condensed Balance Sheets As at December 31 Notes 2019 2020 2020 RMB RMB US$ Current assets: Cash 9,933 33,310 5,105 Prepayments and other current assets 5,511 6,295 965 Total current assets 15,444 39,605 6,070 Non-current assets: Other non — 5,909 1,686 258 Investments in subsidiaries and VIEs 5,343,503 4,230,471 648,348 Total non — current assets: 5,349,412 4,232,157 648,606 Total assets 5,364,856 4,271,762 654,676 Current liabilities: Accrued liabilities and other payables 8,805 39,302 6,023 Non-current liabilities: Long-term payable due to subsidiaries 74,931 221,874 34,003 Convertible senior notes held by related parties 680,104 1,617,846 247,946 Convertible senior notes held by third parties 680,104 642,121 98,409 Total non-current liabilities 1,435,139 2,481,841 380,358 Total liabilities 1,443,944 2,521,143 386,381 Shareholders’ equity Class A ordinary shares (par value of US $0.01 per share as of December 31, 2019 and 2020; 1,858,134,053 shares authorized as of December 31, 2019 and 2020; 250,648,452 and 250,648,452 shares issued and outstanding as of December 31, 2019 and 2020, respectively) 21 16,532 16,532 2,534 Class B ordinary shares (par value of US$0.01 per share as of December 31, 2019 and 2020; 94,075,249 shares authorized, issued and outstanding as of December 31, 2019 and 2020, respectively) 21 6,178 6,178 947 Class C ordinary shares (par value of US$0.01 per share as of December 31, 2019 and 2020; 47,790,698 shares authorized, issued and outstanding as of December 31, 2019 and 2020, respectively) 21 3,278 3,278 502 Treasury shares — (211,352) (32,391) Statutory reserves 7,865 8,038 1,232 Additional paid in capital 19,353,400 19,487,232 2,986,549 Accumulated deficit (15,629,537) (17,710,964) (2,714,324) Accumulated other comprehensive income 163,196 151,677 23,246 BEST Inc. shareholders’ equity 3,920,912 1,750,619 268,295 Total liabilities and shareholders’ equity 5,364,856 4,271,762 654,676 Condensed Statements of Comprehensive Loss For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Operating expenses General and administrative expenses (6,610) (2,698) (8,620) (1,321) Operating loss (6,610) (2,698) (8,620) (1,321) Share of losses of subsidiaries and VIEs (501,396) (188,962) (1,951,902) (299,141) Interest expense — (10,756) (64,986) (9,960) Interest income 18 — — — Net loss attributable to ordinary shareholders (507,988) (202,416) (2,025,508) (310,422) Other comprehensive income/(loss), net of tax of nil Foreign currency translation adjustments 111,590 39,273 (11,519) (1,765) Comprehensive loss (396,398) (163,143) (2,037,027) (312,187) 29. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (CONTINUED) Condensed Statements of Cash Flows For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Net cash generate from/(used in) operating activities 3,132 4,218 (289,910) (44,430) Net cash used in investing activities (41,166) (1,224,149) (534,059) (81,848) Net cash generated from financing activities 4,249 1,224,514 847,346 129,861 Net (decrease)/increase in cash and cash equivalents (33,785) 4,583 23,377 3,583 Cash and cash equivalents at beginning of the year 39,135 5,350 9,933 1,522 Cash and cash equivalents at end of the year 5,350 9,933 33,310 5,105 Basis of presentation For the presentation of the parent company only condensed financial information, the Company records its investments in subsidiaries and VIEs under the equity method of accounting as prescribed in ASC 323. Such investments are presented on the condensed balance sheets as “Investments in subsidiaries and VIEs” and the subsidiaries’ and VIE’s losses as “Share of losses of subsidiaries and VIEs” on the condensed statements of comprehensive loss. The subsidiaries did not pay any dividends to the Company for the periods presented. The Company does not have significant commitments or long-term obligations as of the period end other than those presented. The parent company only financial statements should be read in conjunction with the Company’s consolidated financial statements . |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Group include the financial statements of the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries for which the Company is the primary beneficiary. All significant intercompany balances and transactions between the Company, its subsidiaries and VIEs have been eliminated on consolidation. |
Liquidity and Going Concern | Liquidity and Going Concern As reflected in the Group’s financial statements, for the year ended December 31, 2020, the Group has incurred net losses from continuing operations of RMB 1,638,068 These adverse conditions indicate there is substantial doubt about the Group’s ability to continue as a going concern. Management has developed the following plans to improve these conditions: (i) implement various measures in its strategic refocusing plan which includes execution of the wind-down plan for the Store+ segment from late 2020 and suspension of the provision of certain fleet and equipment lease services under BEST Capital for the foreseeable future; (ii) realign its businesses to adapt to the evolving competitive market conditions and execute additional measures to manage and reduce its costs and expenditures to better improve operating cash flows; and (iii) seek other strategic alternatives in certain business segments or raise additional financing in the near term. There is uncertainty surrounding the Group’s ability to successfully execute its strategic refocusing plan and generate sufficient operating cashflows in the current environment due to the unpredictability of the continued impact of the COVID-19 outbreak to the PRC and global economy and the duration of the current price war in the express delivery services segment. Further, as described in Note 28, subsequent to December 31, 2020, the Group secured borrowings of RMB465,661 (US$71,366) through the securitization of certain financing receivables pertaining to its BEST Capital business and about RMB578,136 (US$88,603) of short-term bank loans maturing in one year, which allows the Group to reinforce its refocusing plan and enhance liquidity. Although the Group has achieved encouraging initial results from the execution of its strategic refocusing plan and reduced its costs and expenditures in the first quarter of 2021 for certain business segments, if the Group is unsuccessful in its efforts or is unable to seek other strategic alternatives or raise additional financing in the near term, the Group may be required to significantly reduce or scale back its operations. The accompanying consolidated financial statements have been prepared assuming the Company will continue to operate as a going concern, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classifications of liabilities that may be necessary should the Group be unable to continue as a going concern. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in the Group’s financial statements include, but are not limited to, allowance for credit losses, the estimated fair value less costs to sell for assets and liabilities of a business or asset group held for sale, cashflow projections used by the Group in its going concern assessment, fair value measurements of equity instruments without readily determinable fair values, incremental borrowing rates for operating lease liabilities, standalone selling prices related to lease and non-lease components in the Company’s lease arrangements, useful lives of long-lived assets, the purchase price allocation with respect to business combinations, impairment of long-lived assets and goodwill, realization of deferred tax assets, uncertain tax positions and share-based compensation. Management bases the estimates on historical experience and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from those estimates. |
Assets held for sale | Assets held for sale A long-lived asset (or disposal group) to be disposed of by sale (including an asset group considered a component of an entity) is considered held for sale when all of the following criteria for a qualifying plan of sale are met: ● Management, having the authority to approve the action, commits to a plan to sell the asset or disposal group; ● The asset or disposal group is available for immediate sale (i.e., a seller currently has the intent and ability to transfer the asset (group) to a buyer) in its present condition, subject only to conditions that are usual and customary for sales of such assets or disposal groups; ● An active program to locate a buyer and other actions required to complete the plan to sell have been initiated; ● The sale of the asset or disposal group is probable (i.e., likely to occur) and the transfer is expected to qualify for recognition as a completed sale within one year; ● The long-lived asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and ● Actions necessary to complete the plan indicate that it is unlikely significant changes to the plan will be made or that the plan will be withdrawn. The Group initially measures the assets and liabilities of a business or asset group that are held for sale at the lower of their carrying amount or fair value less costs to sell. A loss is recognized for any initial adjustment of the disposal group’s carrying amount to its fair value less costs to sell in the period the held for sale criteria are met. Long-lived assets are not depreciated/amortized while they are classified as held for sale. The Group continues to accrue interest and other expenses attributable to the liabilities of a disposal group classified as held for sale. The fair value less costs to sell of the asset or disposal group is assessed each reporting period it remains classified as held for sale and subsequent changes in fair value less costs to sell (increases or decreases) are reported as an adjustment to it carrying amount, except that the adjusted carrying amount should not exceed the carrying amount of the asset or disposal group at the time it was initially classified as held for sale. The Group presents assets and liabilities as held for sale in the period that a disposal group meets the held for sale criteria and for all prior periods presented. |
Discontinued operations | Discontinued operations The Group classifies the results of a component (or group of components) to be disposed (“disposal group”) as a discontinued operation when the disposal group meets the held for sale criteria, is disposed of by sale or is disposed of other than by sale (e.g. abandonment) and when the disposal group represents a strategic shift that has, or will have, a major effect on the Group’s operations and its financial results. The Group reports the operating results and cash flows related to the disposal group as discontinued operations for all periods presented in the consolidated statements of comprehensive loss and consolidated statements of cash flows, respectively. |
Convenience translation | Convenience translation Amounts in U.S. dollars are presented for the convenience of the reader and are translated at the noon buying rate of RMB6.5250 per US$1.00 on December 31, 2020 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Foreign currency | Foreign currency The functional currency of the Company’s subsidiaries located outside the PRC is determined based on the criteria of ASC Topic 830, Foreign Currency Matters . The Company’s subsidiaries, VIEs and VIEs’ subsidies located in the PRC determined their functional currency to be Renminbi (the “RMB”). The Company uses the RMB as its reporting currency. Each entity in the Group maintains its financial records in its own functional currency. Transactions denominated in foreign currencies are measured at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are remeasured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical cost in foreign currency are remeasured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included in the consolidated statements of comprehensive loss. The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive income, a component of shareholders’ equity. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits or other highly liquid investments placed with banks or other financial institutions which are unrestricted as to withdrawal and use and have original maturities of less than three months. |
Restricted cash | Restricted cash The Group’s restricted cash mainly represents (a) deposits held in designated bank accounts for issuance of notes payable, short-term loans and long-term loans; (b) security deposits required by the Group’s operating leases for sortation centers and warehouses; and (c) deposits held in a designated bank account of the Plans which can only be utilized for repayment of Plans when there is default of the underlying lease rental and other financing receivables (Note 15). As of December 31, 2019 and December 31,2020, the restricted cash related to the deposits held in designated bank accounts as pledged security of notes payable was RMB135,663 and RMB847,326 (US$129,858), respectively. The restricted cash related to deposits held in designated bank accounts as pledged security of short-term loans and long-term loans are disclosed in Note 13. |
Short-term investments | Short-term investments The Group’s short-term investments comprise primarily of cash deposits at fixed or floating rates based on daily bank deposit rates with maturities ranging from three months to one year. |
Adoption of ASU 2016-13 | Adoption of ASU 2016-13 On January 1,2020, the Group adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Accounts receivable and notes receivable, and allowance for doubtful accounts | Accounts receivable and notes receivable, and allowance for credit losses Prior to the Company’s adoption of ASU 2016-13, accounts and notes receivable are carried at net realizable value. An allowance for credit losses is recorded when collection of the full amount is no longer probable. In evaluating the collectability of receivable balances, the Group considers specific evidence including the aging of the receivable, the customer’s payment history, its current credit-worthiness and current economic trends. Accounts receivable are recognized and carried at the original invoiced amount less an allowance for credit losses. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Accounts receivable and notes receivable, and allowance for credit losses (continued) After the adoption of ASU 2016-13, The Company maintains an allowance for credit losses and records the allowance for credit losses as an offset to accounts receivable and contract assets and the estimated credit losses charged to the allowance is classified as “General and administrative expenses” in the consolidated statements of comprehensive loss.The Company assesses collectability by reviewing accounts receivable and contract assets on a collective basis where similar characteristics exist, primarily based on similar business line, service or product offerings and on an individual basis when the Company identifies specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status, the age of the accounts receivable balances and contract assets balances, credit quality of the Company’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. Accounts and notes receivable are written off after all collection efforts have ceased. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated Useful Life Machinery and electronic equipment 3 - 10 years Motor vehicles 3 years Leasehold improvements Lesser of useful life or lease term Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterments that extend the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive loss. Direct costs that are related to the construction of property and equipment, and incurred in connection with bringing the assets to their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property and equipment, and the depreciation of these assets commences when the assets are ready for their intended use. |
Change in estimate useful life of certain machinery and electronic equipment | Change in estimated useful lives of certain machinery and electronic equipment In accordance with its policy, the Group reviews the estimated useful lives of its property and equipment on an ongoing basis. This review indicated that the actual lives of certain machinery and electronic equipment at its hubs and sortation centers were longer than the estimated useful lives used for depreciation purposes. As a result, effective July 1, 2019, the Group changed the estimated useful lives of these machinery and equipment from five years to ten years to better reflect the periods for which these assets are expected to remain in service. The effect of this change in estimate reduced depreciation expense, net loss, basic loss per share and diluted loss per share by RMB94,984, RMB94,984, RMB0.24 and RMB0.24, respectively in 2019. |
Business Combinations | Business Combinations The Group accounts for its business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines the discount rates to be used based on the risk inherent in the related entity’s current business model and industry comparisons. |
Goodwill | Goodwill The Group assesses goodwill for impairment in accordance with ASC 350 20, Intangibles—Goodwill and Other: Goodwill The Group has determined it has six reporting units (that also represent operating segments) in 2020, which excludes the former Store+ reporting unit which is reported as discontinue operations in the consolidated statements of comprehensive loss and the corresponding goodwill allocated to the Store+ reporting unit is classified as assets held for sale on the consolidated balance sheets (Note 4). Goodwill was allocated to four reporting units, including the Store+ reporting unit as of December 31, 2019 while the goodwill is allocated to three reporting units as of December 31, 2020, respectively (Note 12). The Company has the option to assess qualitative factors first to determine whether it is necessary to perform the quantitative test in accordance with ASC 350-20. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. If the Company believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test described above is required. Otherwise, no further testing is required. The Group adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Goodwill (continued) Prior to the adoption of ASU 2017-04, the Group performs two-step quantitative impairment test. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss in general and administrative expenses. Subsequent to the adoption of ASU 2017-04, the quantitative impairment test compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess. |
Intangible assets | Intangible assets Intangible assets with finite lives are carried at cost less accumulated amortization. All intangible assets with finite lives are amortized using the straight-line method over the estimated useful lives. Intangible assets have weighted average estimated useful lives from the date of purchase as follows: Category Estimated Useful Life Customer relationships 3.89 years Software 3.50 years Domain name 10 years Brand name 20 years Others 2.23 years |
Impairment of long-lived assets other than goodwill | Impairment of long-lived assets held for use other than goodwill The Group evaluates its long-lived assets, including fixed assets and intangible assets with finite lives, for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Impairment losses if any, are included in general and administrative expense. |
Fair value measurements of financial instruments | Fair value measurements of financial instruments The Company applies ASC 820, Fair Value Measurements and Disclosures ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Includes other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial instruments include cash and cash equivalents, restricted cash, accounts and notes receivables, certain other current assets, short-term investments, due from related parties, long-term investments, certain other non-current assets, accounts and notes payable, short-term bank loans, long-term bank loans, securitization debt, convertible senior notes and amounts due to related parties, certain other current liabilities and certain other non-current liabilities. The carrying values of the financial instruments included in current assets and liabilities approximate their fair values due to their short-term maturities. The carrying amount of other non-current financial assets, long-term bank loans, convertible senior notes and other non-current financial liabilities approximates its fair value due to the fact that the related interest rates approximate market rates for similar debt instruments of comparable maturities. The Group adopted ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement |
Inventories | Inventories Inventories are comprised of finished goods. The Group’s finished goods consists of low value consumables used in performing express delivery services, freight delivery services and supply chain management services such as handheld terminals, packing materials and uniforms emblazoned with the logo “BEST” (“accessories”). Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Cost of accessories are accounted for using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated market value due to the slow-moving merchandise and damaged goods. Write-downs are recorded in cost of revenue in the consolidated statements of comprehensive loss. |
