BEST - Earnings call transcript Q3 2020

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Operator

Good morning, and good evening, ladies and gentlemen. Thank you for standing by. Welcome to BEST Inc.'s Third Quarter 2020 Earnings Conference. [Operator Instructions]. With us today are Mr. Chairman and Inc.'s Financial Fan, BEST Officer. Chou, and Gloria CEO; Chief Johnny

Johnny brief details give and today's will For agenda, a Then will results. operational Gloria overview explain financial the of highlights. business of

website. investor the on will call also website be the this at available remarks, Please Inc.'s replay the A An on is may your after being ask Following questions. presentation prepared of available note, ir.best-inc.com. BEST IR webcasted is also IR you this call. call

events control. on a to begins, are required read future Today's on result will that except law. earnings statements The call results found a financial uses forward-looking a certain note and EBITDA the of to of applicable will EBITDA, as it can risks, behalf are many of predict are management's reconciliation note contain The These statement measure factors, to update Before measures press as company as on under new - that safe not this also information, or and expressed others, Inc.'s GAAP release. harbor management's which company GAAP involve non-GAAP any undertake any of in and on I the uncertainties net does non-GAAP other statements. forward-looking expectations. based BEST non-GAAP be such BEST and obligation basis, loss. adjusted discussion Please statements They current which difficult of Inc. are forward-looking the all beyond

all Finally, in during this please mentioned conference figures are stated, RMB. note unless call otherwise that,

floor of and Mr. to Johnny BEST like Chairman I'd Now conference sir. the Inc. the Johnny, yours, turn CEO is to Chou,

Johnny Chou

On quarter our But in results. major core strategic and amid in let for joining everyone. had a today's to third we to go adjustments profitability. before quarterly will and thank the our morning, earnings third good evening, our to discuss refocus results, challenging achieve We competition. long-term and on quarter Welcome, our over call, also order that, intensified first Good addition industry you competitiveness businesses me call.

meet in by market volume quarter, share led dynamics For its percentage year-over-year, margin. operation during increased point of second volume representing to X.X execution the the did not XX.X% strategy, Express, market which is and quarter. the which Parcel a XX.X% lower growth pricing fast-changing compared and both lower about with the

completely margin by the contracted While XX.X% average of percentage decreased year-over-year. of decline gross as parcel its not cost points, offset X.X XX.X% year-over-year, per ASP did

are implementing of maintain believe since leaders us have the thorough we plans conducted midst industry going the and of and forward. changes a We that and of one position strategy, as competitive in review the we our Express and operations in make will

its primarily result tonne of year-over-year. lag year-over-year, year-over-year, cost XX.X% second a quarter. Freight the declined government average decreased by business than while by as reinstated after highway year-over-year quarter points in X.X growth the increased percentage strong third XXXX. of rate continued in Our industry volume and a Freight growth higher the average. gross the per XX.X% tolls by achieved Its ASP XX.X% a declined margin pricing

to return to Freight we and fourth quarter. to ahead, profitability are to the continue grow will that optimistic ASP XX improve continue Looking and range expect the we in percentage in

fulfilled XXX. Southeast onto brought UCargo the more XX.X% to year-over-year third by higher increased BEST business increased drivers X.X%, volume the gross Global by mobile BEST its the Supply XXX.X a strong quarter, total XXX,XXX. UCargo The on of momentum registered XX strategy services strong Its XXX% million the million. profiles. with projects due BEST number Store+ to number Chain growing year-over-year of XXX.X% in and BEST drivers Moving points our brokerage franchise in legacy year-over-year model million. by with its on third while third cost high of a The execute by of apps by of our to by transactions XX.X% OFCs platforms. on continued of decreased SME XX% the gross continued margins XXX,XXX. on by process increased to Cambodia order year-over-year of parcel OFCs strategy Asia. in losses. and trucking and increased XX.X orders of by In of year-over-year franchise growth margin to Management. XX.X% which also in customers, to in on executed OFCs X Thailand the The clients which Cloud structure Cloud focused quarter primarily platform number its number increased reduce to and delivery in year-over-year approximately XXXX, to the by expanding of improved Malaysia, partnership account and and quarter, quality, orders Vietnam made franchised progress being enhancing company OFC increased year-over-year XX.X to associated to million, key we In Total the by percentage The fulfilled parcel to express are volume margin Cloud with XX.X% increased year-over-year in total terminated. number credit Singapore.

