Best Group’s 2023 financial report: Double growth in revenue and profit, digital transformation has achieved remarkable results
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BEST Group (NYSE: BEST, “BEST” or the “Group”), a leading smart supply chain solution and logistics service provider in China and Southeast Asia, released its unaudited financial results for the fourth quarter of 2023 and the full year of 2023 .
Best Group announces fourth quarter and full-year performance report for 2023
Financial report data shows that Best Group achieved significant growth in revenue and profits in 2023. Revenue in the fourth quarter reached 2.236 billion yuan, a year-on-year increase of 12.9%, and full-year revenue reached 8.316 billion yuan, a year-on-year increase of 7.4%. The Group’s three major policies of “leading quality, leading costs, and leading operations” have achieved remarkable results. The gross profit margin for the whole year and the fourth quarter increased by 6.4 percentage points and 8.3 percentage points year-on-year respectively, demonstrating the Group’s leadership in digital transformation and global supply chain services. Strong development momentum. As of December 31, 2023, the group’s total cash and cash equivalents, restricted cash, and short-term investments were RMB 2.3 billion.
In terms of business development, Best Express achieved revenue of 1.502 billion yuan in the fourth quarter by improving service quality and efficiency, a year-on-year increase of 19.1%, and freight volume increased by 15.5% year-on-year. Annual revenue was 5.404 billion yuan, a year-on-year increase of 10.6%, and the annual freight volume reached 9.28 million tons. Thanks to the in-depth advancement of the collaborative strategy, Best Express has established closer business links with the group’s strategic customers and platform customers, laying a solid foundation for development in 2024.
With its excellent service quality and strong digital intelligence capabilities, Best Supply Chain’s annual revenue reached 1.859 billion yuan, and its gross profit margin increased to 8.5%. It is worth mentioning that Southeast Asia has become a key area for Chinese enterprises’ “going global” strategy. Against this background, Best Supply Chain carries out warehousing and distribution business in Southeast Asia to create full-link supply chain overseas solutions for customers.
Best International achieved significant business growth in 2023 by continuously optimizing its organizational structure and improving service quality and network coverage. Thanks to Chinese companies actively exploring overseas markets and looking for new growth drivers and development opportunities, Best International’s cross-border business has ushered in rapid development. Especially in the fourth quarter, cross-border business volume increased by 55.6% quarter-on-quarter. At the same time, with the improvement of service quality, the parcel volume in Southeast Asia increased by 60.1% year-on-year in the fourth quarter, of which the parcel volume in Vietnam and Malaysia increased by 173.0% and 27.3% respectively. For the whole year, Best International’s revenue was 947 million yuan, and its parcel volume in Southeast Asia was approximately 140 million pieces, a year-on-year increase of 14.6%.
Looking forward to the future, Best Group will continue to promote the strategy of focus and collaboration, deepen digital transformation, and provide more efficient and intelligent supply chain solutions to global customers through technological innovation and service upgrades. At the same time, the Group will continue to deeply explore the Southeast Asian market to meet the growing market demand and actively expand new business areas to achieve broader market coverage and deeper customer services.
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