Revenue recognition | Revenue recognition Revenue is recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. The Group presents value-added taxes as a reduction from revenues. The Group does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Group recognizes revenue at the amount to which it has the right to invoice for services performed. The Group’s revenue recognition policies are as follows: Express delivery services The Group provides express services that comprise of sorting, line-haul and feeder transportation services to its franchisee service stations, which are also the Group’s customers, when parcels (under 15 kg) are dropped off by the Group’s franchisee service station customers at the Group’s first hub or sortation center. The Group offers an integrated service to the franchised service stations that includes last-mile delivery service to end recipients and acts as the principal that is directly responsible for all parcels sent through its network, from the point when customers drop off the parcels at the Group’s first hub or sortation center all the way through to the point when the parcels are delivered to end recipients. Customers are required to prepay for express delivery services and the Group records such amounts as “customer advances and deposits and deferred revenue” in the consolidated balance sheets. The transaction price the Group earns from its customers are based on the parcel’s weight and route to the end recipient’s destination. In addition, the Group provides certain discounts, incentives and rebates based on explicitly agreed upon terms with its customers that can decrease the transaction price and estimates variable consideration based on the most likely amount to be provided. The amount of variable consideration included in the transaction price is limited to the amount that will not result in a significant revenue reversal. The Group reviews the estimate of variable consideration and updates the transaction price at the end of each reporting period as necessary. Uncertainties related to the estimates of variable consideration are resolved in a short time frame. Adjustments to variable consideration are recognized in the period the adjustments are identified and were insignificant for the periods presented. The Group’s express delivery services contracts with customers include only one performance obligation. Performance obligations are generally short-term in nature and with transit days being a week or less for each parcel. The Group recognizes revenue over time as customers receive the benefit of the Group’s services as the goods are delivered from one location to another. As such, express delivery services revenue is recognized proportionally as a parcel moves from origin to destination and the related costs are recognized as incurred. The Group uses an output method of progress based on time-in-transit as it best depicts the transfer of control to the customer. A minor percentage of the Group’s express delivery services are performed by the group through its integrated express delivery service network for direct customers (“direct customer express delivery services”), who are the senders of the parcels. The Group is directly responsible for the parcel from the point it is received from the senders all the way through the point when the parcels are delivered to end recipients. Direct customer express delivery services revenue is recognized proportionally as parcels are transported to end recipients and the related costs are recognized as incurred. Express delivery services revenue also includes initial non-refundable franchise fees. The initial non-refundable franchise fees are recognized over the franchise period due to the franchisees’ rights to access the Group’s logos and brand names which are considered symbolic intellectual properties. The initial non-refundable franchise fees are negotiated under a separate agreement and represent a very small percentage of revenue for all periods presented. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Freight delivery services Similar to express delivery services, the Group provides freight services that comprise of sorting, line-haul and feeder transportation services mainly to its franchisees, which are also the Group’s customers. The Group offers an integrated service to franchisee service stations that includes last-mile delivery service to end recipients and acts as the principal that is directly responsible for all shipments sent through its network, from the point when customers drop off the shipments at the Group’s first hub or sortation center all the way through to the point when the shipments are delivered to end recipients. Customers are required to prepay for freight delivery services and the Group records such amounts as “Customer advances and deposits and deferred revenue” in the consolidated balance sheets. The transaction price the Group earns from its customers are based on the shipment’s weight and route to the end recipient’s destination. The Group’s freight delivery services contracts with customers include only one performance obligation. Performance obligations are generally short-term in nature with transit days being a week or less for each shipment. The Group recognizes revenue over time as customers receive the benefit of the Group’s services as the goods are shipped from one location to another. As such, freight delivery services revenue is recognized proportionally as a shipment moves from origin to destination and the related costs are recognized as incurred. The Group uses an output method of progress based on time-in-transit as it best depicts the transfer of control to the customer. Freight delivery services revenue also includes initial non-refundable franchise fees. The initial non-refundable franchise fees are recognized over the franchise period due to the franchisees’ rights to access the Group’s logos and brand names which are considered symbolic intellectual properties. The initial non-refundable franchise fees are negotiated under a separate agreement and represent a very small percentage of revenue for all periods presented. Supply chain management services The Group provide warehouse management, order fulfillment services and transportation services to its offline and online enterprise customers (“enterprise customers”). The Group enters into supply chain warehouse management service agreements with these customers to provide warehouse management and order fulfillment services through its self-operated order fulfillment centers and also enters into transportation services agreements to provide transportation services. The majority of these contracts having an effective term of one year. Order fulfillment services revenue is generated from various service fees charged on a volume basis in connection with various order fulfillment services, which may include in-warehouse processing, order fulfillment, express delivery, freight delivery and other value-added services. Pursuant to the warehouse management service agreements and transportation services agreements, enterprise customers have the right to terminate the contracts by providing a one-month advance notice. Therefore, even though the contract term for the majority of the contracts is one year, due to the termination rights provided to enterprise customers, warehouse management service agreements and transportation services agreements are considered month-to-month service contracts. Enterprise customers are billed on a monthly basis and make payments according to their granted credit terms which ranges from 5 to 120 days. Under some situations, enterprise customers may request to add a transportation route or increase the warehouse rental space by entering into a separate contract with the Group. The additional services are considered distinct and the service fees are priced at their standalone selling prices, i.e. they cannot be purchased at a significant or incremental discount. Therefore, the Group accounts for this type of contract modification as a separate contract and the revenue recognized to date on the original contract is not adjusted. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue recognition (continued) Supply chain management services (continued) The warehouse management service agreements comprise various service offerings that can be purchased at the option of the customer. Although the service options are interrelated, none of the services modify the other services and they are not integrated to provide a combined output. Each of the service options is substantive and the enterprise customers cannot purchase each additional service at a significant and incremental discount. Therefore, each service is accounted for as a separate performance obligation. The Group is the primary obligor and does not outsource any portion of the order fulfillment services to supply chain franchisee partners. The Group recognizes warehouse management and order fulfillment services revenue upon completion of the services as that is when the Group transfers control of the services and has right to payment. For transportation services, the Group provides the service of arranging transportation and coordinating shipments to and from locations designated by its enterprise customers. Each transportation order for delivery of goods from origin to destination is considered a performance obligation. Performance obligations are generally short-term in nature with transit days being a week or less for each shipment. The Group recognizes transportation services revenue over time as customers receive the benefit of the services as the goods are shipped from origin to destination. As such, transportation services revenue is recognized proportionally as a shipment moves from origin to destination and the related costs are recognized as incurred. The Group use an output method of progress based on time-in-transit as it best depicts the transfer of control to the customer. A small percentage of revenue is also earned from supply chain franchisee partners that can access the Group’s supply chain network. These franchisee partners pay an initial non-refundable fee for a comprehensive operating manual and orientation training, as well as an agreed system usage fee for each order processed through the Group’s supply chain network. The initial non-refundable fees and system usage fees were insignificant for all periods presented. Store+ services (now reflected as discontinued operations) The Group recognizes revenue upon the delivery of the consumer goods to its convenience store membership customers. For the Group’s self-operated convenience stores, revenue recognized upon the sales of merchandise to end consumers. The Group is the principal to the transaction for the sales of customer goods and merchandise and revenue from these transactions are recognized on a gross basis. Transfer of control occurs at a point in time once delivery has been completed as the Group has transferred control of the promised goods to the customer. Generally, customers are billed upon delivery of the consumer goods while convenience store customers make payment upon checkout of merchandise. Global logistics services The Group provides international logistic services in multiple countries and regions across North America, Europe and Asia, such as cross-border logistic coordination services and express delivery services. Revenue is recognized proportionally as a shipment moves from origin to destination using an output method of progress based on time-in-transit while the related costs are recognized as incurred. Capital services The Group serves as a financing platform to provide tailored financing solutions to BEST’s ecosystem participants, such as fleet and equipment financing lease service and factoring services. Revenue generated from provision of capital services primarily consists of Interest income on lease rental and other financing receivables, which is recognized as revenue using the effective interest rate method. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue recognition (continued) Ucargo services The Group services as a truckload capacity brokerage platform to provide truckload capacity sourcing solutions via real-time bidding to transportation service providers and customers. The Group is the principal to the transaction for these services and revenue from these transactions is recognized on a gross basis. Revenue is recognized proportionally as a shipment moves from origin to destination using an output method of progress based on time-in-transit while the related costs are recognized as incurred. Contract assets and liabilities The Group enters into contracts with its customers, which may give rise to contract liabilities (deferred revenue) and contract assets (unbilled revenue). The payment terms and conditions within the Group’s contracts vary by the type of service and customers. When the timing of revenue recognition differs from the timing of payments made by customers, the Group recognizes either unbilled revenue (its performance precedes the billing date) or deferred revenue (customer payment is received in advance of performance). Contract assets represent unbilled amounts resulting from provision of transportation services as the Group has an unconditional right to payment only once all delivered goods reach their destination. Contract assets are classified as current and the full balance is reclassified to accounts receivables when the right to payment becomes unconditional. The balance of contract assets was insignificant as of December 31, 2019 and 2020. Contract liabilities are included in “Customer advances and deposits and deferred revenue” in the accompanying consolidated balance sheets. Contract liabilities represent the amount of consideration received upfront from customers related to in-transit shipments that has not yet been recognized as revenue based on our selected measure of progress and non-refundable franchise fees which are recognized over the franchise period. The Group classifies contract liabilities as current based on the timing of when the Group expects to recognize revenue, which typically occurs within a week after period-end. The balances of contract liabilities arising from contracts with customers as of December 31, 2019 and 2020 were as follows: Balance at Balance at Balance at December 31, December 31, December 31, 2019 2020 2020 RMB RMB US$ Contract liabilities 871,833 871,267 133,528 Revenue recognized in the years ended December 31, 2018, 2019 and 2020 that was included in the contract liability balance at the beginning of the period was RMB484,388, RMB588,181 and RMB773,912 (US$ 118,607). This revenue was driven primarily by express and freight delivery performance obligations being satisfied. For contract costs associated with obtaining a contract such as commissions incurred with obtaining a contract, the Group capitalizes the incremental contract costs and amortizes the capitalized contract costs using a straight-line basis over the term of the contract. The capitalized contract costs as of December 31, 2019 and 2020 and the related amortization for the years ended December 31, 2018, 2019 and 2020 was insignificant. |
Transfer of financial assets | Transfer of financial assets The Group accounts for transfers of financial assets in accordance with ASC 860, Transfers and Servicing Pursuant to ASC 860, the issuance of debt securities securitized by the Group’s lease rental and other financing receivables arising from its financing lease business (Note 15) and the factoring of intercompany note receivables to domestic banks (Note 13) do not constitute a sale of the underlying financial assets for accounting purposes due to the recourse obligations retained by the Group. Therefore, these transactions are accounted for as secured borrowings on the consolidated balance sheets and the financial assets are not derecognized. |
Cost of revenue | Cost of revenue Cost of revenue consists primarily of transportation costs including last-mile delivery service fees, cost of express and freight delivery accessories, operating costs for the delivery platforms, hubs and sortation centers, operating costs for the supply chain management network, purchased consumer goods, salaries and benefits of related personnel, depreciation, rental costs, and other related operating costs. |
Selling expenses | Selling expenses Advertising costs are expensed when incurred and are included in selling expenses in the consolidated statements of comprehensive loss. For the years ended December 31, 2018, 2019 and 2020, advertising expenses were RMB18,857, RMB34,888 and RMB54,970 (US$8,425), respectively. |
Government subsidies | Government subsidies Government subsidies primarily consist of financial subsidies received from local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. For the government subsidies with no further conditions to be met, the amounts are recorded as non-operating income in “Other income” if the subsidies are with non-operating nature, or as a reduction of specific cost or expenses if such subsidies are intended to compensate such amounts. The government subsidies with certain operating conditions are recorded as liabilities when received and will be recorded as “Other income” or as a reduction of specific cost or expenses when the conditions are met. |
Lessor | Leases On January 1, 2019, the Group adopted ASU 2016-02, Leases (Topic 842) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Leases (continued) The Group has elected the package of practical expedients permitted which allows the Group not to reassess the following at adoption date: (i) whether any expired or existing contracts are or contains a lease, (ii) the lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases (i.e. whether those costs qualify for capitalization under ASU 2016-02). The Group also elected the short-term lease exemption for certain classes of underlying assets including office space, warehouses and hub and sortation center facilities and equipment, with a lease term of 12 months or less. The Group determines whether an arrangement is or contains a lease at inception. The Group’s accounting policy effective on the adoption date of ASU 2016-02 is as follows: Sales-type, direct financing and operating leases as Lessor The Group classifies a lease as a sales-type lease when the lease meets any one of the following criteria at lease commencement: a. The lease transfers ownership of the underlying asset to the lessee by the end of the lease term. b. The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise. c. The lease term is for a major part of the remaining economic life of the underlying asset. d. The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset. e. The underlying asset is of such a specialized nature that it is expected to have no alternative use to the Company at the end of the lease term. For sales-type leases, when collectability is probable at lease commencement, the Group derecognizes the underlying asset and recognizes the net investment in the lease which is the sum of the lease receivable. Initial direct costs are expensed, at the commencement date, if the fair value of the underlying asset is different from its carrying amount. Interest income is recognized in financing income over the lease term using the interest method. When none of the criteria above are met, the Group classifies a lease as either a direct financing lease or an operating lease. The Group will classify the lease as a direct financing lease if (i) the present value of the sum of lease payments and any residual value guaranteed by the lessee and any other third party unrelated to the Group equals or exceeds substantially all the fair value of the underlying asset; and (ii) it is probable that the Group will collect the lease payments plus any amount necessary to satisfy a residual value guarantee. If both of the criteria above are not met, the Group will classify the lease as an operating lease. The new standard requires lessors within the scope of ASC 942, Financial Services – Depository and Lending 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Sale-leaseback transactions as Lessor When the Group enters into sale-leaseback transactions as lessor, it assesses whether a contract exists and whether the seller-lessee satisfies a performance obligation by transferring control of an asset when determining whether the transfer of an asset shall be accounted for as a sale of the asset. If the seller-lessee transfers the control of the leased asset to the Group, it accounts for the purchase of the leased asset in accordance with ASC360. The subsequent leaseback of the asset is accounted for in accordance with ASC842 in the same manner as any other lease. If the seller-lessee does not transfer the control of the leased asset to the Group, it is a failed sales-leaseback transaction which is accounted for as a financing. The Group does not recognize the transferred asset and records the amounts paid as other financing receivables for which the current portion is included in “Prepayments and other current assets” and the non-current portion is included in “Other non-current assets” in the Group’s consolidated balance sheets. |
Lessee | Financing lease and operating lease as Lessee The Group classifies a lease as a financing lease when the lease meets any one of the criteria specified as (a) to (e) in the “Sales-type, direct financing and operating leases as Lessor” policy at lease commencement. When none of the criteria are met, the Group classifies a lease as an operating lease. For both operating and financing leases, the Group records a lease liability and corresponding right-of-use (ROU) asset at lease commencement. Lease terms are based on the non-cancellable term of the lease and may contain options to extend the lease when it is reasonably certain that the Group will exercise the option. Lease liabilities represent the present value of the lease payments not yet paid, discounted using the discount rate for the lease at lease commencement. The Group estimates its incremental borrowing rate for its leases at the commencement date to determine the present value of future lease payments when the implicit rate is not readily determinable in the lease. In estimating its incremental borrowing rate, the Group considers its credit rating and publicly available data of borrowing rates for loans of similar amount, currency and term as the lease. Operating leases are presented as “Operating lease ROU assets” and “Operating lease liabilities”. Lease liabilities that become due within one year of the balance sheet date are classified as current liabilities. At lease commencement, operating lease ROU assets represent the right to use underlying assets for their respective lease terms and are recognized at amounts equal to the lease liabilities adjusted for any lease payments made prior to the lease commencement date, less any lease incentives received and any initial direct costs incurred by the Group. After lease commencement, operating lease liabilities are measured at the present value of the remaining lease payments using the discount rate determined at lease commencement. Operating lease ROU assets are measured at the amount of the lease liabilities and further adjusted for prepaid or accrued lease payments, the remaining balance of any lease incentives received, unamortized initial direct costs and impairment of the ROU assets, if any. Operating lease expense is recognized as a single cost on a straight-line basis over the lease term. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Financing lease and operating lease as Lessee (continued) Financing lease are included in “Property and equipment” and “Financing lease liabilities” on the consolidated balance sheets. Lease liabilities that become due within one year of the balance sheet date are classified as current liabilities. Financing lease ROU assets are amortized on a straight-line basis from the lease commencement date. After initial measurement, the carrying value of financing lease liabilities are increased to reflect interest at a constant rate and reduced to reflect any lease payments made during the period. Leases that have a term of 12 months or less at the commencement date (“short-term leases”) are not included in operating lease ROU assets and operating lease liabilities. Lease expense for the short-term leases are recognized on a straight-line basis over the lease term. Sale-leaseback transactions as Lessee When the Group enters into sale-leaseback transactions as a seller-lessee, it applies the requirements in ASC 606 by assessing whether a contract exists and whether the it satisfies a performance obligation by transferring control of an asset when determining whether the transfer of an asset shall be accounted for as a sale of the asset. If the Group transfers the control of an asset to the buyer-lessor, it accounts for the transfer of the asset as a sale and recognizes a corresponding gain or loss on disposal. The subsequent leaseback of the asset is accounted for in accordance with ASC842 in the same manner as any other lease. If the Group does not transfer the control of an asset to the buyer-lessor, the failed sale-leaseback transaction is accounted for as a financing. The Group does not derecognize the transferred asset and accounts for proceeds received as borrowings for which the current portion is included in “Accrued expenses and other liabilities” and the non-current portion is included in “Other non-current liabilities” in the Group’s consolidated balance sheets. |