adjusted of stores, eliminate believe company allowing we As result, X.X to down with business, WoWo its under flow is percentage for the which our associated these early-stage prioritize our cash that gross Despite strategic except recently year-over-year. further self-operated business, requirements increased by business. percentage Store+ the Store+, towards results, capital significant the this points can announced still EBITDA company We winding allocation phasing core encouraging review. by year-over-year margin margin improved a to X.X points while its XX.X%, by

path business. margins industry operating COVID profound to efficiency goal pricing taking business, headwinds, recovery enhancing focusing and unprecedented us the quality, with had supply losses. Let our The of high the change to business, discuss and on steps major our profitability. emphasizing Facing logistics are organizational our unexpected and strategic the pandemic subsequent a putting adjustments The costs service impact business. make strong to we back on has management core caused on chain competition depressed its me core our and

and long-term by in optimize its and planning, customer are growth and For experience, product on gaining our transportation particularly to Express quality improving profitability business, efficiency, share. market enhancing structure, operating services we sustainable continuing focused its

leadership lead have place Express put business. in to new We

previously Vice announced, XX, took the a of November of role Express replacing as company. As branch, effective of Zhou, line, Xiaoqing, new Shaohua XXXX, General service Wang the Manager who province up of in Mr. Mr. BEST Manager Jiangsu BEST's General position former assumed President,

e-commerce infrastructure services, and improving - For position our increasing expanding stressing of operational industry Freight, to solidify by leadership market shares, aspect we profitability. freight plan efficiency we continue continued its into the to network, invest to our

with Supply credit quality an we high profiles, implement profitability, only OFC model continuing to growth our grow target while will Management, For business. Chain with and and the Cloud focus customers projects margins asset-light on franchise strong and

business, announced on XX. Store+ of down noncore November we winding our BEST the For

For Capital goal business, including requirements operating of core the available reducing considering from with the other the - loss we're and company. capital a noncore Global, and UCargo, all options

refocusing to Those are cost-cutting us significant plan. leaner we a generate and employees execute Additionally, the will focused forward. implementing to more team company-wide and create measures our measures management realign organization will savings help also that going

our As smart demand we strength of services. chain look for solutions in e-commerce-driven supply we forward, integrated confident the logistics and remain

more ever our strengthen our core With than businesses market to invest these and in strategic are adjustments we committed in position. place,

as shareholders. on while operating units, our stability and quality whole, our structure, flexibility efficiencies, of which, strong enhancing overall We product will networks, a of the of are for and targeting BEST businesses our deliver our long-term integration growth the for focusing taken enable to further the value our services business

would to the financials. Now quarter like walk through call over I to Go to our our CFO, turn you third Gloria. ahead, Gloria,

Gloria Fan

third performance resilience hello competitive of reflects both market, Thank an business. our to you, our quarter and the Amid Johnny, and intensified everyone. challenges

healthy now X.X of while the cash of and net the flow Our RMBXXX revenue third a period balance equivalents, offset margin of billion, a across generated review in challenging results. quarter net RMBX.X during RMBX.X due will provide units, and XXXX percentage investments cash loss million. our multiple restricted of and volume gross we a cash that loss, I million quarter year, to maintained operating of short-term last third the financial a RMBXXX brief pricing Despite to points billion. business environment relatively year-over-year same our growth resulting our was of contracted cash flat

be the today's will call, I Given financial to read presenting I abbreviated further issued some you details. time press our earlier today release limited encourage highlights. on through for

XXXX. million to and EBITDA Our EBITDA million gross Gross RMBXXX supply margin the of to period same compared in XXXX. same QX profit core to RMBXXX quarter was the million X.X% for negative compared million XXXX. Adjusted of compared business of same same quarter X.X% in million was over RMBXXX negative for to for was RMBXX the management was chain logistics QX of period adjusted last million the RMBXXX year. compared RMBXXX

RMBX moving government XX.X% year-over-year on a per offset RMBXX Adjusted to year-over-year for for X.X% compared Adjusted year-over-year billion, business reinstated of per period was due primarily to year. million million, in Next, negative parcel primarily BEST last XX.X% RMBX negative by by volumes growth the in third million compared account due Freight RMBXX the Management is primarily parcel, Asia. period primarily was in X.X% compared revenue QX same The a which to to freight to due Chain BEST in offset of Freight's Store+ same a decreased a compared EBITDA year. volume. several million negative primarily last to million. EBITDA volume, to was to highlights BEST credit Adjusted last to decreased million RMBXX in same Adjusted due to to RMBXX revenue RMBXX financial by BEST revenue primarily was to Global for discontinuation by the BEST by QX partially X.X% increased year-over-year last RMBX.X Chain for to tonne, of RMBXXX by BEST was increase to to UCargo's the last of compared customers the same market XX.X% year. Southeast decrease pricing Adjusted million, decrease increase for primarily year. for million for lag for million X.X% RMBXXX negative competitive Store+ revenue year-over-year strong period RMBXXX for minimize Supply exposure. period for in UCargo Express XX.X% million, XX.X% of to units. the due for in by BEST revenue same On billion for EBITDA quarter margins. Supply a the improve key a XXXX, due year-over-year year-over-year year. revenue last quarter. RMBXXX QX to for was to million Management million our second the by EBITDA RMBXX RMBXXX year-over-year year. RMBXX after decrease ASP negative partially RMBX.X basis, to decreased million period in key BEST ASP to parcel Express negative QX of compared year-over-year same EBITDA BEST Adjusted year-over-year dynamics. RMBXXX to of BEST negative enhance highway for million attributable increased was year-over-year tolls RMBXX to loss of quality XXX.X% period EBITDA a of the loss in efforts ASP the million to order Global increased for million

third R&D intangible of the upgrade Please provision receivables these fixed expense certain general expenses to of same to was primarily XXXX. in trade X.X% share-based were RMBXXX Next, and R&D revenue compared to the as on operating excluded assets well of or in expenses the The - compensation. which at note, in revenue major as accrued million was equipment. administrative million, assets or by the attributable items. million to increase to expenses of of for capitalization travel certain period disposal the expenses decreased of and due the of SG&A to X.X% million in primarily attributable RMBXXX or let's expenses. RMBXX all reduction quarter Express's losses Selling, look RMBXX expenditure

create R&D and an of estimated part refocusing of are and same compared quarter resources We the by SG&A anticipate more end period by approximately million strategic we focused linear million and cost The XXXX. plan, total That financial our As will was to of the business. revenue CapEx organization year. optimizing on focus company. expenses savings our the optimizing prioritizing overview. RMBXXX of across core efficiencies revenue RMBXXX the total or of X.X% million savings third third company-wide a the spending in the RMBXXX X% last or quarter concludes to operating our of for

through you. align its businesses, our to underway like We further deliver creating provide of company, that advance can the were we open our profitability. core led to process our believe the questions. a allocation to reevaluation to and meaningful will to recognition organization we that, cost can BEST already a growth more a the needs as With simultaneously more reductions thorough a favorably a consistent with briefly value noncore facing, we in operations the summary. order open in resources, strategic shareholders. headwinds to this call I'd our improve Before decision. streamlined of has our call of portfolio we Q&A. conducting The Thank analysis business, better After and and the market long-term of to now are trigger of along