Research and Development Expenses | Research and Development Expenses Research and development expenses primarily consist of salaries and benefits for research and development personnel and depreciation of property and equipment. The Group expenses research and development costs as they are incurred, except for capitalized system development costs in the development phase that fulfill the capitalization criteria and amortizes the capitalized costs over their estimated useful lives. The amount of research and development expenses qualified for capitalization during the year ended December 31, 2018, 2019 and 2020 was insignificant. |
Comprehensive loss | Comprehensive loss Comprehensive loss is defined as the changes in equity of the Group during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income |
Income taxes | Income taxes The Group follows the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes The Group accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties arising from underpayment of income taxes shall be computed in accordance with the related PRC tax law. The amount of interest expense is computed by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. Interest and penalties recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expense. The Group recognizes in its consolidated financial statements the impact of a tax position if a tax return position or future tax position is “more likely than not” to prevail based on the facts and technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The Group’s estimated liability for unrecognized tax benefits included in “Other non-current liabilities” in the accompanying consolidated balance sheets is periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The actual benefits ultimately realized may differ from the Group’s estimates. As each audit is concluded, adjustments, if any, are recorded in the Group’s consolidated financial statements. Additionally, in future periods, changes in facts, circumstances, and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur. |
Share-based compensation | Share-based compensation Awards granted to employees and non-employees The Group determines whether an award should be classified and accounted for as a liability award or equity award. All the Group’s share-based awards to employees and non-employees were classified as equity awards and are recognized in the consolidated financial statements based on their grant date fair values. For awards only with service conditions, the Group has elected to recognize compensation expense using the straight-line method for awards granted with graded vesting provided that the amount of compensation cost recognized at any date is at least equal to the portion of the grant date value of the options that are vested at that date. For awards with performance and service conditions, the Group uses the accelerated method for awards granted with graded vesting. The Group accounts for forfeitures as they occur. The Group, with the assistance of an independent third-party valuation firm, determined the fair value of the share options granted to employees and non-employees. The binomial option pricing model was applied in determining the estimated fair value of the options granted to employees and non-employees. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Share-based compensation (continued) Modification of awards A change in any of the terms or conditions of the awards is accounted for as a modification of the award. Incremental compensation cost is measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before its terms are modified, measured based on the fair value of the awards and other pertinent factors at the modification date. For vested awards, the Group recognizes incremental compensation cost in the period the modification occurs. For unvested awards, the Group recognizes over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. If the fair value of the modified award is lower than the fair value of the original award immediately before modification, the minimum compensation cost the Group recognizes is the cost of the original award. |
Long-term investments | Long-term investments The Group accounts for investments in an investee over which the Group does not have significant influence and which do not have readily determinable fair value using the measurement alternative, which is defined as cost, less impairments, adjusted by observable price changes. The Group makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss equal to the difference between the carrying value and fair value. |
Loss per share | Loss per share In accordance with ASC 260, Earnings Per Share 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Loss per share (continued) Diluted loss per share is calculated by dividing net loss 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. Ordinary equivalent shares consist of the ordinary shares issuable upon the conversion of the Group’s convertible senior notes using the if-converted method and ordinary shares issuable upon the exercise of the share options and vesting of restricted share units, using the treasury stock method. Ordinary share equivalents are excluded from the computation of diluted loss per share if their effects would be anti-dilutive. |
Impact of COVID-19 | Impact of COVID-19 During the year ended December 31, 2020, the Company’s operations has been affected by the COVID-19 pandemic. The Company’s express revenues declined compared to the prior period mainly caused by the lower productivity from late January to early March caused by the restriction of the transportation in domestic. The Company has also provided additional credit losses for accounts receivable and scrutinized its cashflow forecasts and forward-looking estimates when assessing the recoverability of long-lived assets and goodwill for the year ended December 31, 2020, due to the impact of COVID-19 and other factors. There are still uncertainties of COVID-19’s future impact, and the extent of the impact will depend on a number of factors, including the duration and severity of COVID-19, possibility of a second wave in China, the development and progress of distribution of COVID-19 vaccine and other medical treatment, the potential change in user behavior, especially on internet usage due to the prolonged impact of COVID-19, the actions taken by government authorities, particularly to contain the outbreak, stimulate the economy to improve business condition especially for SMEs, almost all of which are beyond the Company’s control. As a result, certain of the Company’s estimates and assumptions, including the allowance for credit losses, the valuation of certain equity investments, long-term investments, long-lived assets and goodwill subject to impairment assessments, require significant judgments and carry a higher degree of variabilities and volatilities that could result in material changes to the Company’s current estimates in future periods. |
Segment reporting | Segment reporting In accordance with ASC 280, Segment Reporting , operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM is the Chief Executive Officer and each of its major service lines is a discrete operating and reportable segment. There was a change to the Group’s disclosure for reportable segments in 2020 which is further disclosed in Note 23. |
Recent accounting pronouncements | Recent accounting pronouncements In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Recent accounting pronouncements (continued) In June 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Schedule of details of the Company's principal subsidiaries, VIE and VIE's subsidiaries | Place of Percentage of incorporation, equity interest registration and Date of attributable Name of Company business incorporation/acquisition to the Company Principal activities Subsidiaries: Eight Hundred Logistics Technologies Corporation British Virgin Islands May 22, 2007 100 % Investment holding (“BEST BVI”) (“BVI”) BEST Logistics Technologies Limited Hong Kong May 29, 2007 100 % Investment holding (“BEST HK”) (“HK”) BEST Capital Inc (“BEST Capital”). Cayman Islands December 13, 2017 100 % Investment holding BEST Capital Holding Limited BVI December 13, 2017 100 % Investment holding (“BEST Capital BVI”) BEST Store Network Limited (“Store Cayman”) Cayman Islands July 24, 2017 100 % Investment holding BEST Store Network Holding Limited BVI November 13, 2018 100 % Investment holding (“Store BVI”) BEST Store Network Management Limited HK November 16, 2018 100 % Investment holding (“Store HK”) BEST Capital Management Limited HK December 20, 2017 100 % Investment holding (“BEST Capital HK”) BEST Logistics Technologies (China) Co., Ltd. PRC April 23, 2008 100 % Freight delivery and Supply chain (“BEST China”) management services BEST Store Network (Hangzhou) Co., Ltd. PRC May16, 2013 100 % Store + services (“BEST Store”) Zhejiang BEST Technology Co., Ltd. PRC July 26, 2007 100 % Logistics technical services (“BEST Technology”) Xinyuan Financial Leasing (Zhejiang) Co., Ltd. PRC January 15, 2015 100 % Financial services (“BEST Finance”) BEST Logistics Technologies (Ningbo Free Trade Zone) Co., Ltd. PRC May 22, 2015 100 % Supply chain (“BEST Ningbo”) management services VIEs Hangzhou BEST Network Technologies Co., Ltd. PRC August 22, 2007 Nil Express delivery services (“BEST Network”) Hangzhou BEST Information Technology Services Co., Ltd. (“BEST Information Technology”) PRC October 23, 2019 Nil Ucargo transportation services Hangzhou Baijia Commercial consulting Co., Ltd PRC December 20, 2019 Nil Convenience store operations (“Hangzhou Baijia”) VIE’s subsidiaries: Sichuan Wowo Supermarket Chain Co., Ltd. PRC May 4, 2017 Nil Convenience store operations (“Wowo”) Shanxi Wowo Supermarket Chain Co., Ltd. PRC October 15, 2018 Nil Convenience store operations (“Shanxi Wowo”) BEST UCargo Technologies (Hangzhou) Co., Ltd PRC September 8, 2017 Nil Ucargo transportation services (“BEST Ucargo”) |
Schedule of carrying amounts of the assets, liabilities and the results of operations of the VIE and its subsidiaries | As at December 31 2019 2020 2020 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 610,189 265,500 40,689 Restricted cash 412,134 104,103 15,954 Accounts and notes receivables, net 224,705 213,851 32,774 Inventories 24,004 15,868 2,432 Prepayments and other current assets 1,415,859 1,924,356 294,921 Short-term investments 150,692 40,276 6,173 Amounts due from related parties 195,811 189,093 28,980 Assets held for sale 64,195 509,419 78,072 Total current assets 3,097,589 3,262,466 499,995 Non-current assets: Property and equipment, net 2,258,215 3,334,139 510,978 Intangible assets, net 2,838 3,314 508 Goodwill 229,096 229,096 35,110 Non-current deposits 37,191 35,149 5,387 Other non-current assets 269 169 26 Operating lease right-of-use assets 2,051,547 2,003,301 307,019 Restricted cash 38,096 376,535 57,707 Assets held for sale 496,173 — — Total non-current assets 5,113,425 5,981,703 916,735 Total assets 8,211,014 9,244,169 1,416,730 LIABILITIES Current liabilities: Short-term bank loans 819,000 954,250 146,245 Accounts and notes payable 2,071,644 2,696,142 413,203 Accrued expenses and other liabilities 1,183,998 1,255,516 192,417 Customer advances and deposits and deferred revenue 1,277,064 1,254,966 192,333 Operating lease liabilities 434,067 508,829 77,981 Amounts due to related parties 2,631,540 3,773,795 578,359 Income tax payable — 4 — Liabilities held for sale 74,242 193,432 29,645 Total current liabilities 8,491,555 10,636,934 1,630,183 Long-term bank loan — 961 147 Operating lease liabilities 1,716,027 1,610,698 246,850 Deferred tax liabilities 102 102 16 Other non-current liabilities 133,037 174,441 26,733 Liabilities held for sale 118,704 — — Total non-current liabilities 1,967,870 1,786,202 273,746 Total liabilities 10,459,425 12,423,136 1,903,929 For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Revenue from continuing operations 17,870,056 22,332,789 21,846,838 3,348,174 Revenue from discontinued operations 592,378 715,106 636,600 97,563 Total revenue 18,462,434 23,047,895 22,483,438 3,445,737 Net income/(loss) from continuing operations 142,063 97,916 (869,592) (133,271) Net loss from discontinued operations (25,174) (51,212) (66,250) (10,153) Net cash generated from/(used in) continuing operating activities 801,640 1,006,301 (65,529) (10,043) Net cash generated from/(used in) discontinued operating activities 26,743 (3,770) 381 58 Net cash used in continuing investing activities (804,205) (1,289,195) (1,166,284) (178,741) Net cash used in discontinued investing activities (16,285) (4,758) (735) (113) Net cash generated from continuing financing activities 165,376 1,030,277 917,146 140,559 Net cash generated from discontinued financing activities — — 5,000 766 |
Schedule of the assets, liabilities and cash flows of the consolidated Plan | As at December 31, As at December 31, 2019 2020 2020 RMB RMB US$ Amounts due from related parties 157,345 301,914 46,271 Total current assets 157,345 301,914 46,271 Restricted cash 40,000 90,000 13,793 Amounts due from related parties 140,000 230,000 35,249 Total non-current assets 180,000 320,000 49,042 Total assets 337,345 621,914 95,313 Securitization debt 107,820 96,829 14,840 Amounts due to related parties 49,525 205,085 31,431 Total current liabilities 157,345 301,914 46,271 Amounts due to related parties 180,000 320,000 49,042 Total non-current liabilities 180,000 320,000 49,042 Total liabilities 337,345 621,914 95,313 As at December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Net cash used in operating activities — (297,345) (234,569) (35,949) Net cash generated from financing activities — 337,345 284,569 43,612 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of estimated useful lives of assets | Category Estimated Useful Life Machinery and electronic equipment 3 - 10 years Motor vehicles 3 years Leasehold improvements Lesser of useful life or lease term |
Schedule of estimated useful lives of intangible assets | Category Estimated Useful Life Customer relationships 3.89 years Software 3.50 years Domain name 10 years Brand name 20 years Others 2.23 years |
Schedule of opening and closing balances of contract liabilities arising from contracts with customers | Balance at Balance at Balance at December 31, December 31, December 31, 2019 2020 2020 RMB RMB US$ Contract liabilities 871,833 871,267 133,528 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DISCONTINUED OPERATIONS | |
Schedule of assets, liabilities, statement of operations and cash flows of discontinued operations which were included in the Company's consolidated financial statements | As at December 31 2019 2020 2020 RMB RMB US$ Cash and cash equivalents 9,270 13,530 2,074 Accounts receivable, net 88 — — Inventories 33,523 34,015 5,213 Prepayments and other current assets 21,314 21,559 3,304 Property and equipment, net — 11,699 1,793 Intangible assets, net — 95,234 14,595 Goodwill — 201,668 30,907 Operating lease right-of-use assets — 126,937 19,454 Non-current deposits — 4,753 728 Total current assets classified as held for sale 64,195 509,395 78,068 Property and equipment, net 14,975 — — Intangible assets, net 101,179 — — Goodwill 201,668 — — Operating Lease right-of-use assets 169,789 — — Non-current Deposits 8,562 — — Total non-current assets classified as held for sale 496,173 — — 4. DISCONTINUED OPERATIONS (CONTINUED) As at December 31 2019 2020 2020 RMB RMB US$ Accounts and notes payable — 40,460 6,202 Customer advances and deposits and deferred revenue 880 1,515 232 Accrued expenses and other liabilities 13,585 18,142 2,780 Operating lease liabilities 59,777 109,822 16,831 Deferred tax liabilities — 23,493 3,600 Total current liabilities classified as held for sale 74,242 193,432 29,645 Operating lease liabilities 93,726 — — Deferred tax liabilities 24,978 — — Total non-current liabilities classified as held for sale 118,704 — — For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Revenue 2,845,002 2,817,202 2,200,559 337,250 Cost of revenue (2,589,883) (2,495,503) (1,918,462) (294,018) Gross profit 255,119 321,699 282,097 43,232 Selling expenses (522,872) (498,975) (444,845) (68,175) General and administrative expenses (134,033) (176,827) (171,454) (26,276) Research and development expenses — (39,158) (32,319) (4,953) Total operating expenses (656,905) (714,960) (648,618) (99,404) Loss from discontinued operations (401,786) (393,261) (366,521) (56,172) Foreign exchange gain/(loss) 1,091 (2,045) (3,715) (569) Other income 3,007 6,452 4,511 691 Other expense (2,070) (4,653) (3,916) (600) Loss before income taxes (399,758) (393,507) (369,641) (56,650) Income tax expense (1,387) 1,737 1,485 228 Net loss from discontinued operations (401,145) (391,770) (368,156) (56,422) |
ACCOUNTS AND NOTES RECEIVABLE_2
ACCOUNTS AND NOTES RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS AND NOTES RECEIVABLE, NET | |
Schedule of accounts and notes receivable, net | As at December 31 2019 2020 2020 RMB RMB US$ Accounts receivable 1,287,144 1,184,339 181,507 Notes receivable 28,003 48,746 7,471 Allowance for credit losses (86,152) (249,484) (38,235) Accounts and notes receivable, net 1,228,995 983,601 150,743 |
Schedule of movements in allowance for doubtful accounts | As at December 31 2018 2019 2020 2020 RMB RMB RMB US$ Balance at beginning of the year (5,794) (25,105) (86,152) (13,203) Adoption of ASU 2016-13 — — (43,724) (6,701) Additions (60,183) (105,984) (159,083) (24,381) Write-offs 40,872 44,937 39,475 6,050 Balance at end of the year (25,105) (86,152) (249,484) (38,235) |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, net | As at December 31 2019 2020 2020 RMB RMB US$ Machinery and electronic equipment 2,555,217 3,390,586 519,630 Leasehold improvements 1,176,201 1,331,472 204,057 Motor vehicles 4,952 121,072 18,555 Construction in progress 725,147 946,721 145,091 4,461,517 5,789,851 887,333 Less: accumulated depreciation (1,537,113) (1,710,616) (262,163) 2,924,404 4,079,235 625,170 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INTANGIBLE ASSETS, NET | |
Schedule of intangible assets, net | As at December 31 2019 2020 2020 RMB RMB US$ Customer relationships 10,449 10,449 1,601 Software 61,870 64,883 9,942 72,319 75,332 11,543 Less: accumulated amortization (51,911) (63,134) (9,674) 20,408 12,198 1,869 |
Schedule of estimated amortization expense relating to existing intangible assets | RMB USD 2021 6,241 957 2022 2,476 380 2023 1,001 153 2024 447 68 2025 448 69 10,613 1,627 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LEASES | |
Schedule of lease rental receivables | As at December 31 2019 2020 2020 RMB RMB US$ Current assets: Direct financing leases 402,633 369,147 56,574 Sales-type leases 80,730 127,980 19,614 483,363 497,127 76,188 Non-current assets: Direct financing leases 775,420 344,425 52,785 Sales-type leases 217,840 303,253 46,476 993,260 647,678 99,261 Total 1,476,623 1,144,805 175,449 10. LEASES (CONTINUED) Leases of motor vehicles and logistic equipment as Lessor (continued) |
Schedule of net investment in direct financing and sales-type leases | As at December 31 2019 2020 2020 RMB RMB US$ Total minimum lease payments receivable 1,693,161 1,296,869 198,754 Less: Executory costs — — — Minimum lease payments receivable 1,693,161 1,296,869 198,754 Less: Allowance for credit losses (11,014) (14,296) (2,191) Net minimum lease payments receivable 1,682,147 1,282,573 196,563 Unguaranteed residuals — — — Less: Unearned income (205,524) (137,768) (21,114) Net investment in financing leases 1,476,623 1,144,805 175,449 Current portion 483,363 497,127 76,188 Non-current portion 993,260 647,678 99,261 |
Schedule of future minimum lease payments to be received | As at December 31 2020 RMB US$ For the year ending December 31, 2021 464,432 71,179 For the year ending December 31, 2022 457,386 70,097 For the year ending December 31, 2023 195,797 30,007 For the year ending December 31, 2024 101,447 15,547 For the year ending December 31, 2025 46,974 7,199 Thereafter 16,537 2,534 Total minimum lease payments 1,282,573 196,563 Unearned income (137,768) (21,114) Net investment in direct financing and sales-type leases 1,144,805 175,449 |
Schedule of components of lease cost | For the years ended December 31 2019 2020 2020 RMB RMB US$ Operating lease cost 1,194,534 1,276,501 195,632 Short-term lease cost 124,269 162,342 24,880 Financing lease cost: Amortization of ROU assets 3,390 3,355 514 Interest 304 245 38 Total lease cost 1,322,497 1,442,443 221,064 |