Operator

of Citi. [Operator Instructions]. question we first will have Zhai And Baoying from the come

Baoying Zhai

Yes.

but whole change and the question is delivery, on actually, So a my with Express the refocus the Express express - strategy not group freight. first regarding

be so of would of development Express restructuring. the want especially know, the regarding strategy is business? also second personnel, change Just competition delivery then the key key the my after question change the in to the what and And

business to with we close country. the Store+ So are cost, restructuring across I the the see going

need So to compensate the believe staff. I we

restructuring be savings, RMBXXX Gloria where And million please the the heard from So savings. RMBXXX about is previously, The So you mentioned down? what break I cost? will from? figure could she million

Johnny Chou

need the for is about operation. Yes, go number how moving Express are focused one - area In our much do the development. we Express that and on, we network Baoying, very the the you thank improve certainly, to past, first all reevaluated rebalancing the questions. large forward, we strategy And question we enough. regarding to

But areas do market, like can actually done strong have a lot We and we better. well we markets. we in are doing certain the Yiwu that balancing of major could areas actually, a or in some better some but have some

very very we it's per in as provinces, revenue so on more actually of pressure terms ASP other cost ASP So better Yiwu, and less probably outskirt some because structure of a that networks the of balanced. could our because in means low. market, or are we'll well the parcel Guangdong is area increase like as this get pricing better the - ASPs competitive Southern But

on than key So that's on we're taking current look the thing as that our doing our we primary can structure improve the focus will the network number that a balanced markets well fairly see we will well. look at and rather how improvement. at, one to more a based ASP Number network several our is two efficiency even side continue as the be transportation, though are transportation costs

board. If you costs XX% about went structure, across the of the look actually at reduction XX%, our in down whole we year-over-year total cost

However, down the comes pricing more.

line. hauls, that reduce the routing more So what is working help we to by even transportation more line we have if see to side, on want with the us long more reduction of will combined the lines, freight and side et that having can cetera, of

couple a primarily the growth of because - in our than can with at cost. per less. continued leasing one, growth slower It's about leasing be of competitors, Express capacity $X.XX would we have our high a take probably Another business. it The of parcel. growth This planned. still in we is years up quite much cost our Compared is high. year's you That's in built past look anticipation other at

at. more capacity another have so we're we actually, - So area inside that's that looking the

continuing some the first with completely transportation side, second So the than cost - the self-operated outsourced. We to actually just better question, also structure, started fleet we the the in on especially that's the market. rather the on And change focusing some side. have of Express key improve than key balancing network basically, on the is

in So year, fleet the had the I some already quarter, this think, starting self-operated we first on ground.

Secondly, restructuring costs. talking about you're

with. the additional on be we costs million to over with So additional restructuring will little disposing Probably, the deal bit inventories have charge the front, and Store+ costs issues older need business. with shutting associated also all will RMBXXX deal that of that's into it But branch one-time we probably offices by and that. the down a the

hundred us essentially give money will because a couple losing. every still is in business forward that dollars of the year moving savings However, of million

that. sorry, So any I'm onetime other I so all the the like businesses, looking - the don't look All additional - costs, it, at exact restructuring we're now. option costs other at have the right on still other, to number

third leave question the of With to the million about I $XXX Gloria. the savings, this

Gloria Fan

Okay.

winding now from savings Store+, Johnny So of the $XXX XXXX, as came basically, until of million was from the saying. savings down majority

SG&A And our We Store+ about RMBXXX with we optimize million are to also, able associated down. expenses. to continuing are winding save

reduction $XX additional to we another anticipate So cost million SG&A. million $XX in