Schedule of other information about leases for lessee | For the years ended December 31 2019 2020 2020 Other information RMB RMB US$ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1,191,587 1,429,951 219,150 Operating cash flows from financing leases 304 245 38 Financing cash flows from financing leases 1,215 1,179 181 ROU assets obtained in exchange for new operating lease liabilities 1,512,448 908,441 139,225 ROU obtained in exchange for new finance lease liabilities 1,054 2,023 310 Weighted-average remaining lease term (in years): Operating leases 5.41 3.94 Financing leases 2.75 3.25 Weighted-average discount rate: Operating leases 7.74 % 7.64 % Financing leases 7.38 % 5.19 % |
Schedule of future minimum lease payments for operating and financing leases | Operating Leases Financing leases RMB US$ RMB US$ For the year ended December 31,2021 1,207,647 185,080 1,753 267 For the year ended December 31,2022 1,033,372 158,371 1,231 189 For the year ended December 31,2023 876,146 134,275 989 152 For the year ended December 31,2024 672,721 103,099 532 81 For the year ended December 31,2025 422,324 64,724 115 18 Thereafter 571,516 87,589 — — Total minimum lease payments 4,783,726 733,138 4,620 707 Less: imputed interest 756,092 115,876 341 52 Total lease liability balance 4,027,634 617,262 4,279 655 Minimum payments related to leases not yet commenced as of December 31, 2020 749,130 114,809 — — |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL | |
Schedule of goodwill | Express Freight delivery delivery Global Total Balance as of December 31, 2019 241,623 5,580 42,115 289,318 Goodwill acquired — — 6,440 6,440 Balance as of December 31, 2020 241,623 5,580 48,555 295,758 Balance as of December 31, 2020 (US$) 37,030 855 7,442 45,327 |
SHORT-TERM AND LONG-TERM BANK_2
SHORT-TERM AND LONG-TERM BANK LOANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SHORT-TERM AND LONG-TERM BANK LOANS | |
Schedule of short-term and long-term bank loans | As at December 31 2019 2020 2020 RMB RMB US$ Short-term bank loans guaranteed by subsidiaries within the Group 960,000 954,000 146,207 Pledged short term bank loans 1,159,000 1,357,287 208,013 Secured bank borrowings 391,500 771,250 118,199 2,510,500 3,082,537 472,419 Long-term bank loans pledged by deposits — 78,548 12,038 Total 2,510,500 3,161,085 484,457 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER LIABILITIES. | |
Schedule of accrued expenses and other liabilities | As at December 31 2019 2020 2020 RMB RMB US$ Salary and welfare payable 1,222,363 1,253,014 192,033 Accrual for purchases of property and equipment 128,457 322,663 49,450 Accrued expenses 77,946 85,970 13,175 Borrowings for electronic machinery and equipment 40,036 106,911 16,385 Payable for business acquisitions 11,095 1,749 268 Others 526,152 737,610 113,044 2,006,049 2,507,917 384,355 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
TAXATION | |
Schedule of company's loss before income tax and share of net (loss) income of equity investees | For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ PRC (69,117) 205,593 (1,408,800) (215,914) Non-PRC (27,173) (12,509) (251,964) (38,612) (96,290) 193,084 (1,660,764) (254,526) |
Schedule of current and deferred components of income tax expense | For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Current income tax (14,806) (17,840) (22,952) (3,518) Deferred income tax 4,306 (2,187) 828 127 (10,500) (20,027) (22,124) (3,391) |
Schedule of reconciliation of the differences between PRC statutory tax rate and the Group's effective tax rate | For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Loss before income taxes and share of net loss of equity investees (96,290) 193,084 (1,660,764) (254,526) Income tax computed at the statutory tax rate of 25% 24,073 (48,271) 415,191 63,631 Non-deductible expenses (65,862) (57,784) (91,696) (14,054) Effect of different tax rates in different jurisdictions and preferential tax rate (4,826) (9,949) (48,650) (7,456) Research and development expenses deduction 12,248 19,552 21,834 3,346 Non-taxable income 17,097 17,489 11,152 1,709 Provision to return (8,319) (1,728) (7,426) (1,138) Deferred tax expense (4,598) 3,932 5,195 796 Tax rate change 16,771 (4,578) 18,594 2,850 Expired tax loss (13,482) — (70,662) (10,829) Change in valuation allowance 16,398 61,310 (275,656) (42,246) (10,500) (20,027) (22,124) (3,391) |
Schedule of components of deferred tax | As at December 31 2019 2020 2020 RMB RMB US$ Deferred tax assets, non-current Accrued expenses 295,818 302,615 46,378 Customer advances and deposits 34,571 28,177 4,318 Allowance for credit losses and inventory provision 28,165 73,186 11,216 Depreciation and amortization expense 101,565 53,606 8,215 Net operating losses carrying forward 452,014 722,348 110,705 Lease liabilities 1,091,096 1,006,909 154,316 Total deferred tax assets 2,003,229 2,186,841 335,148 Valuation allowance* (903,353) (1,179,009) (180,691) Total deferred tax assets net of valuation allowance 1,099,876 1,007,832 154,457 * The Group operates through subsidiaries, VIEs and subsidiaries of VIEs and valuation allowance is considered for each of the entities on an individual basis. The Group recorded valuation allowance against deferred tax assets of those entities that are in a three-year cumulative financial loss position and are not forecasting profits in the near future as of December 31, 2019 and 2020. In making such determination, the Group also evaluates a variety of factors including the Group’s operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. As at December 31 2019 2020 2020 RMB RMB US$ Deferred tax liabilities Fair value changes of equity investments (19,696) (18,900) (2,897) Accrued revenue recognition difference (27,926) (23,088) (3,538) Operating lease right-of-use assets (1,052,254) (965,844) (148,022) Long-lived assets arising from acquisitions (828) — — Total deferred tax liabilities (1,100,704) (1,007,832) (154,457) |
Schedule of roll-forward of unrecognized tax benefits | As at December 31 2019 2020 2020 RMB RMB US$ Beginning balance 132,808 191,473 29,345 Additions 64,410 24,691 3,783 Decreases (5,745) (47,514) (7,282) Ending balance 191,473 168,650 25,846 |
Earnings_(LOSS) PER SHARE (Tabl
Earnings/(LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings/(LOSS) PER SHARE | |
Schedule of basic and diluted loss per share | 2018 2018 2018 2019 2019 2019 2020 2020 2020 2020 2020 2020 Class A Class B Class C Class A Class B Class C Class A Class A Class B Class B Class C Class C RMB RMB RMB RMB RMB RMB RMB US$ RMB US$ RMB US$ Basic loss per share: Numerator: Net (loss)/Income from continuing operations attributable to ordinary shareholders—basic (67,413) (26,147) (13,283) 120,206 45,854 23,294 (1,050,575) (161,011) (402,371) (61,665) (204,406) (31,328) Loss from discontinued operations, net of tax (253,101) (98,172) (49,872) (248,704) (94,871) (48,195) (233,369) (35,765) (89,381) (13,699) (45,406) (6,958) Net loss attributable to ordinary shareholders—basic (320,514) (124,319) (63,155) (128,498) (49,017) (24,901) (1,283,944) (196,776) (491,752) (75,364) (249,812) (38,286) Denominator: Weighted average number of ordinary shares outstanding—basic 242,542,728 94,075,249 47,790,698 246,614,615 94,075,249 47,790,698 245,626,959 245,626,959 94,075,249 94,075,249 47,790,698 47,790,698 Continuing operations (0.28) (0.28) (0.28) 0.49 0.49 0.49 (4.28) (0.66) (4.28) (0.66) (4.28) (0.66) Discontinued operations (1.04) (1.04) (1.04) (1.01) (1.01) (1.01) (0.95) (0.14) (0.95) (0.14) (0.95) (0.14) Basic loss per share (1.32) (1.32) (1.32) (0.52) (0.52) (0.52) (5.23) (0.80) (5.23) (0.80) (5.23) (0.80) 19. Earnings/(LOSS) PER SHARE (CONTINUED) 2018 2018 2018 2019 2019 2019 2020 2020 2020 2020 2020 2020 Class A Class B Class C Class A Class B Class C Class A Class A Class B Class B Class C Class C RMB RMB RMB RMB RMB RMB RMB US$ RMB US$ RMB US$ Diluted loss per share: Numerator: Net (loss)/Income from continuing operations attributable to ordinary shareholders—basic (67,413) (26,147) (13,283) 120,206 45,854 23,294 (1,050,575) (161,011) (402,371) (61,665) (204,406) (31,328) Loss from discontinued operations, net of tax (253,101) (98,172) (49,872) (248,704) (94,871) (48,195) (233,369) (35,765) (89,381) (13,699) (45,406) (6,958) Net loss attributable to ordinary shareholders—basic (320,514) (124,319) (63,155) (128,498) (49,017) (24,901) (1,283,944) (196,776) (491,752) (75,364) (249,812) (38,286) Reallocation of net (loss)/income from continuing operations attributable to ordinary shareholders as a result of conversion of Class C and Class B to Class A ordinary shares (Note 21) (39,430) — — 69,148 — — (606,777) (92,993) — — — — Reallocation of net loss from discontinued operations, net of tax attributable to ordinary shareholders as a result of conversion of Class C and Class B to Class A ordinary shares (Note 21) (148,044) — — (143,066) — — (134,787) (20,657) — — — — Reallocation of net loss attributable to ordinary shareholders as a result of conversion of Class C and Class B to Class A ordinary shares (Note 21) (187,474) — — (73,918) — — (741,564) (113,650) — — — — Net loss attributable to ordinary shareholders—diluted (507,988) (124,319) (63,155) (202,416) (49,017) (24,901) (2,025,508) (310,426) (491,752) (75,364) (249,812) (38,286) Denominator: Weighted average number of ordinary shares outstanding—basic 242,542,728 94,075,249 47,790,698 246,614,615 94,075,249 47,790,698 245,626,959 245,626,959 94,075,249 94,075,249 47,790,698 47,790,698 Conversion of all outstanding share options, restricted share units (Note 20) — — — 4,673,685 — — — — — — — — Conversion of Class C and Class B to Class A ordinary shares (Note 21) 141,865,947 — — 141,865,947 — — 141,865,947 141,865,947 — — — — Weighted average number of ordinary shares for continuing operations outstanding - diluted 384,408,675 94,075,249 47,790,698 393,154,247 94,075,249 47,790,698 387,492,906 387,492,906 94,075,249 94,075,249 47,790,698 47,790,698 Weighted average number of ordinary shares for discontinued operations outstanding - diluted 384,408,675 94,075,249 47,790,698 388,480,562 94,075,249 47,790,698 387,492,906 387,492,906 94,075,249 94,075,249 47,790,698 47,790,698 Weighted average number of ordinary shares outstanding - diluted 384,408,675 94,075,249 47,790,698 388,480,562 94,075,249 47,790,698 387,492,906 387,492,906 94,075,249 94,075,249 47,790,698 47,790,698 Continuing operations (0.28) (0.28) (0.28) 0.48 0.48 0.48 (4.28) (0.66) (4.28) (0.66) (4.28) (0.66) Discontinued operations (1.04) (1.04) (1.04) (1.01) (1.01) (1.01) (0.95) (0.14) (0.95) (0.14) (0.95) (0.14) Diluted loss per share (1.32) (1.32) (1.32) (0.52) (0.52) (0.52) (5.23) (0.80) (5.23) (0.80) (5.23) (0.80) |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SHARE-BASED PAYMENTS | |
Schedule of assumptions used to estimate the fair value of the share options granted to employees and non-employees | For the years ended December 31, 2018 2019 2020 Risk-free interest rate 2.74% ~ 2.78% — — Expected volatility range 44.3% ~ 46.9% — — Suboptimal exercise factor 2.20 — — Fair market value per ordinary share US$8.30 ~ $9.55 — — |
Schedule of total share-based compensation expense recognized | For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Cost of revenue 2,003 1,771 2,400 368 Selling expenses 6,007 8,788 7,715 1,182 General and administrative expenses 87,011 73,925 111,773 17,130 Research and development expenses 9,115 7,209 7,763 1,190 Share-based compensation expenses from continuing operations 104,136 91,693 129,651 19,870 Share-based compensation expenses from discontinued operations 4,971 6,811 8,550 1,310 Total share-based compensation expenses 109,107 98,504 138,201 21,180 |
2008 Plan | |
SHARE-BASED PAYMENTS | |
Schedule of the employee share option activity | Weighted- Weighted- average Weighted- average remaining Aggregate Number of average grant-date contractual intrinsic options exercise price fair value term Value US$ US$ Years US$ Outstanding, December 31, 2019 2,791,458 0.75 6.65 12.95 14,430 Granted — — — Exercised (919,822) 0.75 6.52 Forfeited/Expired (67,180) 0.75 8.21 Outstanding, December 31, 2020 1,804,456 0.75 6.93 11.05 2,329 Vested and expected to vest at December 31, 2020 17,237,326 0.67 2.37 7.67 23,681 Exercisable at December 31, 2020 1,625,059 0.75 6.71 10.99 2,097 |
Schedule of the non-employee share option activity | Weighted ‑ Weighted ‑ average Weighted ‑ average remaining Aggregate Number of average grant ‑ date contractual intrinsic options exercise price fair value term Value US$ US$ Years US$ Outstanding, December 31, 2019 1,471,677 0.70 2.47 9.67 4,657 Granted — — — Exercised (30,500) 0.75 2.20 Forfeited — — — Outstanding, December 31, 2020 1,441,177 0.70 2.46 7.67 7,645 Vested and expected to vest at December 31, 2020 1,838,173 0.65 2.46 7.67 7,645 Exercisable at December 31, 2020 1,410,677 0.70 2.49 7.64 6,856 |
2017 Plan | |
SHARE-BASED PAYMENTS | |
Schedule of the Restricted Shares activity | Weighted- average Number of grant-date fair shares value US$ Outstanding, December 31, 2019 6,331,464 7.29 Granted 4,599,432 5.23 Vested and issued (1,729,254) 7.60 Forfeited (913,502) 6.79 Outstanding, December 31, 2020 8,288,140 6.14 Vested and expected to vest at December 31, 2020 6,581,734 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
Schedule of related parties, their related transactions and balances | a) Related Parties Name of Related Parties Relationship with the Group Zhejiang Cainiao Supply Chain Management Co. Ltd (“Cainiao”) Entity controlled by a principal shareholder of the Group Alibaba Cloud Computing Co. Ltd (“Ali Cloud”) Entity controlled by a principal shareholder of the Group Alibaba.com Hong Kong Limited (“Alibaba.com”) Entity controlled by a principal shareholder of the Group Lazada Express Limited (“Lazada”) Entity controlled by a principal shareholder of the Group b) The Group had the following related party transactions: For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Rendering of express delivery and supply chain management services: Cainiao 652,352 814,855 808,308 123,879 Lazada — 10,697 125,561 19,243 652,352 825,552 933,869 143,122 For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Rental of warehouse as a lessee: Cainiao 9,076 9,916 18,061 2,768 22. RELATED PARTY TRANSACTIONS (CONTINUED) b) The Group had the following related party transactions: (continued) For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Operating costs paid on behalf of the Company: Cainiao 16,433 9,874 4,045 620 Ali Cloud — — 2,768 424 16,433 9,874 6,813 1,044 For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Commission fee paid to related party: Cainiao 3,489 160 — — For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Operating costs paid to related party: Ali Cloud 4,756 9,669 14,901 2,284 Cainiao — — 37,374 5,728 4,756 9,669 52,275 8,012 For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Issue convertible senior notes to related party: Alibaba.com — 687,677 1,061,421 162,670 For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Interest expense of convertible senior notes accrued to related party: Alibaba.com — 5,447 46,460 7,120 c) The Group had the following related party balances at the end of the year: As at December 31 2019 2020 2020 RMB RMB US$ Amounts due from related parties: Cainiao 241,021 232,110 35,573 Ali Cloud 388 8 1 Lazada 5,349 42,277 6,479 246,758 274,395 42,053 22. RELATED PARTY TRANSACTIONS (CONTINUED) c) The Group had the following related party balances at the end of the year: (continued) As at December 31 2019 2020 2020 RMB RMB US$ Amounts due to related parties: Cainiao 6,140 6,139 941 Alibaba.com 3,629 28,275 4,333 Ali Cloud — 1,209 185 9,769 35,623 5,459 As at December 31 2019 2020 2020 RMB RMB US$ Convertible senior notes held by related parties: Alibaba.com 680,104 1,617,846 247,946 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT REPORTING | |
Schedule of Group's operating segment results | For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Revenue: Express delivery 17,751,830 21,853,951 19,434,485 2,978,465 Freight delivery 4,115,606 5,233,542 5,163,882 791,400 Supply chain management 2,101,304 2,198,536 1,912,323 293,076 Global 162,968 336,874 777,657 119,181 Ucargo 2,414,169 3,233,887 2,871,850 440,130 Capital 168,299 205,203 211,021 32,340 Inter-segment* (1,598,199) (703,306) (376,189) (57,654) Total revenue 25,115,977 32,358,687 29,995,029 4,596,938 Cost of revenue: Express delivery 16,959,276 20,824,800 19,487,863 2,986,646 Freight delivery 3,963,172 4,944,124 5,070,567 777,098 Supply chain management 2,000,470 2,059,202 1,846,901 283,050 Global 167,963 371,404 875,734 134,212 Ucargo 2,387,839 3,175,187 2,825,775 433,069 Capital 48,015 52,001 26,225 4,019 Inter-segment* (1,596,776) (705,358) (376,176) (57,651) Total cost of revenue 23,929,959 30,721,360 29,756,889 4,560,443 Gross (loss)/profit: Express delivery 792,554 1,029,151 (53,378) (8,181) Freight delivery 152,434 289,418 93,315 14,302 Supply chain management 100,834 139,334 65,422 10,026 Global (4,995) (34,530) (98,077) (15,031) Ucargo 26,330 58,700 46,075 7,061 Capital 120,284 153,202 184,796 28,321 Inter-segment* (1,423) 2,052 (13) (3) Total gross profit 1,186,018 1,637,327 238,140 36,495 Net (loss)/profit: Express 377,684 461,490 (755,305) (115,756) Freight (13,536) 18,684 (199,826) (30,625) Supply Chain (44,348) (122,312) (175,072) (26,831) Global (74,812) (167,600) (251,511) (38,546) Ucargo (12,292) (22,056) (116,782) (17,898) Capital 110,064 125,966 93,981 14,403 Unallocated** (450,006) (121,470) (278,553) (42,692) Total net loss from continuing operations (107,246) 172,702 (1,683,068) (257,945) (*) (**) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value measurement hierarchy of the financial instruments | Fair value measurements as at December 31, 2019 using Quoted prices in Significant Significant active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total RMB RMB RMB RMB Non-recurring fair value measurement for: Long-term investments — — 119,927 119,927 Fair value measurements as at December 31, 2020 using Quoted prices in Significant Significant active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total RMB RMB RMB RMB Non-recurring fair value measurement for: Long-term investments — — 110,677 110,677 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME. | |
Schedule of accumulated other comprehensive income | RMB Balance as of January 1 , 2018 12,333 Foreign currency translation adjustments, net of tax of nil 111,590 Balance as of December 31, 2018 123,923 Foreign currency translation adjustments, net of tax of nil 39,273 Balance as of December 31, 2019 163,196 Foreign currency translation adjustments, net of tax of nil (11,519) Balance as of December 31, 2020 151,677 Balance as of December 31, 2020 (US$) 23,246 |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
Schedule of Condensed Balance Sheets | As at December 31 Notes 2019 2020 2020 RMB RMB US$ Current assets: Cash 9,933 33,310 5,105 Prepayments and other current assets 5,511 6,295 965 Total current assets 15,444 39,605 6,070 Non-current assets: Other non — 5,909 1,686 258 Investments in subsidiaries and VIEs 5,343,503 4,230,471 648,348 Total non — current assets: 5,349,412 4,232,157 648,606 Total assets 5,364,856 4,271,762 654,676 Current liabilities: Accrued liabilities and other payables 8,805 39,302 6,023 Non-current liabilities: Long-term payable due to subsidiaries 74,931 221,874 34,003 Convertible senior notes held by related parties 680,104 1,617,846 247,946 Convertible senior notes held by third parties 680,104 642,121 98,409 Total non-current liabilities 1,435,139 2,481,841 380,358 Total liabilities 1,443,944 2,521,143 386,381 Shareholders’ equity Class A ordinary shares (par value of US $0.01 per share as of December 31, 2019 and 2020; 1,858,134,053 shares authorized as of December 31, 2019 and 2020; 250,648,452 and 250,648,452 shares issued and outstanding as of December 31, 2019 and 2020, respectively) 21 16,532 16,532 2,534 Class B ordinary shares (par value of US$0.01 per share as of December 31, 2019 and 2020; 94,075,249 shares authorized, issued and outstanding as of December 31, 2019 and 2020, respectively) 21 6,178 6,178 947 Class C ordinary shares (par value of US$0.01 per share as of December 31, 2019 and 2020; 47,790,698 shares authorized, issued and outstanding as of December 31, 2019 and 2020, respectively) 21 3,278 3,278 502 Treasury shares — (211,352) (32,391) Statutory reserves 7,865 8,038 1,232 Additional paid in capital 19,353,400 19,487,232 2,986,549 Accumulated deficit (15,629,537) (17,710,964) (2,714,324) Accumulated other comprehensive income 163,196 151,677 23,246 BEST Inc. shareholders’ equity 3,920,912 1,750,619 268,295 Total liabilities and shareholders’ equity 5,364,856 4,271,762 654,676 |
Schedule of Condensed Statements of Comprehensive Loss | For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Operating expenses General and administrative expenses (6,610) (2,698) (8,620) (1,321) Operating loss (6,610) (2,698) (8,620) (1,321) Share of losses of subsidiaries and VIEs (501,396) (188,962) (1,951,902) (299,141) Interest expense — (10,756) (64,986) (9,960) Interest income 18 — — — Net loss attributable to ordinary shareholders (507,988) (202,416) (2,025,508) (310,422) Other comprehensive income/(loss), net of tax of nil Foreign currency translation adjustments 111,590 39,273 (11,519) (1,765) Comprehensive loss (396,398) (163,143) (2,037,027) (312,187) |
Schedule of Condensed Statements of Cash Flows | For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Net cash generate from/(used in) operating activities 3,132 4,218 (289,910) (44,430) Net cash used in investing activities (41,166) (1,224,149) (534,059) (81,848) Net cash generated from financing activities 4,249 1,224,514 847,346 129,861 Net (decrease)/increase in cash and cash equivalents (33,785) 4,583 23,377 3,583 Cash and cash equivalents at beginning of the year 39,135 5,350 9,933 1,522 Cash and cash equivalents at end of the year 5,350 9,933 33,310 5,105 |
ORGANIZATION AND BASIS OF PRE_3
ORGANIZATION AND BASIS OF PRESENTATION (Details) | 12 Months Ended |
Dec. 31, 2020 | |
BEST BVI | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in subsidiary attributable to the Company | 100.00% |
BEST HK | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in subsidiary attributable to the Company | 100.00% |
BEST Capital | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in subsidiary attributable to the Company | 100.00% |
BEST Capital BVI | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in subsidiary attributable to the Company | 100.00% |
Store Cayman | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in subsidiary attributable to the Company | 100.00% |