Baoying Zhai

may question quite restructure not the let on feel personnel? we more refocus intensive. the and Express follow-up is we there that And still more know I Because it you the the a delivery seeing of Johnny, players. have out - polarization these and of is to Okay. soon can go are business competition change because leader willing

are we Or this Or So noncollection our still more our differentiated? are we if you focused at Because what and a of balanced we further the this profitability more follow cash more on we pricing regions, time, be network, down if do going to strategy? point about their think we drag will our flows. strategy? the change competition have will personnel,

Johnny Chou

cost - we right, were looking network at mentioned, everything. and I the based whole ASP on As our and the the structure current

to certainly, we compete. will in - you So a have market,

we So I most important results. the same our market the get can that have is competition network really need whatever to is. mean, the best to - time, see we we optimize own thing the At what's will to think the of certainly respond the to out I

better in and high job better re-optimization think to Meanwhile, price competition services, a we can so do going I better should do through of still optimizing the lower be also there. a we - own board. cost ASPs certain quality a regions yes providing service our network the by job, So - is across

Operator

we The will come have KeyBanc. from next Hans question of Chung

Hans Chung

wanted on I to So Express. follow up just

be have Let's - if Let's And just won't profitability? a strategy? to we're target because we going we and then decline still And so market volume do some scale, margins, clarification we terms or lose Or further then have can certain And - say, for first. a our any want volume at the beyond the least a the question strategy? of on for price certain still type right? so share volume, second in say, that's there because network? is would it and franchise profitability? - we get our create could I of and restructuring pricing do growth - what's leadership have a KPI First, pricing in there ASP, the then instability in change because right, risk I of that that, we wonder, to just of our Express, right, be comes some

Johnny Chou

you really in to have balancing, Okay. Hans, With for the getting thank also for the just volume, course, we So profitability not the first the your we such. lower do, to regard but question, of look to price question. right? the we're and need as

a profitable That So goal our reasonably is course, of with is, growth. course, goal. that is the goal but growth, I think of the - good

mention I how to some to So achieve of that. that? have

par. income them our - on income. parcel, compared our And in that around have X.XX about we're If kind of and all at of with if our you about right look X this structure some X.X we the a listing A - putting you this under ER, almost look so shares, in of the cost peers basically now through

X.XX, number. are a think we're - we reported the on that's coming higher quarter. third as Sometimes, even what actually in In I

mean we have actually We our people pricing we The in at price bit X want still delivery really think we maybe But a RMBX. But good it's with the the last-mile look lot probably actually So lower. out about with to than think a I we as I - X.XX, that, you job. help is others. a do lower franchisees, - taking the be about not think able still much which if very better income Because contrast, It's not side, there's maintain pricing them you're room compared peers. company - fees move. to the only not. than little to a less to to

that. a actually or goal bit higher little Our to is up higher RMBX.X - to is reach maybe maybe to move even than

doing most that? before said, to which how So primarily low our a and, doing comes concentrated volume have we're As been well. where potential are few I well, has markets regions we've volumes ASPs ASPs areas much more than the - much we fact, their higher in mean, I that from do very of and these traditionally of more there's some our could

but question we say, goal as don't your is to volume. in to growth a our we KPI, volume say, in so profitability have, really answer is the we And let's we other said, that, it, balancing much so So have are words, how have. to - - and

So we're primarily primarily our for to just we growth. not lose or going to and be money growth money for one but volume volume no we make or the other, want

Of change the same still to and we're the helping optimize leadership some have course, and, maybe XX back by organization time, to forward, kind refocusing change think is had I see at help - But the the you to of moving last-mile franchisees. So our in help? we're this growth. to They network. on company points also, the that next was meanwhile, of percentage reduce confidence of question leadership into will in profitabilities. strategies. loss going want we change more have In looking we're the bring The our hopefully, to - kind going

last-mile for way for well franchisees both the both So the as a as as is whole team whole. good

Operator

next The of Bo we comes Instructions]. have from Pei [Operator question Oppenheimer.