Store BVI | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in subsidiary attributable to the Company | 100.00% |
Store HK | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in subsidiary attributable to the Company | 100.00% |
BEST Capital HK | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in subsidiary attributable to the Company | 100.00% |
BEST China | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in subsidiary attributable to the Company | 100.00% |
BEST Store | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in subsidiary attributable to the Company | 100.00% |
BEST Technology | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in subsidiary attributable to the Company | 100.00% |
BEST Finance | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in subsidiary attributable to the Company | 100.00% |
BEST Ningbo | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in subsidiary attributable to the Company | 100.00% |
BEST Network | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in VIE attributable to the Company | 0.00% |
BEST Information Technology | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in VIE attributable to the Company | 0.00% |
Hangzhou Baijia | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in VIE attributable to the Company | 0.00% |
Wowo | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in VIE attributable to the Company | 0.00% |
Shanxi Wowo | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in VIE attributable to the Company | 0.00% |
BEST Ucargo | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Percentage of equity interest in VIE attributable to the Company | 0.00% |
ORGANIZATION AND BASIS OF PRE_4
ORGANIZATION AND BASIS OF PRESENTATION - Contractual Agreements (Details) - BEST Network ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Contractual Agreements | |
Interest-free loans | ¥ 13,780 |
Exclusive Technical Support and Service Agreement | |
Contractual Agreements | |
Agreement term | 20 years |
ORGANIZATION AND BASIS OF PRE_5
ORGANIZATION AND BASIS OF PRESENTATION - Assets, liabilities and the results of operations of the VIE (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Current assets: | |||||
Cash and cash equivalents | ¥ 1,383,317 | ¥ 1,985,413 | ¥ 1,616,785 | $ 212,003 | |
Restricted cash | 2,102,426 | 1,786,832 | 322,211 | ||
Accounts and notes receivables, net | 983,601 | 1,228,995 | 150,743 | ||
Inventories | 44,133 | 106,483 | 6,764 | ||
Prepayments and other current assets | 3,304,670 | 2,728,812 | 506,460 | ||
Short-term investments | 268,647 | 1,057,598 | 41,172 | ||
Amounts due from related parties | 274,395 | 246,758 | 42,053 | ||
Assets held for sale | 509,395 | 64,195 | 78,068 | ||
Total current assets | 9,367,711 | 9,688,449 | 1,435,662 | ||
Non-current assets: | |||||
Property and equipment, net | 4,079,235 | 2,924,404 | 625,170 | ||
Intangible assets, net | 12,198 | 20,408 | 1,869 | ||
Goodwill | 295,758 | 289,318 | 45,327 | ||
Deposits for non-current assets | 129,645 | 118,629 | 19,869 | ||
Other non-current assets | 543,949 | 346,645 | 83,364 | ||
Operating lease right-of-use assets | 3,863,375 | 4,209,015 | 592,088 | ||
Restricted cash | 709,848 | 175,700 | 108,789 | ||
Assets held for sale | 496,173 | ||||
Total non-current assets | 10,503,112 | 9,804,407 | 1,609,672 | ||
Total assets | 19,870,823 | 19,492,856 | 3,045,334 | ||
Current liabilities: | |||||
Short-term bank loans | 3,082,537 | 2,510,500 | 472,419 | ||
Accounts and notes payable | 4,144,948 | 3,391,383 | 635,241 | ||
Accrued expenses and other liabilities | 2,507,917 | 2,006,049 | 384,355 | ||
Customer advances and deposits and deferred revenue | 1,526,051 | 1,488,630 | 233,878 | ||
Operating lease liabilities | 1,032,461 | 975,475 | 158,232 | ||
Amounts due to related parties | 35,623 | 9,769 | 5,459 | ||
Income tax payable | 14,550 | 7,358 | 2,230 | ||
Liabilities held for sale | 193,432 | 74,242 | 29,645 | ||
Total current liabilities | 12,634,249 | 10,569,668 | 1,936,283 | ||
Long-term bank loan | 78,548 | 0 | 12,038 | ||
Operating lease liabilities | 2,995,173 | 3,388,908 | 459,030 | ||
Deferred tax liabilities | 828 | ||||
Other non-current liabilities | 175,584 | 137,184 | 26,907 | ||
Liabilities held for sale | 118,704 | ||||
Total non-current liabilities | 5,511,970 | 5,007,904 | 844,743 | ||
Total liabilities | 18,146,219 | 15,577,572 | 2,781,026 | ||
Total revenue | 29,995,029 | $ 4,596,938 | 32,358,687 | 25,115,977 | |
Net (loss)/profit | (2,025,508) | (310,426) | (202,416) | (507,988) | |
Net cash generated from operating activities | (231,235) | (35,438) | 852,833 | 637,204 | |
Net profit/(loss) from continuing operations | (1,683,068) | (257,945) | 172,702 | (107,246) | |
Net loss from discontinued operations | (368,156) | (56,422) | (391,770) | (401,145) | |
Net cash generated from/(used in) continuing operating activities | 11,188 | 1,715 | 1,131,226 | 980,354 | |
Net cash used in discontinued operating activities | (242,423) | (37,153) | (278,393) | (343,150) | |
Net cash used in continuing investing activities | (872,353) | (133,694) | (1,918,474) | (1,199,223) | |
Net cash used in discontinued investing activities | (580) | (89) | 5,992 | (31,730) | |
Net cash generated from continuing financing activities | 1,760,684 | 269,837 | 2,377,212 | 189,249 | |
Net cash generated from discontinued financing activities | (212,500) | (32,567) | (365,400) | 367,900 | |
Net cash used in investing activities | (872,933) | (133,783) | (1,912,482) | (1,230,953) | |
Net cash generated from financing activities | 1,548,184 | $ 237,270 | 2,011,812 | ¥ 557,149 | |
Consolidated VIEs | |||||
Current assets: | |||||
Cash and cash equivalents | 265,500 | 610,189 | 40,689 | ||
Restricted cash | 104,103 | 412,134 | 15,954 | ||
Accounts and notes receivables, net | 213,851 | 224,705 | 32,774 | ||
Inventories | 15,868 | 24,004 | 2,432 | ||
Prepayments and other current assets | 1,924,356 | 1,415,859 | 294,921 | ||
Short-term investments | 40,276 | 150,692 | 6,173 | ||
Amounts due from related parties | 189,093 | 195,811 | 28,980 | ||
Assets held for sale | 509,419 | 64,195 | 78,072 | ||
Total current assets | 3,262,466 | 3,097,589 | 499,995 | ||
Non-current assets: | |||||
Property and equipment, net | 3,334,139 | 2,258,215 | 510,978 | ||
Intangible assets, net | 3,314 | 2,838 | 508 | ||
Goodwill | 229,096 | 229,096 | 35,110 | ||
Deposits for non-current assets | 35,149 | 37,191 | 5,387 | ||
Other non-current assets | 169 | 269 | 26 | ||
Operating lease right-of-use assets | 2,003,301 | 2,051,547 | 307,019 | ||
Restricted cash | 376,535 | 38,096 | 57,707 | ||
Assets held for sale | 496,173 | ||||
Total non-current assets | 5,981,703 | 5,113,425 | 916,735 | ||
Total assets | 9,244,169 | 8,211,014 | 1,416,730 | ||
Current liabilities: | |||||
Short-term bank loans | 954,250 | 819,000 | 146,245 | ||
Accounts and notes payable | 2,696,142 | 2,071,644 | 413,203 | ||
Accrued expenses and other liabilities | 1,255,516 | 1,183,998 | 192,417 | ||
Customer advances and deposits and deferred revenue | 1,254,966 | 1,277,064 | 192,333 | ||
Operating lease liabilities | 508,829 | 434,067 | 77,981 | ||
Amounts due to related parties | 3,773,795 | 2,631,540 | 578,359 | ||
Income tax payable | 4 | ||||
Liabilities held for sale | 193,432 | 74,242 | 29,645 | ||
Total current liabilities | 10,636,934 | 8,491,555 | 1,630,183 | ||
Long-term bank loan | 961 | 147 | |||
Operating lease liabilities | 1,610,698 | 1,716,027 | 246,850 | ||
Deferred tax liabilities | 102 | 102 | 16 | ||
Other non-current liabilities | 174,441 | 133,037 | 26,733 | ||
Liabilities held for sale | 118,704 | ||||
Total non-current liabilities | 1,786,202 | 1,967,870 | 273,746 | ||
Total liabilities | ¥ 12,423,136 | ¥ 10,459,425 | 1,903,929 | ||
Percentage of revenue contribution by VIE | 73.00% | 73.00% | 69.00% | 71.00% | |
Restricted cash was pledged for notes payable | ¥ 480,638 | ¥ 450,230 | 73,661 | ||
Property and equipment was pledged for borrowings from third parties | 69,675 | 61,488 | $ 10,678 | ||
Total revenue | 22,483,438 | $ 3,445,737 | 23,047,895 | ¥ 18,462,434 | |
Net profit/(loss) from continuing operations | (869,592) | (133,271) | 97,916 | 142,063 | |
Net loss from discontinued operations | (66,250) | (10,153) | (51,212) | (25,174) | |
Net cash generated from/(used in) continuing operating activities | (65,529) | (10,043) | 1,006,301 | 801,640 | |
Net cash used in discontinued operating activities | 381 | 58 | (3,770) | 26,743 | |
Net cash used in continuing investing activities | (1,166,284) | (178,741) | (1,289,195) | (804,205) | |
Net cash used in discontinued investing activities | (735) | (113) | (4,758) | (16,285) | |
Net cash generated from continuing financing activities | 917,146 | 140,559 | 1,030,277 | 165,376 | |
Net cash generated from discontinued financing activities | 5,000 | 766 | |||
Consolidated VIEs | Revenue from continuing operations | |||||
Current liabilities: | |||||
Total revenue | 21,846,838 | 3,348,174 | 22,332,789 | 17,870,056 | |
Consolidated VIEs | Revenue from discontinued operations | |||||
Current liabilities: | |||||
Total revenue | ¥ 636,600 | $ 97,563 | ¥ 715,106 | ¥ 592,378 |
ORGANIZATION AND BASIS OF PRE_6
ORGANIZATION AND BASIS OF PRESENTATION - Assets, liabilities and cash flows of the Consolidated Plan (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Assets, liabilities and cash flows of the Consolidated Plan | |||||
Amounts due from related parties | ¥ 274,395 | ¥ 246,758 | $ 42,053 | ||
Total current assets | 9,367,711 | 9,688,449 | 1,435,662 | ||
Restricted cash | 709,848 | 175,700 | 108,789 | ||
Total non-current assets | 10,503,112 | 9,804,407 | 1,609,672 | ||
Total assets | 19,870,823 | 19,492,856 | 3,045,334 | ||
Securitization debt | 95,149 | 104,899 | 14,582 | ||
Amounts due to related parties | 35,623 | 9,769 | 5,459 | ||
Total current liabilities | 12,634,249 | 10,569,668 | 1,936,283 | ||
Total non-current liabilities | 5,511,970 | 5,007,904 | 844,743 | ||
Total liabilities | 18,146,219 | 15,577,572 | 2,781,026 | ||
Net cash (used in)/generated from operating activities | (231,235) | $ (35,438) | 852,833 | ¥ 637,204 | |
Net cash used in investing activities | (872,933) | (133,783) | (1,912,482) | (1,230,953) | |
Net cash generated from financing activities | 1,548,184 | 237,270 | 2,011,812 | ¥ 557,149 | |
Consolidated Plan | |||||
Assets, liabilities and cash flows of the Consolidated Plan | |||||
Amounts due from related parties | 301,914 | 157,345 | 46,271 | ||
Total current assets | 301,914 | 157,345 | 46,271 | ||
Restricted cash | 90,000 | 40,000 | 13,793 | ||
Amounts due from related parties | 230,000 | 140,000 | 35,249 | ||
Total non-current assets | 320,000 | 180,000 | 49,042 | ||
Total assets | 621,914 | 337,345 | 95,313 | ||
Securitization debt | 96,829 | 107,820 | 14,840 | ||
Amounts due to related parties | 205,085 | 49,525 | 31,431 | ||
Total current liabilities | 301,914 | 157,345 | 46,271 | ||
Amounts due to related parties | 320,000 | 180,000 | 49,042 | ||
Total non-current liabilities | 320,000 | 180,000 | 49,042 | ||
Total liabilities | 621,914 | 337,345 | $ 95,313 | ||
Net cash (used in)/generated from operating activities | (234,569) | (35,949) | (297,345) | ||
Net cash generated from financing activities | ¥ 284,569 | $ 43,612 | ¥ 337,345 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Going Concern Assessment (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Mar. 31, 2021CNY (¥) | Mar. 31, 2021USD ($) | Mar. 12, 2021CNY (¥) | Mar. 12, 2021USD ($) | Dec. 31, 2020USD ($) | |
Loss from continuing operations | ¥ 1,683,068 | $ 257,945 | ¥ (172,702) | ¥ 107,246 | |||||
Net cash generated from/(used in) continuing operating activities | 11,188 | $ 1,715 | 1,131,226 | ¥ 980,354 | |||||
Total cash position | 3,754,390 | $ 575,386 | |||||||
Working capital deficiency | 500,621,000 | 3,266,538,000 | |||||||
Accumulated deficit | 17,710,964 | ¥ 15,629,537 | 2,714,324 | ||||||
Accumulated loss from operation | 8,217,157 | 1,259,334 | |||||||
Total current liabilities exceeded the current assets | 9,493,807 | 1,454,990 | |||||||
Short-term bank loan maturing in one year | ¥ 578,136 | $ 88,603 | |||||||
Strategic partnership agreement | Subsequent event | Capital | BEST Finance | |||||||||
Assets transferred | ¥ 465,661 | $ 71,366 | ¥ 465,661 | $ 71,366 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Convenience translation (Details) | Dec. 31, 2020$ / ¥ |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Convenience translation rate (USD to RMB) | 6.5250 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted cash (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Restricted cash | |||
Restricted cash | ¥ 2,102,426 | $ 322,211 | ¥ 1,786,832 |
Pledged | |||
Restricted cash | |||
Restricted cash | ¥ 847,326 | $ 129,858 | ¥ 135,663 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Adoption of ASU 2016-13 (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Jan. 01, 2020CNY (¥) | Jan. 01, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Cumulative-effect adjustment to retained earnings | ¥ 1,724,604 | $ 264,308 | ¥ 3,915,284 | ¥ 4,140,158 | ¥ 4,392,495 | ||
Cumulative effect of accounting change | |||||||
Cumulative-effect adjustment to retained earnings | ¥ (55,788) | ||||||
ASU 2016-13 | Cumulative effect of accounting change | |||||||
Cumulative-effect adjustment to retained earnings | ¥ 55,788 | $ 8,550 | ¥ (25,054) |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and equipment, net (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Machinery and electronic equipment | Minimum | |
Property and equipment, net | |
Estimated useful life | 3 years |
Machinery and electronic equipment | Maximum | |
Property and equipment, net | |
Estimated useful life | 10 years |
Motor vehicles | |
Property and equipment, net | |
Estimated useful life | 3 years |
Leasehold improvements | |
Property and equipment, net | |
Estimated useful life | Lesser of useful life or lease term |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Change in estimate useful life of certain machinery and electronic equipment (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2020CNY (¥)¥ / shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2018CNY (¥)¥ / shares | |
Change in Accounting Estimate [Line Items] | ||||||
Depreciation expense | ¥ 502,183 | $ 76,963 | ¥ 456,382 | ¥ 426,450 | ||
Net loss | ¥ (2,025,508) | $ (310,426) | ¥ (202,416) | ¥ (507,988) | ||
Basic loss per share (in dollars per share) | (per share) | ¥ (5.23) | $ (0.80) | ¥ (0.52) | ¥ (1.32) | ||
Diluted loss per share (in dollars per share) | (per share) | ¥ (5.23) | $ (0.80) | ¥ (0.52) | ¥ (1.32) | ||
Estimate useful life | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Depreciation expense | ¥ | ¥ 94,984 | |||||
Net loss | ¥ | ¥ 94,984 | |||||
Basic loss per share (in dollars per share) | ¥ / shares | ¥ 0.24 | |||||
Diluted loss per share (in dollars per share) | ¥ / shares | ¥ 0.24 | |||||
Machinery and electronic equipment | Estimate useful life | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Estimated useful life | 10 years | 5 years | 10 years | 10 years |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) - segment | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Number of operating segments | 6 | 5 |
Number of reporting units tested for goodwill | 3 | 4 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Customer relationships | |
Intangible assets | |
Estimated useful life | 3 years 10 months 20 days |
Software | |
Intangible assets | |
Estimated useful life | 3 years 6 months |
Domain name | |
Intangible assets | |
Estimated useful life | 10 years |
Brand name | |
Intangible assets | |
Estimated useful life | 20 years |
Others | |
Intangible assets | |
Estimated useful life | 2 years 2 months 23 days |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2017CNY (¥) | |
Revenue recognition | ||||||
Cumulative effect of accounting change | ¥ 1,724,604 | ¥ 3,915,284 | ¥ 4,140,158 | $ 264,308 | ¥ 4,392,495 | |
Accumulated deficit | (17,710,964) | (15,629,537) | (2,714,324) | |||
Balances of contract liabilities and contract assets | ||||||
Contract liabilities | 871,267 | 871,833 | 133,528 | |||
Revenue recognized included in contract liability balance at the beginning of the period | 773,912 | $ 118,607 | 88,181 | 484,388 | ||
BEST Inc. shareholders' equity | 1,750,619 | 3,920,912 | 268,295 | |||
Accumulated deficit | ||||||
Revenue recognition | ||||||
Cumulative effect of accounting change | (17,710,964) | ¥ (15,629,537) | ¥ (15,423,027) | $ (2,714,324) | ¥ (14,886,214) | |
Cumulative effect of accounting change | ||||||
Revenue recognition | ||||||
Cumulative effect of accounting change | (55,788) | |||||
Cumulative effect of accounting change | Accumulated deficit | ||||||
Revenue recognition | ||||||
Cumulative effect of accounting change | ¥ (55,746) | |||||
Minimum | ||||||
Revenue recognition | ||||||
Customer credit terms | 5 days | 5 days | ||||
Maximum | ||||||
Revenue recognition | ||||||
Customer credit terms | 120 days | 120 days |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Selling expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Selling expenses | ||||
Advertising expenses | ¥ 54,970 | $ 8,425 | ¥ 34,888 | ¥ 18,857 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Leases (Details) - 12 months ended Dec. 31, 2020 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Leases | ||
Total cash originations from sales-type and direct financing leases | ¥ 91,341 | $ 13,999 |
Total Cash Receipts From Sales-Type And Direct Financing Leases | ¥ 380,187 | $ 58,266 |
CONCENTRATION OF RISKS (Details
CONCENTRATION OF RISKS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018 | Dec. 31, 2020USD ($) | |
Default risk | ||||
CONCENTRATION OF RISKS | ||||
Cash and cash equivalents and restricted cash | ¥ 3,393,638 | ¥ 3,775,790 | $ 520,098 | |
Lease rental and other financing receivables | ¥ 2,331,109 | ¥ 2,136,847 | $ 357,258 | |
Exchange rate risk | ||||
CONCENTRATION OF RISKS | ||||
Depreciation of RMB against US dollar (in percent) | 1.60% | 5.00% | ||
Foreign Currency Exchange Rate Appreciation | 6.50% |
DISCONTINUED OPERATIONS - Balan
DISCONTINUED OPERATIONS - Balance sheet (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Disposal Group, Including Discontinued Operation, Classified Balance Sheet Disclosures [Abstract] | |||
Total current assets | ¥ 509,395 | $ 78,068 | ¥ 64,195 |
Total non-current assets | 496,173 | ||
Total current liabilities | 193,432 | 29,645 | 74,242 |
Total non-current liabilities | 118,704 | ||
Held for sale | Store+ | |||
Disposal Group, Including Discontinued Operation, Classified Balance Sheet Disclosures [Abstract] | |||
Cash and cash equivalents | 13,530 | 2,074 | 9,270 |
Accounts receivable, net | 88 | ||
Inventories, net | 34,015 | 5,213 | 33,523 |
Prepayments and other current assets | 21,559 | 3,304 | 21,314 |
Property, equipment and software, net | 11,699 | 1,793 | |
Intangible assets, net | 95,234 | 14,595 | |
Goodwill | 201,668 | 30,907 | |
Operating lease right-of-use assets | 126,937 | 19,454 | |
Non current deposits | 4,753 | 728 | |
Total current assets | 509,395 | 78,068 | 64,195 |
Property, equipment and software, net | 14,975 | ||
Intangible Assets, Net | 101,179 | ||
Goodwill | 201,668 | ||
Operating Lease Right-of-use Assets | 169,789 | ||
Noncurrent Deposits | 8,562 | ||
Total non-current assets | 496,173 | ||
Accounts and notes payable | 40,460 | 6,202 | |
Customer advances and deposits and deferred revenue | 1,515 | 232 | 880 |
Accrued expenses and other liabilities | 18,142 | 2,780 | 13,585 |
Operating lease liabilities | 109,822 | 16,831 | 59,777 |
Deferred tax liabilities | 23,493 | 3,600 | |
Total current liabilities | ¥ 193,432 | $ 29,645 | 74,242 |
Operating lease liabilities | 93,726 | ||
Deferred tax liabilities | 24,978 | ||
Total non-current liabilities | ¥ 118,704 |
DISCONTINUED OPERATIONS - State
DISCONTINUED OPERATIONS - Statement of operations (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Net loss from discontinue operation | ¥ (368,156) | $ (56,422) | ¥ (391,770) | ¥ (401,145) |
Held for sale | Store+ | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Revenue | 2,200,559 | 337,250 | 2,817,202 | 2,845,002 |
Cost of revenue | (1,918,462) | (294,018) | (2,495,503) | (2,589,883) |
Gross profit | 282,097 | 43,232 | 321,699 | 255,119 |
Selling expenses | (444,845) | (68,175) | (498,975) | (522,872) |
General and administrative expenses | (171,454) | (26,276) | (176,827) | (134,033) |
Research and development expenses | (32,319) | (4,953) | (39,158) | |
Total operating expenses | (648,618) | (99,404) | (714,960) | (656,905) |
Loss from discontinued operations | (366,521) | (56,172) | (393,261) | (401,786) |
Foreign exchange gain(loss) | (3,715) | (569) | (2,045) | 1,091 |
Other income | 4,511 | 691 | 6,452 | 3,007 |
Other expense | (3,916) | (600) | (4,653) | (2,070) |
Loss before income tax and share of net loss of equity investees | (369,641) | (56,650) | (393,507) | (399,758) |
Income tax expense | 1,485 | 228 | 1,737 | (1,387) |
Net loss from discontinue operation | ¥ (368,156) | $ (56,422) | ¥ (391,770) | ¥ (401,145) |
DISCONTINUED OPERATIONS - Cash
DISCONTINUED OPERATIONS - Cash flow (Details) - Held for sale - Store+ ¥ in Thousands | Dec. 31, 2019CNY (¥) |
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | |
Intangible Assets, Net | ¥ 101,179 |
Goodwill | ¥ 201,668 |
BUSINESS COMBINATIONS - Acquisi
BUSINESS COMBINATIONS - Acquisition of Wowo (Details) - YDS - CNY (¥) ¥ in Thousands | Dec. 02, 2019 | Mar. 14, 2018 | May 04, 2017 |
BUSINESS COMBINATIONS | |||
Equity interest acquired (in percent) | 79.17% | ||
Total consideration | ¥ 845 | ||
Fair values of the assets acquired and liabilities assumed at the date of acquisition | |||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | ¥ 4,040 |
ACCOUNTS AND NOTES RECEIVABLE_3
ACCOUNTS AND NOTES RECEIVABLE, NET (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable | ¥ 1,184,339 | $ 181,507 | ¥ 1,287,144 | |||
Notes receivable | 48,746 | 7,471 | 28,003 | |||
Allowance for credit losses | (249,484) | (38,235) | (86,152) | $ (13,203) | ¥ (25,105) | ¥ (5,794) |
Accounts and notes receivable, net | ¥ 983,601 | $ 150,743 | ¥ 1,228,995 |
ACCOUNTS AND NOTES RECEIVABLE_4
ACCOUNTS AND NOTES RECEIVABLE, NET - Movements in allowance for doubtful accounts (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at beginning of the year | ¥ (86,152) | $ (13,203) | ¥ (25,105) | ¥ (5,794) |
Additions | (159,083) | (24,381) | (105,984) | (60,183) |
Write-offs | 39,475 | 6,050 | 44,937 | 40,872 |