Bo Pei

competitive we players you growth. and to pretty name a Can so concentrated just question on the - release, up lot - share second market Store+ of press in money I winding we're could save of you it and grow in also down where less markets business, can And you is, market Express you also better and the ramp on seems the how have but your the markets other your these Are for it so mentioned your from share we - least for mentioned to just you market? aggressive even So comment mentioned business. at Express tried some then trying think market maintain this this profitabilities my is? or

mean business into to improve that forward try the the does reinvest bit? have Express the going a savings we So little and to rate growth

Johnny Chou

Yes. Yes.

you then So is we if and actually like market first a our well primarily, areas is the much as the at the in our with the decent or Shenzhen, And has markets you if are doing to These the Guangzhou look actually which volumes question higher other just province much as that's this past, are more market and cetera. But lower - we within the compared your primarily - from also fairly provinces, Shandong, Guangdong if at I key cities city very higher that, look concentration ASPs are much average. the Yiwu, before. Zhejiang as have our province, well than areas some revenue Henan, of these primarily much area - competitive. - a et are come Anhui, ASPs or typically, mentioned like of

we well as the do a area really low, little network everything but ASPs, the moving it. can that bit help do board, think we as pricing an more for also cost balancing the so transportation we efficiencies improve position to - a as and is we the we the have that balancing the very well. competitive has will the also there network, balancing that that in we already balancing we and the be do or focus the better across the - on area higher But for think see optimize So that will we right, area they will more, else area a can will probably think better that

is the we was savings question of us focus business, this - just close try allow see and can and Store+. focus every will investment and second more down save we where certain closing core time the time we the also into and closing will closing and readjust investment where Express the to - Primarily, money operation that Your in of put needed. areas. the the that try Store+ give that Certainly, the to to the year - in especially management yes, give

- Yes, yes, is savings will of some investment So into Express the put question? there Yes. into we'll business. that another we the

these increase investing by our in networks shares at to and or by that transportation least and efficiencies. we're what about said maintain also hoping the areas, So costs continuing we'll market full just balancing I reduce

Operator

have Zhai we a follow-up of Next, Citi. Baoying from

Baoying Zhai

Johnny, have question. follow-up I a still

tricky, fight the think makes Alibaba be of stronger players? landscape may question competition make but this sector's Alibaba's to a So major - smaller little the against given view bit maybe sense one now? you relatively and is smaller your the on what's shareholders, for Do it to players merger a

Johnny Chou

Alibaba what thinking about. they for I cannot speak were really

answer Yes. I So Baoying, question cannot you. this unfortunately, for

Baoying Zhai

or think do you guys you the if could guys together, players? better way do - you But be maybe it worked for don't do for STO Yes. fight the and be just, it's you I will know. example, think you for maybe XTO, But against - workable it how to about think a strong maybe

Johnny Chou

know you I asking, Again, Baoying, are I answer really the no have how question. question - don't this to

So we market of we're from we're mean some things - out installed. actually at I I confident the of point as by that ourselves to market itself, the by think them by BEST's work will goes, looking these as still - how the improve right? with view,

right, our look about look is if only XXXX, you If market so you at share XXXX, at about X%.

share. XX.X% actually of market So when we we go achieved to up about XXXX,

lot. share X X in in the we lot actually, gained market actually a or years, So had grew really and a

operational So the continuing network to looking at marketplace. continuing to point going to are in from still and to - to efficient are and how how reinvest and of optimize the side are we more our compete continuing getting view, our we

foresight As what out by dynamics all have cannot work market you're is and But the on I and any itself. margin, saying about on I now. stuff, the what it acquisition comment the guess, will market all the or

Operator

Hans we Next, KeyBanc. Chung a follow-up of have from

Hans Chung

Yes.

mentioned noncore. of for or So just terms each? they That's capital And rest Capital, be rest about or nature, growing going right? the in like, we And those of it's the they're different UCargo, open to do? option. the you follow-up in I tactics, would are business, in color of to we But then Because one very know quite you operation the in provide I for think And what about strategic is What addition can the fast, - are noncore. some business? profitable. question put Global, still the Global, are strategy loss-making.