Balance at end of the year | (249,484) | (38,235) | ¥ (86,152) | ¥ (25,105) |
ASU 2016-13 | Cumulative effect of accounting change | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at end of the year | ¥ (43,724) | $ (6,701) |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Details) - Prepayments and other current assets ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
VAT prepayments | ¥ 1,325,624 | $ 203,161 | ¥ 1,065,031 |
prepayments and other current assets. | ¥ 3,793 | $ 545 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | ¥ 5,789,851 | ¥ 4,461,517 | $ 887,333 | ||
Less: accumulated depreciation | (1,710,616) | (1,537,113) | (262,163) | ||
Property and equipment, net, Total | 4,079,235 | 2,924,404 | 625,170 | ||
Depreciation expense including assets under capital leases | 502,183 | $ 76,963 | 456,382 | ¥ 426,450 | |
Machinery and electronic equipment | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | 3,390,586 | 2,555,217 | 519,630 | ||
Financial leased assets | |||||
Finance leased assets, gross | 32,314 | 30,462 | 4,952 | ||
Finance leased assets, accumulated depreciation | 25,914 | 22,566 | 3,971 | ||
Leasehold improvements | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | 1,331,472 | 1,176,201 | 204,057 | ||
Motor vehicles | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | 121,072 | 4,952 | 18,555 | ||
Construction in progress | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | ¥ 946,721 | ¥ 725,147 | $ 145,091 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
INTANGIBLE ASSETS, NET | |||||
Intangible assets, gross | ¥ 75,332 | ¥ 72,319 | $ 11,543 | ||
Less: accumulated amortization | (63,134) | (51,911) | (9,674) | ||
Intangible Assets, net | 12,198 | 20,408 | 1,869 | ||
Amortization expense of intangible assets | 12,819 | $ 1,965 | 19,719 | ¥ 14,864 | |
Customer relationships | |||||
INTANGIBLE ASSETS, NET | |||||
Intangible assets, gross | 10,449 | 10,449 | 1,601 | ||
Software | |||||
INTANGIBLE ASSETS, NET | |||||
Intangible assets, gross | ¥ 64,883 | ¥ 61,870 | $ 9,942 |
INTANGIBLE ASSETS, NET - Impair
INTANGIBLE ASSETS, NET - Impairment (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Estimated amortization expense relating to existing intangible assets | ||||
2021 | ¥ 6,241 | $ 957 | ||
2022 | 2,476 | 380 | ||
2023 | 1,001 | 153 | ||
2024 | 447 | 68 | ||
2025 | 448 | 69 | ||
Estimated amortization expense in the next five years | 10,613 | $ 1,627 | ||
Impairment losses on intangible assets | ¥ 0 | ¥ 0 | ¥ 0 |
LEASES - Lessor - Lease Rental
LEASES - Lessor - Lease Rental Receivables (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets: | |||
Direct financing leases | ¥ 369,147 | $ 56,574 | ¥ 402,633 |
Sales-type leases | 127,980 | 19,614 | 80,730 |
Current assets | 497,127 | 76,188 | 483,363 |
Non-current assets: | |||
Direct financing leases | 344,425 | 52,785 | 775,420 |
Sales-type leases | 303,253 | 46,476 | 217,840 |
Non-current assets | 647,678 | 99,261 | 993,260 |
Net investment in financing leases | ¥ 1,144,805 | $ 175,449 | ¥ 1,476,623 |
LEASES - Lessor - Net investmen
LEASES - Lessor - Net investment in direct financing and sales-type leases (Details) ¥ in Thousands, $ in Thousands | Oct. 01, 2019CNY (¥) | Oct. 01, 2019USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) |
Lessor, Lease, Description [Line Items] | |||||||
Interest income from direct financing and sales-type leases | ¥ 85,285 | $ 13,071 | ¥ 106,040 | ¥ 94,172 | |||
Net investment in direct financing and sales-type leases | |||||||
Total minimum lease payments receivable | 1,296,869 | 1,693,161 | $ 198,754 | ||||
Minimum lease payments receivable | 1,296,869 | 1,693,161 | 198,754 | ||||
Less: Allowance for credit losses | (14,296) | (11,014) | (2,191) | ||||
Net minimum lease payments receivable | 1,282,573 | 1,682,147 | 196,563 | ||||
Less: Unearned income | (137,768) | (205,524) | (21,114) | ||||
Net investment in financing leases | 1,144,805 | 1,476,623 | 175,449 | ||||
Current portion | 497,127 | 483,363 | 76,188 | ||||
Non-current portion | ¥ 647,678 | ¥ 993,260 | $ 99,261 | ||||
Minimum | |||||||
Lessor, Lease, Description [Line Items] | |||||||
Direct financing lease term of contract | 2 years | 2 years | |||||
Sales-type lease term of contract | 2 years | 2 years | |||||
Maximum | |||||||
Lessor, Lease, Description [Line Items] | |||||||
Direct financing lease term of contract | 10 years | 10 years | |||||
Sales-type lease term of contract | 10 years | 10 years | |||||
ASU 2016-13 | |||||||
Net investment in direct financing and sales-type leases | |||||||
Less: Allowance for credit losses | ¥ (14,296) | $ (2,191) | |||||
ASU 2016-13 | Cumulative effect of accounting change | |||||||
Lessor, Lease, Description [Line Items] | |||||||
Adoption of ASU2016-13 | ¥ 5,065 | $ 776 |
LEASES - Lessor - Future minimu
LEASES - Lessor - Future minimum lease payments to be received (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Future minimum lease payments to be received for direct financing and sales-type leases | |||
For the year ending December 31, 2021 | ¥ 464,432 | $ 71,179 | |
For the year ending December 31, 2022 | 457,386 | 70,097 | |
For the year ending December 31, 2023 | 195,797 | 30,007 | |
For the year ending December 31, 2024 | 101,447 | 15,547 | |
For the year ending December 31, 2025 | 46,974 | 7,199 | |
Thereafter | 16,537 | 2,534 | |
Net minimum lease payments receivable | 1,282,573 | 196,563 | ¥ 1,682,147 |
Less: Unearned income | (137,768) | (21,114) | (205,524) |
Net investment in financing leases | ¥ 1,144,805 | $ 175,449 | ¥ 1,476,623 |
LEASES - Sale and lease back (D
LEASES - Sale and lease back (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Lessee, Lease, Description [Line Items] | |||
Reclassification of lease rental receivables into prepayment and other current assets | ¥ 167,549 | ||
Reclassification of lease rental receivables into other non-current assets | 84,516 | ||
Prepayments and other current assets | |||
Lessee, Lease, Description [Line Items] | |||
Investments in sales-leaseback transactions | 695,543 | $ 106,597 | ¥ 357,191 |
Other noncurrent Assets | |||
Lessee, Lease, Description [Line Items] | |||
Investments in sales-leaseback transactions | ¥ 490,761 | $ 75,212 | ¥ 303,033 |
LEASES - Financing and operatin
LEASES - Financing and operating leases as Lessee (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Lease, Cost [Abstract] | ||||
Operating lease cost | ¥ 1,276,501 | $ 195,632 | ¥ 1,194,534 | |
Short-term Lease, Cost | 162,342 | 24,880 | 124,269 | |
Financing lease cost: | ||||
Amortization of ROU assets | 3,355 | 514 | 3,390 | |
Interest | 245 | 38 | 304 | |
Total lease cost | 1,442,443 | 221,064 | 1,322,497 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | 1,429,951 | 219,150 | 1,191,587 | |
Operating cash flows from financing leases | 245 | 38 | 304 | |
Financing cash flows from financing leases | 1,179 | 181 | 1,215 | ¥ 5,459 |
ROU assets obtained in exchange for new operating lease liabilities | 908,441 | 139,225 | 1,512,448 | |
ROU obtained in exchange for new finance lease liabilities | ¥ 2,023 | $ 310 | ¥ 1,054 | |
Weighted-average remaining lease term (in years): | ||||
Operating leases | 3 years 11 months 8 days | 3 years 11 months 8 days | 5 years 4 months 28 days | |
Financing leases | 3 years 3 months | 3 years 3 months | 2 years 9 months | |
Weighted-average discount rate: | ||||
Operating leases | 7.64% | 7.64% | 7.74% | |
Financing leases | 5.19% | 5.19% | 7.38% | |
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining Lease Term | 20 years | 20 years | ||
Cost of revenues | ||||
Weighted-average discount rate: | ||||
Total operating and short-term lease costs | ¥ 1,382,741 | $ 211,914 | ¥ 1,269,946 | |
Selling expenses | ||||
Weighted-average discount rate: | ||||
Total operating and short-term lease costs | 13,220 | 2,026 | 15,575 | |
General and administrative expenses | ||||
Weighted-average discount rate: | ||||
Total operating and short-term lease costs | ¥ 42,882 | $ 6,572 | ¥ 33,282 |
LEASES - Future minimum lease p
LEASES - Future minimum lease payments for operating and financing leases as lessee (Details) - Dec. 31, 2020 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Operating Leases | ||
For the year ended December 31,2021 | ¥ 1,207,647 | $ 185,080 |
For the year ended December 31,2022 | 1,033,372 | 158,371 |
For the year ended December 31,2023 | 876,146 | 134,275 |
For the year ended December 31,2024 | 672,721 | 103,099 |
For the year ended December 31,2025 | 422,324 | 64,724 |
Thereafter | 571,516 | 87,589 |
Total minimum lease payments | 4,783,726 | 733,138 |
Less: imputed interest | 756,092 | 115,876 |
Total lease liability balance | 4,027,634 | 617,262 |
Minimum payments related to leases not yet commenced as of December 31, 2020 | 749,130 | 114,809 |
Financing leases | ||
For the year ended December 31,2021 | 1,753 | 267 |
For the year ended December 31,2022 | 1,231 | 189 |
For the year ended December 31,2023 | 989 | 152 |
For the year ended December 31,2024 | 532 | 81 |
For the year ended December 31,2025 | 115 | 18 |
Total minimum lease payments | 4,620 | 707 |
Less: imputed interest | 341 | 52 |
Total lease liability balance | ¥ 4,279 | $ 655 |
LONG-TERM INVESTMENTS - Equity
LONG-TERM INVESTMENTS - Equity investments without readily determinable fair value (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Equity method investment | |||||
Equity investments without readily determinable fair value, carrying amount | ¥ 215,677 | ¥ 224,927 | $ 33,054 | ||
Equity investments without readily determinable fair value, accumulated impairment | 0 | 0 | 0 | ||
Unrealized gains of upward adjustments | 18,687 | $ 2,864 | 14,155 | ¥ 64,628 | |
Losses (downward adjustments and impairment) | 0 | 0 | 0 | 0 | |
Net unrealized gains and losses for equity securities held | 18,687 | 2,864 | 14,155 | 64,628 | |
Proceeds from Sale of Equity Method Investments | 26,896 | 4,122 | 450 | ||
Net realized gains and losses on equity securities sold | 5,658 | 867 | 0 | ¥ 0 | |
Significant unobservable inputs (Level 3) | |||||
Equity method investment | |||||
Investments remeasured | 110,677 | ¥ 119,927 | 16,962 | ||
Shanghai Fast Storehouse Intelligent Technology Co., Ltd | |||||
Equity method investment | |||||
Investments remeasured | 27,937 | $ 4,282 | |||
Proceeds from Sale of Equity Method Investments | 33,595 | 5,149 | |||
Net realized gains and losses on equity securities sold | ¥ 5,658 | $ 867 |
LONG-TERM INVESTMENTS - Equit_2
LONG-TERM INVESTMENTS - Equity method investments (Details) ¥ in Thousands, $ in Thousands | Oct. 29, 2019CNY (¥) | Oct. 29, 2019USD ($) | Jan. 22, 2017CNY (¥)item | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2020USD ($) |
Equity method investment | |||||||||
Proceeds from disposal of equity interest | ¥ 26,896 | $ 4,122 | ¥ 450 | ||||||
Gain on disposal of equity method investments | 5,658 | $ 867 | 22 | ||||||
Impairment losses | 0 | 0 | ¥ 0 | ||||||
Dezhi | |||||||||
Equity method investment | |||||||||
Equity method investments, ownership percentage | 30.00% | ||||||||
Cash consideration | ¥ 300 | ||||||||
Proceeds from disposal of equity interest | ¥ 450 | ||||||||
Gain on disposal of equity method investments | ¥ 22 | $ 3 | |||||||
Jinye | |||||||||
Equity method investment | |||||||||
Equity method investments, ownership percentage | 13.73% | 13.04% | |||||||
Cash consideration | ¥ 7,652 | ||||||||
Number of board seat out of total seats | item | 1 | ||||||||
Number of total board of seats | item | 5 | ||||||||
Equity method investment | ¥ 5,749 | ¥ 5,928 | $ 881 |
GOODWILL (Details)
GOODWILL (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Changes in goodwill | ||||
Goodwill at beginning of period | ¥ 289,318 | |||
Goodwill acquired | 6,440 | |||
Goodwill at end of period | 295,758 | $ 45,327 | ¥ 289,318 | |
Impairment losses | 0 | 0 | ¥ 0 | |
Express delivery | ||||
Changes in goodwill | ||||
Goodwill at beginning of period | 241,623 | |||
Goodwill at end of period | 241,623 | 37,030 | 241,623 | |
Freight delivery | ||||
Changes in goodwill | ||||
Goodwill at beginning of period | 5,580 | |||
Goodwill at end of period | 5,580 | 855 | 5,580 | |
Other | ||||
Changes in goodwill | ||||
Goodwill at beginning of period | 42,115 | |||
Goodwill acquired | 6,440 | |||
Goodwill at end of period | ¥ 48,555 | $ 7,442 | ¥ 42,115 |
SHORT-TERM AND LONG-TERM BANK_3
SHORT-TERM AND LONG-TERM BANK LOANS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020USD ($) | |
Short Term And Long Term Bank [Line Items] | ||||
Short-term bank loans | ¥ 3,082,537 | ¥ 2,510,500 | $ 472,419 | |
Long-term bank loans pledged by deposits | 78,548 | 0 | 12,038 | |
Total | 3,161,085 | 2,510,500 | 484,457 | |
Securitization debt. | ||||
Short Term And Long Term Bank [Line Items] | ||||
Face value | 848,537 | 471,500 | $ 130,044 | |
Proceeds from short-term debt | ¥ 821,130 | $ 125,844 | ¥ 458,864 | |
Securitization debt. | Minimum | ||||
Short Term And Long Term Bank [Line Items] | ||||
Effective interest rate | 1.92% | 1.92% | ||
Securitization debt. | Maximum | ||||
Short Term And Long Term Bank [Line Items] | ||||
Effective interest rate | 5.19% | 5.19% | ||
Short-term bank loans | ||||
Short Term And Long Term Bank [Line Items] | ||||
Short-term debt, weighted average interest rate (as a percent) | 4.42% | 4.27% | 4.42% | |
Short-term bank loans | Pledged | ||||
Short Term And Long Term Bank [Line Items] | ||||
Restricted Cash | ¥ 1,590,025 | |||
Account receivables pledged for short-term bank loans and secured bank borrowings | 0 | |||
Short-term bank loans guaranteed by subsidiaries within the Group | ||||
Short Term And Long Term Bank [Line Items] | ||||
Short-term bank loans | ¥ 954,000 | 960,000 | $ 146,207 | |
Pledged short term bank loans | ||||
Short Term And Long Term Bank [Line Items] | ||||
Short-term bank loans | 1,357,287 | 1,159,000 | 208,013 | |
Secured bank borrowings | ||||
Short Term And Long Term Bank [Line Items] | ||||
Short-term bank loans | 771,250 | 391,500 | 118,199 | |
Secured bank borrowings | Pledged | ||||
Short Term And Long Term Bank [Line Items] | ||||
Short-term bank loans | 771,250 | ¥ 391,500 | 118,199 | |
Restricted Cash | 1,582,977 | 242,602 | ||
Account receivables pledged for short-term bank loans and secured bank borrowings | ¥ 77,287 | $ 11,845 | ||
Long term bank loan | ||||
Short Term And Long Term Bank [Line Items] | ||||
Long-term debt, weighted average interest rate (as a percent) | 4.02% | 0.00% | 4.02% | |
Long term bank loan | Pledged | ||||
Short Term And Long Term Bank [Line Items] | ||||
Restricted Cash | ¥ 81,500 | ¥ 0 | $ 12,490 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Salary and welfare payable | ¥ 1,253,014 | ¥ 1,222,363 | $ 192,033 | ||
Accrual for purchases of property and equipment | 322,663 | 128,457 | 49,450 | ||
Accrued expenses | 85,970 | 77,946 | 13,175 | ||
Borrowings for electronic machinery and equipment | 106,911 | 40,036 | 16,385 | ||
Payable for business acquisitions | 1,749 | 11,095 | 268 | ||
Others | 737,610 | 526,152 | 113,044 | ||
Total | 2,507,917 | 2,006,049 | 384,355 | ||
Other Liabilities, Noncurrent | ¥ 175,584 | ¥ 137,184 | $ 26,907 | ||
Debt, Weighted Average Interest Rate | 7.95% | 8.06% | 7.95% | ||
2020 | ¥ 116,292 | $ 17,823 | |||
2021 | ¥ 66,097 | 10,130 | |||
Sale Leaseback Transaction, Weighted Average Lease Term | 1 year 8 months 1 day | 1 year 8 months 1 day | 2 years 5 months 19 days | ||
Proceeds From Failed Sale Leaseback Transactions | ¥ 160,000 | $ 24,521 | ¥ 94,000 | ¥ 0 | |
Total carrying value of equipment collateralized | 53,302 | 61,488 | $ 8,169 | ||
Other non-current liabilities | |||||
Sale Leaseback Transaction, Borrowings Value | 67,821 | 10,394 | 41,451 | ||
Accrued expenses and other liabilities | |||||
Sale Leaseback Transaction, Borrowings Value | ¥ 106,911 | $ 16,385 | ¥ 40,036 |
SECURITIZATION DEBT (Details)
SECURITIZATION DEBT (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2020CNY (¥)tranche | Sep. 30, 2020USD ($)tranche | Jun. 30, 2019CNY (¥)tranche | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | |
Securitization Debt [Line items] | ||||||||
Lease rental receivables qualify for securitization debt | ¥ 751,469 | ¥ 705,033 | $ 115,168 | |||||
Proceeds from securitized lease rental receivables | ¥ 198,074 | $ 30,356 | ¥ 262,316 | |||||
Number of tranches under securitization plan | 3 | 3 | 3 | |||||
Issuance costs incurred for securitization | ¥ 1,926 | $ 295 | ¥ 6,684 | |||||
Weighted average effective interest rate under securitization debt | 11.36% | |||||||
Principal Repayment Of Borrowings From External Investors | ¥ 210,991 | $ 32,336 | ¥ 157,417 | |||||
Aggregate loan principal payments on borrowings from external investors, within 1 year | ¥ 95,149 | ¥ 104,899 | $ 14,582 | |||||
Series A Tranche | ||||||||
Securitization Debt [Line items] | ||||||||
Stated interest rate of securitization debt | 4.95% | 4.95% | 5.50% | |||||
Series B Tranche | ||||||||
Securitization Debt [Line items] | ||||||||
Stated interest rate of securitization debt | 6.00% | 6.00% | 6.50% | |||||
Minimum | ||||||||
Securitization Debt [Line items] | ||||||||
Remaining lease terms qualify for securitization debt | 4 months | 4 months | 23 months | |||||
Maximum | ||||||||
Securitization Debt [Line items] | ||||||||
Remaining lease terms qualify for securitization debt | 59 months | 59 months | 59 months | |||||
Weighted average effective interest rate under securitization debt | 7.17% | 7.17% |
CONVERTIBLE SENIOR NOTES (Detai
CONVERTIBLE SENIOR NOTES (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2020CNY (¥)¥ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)$ / shares | Jun. 03, 2020USD ($) | Dec. 31, 2019USD ($)$ / shares | Sep. 17, 2019USD ($)$ / Options | |
CONVERTIBLE SENIOR NOTES | ||||||||
Remaining discount amortization period (in years) | 1 year 9 months | 1 year 9 months | ||||||
Call options | ||||||||
CONVERTIBLE SENIOR NOTES | ||||||||
Cap price | $ / Options | 10 | |||||||
2024 Convertible Notes | Alibaba.com | ||||||||
CONVERTIBLE SENIOR NOTES | ||||||||
Face amount of debt | $ 100,000,000 | |||||||
2024 Convertible Notes | Third parties | ||||||||
CONVERTIBLE SENIOR NOTES | ||||||||
Face amount of debt | 100,000,000 | |||||||
Convertible senior notes | ||||||||
CONVERTIBLE SENIOR NOTES | ||||||||
Face amount of debt | $ 200,000,000 | |||||||
Stated interest rate of debt | 1.75% | |||||||
Initial conversion rate | (per share) | ¥ 16,474.46 | ¥ 141.844 | $ 6.07 | $ 7.05 | ||||
Principal amount considered for conversion | $ 100,000,000 | $ 1,000 | ||||||
Redemption price (as a percent) | 100.00% | 100.00% | ||||||
Fair value per ADS at commitment date | $ / shares | $ 5.49 | $ 5.53 | ||||||
Proceeds from issuance of notes | ¥ 1,061,421 | $ 149,340,000 | ¥ 1,375,355 | $ 194,457,000 | ||||
Underwriting discounts and offering expenses | 4,689 | 660,000 | 39,205 | 5,543,000 | ||||
Proceeds from issuance of notes, gross | ¥ 1,066,110 | $ 150,000,000 | $ 200,000,000 | |||||
Remaining discount amortization period (in years) | 2 years 5 months 1 day | 2 years 5 months 1 day | ||||||
Convertible senior notes | Call options | ||||||||
CONVERTIBLE SENIOR NOTES | ||||||||
Capped call options | 159,138 | $ 22,500,000 | ||||||
Convertible senior notes | Alibaba.com | ||||||||
CONVERTIBLE SENIOR NOTES | ||||||||
Face amount of debt | $ 150,000,000 | |||||||
Stated interest rate of debt | 4.50% | |||||||
Convertible senior notes | 2024 Convertible Notes | ||||||||
CONVERTIBLE SENIOR NOTES | ||||||||
Face amount of debt | ¥ 1,304,980 | 1,395,240 | $ 200,000,000 | |||||
Unamortized debt discount | 20,688 | 35,032 | 3,174,000 | |||||
Net carrying amount of Notes | 1,304,980 | 200,000,000,000 | ||||||
Interest cost recognized relating to contractual interest coupon and amortization of discount | 37,103 | $ 5,686,000 | 10,894 | |||||
Accretion expected | 1,304,980 | 200,000,000 | ||||||
Aggregate scheduled maturities of Notes | 1,284,292 | 1,360,208 | 196,826,000 | |||||
Convertible senior notes | 2024 Convertible Notes | Related parties | ||||||||
CONVERTIBLE SENIOR NOTES | ||||||||
Aggregate scheduled maturities of Notes | 642,121 | 680,104 | 98,409,000 | |||||
Convertible senior notes | 2024 Convertible Notes | Third parties | ||||||||
CONVERTIBLE SENIOR NOTES | ||||||||
Aggregate scheduled maturities of Notes | 642,121 | ¥ 680,104 | 98,409,000 | |||||
Convertible senior notes | 2025 Convertible Notes | ||||||||
CONVERTIBLE SENIOR NOTES | ||||||||
Face amount of debt | 978,735 | 150,000,000 | ||||||
Unamortized debt discount | 3,060 | 471,000 | ||||||
Net carrying amount of Notes | 978,735 | 150,000,000 | ||||||
Interest cost recognized relating to contractual interest coupon and amortization of discount | 27,908 | $ 4,277,000 | ||||||
Accretion expected | 978,735 | 150,000,000 | ||||||
Aggregate scheduled maturities of Notes | 975,675 | 149,529,000 | ||||||
Convertible senior notes | 2025 Convertible Notes | Related parties | ||||||||
CONVERTIBLE SENIOR NOTES | ||||||||
Aggregate scheduled maturities of Notes | ¥ 975,725 | $ 149,537,000 |
TAXATION (Details)
TAXATION (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | 36 Months Ended | 156 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2018 | Dec. 31, 2020CNY (¥) | |
TAXATION | ||||||||
Percentage of ownership interests to be held by foreign investors (as a percent) | 25.00% | 25.00% | ||||||
Company's net loss before income tax | ||||||||
PRC | ¥ (1,408,800) | $ (215,914) | ¥ 205,593 | ¥ (69,117) | ||||
Non-PRC | (251,964) | (38,612) | (12,509) | (27,173) | ||||
(Loss)/Income before income tax and share of net loss of equity investees | (1,660,764) | (254,526) | 193,084 | (96,290) | ||||
Components of income tax expense | ||||||||
Current income tax | (22,952) | (3,518) | (17,840) | (14,806) | ||||
Deferred income tax | 828 | 127 | (2,187) | 4,306 | ||||
Income tax expense (benefit), total | ¥ (22,124) | $ (3,391) | ¥ (20,027) | ¥ (10,500) | ||||
British Virgin Islands | ||||||||
TAXATION | ||||||||
With holding tax | 0.00% | 0.00% | ||||||
Hong Kong | ||||||||
TAXATION | ||||||||
With holding tax | 0.00% | 0.00% | 0.00% | 0.00% | ||||
Income tax rate (as a percent) | 16.50% | 16.50% | 16.50% | 16.50% | ||||
Assessable profits | ¥ 0 | |||||||
PRC | ||||||||
TAXATION | ||||||||
Income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% | ||||
Withholding income tax on dividends distributed by an FIE to its immediate holding company outside China (as a percent) | 10.00% | 10.00% | ||||||
Maximum percentage of withholding income tax on dividends distributed by an FIE to its immediate holding company in Hong Kong (as a percent) | 5.00% | 5.00% | ||||||
PRC | BEST Technology | ||||||||
TAXATION | ||||||||
Preferential Statutory Income Tax Rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||
non- PRC | ||||||||
TAXATION | ||||||||
Income tax rate (as a percent) | 25.00% | |||||||
Assessable profits | ¥ 0 |
TAXATION - Reconciliation of In
TAXATION - Reconciliation of Income Tax Expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Reconciliation of the differences between the PRC statutory tax rate and effective tax rate | ||||
Loss before income taxes and share of net loss of equity investees | ¥ (1,660,764) | $ (254,526) | ¥ 193,084 | ¥ (96,290) |
Income tax computed at the statutory tax rate of 25% | 415,191 | 63,631 | (48,271) | 24,073 |
Non-deductible expenses | (91,696) | (14,054) | (57,784) | (65,862) |
Effect of different tax rates in different jurisdictions and preferential tax rate | (48,650) | (7,456) | (9,949) | (4,826) |
Research and development expenses deduction | 21,834 | 3,346 | 19,552 | 12,248 |
Non-taxable income | 11,152 | 1,709 | 17,489 | 17,097 |
Provision to return | (7,426) | (1,138) | (1,728) | (8,319) |
Deferred tax expense | 5,195 | 796 | 3,932 | (4,598) |
Tax rate change | (18,594) | (2,850) | 4,578 | (16,771) |
Expired tax loss | (70,662) | (10,829) | (13,482) | |
Change in valuation allowance | (275,656) | (42,246) | 61,310 | 16,398 |
Income tax expense (benefit), total | ¥ (22,124) | $ (3,391) | ¥ (20,027) | ¥ (10,500) |
TAXATION - Components of Deferr
TAXATION - Components of Deferred tax (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Deferred tax assets, non-current | |||
Accrued expenses | ¥ 302,615 | $ 46,378 | ¥ 295,818 |
Customer advances and deposits | 28,177 | 4,318 | 34,571 |
Allowance for credit losses and inventory provision | 73,186 | 11,216 | 28,165 |
Depreciation and amortization expense | 53,606 | 8,215 | 101,565 |
Net operating losses carrying forward | 722,348 | 110,705 | 452,014 |
Lease liabilities | 1,006,909 | 154,316 | 1,091,096 |
Total deferred tax assets | 2,186,841 | 335,148 | 2,003,229 |
Valuation allowance | (1,179,009) | (180,691) | (903,353) |
Total deferred tax assets net of valuation allowance | 1,007,832 | 154,457 | 1,099,876 |
Deferred tax liabilities | |||
Fair value changes of equity investments | (18,900) | (2,897) | (19,696) |
Accrued revenue recognition difference | (23,088) | (3,538) | (27,926) |
Operating lease right-of-use assets | (965,844) | (148,022) | (1,052,254) |
Long-lived assets arising from acquisitions | (828) | ||
Total deferred tax liabilities | (1,007,832) | (154,457) | (1,100,704) |
Net tax operating losses | 3,410,610 | 522,699 | ¥ 2,122,341 |
Undistributed earnings from PRC subsidiaries as well as VIEs | ¥ 89,605 | $ 8,961 |
TAXATION - Unrecognized tax ben
TAXATION - Unrecognized tax benefits (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
TAXATION | |||||
Unrecognized tax benefits | ¥ 168,650 | $ 25,846 | ¥ 191,473 | $ 29,345 | ¥ 132,808 |
Unrecognized tax benefit presented on a net basis against deferred tax asset | 0 | 0 | 0 | ||
Unrecognized tax benefits if recognized that will impact effective tax rate | ¥ 24,025 | $ 3,682 | ¥ (1,446) |
TAXATION - Schedule of unrecogn
TAXATION - Schedule of unrecognized tax benefits (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
TAXATION | |||
Beginning balance | ¥ 191,473 | $ 29,345 | ¥ 132,808 |
Additions | (24,691) | (3,783) | (64,410) |
Decreases | (47,514) | (7,282) | (5,745) |
Ending balance | ¥ 168,650 | $ 25,846 | ¥ 191,473 |
RESTRICTED NET ASSETS (Details)
RESTRICTED NET ASSETS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Contractual Agreements | |||||
Minimum percentage of after tax profits to be allocated to general reserve fund | 10.00% | 10.00% | |||
Maximum threshold, expressed as a percentage of an entity's general reserve fund to its registered capital, for which allocations of after-tax profits to the general reserve fund are required | 50.00% | 50.00% | |||
Appropriations made to statutory reserves | ¥ 173 | $ 27 | ¥ 4,094 | ¥ 3,771 | |
Restricted paid-in capital of the Company's PRC subsidiary and consolidated VIEs | ¥ 5,081,767 | $ 778,815 | |||
Consolidated VIEs | |||||
Contractual Agreements | |||||
Minimum percentage of after tax profits to be allocated to general reserve fund | 10.00% | 10.00% | |||
Maximum threshold, expressed as a percentage of an entity's general reserve fund to its registered capital, for which allocations of after-tax profits to the general reserve fund are required | 50.00% | 50.00% |
Earnings_(LOSS) PER SHARE (Deta
Earnings/(LOSS) PER SHARE (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019$ / shares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018$ / shares | |
Numerator: | ||||||
Net loss | ¥ (2,025,508) | $ (310,426) | ¥ (202,416) | ¥ (507,988) | ||
Denominator: | ||||||
Continuing operations | (per share) | ¥ (4.28) | $ (0.66) | ¥ 0.49 | ¥ (0.28) | ||
Basic loss per share (in dollars per share) | (per share) | (5.23) | (0.80) | (0.52) | (1.32) | ||
Continuing operations | (per share) | (4.28) | (0.66) | 0.48 | (0.28) | ||
Discontinued operations | (per share) | (0.95) | (0.14) | (1.01) | (1.04) | ||
Diluted loss per share (in dollars per share) | (per share) | ¥ (5.23) | $ (0.80) | ¥ (0.52) | ¥ (1.32) | ||
Class A ordinary shares | ||||||
Numerator: | ||||||
Net (loss)/Income from continuing operations attributable to ordinary shareholders-basic | ¥ (1,050,575) | $ (161,011) | ¥ 120,206 | ¥ (67,413) | ||
Loss from discontinued operations, net of tax | (233,369) | (35,765) | (248,704) | (253,101) | ||
Net loss attributable to ordinary shareholders | (1,283,944) | (196,776) | (128,498) | (320,514) | ||
Reallocation of net (loss)/income from continuing operations attributable to ordinary shareholders as a result of conversion of Class C and Class B to Class A ordinary shares (Note 21) | (606,777) | (92,993) | 69,148 | (39,430) | ||
Reallocation of net loss from discontinued operations, net of tax attributable to ordinary shareholders as a result of conversion of Class C and Class B to Class A ordinary shares (Note 21) | (134,787) | (20,657) | (143,066) | (148,044) | ||
Reallocation of net loss attributable to ordinary shareholders as a result of conversion of Class C and Class B to Class A ordinary shares (Note 21) | (741,564) | (113,650) | (73,918) | (187,474) | ||
Net loss attributable to ordinary shareholders-diluted | ¥ (2,025,508) | $ (310,426) | ¥ (202,416) | ¥ (507,988) | ||
Denominator: | ||||||
Weighted average number of ordinary shares outstanding-basic | 245,626,959 | 245,626,959 | 246,614,615 | 242,542,728 | ||
Continuing operations | (per share) | ¥ (4.28) | $ (0.66) | ¥ 0.49 | ¥ (0.28) | ||
Discontinued operations | (per share) | ¥ (0.95) | $ (0.14) | ¥ (1.01) | ¥ (1.04) | ||
Conversion of Class C and Class B to Class A ordinary shares (Note 19) | 141,865,947 | 141,865,947 | 141,865,947 | 141,865,947 | ||
Weighted average number of ordinary shares for continuing operations outstanding - diluted | 387,492,906 | 387,492,906 | 393,154,247 | 384,408,675 | ||
Weighted average number of ordinary shares for discontinued operations outstanding - diluted | 387,492,906 | 387,492,906 | 388,480,562 | 384,408,675 | ||
Weighted average number of ordinary shares outstanding - diluted | 387,492,906 | 387,492,906 | 388,480,562 | 384,408,675 | ||
Basic loss per share (in dollars per share) | (per share) | ¥ (5.23) | $ (0.80) | ¥ (0.52) | ¥ (1.32) | ||
Continuing operations | (per share) | (4.28) | (0.66) | 0.48 | (0.28) | ||
Discontinued operations | (per share) | (0.95) | (0.14) | ¥ (1.01) | ¥ (1.04) | ||
Diluted loss per share (in dollars per share) | (per share) | ¥ (5.23) | $ (0.80) | $ (0.52) | $ (1.32) | ||
Class A ordinary shares | Restricted Shares | ||||||
Denominator: | ||||||
Conversion of Class C and Class B to Class A ordinary shares (Note 19) | 4,673,685 | |||||
Class B ordinary shares | ||||||
Numerator: | ||||||
Net (loss)/Income from continuing operations attributable to ordinary shareholders-basic | ¥ (402,371) | $ (61,665) | ¥ 45,854 | ¥ (26,147) | ||
Loss from discontinued operations, net of tax | (89,381) | (13,699) | (94,871) | (98,172) | ||
Net loss attributable to ordinary shareholders | (491,752) | (75,364) | (49,017) | (124,319) | ||
Net loss attributable to ordinary shareholders-diluted | ¥ (491,752) | $ (75,364) | ¥ (49,017) | ¥ (124,319) | ||
Denominator: | ||||||
Weighted average number of ordinary shares outstanding-basic | 94,075,249 | 94,075,249 | 94,075,249 | 94,075,249 | ||
Continuing operations | (per share) | ¥ (4.28) | $ (0.66) | ¥ 0.49 | ¥ (0.28) | ||
Discontinued operations | (per share) | ¥ (0.95) | $ (0.14) | ¥ (1.01) | ¥ (1.04) | ||
Weighted average number of ordinary shares for continuing operations outstanding - diluted | 94,075,249 | 94,075,249 | 94,075,249 | 94,075,249 | ||
Weighted average number of ordinary shares for discontinued operations outstanding - diluted | 94,075,249 | 94,075,249 | 94,075,249 | 94,075,249 | ||
Weighted average number of ordinary shares outstanding - diluted | 94,075,249 | 94,075,249 | 94,075,249 | 94,075,249 | ||
Basic loss per share (in dollars per share) | (per share) | ¥ (5.23) | $ (0.80) | ¥ (0.52) | ¥ (1.32) | ||
Continuing operations | (per share) | (4.28) | (0.66) | 0.48 | (0.28) | ||
Discontinued operations | (per share) | (0.95) | (0.14) | ¥ (1.01) | ¥ (1.04) | ||
Diluted loss per share (in dollars per share) | (per share) | ¥ (5.23) | $ (0.80) | (0.52) | (1.32) | ||
Class C ordinary shares | ||||||
Numerator: | ||||||
Net (loss)/Income from continuing operations attributable to ordinary shareholders-basic | ¥ (204,406) | $ (31,328) | ¥ 23,294 | ¥ (13,283) | ||
Loss from discontinued operations, net of tax | (45,406) | (6,958) | (48,195) | (49,872) | ||
Net loss attributable to ordinary shareholders | (249,812) | (38,286) | (24,901) | (63,155) | ||
Net loss attributable to ordinary shareholders-diluted | ¥ (249,812) | $ (38,286) | ¥ (24,901) | ¥ (63,155) | ||
Denominator: | ||||||
Weighted average number of ordinary shares outstanding-basic | 47,790,698 | 47,790,698 | 47,790,698 | 47,790,698 | ||
Continuing operations | (per share) | ¥ (4.28) | $ (0.66) | ¥ 0.49 | ¥ (0.28) | ||
Discontinued operations | (per share) | ¥ (0.95) | $ (0.14) | ¥ (1.01) | ¥ (1.04) | ||
Weighted average number of ordinary shares for continuing operations outstanding - diluted | 47,790,698 | 47,790,698 | 47,790,698 | 47,790,698 | ||
Weighted average number of ordinary shares for discontinued operations outstanding - diluted | 47,790,698 | 47,790,698 | 47,790,698 | 47,790,698 | ||
Weighted average number of ordinary shares outstanding - diluted | 47,790,698 | 47,790,698 | 47,790,698 | 47,790,698 | ||
Basic loss per share (in dollars per share) | (per share) | ¥ (5.23) | $ (0.80) | ¥ (0.52) | ¥ (1.32) | ||
Continuing operations | (per share) | (4.28) | (0.66) | 0.48 | (0.28) | ||
Discontinued operations | (per share) | (0.95) | (0.14) | ¥ (1.01) | ¥ (1.04) | ||
Diluted loss per share (in dollars per share) | (per share) | ¥ (5.23) | $ (0.80) | $ (0.52) | $ (1.32) |
SHARE-BASED PAYMENTS (Details)
SHARE-BASED PAYMENTS (Details) | Jun. 04, 2008installmentshares | Sep. 30, 2017installmentshares | Jul. 31, 2017shares | Jan. 15, 2015shares | Oct. 25, 2011shares |
2008 Plan | |||||
SHARE-BASED PAYMENTS | |||||
Term of the award plan | 10 years | ||||
Contractual term (in years) | 15 years | ||||
Termination term (in days) | 90 days | ||||
Shares authorized (in shares) | 10,000,000 | 20,934,684 | 16,239,033 | ||
Early exercise (in shares) | 12,599,520 | ||||
2017 Plan | |||||
SHARE-BASED PAYMENTS | |||||
Contractual term (in years) | 10 years | ||||
Annual increase program term (in years) | 8 years | ||||
Termination term (in days) | 90 days | ||||
Shares authorized (in shares) | 10,000,000 | ||||
Annual increase in reserved shares (as a percent of outstanding shares) | 2.00% | ||||
Threshold for outstanding shares (as percent of outstanding shares) | 10.00% | ||||
On the first anniversary | 2008 Plan | |||||
SHARE-BASED PAYMENTS | |||||
Percentage of shares vested | 25.00% | ||||
On the first anniversary | 2017 Plan | |||||
SHARE-BASED PAYMENTS | |||||
Percentage of shares vested | 25.00% | ||||
After the first anniversary in thirty-six equal monthly installments | 2008 Plan | |||||
SHARE-BASED PAYMENTS | |||||
Percentage of shares vested | 2.09% | ||||
Number of equal monthly installment | installment | 36 | ||||
After the first anniversary in thirty-six equal monthly installments | 2017 Plan | |||||
SHARE-BASED PAYMENTS | |||||
Percentage of shares vested | 2.09% | ||||
Number of equal monthly installment | installment | 36 | ||||
On the first, second, third and fourth anniversary | 2017 Plan | Restricted Shares | |||||
SHARE-BASED PAYMENTS | |||||
Percentage of shares vested | 25.00% |
SHARE-BASED PAYMENTS - Options
SHARE-BASED PAYMENTS - Options granted to employees (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018$ / shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2020CNY (¥)shares | |
Number of options | |||||||
Number of options, Granted (in shares) | shares | 0 | 0 | |||||
Number of options, Exercised (in shares) | shares | (12,903,413) | ||||||
Aggregate intrinsic Value | |||||||
Number of options, Exercised (in shares) | shares | 12,903,413 | ||||||
2008 Plan | Options granted to employees | |||||||
Number of options | |||||||
Number of options, Beginning of the year (in shares) | shares | 2,791,458 | 2,791,458 | |||||
Number of options, Exercised (in shares) | shares | (919,822) | (919,822) | |||||
Number of options, Forfeited/Expired (in shares) | shares | (67,180) | (67,180) | |||||
Number of options, End of the year (in shares) | shares | 1,804,456 | 1,804,456 | 2,791,458 | ||||
Vested and expected to vest, End of the year (in shares) | shares | 17,237,326 | 17,237,326 | |||||
Exercisable, End of the year (in shares) | shares | 1,625,059 | 1,625,059 | |||||
Weighted-average exercise price | |||||||
Weighted-average exercise price, Beginning of the year (in dollars per share) | $ / shares | $ 0.75 | ||||||
Weighted-average exercise price, Exercised (in dollars per share) | $ / shares | 0.75 | ||||||
Weighted-average exercise price, Forfeited/Expired (in dollars per share) | $ / shares | 0.75 | ||||||
Weighted-average exercise price, End of the year (in dollars per share) | $ / shares | 0.75 | $ 0.75 | |||||
Weighted-average exercise price, Vested and expected to vest at end of the year (in dollars per share) | $ / shares | 0.67 | ||||||
Weighted-average exercise price, Exercisable at end of the year (in dollars per share) | $ / shares | 0.75 | ||||||
Weighted-average grant-date fair value | |||||||
Weighted-average grant-date fair value, Beginning of the year (in dollars per share) | $ / shares | 6.65 | ||||||
Weighted-average grant-date fair value, Granted (in dollars per share) | $ / shares | 0 | 0 | $ 9.55 | ||||
Weighted-average grant-date fair value, Exercised (in dollars per share) | $ / shares | 6.52 | ||||||
Weighted-average grant-date fair value, Forfeited/Expired (in dollars per share) | $ / shares | 8.21 | ||||||
Weighted-average grant-date fair value, End of the year (in dollars per share) | $ / shares | 6.93 | $ 6.65 | |||||
Weighted-average grant-date fair value, Vested and expected to vest at end of the year (in dollars per share) | $ / shares | 2.37 | ||||||
Weighted-average grant-date fair value, Exercisable at end of the year (in dollars per share) | $ / shares | $ 6.71 | ||||||
Weighted-average remaining contractual term | |||||||
Weighted-average remaining contractual term (in years) | 11 years 18 days | 11 years 18 days | 12 years 11 months 12 days | ||||
Weighted-average remaining contractual term, Vested and expected to vest at end of the year (in years) | 7 years 8 months 1 day | 7 years 8 months 1 day | |||||
Weighted-average remaining contractual term, Exercisable at end of the year (in years) | 10 years 11 months 26 days | 10 years 11 months 26 days | |||||
Aggregate intrinsic Value | |||||||
Aggregate intrinsic Value | $ | $ 2,329 | $ 14,430 | |||||
Aggregate intrinsic Value, Vested and expected to vest at end of the year | $ | 23,681 | ||||||
Aggregate intrinsic Value, Exercisable at end of the year | $ | 2,097 | ||||||
Intrinsic value of options exercised | $ 135,077 | ¥ 881,376 | ¥ 860,607 | ¥ 792,192 | |||
Number of options, Exercised (in shares) | shares | 919,822 | 919,822 | |||||
Weighted average grant-date fair value of equity awards granted | $ / shares | $ 0 | $ 0 | $ 9.55 | ||||
Total fair value of the equity awards vested | $ 5,314 | ¥ 34,671 | ¥ 48,452 | ¥ 101,966 | |||
2017 Plan | Options granted to employees | |||||||
Number of options | |||||||
Number of options, Beginning of the year (in shares) | shares | 0 | 0 | |||||
Number of options, Granted (in shares) | shares | 0 | 0 | 0 | ||||
Number of options, End of the year (in shares) | shares | 0 | 0 | 0 | ||||
Vested and expected to vest, End of the year (in shares) | shares | 144,723 | 144,723 | |||||
Aggregate intrinsic Value | |||||||
Unrecognized compensation cost | $ 872 | ¥ 5,690 | |||||
Estimated weighted-average amortization period | 6 months 29 days | 6 months 29 days |
SHARE-BASED PAYMENTS - Option_2
SHARE-BASED PAYMENTS - Options granted to non-employees (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018$ / shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2020CNY (¥)shares | |
Number of options | |||||||
Number of options, Granted (in shares) | 0 | 0 | |||||
Number of options, Exercised (in shares) | (12,903,413) | ||||||
Aggregate intrinsic Value | |||||||
Number of options, Exercised (in shares) | 12,903,413 | ||||||
Options granted to non-employees | 2008 Plan | |||||||
Number of options | |||||||
Number of options, Beginning of the year (in shares) | 1,471,677 | 1,471,677 | |||||
Number of options, Exercised (in shares) | (30,500) | (30,500) | |||||
Number of options, End of the year (in shares) | 1,441,177 | 1,441,177 | 1,471,677 | ||||
Vested and expected to vest, End of the year (in shares) | 1,838,173 | 1,838,173 | |||||
Exercisable, End of the year (in shares) | 1,410,677 | 1,410,677 | |||||
Weighted-average exercise price | |||||||
Weighted-average exercise price, Beginning of the year (in dollars per share) | $ / shares | $ 0.70 | ||||||
Weighted-average exercise price, Exercised (in dollars per share) | $ / shares | 0.75 | ||||||
Weighted-average exercise price, End of the year (in dollars per share) | $ / shares | 0.70 | $ 0.70 | |||||
Weighted-average exercise price, Vested and expected to vest at end of the year (in dollars per share) | $ / shares | 0.65 | ||||||
Weighted-average exercise price, Exercisable at end of the year (in dollars per share) | $ / shares | 0.70 | ||||||
Weighted-average grant-date fair value | |||||||
Weighted-average grant-date fair value, Beginning of the year (in dollars per share) | $ / shares | 2.47 | ||||||
Weighted-average grant-date fair value, Granted (in dollars per share) | $ / shares | 0 | 0 | $ 9.06 | ||||
Weighted-average grant-date fair value, Exercised (in dollars per share) | $ / shares | 2.20 | ||||||
Weighted-average grant-date fair value, End of the year (in dollars per share) | $ / shares | 2.46 | $ 2.47 | |||||
Weighted-average grant-date fair value, Vested and expected to vest at end of the year (in dollars per share) | $ / shares | 2.46 | ||||||
Weighted-average grant-date fair value, Exercisable at end of the year (in dollars per share) | $ / shares | $ 2.49 | ||||||
Weighted-average remaining contractual term | |||||||
Weighted-average remaining contractual term (in years) | 7 years 8 months 1 day | 7 years 8 months 1 day | 9 years 8 months 1 day | ||||
Weighted-average remaining contractual term, Vested and expected to vest at end of the year (in years) | 7 years 8 months 1 day | 7 years 8 months 1 day | |||||
Weighted-average remaining contractual term, Exercisable at end of the year (in years) | 7 years 7 months 20 days | 7 years 7 months 20 days | |||||
Aggregate intrinsic Value | |||||||
Aggregate intrinsic Value | $ | $ 7,645 | $ 4,657 | |||||
Aggregate intrinsic Value, Vested and expected to vest at end of the year | $ | 7,645 | ||||||
Aggregate intrinsic Value, Exercisable at end of the year | $ | 6,856 | ||||||
Intrinsic value of options exercised | $ 3,134 | ¥ 20,448 | ¥ 19,677 | ¥ 15,703 | |||
Number of options, Exercised (in shares) | 30,500 | 30,500 | |||||
Weighted average grant-date fair value of equity awards granted | $ / shares | $ 0 | $ 0 | 9.06 | ||||
Total fair value of the equity awards vested | ¥ | ¥ 0 | ¥ 770 | ¥ 21,199 | ||||
Unrecognized share-based compensation expenses of unvested and vested but not exercisable | ¥ | ¥ 0 | ||||||
Options granted to non-employees | 2017 Plan | |||||||
Number of options | |||||||
Number of options, Beginning of the year (in shares) | 0 | 0 | 0 | ||||
Number of options, Granted (in shares) | 0 | 0 | 0 | ||||
Number of options, End of the year (in shares) | 0 | 0 | 0 | 0 | |||
Restricted Shares | 2017 Plan | |||||||
Number of options | |||||||
Number of options, Beginning of the year (in shares) | 6,331,464 | 6,331,464 | |||||
Number of options, Granted (in shares) | 4,599,432 | 4,599,432 | |||||
Number of options, Vested and issued (in shares) | (1,729,254) | (1,729,254) | |||||
Number of options, Forfeited (in shares) | (913,502) | (913,502) | |||||
Number of options, End of the year (in shares) | 8,288,140 | 8,288,140 | 6,331,464 | ||||
Vested and expected to vest, End of the year (in shares) | 6,581,734 | 6,581,734 | |||||
Weighted-average grant-date fair value | |||||||
Weighted-average grant-date fair value, Beginning of the year (in dollars per share) | $ / shares | $ 7.29 | ||||||
Weighted-average grant-date fair value, Granted (in dollars per share) | $ / shares | 5.23 | 5.65 | 10.41 | ||||
Weighted-average exercise price, Vested and issued (in dollars per share) | $ / shares | 7.60 | ||||||
Weighted-average grant-date fair value, Forfeited/Expired (in dollars per share) | $ / shares | 6.79 | ||||||
Weighted-average grant-date fair value, End of the year (in dollars per share) | $ / shares | 6.14 | 7.29 | |||||
Aggregate intrinsic Value | |||||||
Weighted average grant-date fair value of equity awards granted | $ / shares | $ 5.23 | $ 5.65 | $ 10.41 | ||||
Unrecognized share-based compensation expenses of unvested and vested but not exercisable | $ 40,798 | ¥ 266,208 | |||||
Estimated weighted-average amortization period | 2 years 6 months 14 days | 2 years 6 months 14 days | |||||
Restricted shares to non-employees | 2017 Plan | |||||||
Number of options | |||||||