noncore? color So Or just the we about thought? into to time have just have loss over whatever how narrow do costs the growth? goal we the are any a And do different it you about thinking

Johnny Chou

Including anticipating well in - synergy create the as in Store+ synergistic was much plan to initial other. - core ecosystem try a a a UCargo, Global, strategy to make Capital, as Okay. market side. business We're our help each to the competitive

more given refocus. marketplace, on that. this try we the to But initially business have we create really So synergy will competitive to to need

that. So reevaluate about our to - we think strategy on

core other time, could is All are can the business the options could and looking continuing Global, we remaining loss also to management's on the it within merger could all at the business spin-off, UCargo be some options, and noncore goal - side. we our so like refocus probably be acquisition, be of and right? minimize Capital, So the to way

up platform et more drivers have UCargo, really cetera. created sourcing, transportation, like efficient sign a to more Specifically was UCargo to

lot China We thing. cross-border cooperation merge, Supply But the in of and there, because quickly. to from then Express Global, that. car Thailand, kind developing some if as do interested well just So Thailand more international China, Express lot actually, China very required. anyone certainly synergies to for meanwhile, future, Chain to is into about of internal temporary more Global, cross-border we with Vietnam, cetera. same to et help platforms a have also a think there's will we to with can or getting Freight Management of there's more focus usages as

shipments platforms from working here well the customers. when as well. China versa, be network the with Express utilize Asia We're Asia collected for or parcel being You the in the to in vice all Southeast the to have delivered as to distributed Southeast we as

you so development. in yes, still are as mentioned, So businesses these

will as So as they require well kind of investment. still capital some some

fundraising that So separate yes, burdens separate the on be a partnership to more on at or cash we could something group. capital look see and, same the have time, at - burden the there a if getting less will and or we

can to more Capital, invest that's to some to cashes basically - of side, our franchisees, that to be just we'll do the right, and in probably will and capital have or So it's or thing. the help into options there than look drivers this, the initially, to own partners' as we - more so access it. - onto we use et main try we capital the easier group have other to have to try But our Other to goal we'll capital. do - institutions same any at probably require just saving is how core to using other essentially table, the the business, to to do kind Capital other business. cetera, way burden on one, is minimize

Hans Chung

That's very helpful.

Just one Global. quick on follow-up

would in the Global the from near of you medium term? - how RCEP? the term, and benefit not but that? BEST That that think longer maybe So Is in kind would about

Johnny Chou

Yes.

was Vietnam in Singapore, - and the Taobao [indiscernible] delivered and lot in developed of parcels through Thailand, seeing some see regional the this was in double bought mile. Asia by support trade certainly us a will China, agreement, on have our to course, or example, a RCEP, consumers the we're the new - it last of free major platforms a Malaysia, Southeast shipped because we in businesses other for XX, So already was

see continued bulky relatively e-commerce-related parcel So items. we as trend growth and of already growth high a well kind of into as some other cross-border shipments Yes.

or to it needs this trade a I with cross-border would I - that demand continue free for on I strongly zones, - assume believe So that. push expecting will strong

Operator

conference time, questions question-and-answer will and would ahead for management turn over further at remarks. go now no this as to team the any like are we call I conclude to session. the the closing back Well, there

Johnny Chou

soon. support further you look our have We you team Thank Thank reach joining BEST. and call, Relations very for to Investor of we Okay. you much. forward out to if questions. you speaking your to Please appreciate our

Operator

conference Fan, now thank time we disconnect And day. has your presentation. today. Mrs. Again, for you At also you. Mr. and you call time, today's attending your concluded. Chou, care, you The a thank may all Take we also this for lines. great Thank have

Johnny Chou

you. Thank

BEST (BEST) 24 Nov 202020 Q3 Earnings call transcript