Number of options, Granted (in shares) | 189,715 | 189,715 | 9,413 | 6,000 |
SHARE-BASED PAYMENTS - Grant da
SHARE-BASED PAYMENTS - Grant date fair value of employee and non-employee share options (Details) | 12 Months Ended |
Dec. 31, 2018$ / shares | |
Grant date fair value of employee and non-employee share options | |
Risk-free interest rate, minimum | 2.74% |
Risk-free interest rate, maximum | 2.78% |
Expected volatility range, minimum | 44.30% |
Expected volatility range, maximum | 46.90% |
Suboptimal exercise factor | 2.20 |
Minimum | |
Grant date fair value of employee and non-employee share options | |
Fair market value per ordinary share | $ 8.30 |
Maximum | |
Grant date fair value of employee and non-employee share options | |
Fair market value per ordinary share | $ 9.55 |
SHARE-BASED PAYMENTS - Total sh
SHARE-BASED PAYMENTS - Total share-based compensation cost recognized (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
SHARE-BASED PAYMENTS | ||||
Share-based compensation expenses from continuing operations | ¥ 129,651 | $ 19,870 | ¥ 91,693 | ¥ 104,136 |
Share-based compensation expenses for discontinued operations | 8,550 | 1,310 | 6,811 | 4,971 |
Total share-based compensation expenses | 138,201 | 21,180 | 98,504 | 109,107 |
Cost of revenues | ||||
SHARE-BASED PAYMENTS | ||||
Total share-based compensation expenses | 2,400 | 368 | 1,771 | 2,003 |
Selling expense | ||||
SHARE-BASED PAYMENTS | ||||
Total share-based compensation expenses | 7,715 | 1,182 | 8,788 | 6,007 |
General and administrative expenses | ||||
SHARE-BASED PAYMENTS | ||||
Total share-based compensation expenses | 111,773 | 17,130 | 73,925 | 87,011 |
Research and development expenses | ||||
SHARE-BASED PAYMENTS | ||||
Total share-based compensation expenses | ¥ 7,763 | $ 1,190 | ¥ 7,209 | ¥ 9,115 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Sep. 05, 2018shares | Feb. 01, 2018shares | Nov. 30, 2019USD ($) | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019shares | Dec. 31, 2018shares | Sep. 20, 2017shares |
SHAREHOLDERS' EQUITY | ||||||||
Number of options, Exercised (in shares) | 12,903,413 | |||||||
Payments for repurchase of shares | $ 32,391 | ¥ 211,352 | ||||||
Common Stock | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Shares issued and transferred to depositary bank (in shares) | 18,000,000 | |||||||
Number of options, Exercised (in shares) | 2,869,291 | 2,869,291 | 2,056,804 | 12,903,413 | ||||
Shares issued from depositary bank upon the exercise of share options and vesting of Restricted Shares (in shares) | 2,869,291 | 2,869,291 | 2,056,804 | 12,903,413 | ||||
ADS | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Number of shares repurchased | 6,395,050 | 6,395,050 | ||||||
Average price | $ / shares | $ 4.69 | |||||||
ADS | 2019 Share Repurchase Program | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Aggregate authorized amount to be repurchased | $ | $ 100,000 | |||||||
Period of share repurchase program | 18 months | |||||||
Class A ordinary shares | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Conversion ratio | 1 | |||||||
Shares issued and transferred to depositary bank (in shares) | 2,000,000 | 16,000,000 | 18,000,000 | 18,000,000 | ||||
Number of options, Exercised (in shares) | 2,869,291 | 2,869,291 | 2,056,804 | |||||
Shares issued from depositary bank upon the exercise of share options and vesting of Restricted Shares (in shares) | 17,829,508 | 17,829,508 | 14,960,217 | |||||
Number of shares options granted | 170,492 | 170,492 | 3,039,783 | 5,096,587 | ||||
Ordinary shares, outstanding shares | 250,648,452 | 250,648,452 | 250,648,452 | |||||
Voting rights | one | one | ||||||
Class A ordinary shares | 2019 Share Repurchase Program | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Number of shares repurchased | 6,395,050 | 6,395,050 | ||||||
Class B ordinary shares | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares, outstanding shares | 94,075,249 | 94,075,249 | 94,075,249 | |||||
Voting rights | fifteen | fifteen | ||||||
Class C ordinary shares | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares, outstanding shares | 47,790,698 | 47,790,698 | 47,790,698 | |||||
Voting rights | thirty | thirty |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Amounts due from related parties: | |||||
Amounts due from related parties | ¥ 274,395 | ¥ 246,758 | $ 42,053 | ||
Amounts due to related parties: | |||||
Amounts due to related parties | 35,623 | 9,769 | 5,459 | ||
Convertible senior notes held by related parties | 1,617,846 | 680,104 | 247,946 | ||
Rendering of express delivery and supply chain management services | |||||
RELATED PARTY TRANSACTIONS | |||||
Amount of related party transactions | 933,869 | $ 143,122 | 825,552 | ¥ 652,352 | |
Operating costs paid on behalf of the Company | |||||
RELATED PARTY TRANSACTIONS | |||||
Amount of related party transactions | 6,813 | 1,044 | 9,874 | 16,433 | |
Operating costs paid to related party | |||||
RELATED PARTY TRANSACTIONS | |||||
Amount of related party transactions | 52,275 | 8,012 | 9,669 | 4,756 | |
Cainiao | |||||
Amounts due from related parties: | |||||
Amounts due from related parties | 232,110 | 241,021 | 35,573 | ||
Amounts due to related parties: | |||||
Amounts due to related parties | 6,139 | 6,140 | 941 | ||
Cainiao | Rendering of express delivery and supply chain management services | |||||
RELATED PARTY TRANSACTIONS | |||||
Amount of related party transactions | 808,308 | 123,879 | 814,855 | 652,352 | |
Cainiao | Rental of warehouse as a lessee | |||||
RELATED PARTY TRANSACTIONS | |||||
Amount of related party transactions | 18,061 | 2,768 | 9,916 | 9,076 | |
Cainiao | Operating costs paid on behalf of the Company | |||||
RELATED PARTY TRANSACTIONS | |||||
Amount of related party transactions | 4,045 | 620 | 9,874 | 16,433 | |
Cainiao | Commission fee paid to related party | |||||
RELATED PARTY TRANSACTIONS | |||||
Amount of related party transactions | 160 | 3,489 | |||
Cainiao | Operating costs paid to related party | |||||
RELATED PARTY TRANSACTIONS | |||||
Amount of related party transactions | 37,374 | 5,728 | |||
Lazada | |||||
Amounts due from related parties: | |||||
Amounts due from related parties | 42,277 | 5,349 | 6,479 | ||
Lazada | Rendering of express delivery and supply chain management services | |||||
RELATED PARTY TRANSACTIONS | |||||
Amount of related party transactions | 125,561 | 19,243 | 10,697 | ||
Alibaba.com | |||||
Amounts due to related parties: | |||||
Amounts due to related parties | 28,275 | 3,629 | 4,333 | ||
Alibaba.com | Issue convertible senior notes to related party | |||||
RELATED PARTY TRANSACTIONS | |||||
Amount of related party transactions | 1,061,421 | 162,670 | 687,677 | ||
Alibaba.com | Interest expense of convertible senior notes accrued to related party | |||||
RELATED PARTY TRANSACTIONS | |||||
Amount of related party transactions | 46,460 | 7,120 | 5,447 | ||
Alibaba.com | Convertible senior notes held by related parties | |||||
Amounts due to related parties: | |||||
Convertible senior notes held by related parties | 1,617,846 | 680,104 | 247,946 | ||
Ali Cloud | |||||
Amounts due from related parties: | |||||
Amounts due from related parties | 8 | 388 | 1 | ||
Amounts due to related parties: | |||||
Amounts due to related parties | 1,209 | $ 185 | |||
Ali Cloud | Operating costs paid on behalf of the Company | |||||
RELATED PARTY TRANSACTIONS | |||||
Amount of related party transactions | 2,768 | 424 | |||
Ali Cloud | Operating costs paid to related party | |||||
RELATED PARTY TRANSACTIONS | |||||
Amount of related party transactions | ¥ 14,901 | $ 2,284 | ¥ 9,669 | ¥ 4,756 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)segment | Dec. 31, 2020USD ($)segment | Dec. 31, 2019CNY (¥)segment | Dec. 31, 2018CNY (¥) | |
SEGMENT REPORTING | ||||
Number of operating segments | 6 | 6 | 5 | |
Total revenue | ¥ 29,995,029 | $ 4,596,938 | ¥ 32,358,687 | ¥ 25,115,977 |
Cost of revenue | 29,756,889 | 4,560,443 | 30,721,360 | 23,929,959 |
Gross profit | 238,140 | 36,495 | 1,637,327 | 1,186,018 |
Net loss | (2,051,224) | (314,367) | (219,068) | (508,391) |
Express delivery | ||||
SEGMENT REPORTING | ||||
Cost of revenue | 19,470,937 | 2,984,052 | 20,793,370 | 16,921,826 |
Freight delivery | ||||
SEGMENT REPORTING | ||||
Cost of revenue | 5,063,236 | 775,975 | 4,934,937 | 3,946,032 |
Supply chain management | ||||
SEGMENT REPORTING | ||||
Cost of revenue | 1,846,901 | 283,050 | 2,052,006 | 1,970,109 |
Global | ||||
SEGMENT REPORTING | ||||
Cost of revenue | 875,733 | 134,212 | 371,404 | 167,053 |
UCargo | ||||
SEGMENT REPORTING | ||||
Cost of revenue | 2,473,857 | 379,135 | 2,517,642 | 877,172 |
Capital | ||||
SEGMENT REPORTING | ||||
Cost of revenue | 26,225 | 4,019 | 52,001 | 47,767 |
Operating segment | ||||
SEGMENT REPORTING | ||||
Total revenue | 29,995,029 | 4,596,938 | 32,358,687 | 25,115,977 |
Cost of revenue | 29,756,889 | 4,560,443 | 30,721,360 | 23,929,959 |
Gross profit | 238,140 | 36,495 | 1,637,327 | 1,186,018 |
Net loss | (1,683,068) | (257,945) | 172,702 | (107,246) |
Operating segment | Express delivery | ||||
SEGMENT REPORTING | ||||
Total revenue | 19,434,485 | 2,978,465 | 21,853,951 | 17,751,830 |
Cost of revenue | 19,487,863 | 2,986,646 | 20,824,800 | 16,959,276 |
Gross profit | (53,378) | (8,181) | 1,029,151 | 792,554 |
Net loss | (755,305) | (115,756) | 461,490 | 377,684 |
Operating segment | Freight delivery | ||||
SEGMENT REPORTING | ||||
Total revenue | 5,163,882 | 791,400 | 5,233,542 | 4,115,606 |
Cost of revenue | 5,070,567 | 777,098 | 4,944,124 | 3,963,172 |
Gross profit | 93,315 | 14,302 | 289,418 | 152,434 |
Net loss | (199,826) | (30,625) | 18,684 | (13,536) |
Operating segment | Supply chain management | ||||
SEGMENT REPORTING | ||||
Total revenue | 1,912,323 | 293,076 | 2,198,536 | 2,101,304 |
Cost of revenue | 1,846,901 | 283,050 | 2,059,202 | 2,000,470 |
Gross profit | 65,422 | 10,026 | 139,334 | 100,834 |
Net loss | (175,072) | (26,831) | (122,312) | (44,348) |
Operating segment | Global | ||||
SEGMENT REPORTING | ||||
Total revenue | 777,657 | 119,181 | 336,874 | 162,968 |
Cost of revenue | 875,734 | 134,212 | 371,404 | 167,963 |
Gross profit | (98,077) | (15,031) | (34,530) | (4,995) |
Net loss | (251,511) | (38,546) | (167,600) | (74,812) |
Operating segment | UCargo | ||||
SEGMENT REPORTING | ||||
Total revenue | 2,871,850 | 440,130 | 3,233,887 | 2,414,169 |
Cost of revenue | 2,825,775 | 433,069 | 3,175,187 | 2,387,839 |
Gross profit | 46,075 | 7,061 | 58,700 | 26,330 |
Net loss | (116,782) | (17,898) | (22,056) | (12,292) |
Operating segment | Capital | ||||
SEGMENT REPORTING | ||||
Total revenue | 211,021 | 32,340 | 205,203 | 168,299 |
Cost of revenue | 26,225 | 4,019 | 52,001 | 48,015 |
Gross profit | 184,796 | 28,321 | 153,202 | 120,284 |
Net loss | 93,981 | 14,403 | 125,966 | 110,064 |
Inter-segment | ||||
SEGMENT REPORTING | ||||
Total revenue | (376,189) | (57,654) | (703,306) | (1,598,199) |
Cost of revenue | (376,176) | (57,651) | (705,358) | (1,596,776) |
Gross profit | (13) | (3) | 2,052 | (1,423) |
Unallocated | ||||
SEGMENT REPORTING | ||||
Net loss | ¥ (278,553) | $ (42,692) | ¥ (121,470) | ¥ (450,006) |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Fair value measurement | |||||
Gain recognized for measuring equity investments at fair value using the measurement alternative | ¥ 18,687 | $ 2,864 | ¥ 14,155 | ¥ 64,628 | |
Unrealized gains (upward adjustments) | 18,687 | $ 2,864 | 14,155 | ¥ 64,628 | |
Significant unobservable inputs (Level 3) | |||||
Fair value measurement | |||||
Long-term investments | 110,677 | 119,927 | $ 16,962 | ||
Non-recurring fair value measurement | |||||
Fair value measurement | |||||
Long-term investments | 110,677 | 119,927 | |||
Non-recurring fair value measurement | Significant unobservable inputs (Level 3) | |||||
Fair value measurement | |||||
Long-term investments | 110,677 | ¥ 119,927 | |||
Recurring fair value measurement | |||||
Fair value measurement | |||||
Financial assets and liabilities measured and recorded at fair value | ¥ 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - Dec. 31, 2020 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
COMMITMENTS AND CONTINGENCIES | ||
Capital expenditure commitment | ¥ 1,316,659 | $ 201,787 |
EMPLOYEE DEFINED CONTRIBUTION_2
EMPLOYEE DEFINED CONTRIBUTION PLAN (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
EMPLOYEE DEFINED CONTRIBUTION PLAN | ||||
Amounts of employee benefits expensed | ¥ 170,351 | $ 26,107 | ¥ 182,927 | ¥ 185,395 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Accumulated Other Comprehensive Income | ||||
Balance at beginning of the year | ¥ 3,920,912 | |||
Balance at end of the year | 1,750,619 | $ 268,295 | ¥ 3,920,912 | |
Reclassifications out of accumulated other comprehensive income to net loss | 0 | 0 | ¥ 0 | |
Accumulated other comprehensive income | ||||
Accumulated Other Comprehensive Income | ||||
Balance at beginning of the year | 163,196 | 123,923 | 12,333 | |
Balance at end of the year | 151,677 | $ 23,246 | 163,196 | 123,923 |
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income | ||||
Other comprehensive (loss)/income, net of tax | (11,519) | 39,273 | 111,590 | |
Other comprehensive income, tax | ¥ 0 | ¥ 0 | ¥ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent event ¥ in Thousands, $ in Thousands | Apr. 17, 2021CNY (¥) | Mar. 31, 2021CNY (¥) | Mar. 31, 2021USD ($) | Mar. 12, 2021CNY (¥) | Mar. 12, 2021USD ($) |
Subsequent Event [Line Items] | |||||
Short-term Debt | ¥ 580,000 | ||||
Strategic partnership agreement | Capital | BEST Finance | |||||
Subsequent Event [Line Items] | |||||
Assets transferred | ¥ 465,661 | $ 71,366 | ¥ 465,661 | $ 71,366 |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Condensed Balance Sheets (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥) | Dec. 31, 2018$ / shares | Dec. 31, 2017CNY (¥) |
Current assets: | |||||||
Cash | ¥ 1,383,317 | $ 212,003 | ¥ 1,985,413 | ¥ 1,616,785 | |||
Prepayments and other current assets | 3,304,670 | 506,460 | 2,728,812 | ||||
Total current assets | 9,367,711 | 1,435,662 | 9,688,449 | ||||
Non-current assets: | |||||||
Other non-current assets | 543,949 | 83,364 | 346,645 | ||||
Total non-current assets | 10,503,112 | 1,609,672 | 9,804,407 | ||||
Total assets | 19,870,823 | 3,045,334 | 19,492,856 | ||||
Current liabilities: | |||||||
Accrued liabilities and other payables | 2,507,917 | 384,355 | 2,006,049 | ||||
Non-current liabilities: | |||||||
Convertible senior notes held by related parties | 1,617,846 | 247,946 | 680,104 | ||||
Convertible senior notes held by third parties | 642,121 | 98,409 | 680,104 | ||||
Total non-current liabilities | 5,511,970 | 844,743 | 5,007,904 | ||||
Total liabilities | 18,146,219 | 2,781,026 | 15,577,572 | ||||
Shareholders' equity/(deficit): | |||||||
Treasury shares | (211,352) | (32,391) | |||||
Statutory Reserves | 8,038 | 1,232 | 7,865 | ||||
Additional paid in capital | 19,487,232 | 2,986,549 | 19,353,400 | ||||
Accumulated deficit | (17,710,964) | (2,714,324) | (15,629,537) | ||||
Accumulated other comprehensive income | 151,677 | 23,246 | 163,196 | ||||
BEST Inc. shareholders' equity | 1,750,619 | 268,295 | 3,920,912 | ||||
Total liabilities and shareholders' equity | 19,870,823 | 3,045,334 | 19,492,856 | ||||
Reportable legal entities | Parent | |||||||
Current assets: | |||||||
Cash | 33,310 | 5,105 | 9,933 | $ 1,522 | ¥ 5,350 | ¥ 39,135 | |
Prepayments and other current assets | 6,295 | 965 | 5,511 | ||||
Total current assets | 39,605 | 6,070 | 15,444 | ||||
Non-current assets: | |||||||
Other non-current assets | 1,686 | 258 | 5,909 | ||||
Investments in subsidiaries and VIEs | 4,230,471 | 648,348 | 5,343,503 | ||||
Total non-current assets | 4,232,157 | 648,606 | 5,349,412 | ||||
Total assets | 4,271,762 | 654,676 | 5,364,856 | ||||
Current liabilities: | |||||||
Accrued liabilities and other payables | 39,302 | 6,023 | 8,805 | ||||
Non-current liabilities: | |||||||
Long-term payable due to subsidiaries | 221,874 | 34,003 | 74,931 | ||||
Convertible senior notes held by related parties | 1,617,846 | 247,946 | 680,104 | ||||
Convertible senior notes held by third parties | 642,121 | 98,409 | 680,104 | ||||
Total non-current liabilities | 2,481,841 | 380,358 | 1,435,139 | ||||
Total liabilities | 2,521,143 | 386,381 | 1,443,944 | ||||
Shareholders' equity/(deficit): | |||||||
Treasury shares | (211,352) | (32,391) | |||||
Statutory Reserves | 8,038 | 1,232 | 7,865 | ||||
Additional paid in capital | 19,487,232 | 2,986,549 | 19,353,400 | ||||
Accumulated deficit | (17,710,964) | (2,714,324) | (15,629,537) | ||||
Accumulated other comprehensive income | 151,677 | 23,246 | 163,196 | ||||
BEST Inc. shareholders' equity | 1,750,619 | 268,295 | 3,920,912 | ||||
Total liabilities and shareholders' equity | 4,271,762 | 654,676 | 5,364,856 | ||||
Class A ordinary shares | |||||||
Shareholders' equity/(deficit): | |||||||
Ordinary shares | ¥ 16,532 | $ 2,534 | ¥ 16,532 | ||||
Parenthetical disclosures | |||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||
Ordinary shares, authorized shares | 1,858,134,053 | 1,858,134,053 | 1,858,134,053 | 1,858,134,053 | |||
Ordinary shares, issued shares | 250,648,452 | 250,648,452 | 250,648,452 | 250,648,452 | |||
Ordinary shares, outstanding shares | 250,648,452 | 250,648,452 | 250,648,452 | 250,648,452 | |||
Class A ordinary shares | Reportable legal entities | Parent | |||||||
Shareholders' equity/(deficit): | |||||||
Ordinary shares | ¥ 16,532 | $ 2,534 | ¥ 16,532 | ||||
Parenthetical disclosures | |||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||
Ordinary shares, authorized shares | 1,858,134,053 | 1,858,134,053 | 1,858,134,053 | 1,858,134,053 | |||
Ordinary shares, issued shares | 250,648,452 | 250,648,452 | 250,648,452 | 250,648,452 | |||
Ordinary shares, outstanding shares | 250,648,452 | 250,648,452 | 250,648,452 | 250,648,452 | |||
Class B ordinary shares | |||||||
Shareholders' equity/(deficit): | |||||||
Ordinary shares | ¥ 6,178 | $ 947 | ¥ 6,178 | ||||
Parenthetical disclosures | |||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||
Ordinary shares, authorized shares | 94,075,249 | 94,075,249 | 94,075,249 | 94,075,249 | |||
Ordinary shares, issued shares | 94,075,249 | 94,075,249 | 94,075,249 | 94,075,249 | |||
Ordinary shares, outstanding shares | 94,075,249 | 94,075,249 | 94,075,249 | 94,075,249 | |||
Class B ordinary shares | Reportable legal entities | Parent | |||||||
Shareholders' equity/(deficit): | |||||||
Ordinary shares | ¥ 6,178 | $ 947 | ¥ 6,178 | ||||
Parenthetical disclosures | |||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||
Ordinary shares, authorized shares | 94,075,249 | 94,075,249 | 94,075,249 | 94,075,249 | |||
Ordinary shares, issued shares | 94,075,249 | 94,075,249 | 94,075,249 | 94,075,249 | |||
Ordinary shares, outstanding shares | 94,075,249 | 94,075,249 | 94,075,249 | 94,075,249 | |||
Class C ordinary shares | |||||||
Shareholders' equity/(deficit): | |||||||
Ordinary shares | ¥ 3,278 | $ 502 | ¥ 3,278 | ||||
Parenthetical disclosures | |||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||
Ordinary shares, authorized shares | 47,790,698 | 47,790,698 | 47,790,698 | 47,790,698 | |||
Ordinary shares, issued shares | 47,790,698 | 47,790,698 | 47,790,698 | 47,790,698 | |||
Ordinary shares, outstanding shares | 47,790,698 | 47,790,698 | 47,790,698 | 47,790,698 | |||
Class C ordinary shares | Reportable legal entities | Parent | |||||||
Shareholders' equity/(deficit): | |||||||
Ordinary shares | ¥ 3,278 | $ 502 | ¥ 3,278 | ||||
Parenthetical disclosures | |||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||
Ordinary shares, authorized shares | 47,790,698 | 47,790,698 | 47,790,698 | 47,790,698 | |||
Ordinary shares, issued shares | 47,790,698 | 47,790,698 | 47,790,698 | 47,790,698 | |||
Ordinary shares, outstanding shares | 47,790,698 | 47,790,698 | 47,790,698 | 47,790,698 |
CONDENSED FINANCIAL INFORMATI_4
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Condensed Statements of Comprehensive Loss (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Operating expenses | ||||
General and administrative expenses | ¥ (1,262,232) | $ (193,446) | ¥ (932,718) | ¥ (886,638) |
Operating loss | (1,693,411) | (259,529) | 67,436 | (256,188) |
Interest expense | (174,607) | (26,760) | (79,486) | (75,060) |
Interest income | 74,727 | 11,452 | 95,440 | 102,821 |
Foreign currency translation adjustments | (11,519) | (1,765) | 39,273 | 111,590 |
Comprehensive loss attributable to BEST Inc. | (2,037,027) | (312,191) | (163,143) | (396,398) |
Other comprehensive (loss) income, tax | 0 | 0 | 0 | |
Parent | Reportable legal entities | ||||
Operating expenses | ||||
General and administrative expenses | (8,620) | (1,321) | (2,698) | (6,610) |
Operating loss | (8,620) | (1,321) | (2,698) | (6,610) |
Share of losses of subsidiaries and VIE | (1,951,902) | (299,141) | (188,962) | (501,396) |
Interest expense | (64,986) | (9,960) | (10,756) | |
Interest income | 18 | |||
Net loss attributable to ordinary shareholders | (2,025,508) | (310,422) | (202,416) | (507,988) |
Foreign currency translation adjustments | 11,519 | 1,765 | (39,273) | (111,590) |
Comprehensive loss attributable to BEST Inc. | ¥ (2,037,027) | $ (312,187) | ¥ (163,143) | ¥ (396,398) |
CONDENSED FINANCIAL INFORMATI_5
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Condensed Statements of Cash Flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Condensed Statements of Cash Flows | ||||
Net cash generated from operating activities | ¥ (231,235) | $ (35,438) | ¥ 852,833 | ¥ 637,204 |
Net cash used in investing activities | (872,933) | (133,783) | (1,912,482) | (1,230,953) |
Net cash generated from financing activities | 1,548,184 | 237,270 | 2,011,812 | 557,149 |
Net increase/(decrease) in cash and cash equivalents | 251,906 | 38,607 | 957,807 | 16,579 |
Cash and cash equivalents at beginning of year | 1,985,413 | 1,616,785 | ||
Cash and cash equivalents at end of year | 1,383,317 | 212,003 | 1,985,413 | 1,616,785 |
Parent | Reportable legal entities | ||||
Condensed Statements of Cash Flows | ||||
Net cash generated from operating activities | (289,910) | (44,430) | 4,218 | 3,132 |
Net cash used in investing activities | (534,059) | (81,848) | (1,224,149) | (41,166) |
Net cash generated from financing activities | 847,346 | 129,861 | 1,224,514 | 4,249 |
Net increase/(decrease) in cash and cash equivalents | 23,377 | 3,583 | 4,583 | (33,785) |
Cash and cash equivalents at beginning of year | 9,933 | 1,522 | 5,350 | 39,135 |
Cash and cash equivalents at end of year | ¥ 33,310 | $ 5,105 | ¥ 9,933 | ¥ 5,350 |