百世汇通物流IPO招股书（英文）2017-09-19_372页-5mb

BEST Inc. IPO Summary

Core Content

BEST Inc. (BSTI) is a leading and fastest-growing smart supply chain service provider in China, offering a wide range of logistics and supply chain management services through its integrated platform. The company is going public with an initial offering of 45,000,000 American Depositary Shares (ADSs), each representing one Class A ordinary share, with an estimated offering price range of $10.00 to $11.00 per ADS. The total offering price is estimated at $569,250,000, and the registration fee is $65,976.

Key Services and Solutions

• BEST Supply Chain Management: Provides integrated services across the supply chain, including warehouse management, order fulfillment, express delivery, freight, and more. It is the fastest-growing independent supply chain management services provider in China, according to iResearch.
• BEST Express: The fastest-growing express delivery provider in China, with a 93% CAGR in parcel volume between 2012 and 2016. It has coverage in 100% of China's provinces and 98% of districts and counties.
• BEST Freight: The fastest-growing less-than-truckload (LTL) freight service provider in China, with a 93% CAGR in freight volume between 2012 and 2016. It covers 100% of China's provinces and 96% of its cities.
• BEST Store: Offers online merchandise sourcing and store management services for convenience stores, and also provides last-mile B2C services. As of June 30, 2017, it had 314,414 membership stores.
• BEST UCargo: A real-time bidding platform to source truckload capacity from independent transportation service providers and agents. It covers over 110,000 trucks in 30 provinces.
• BEST Cloud: A proprietary technology platform that connects the company's systems with those of its ecosystem participants, enabling efficient supply chain operations through SaaS-based applications, big data analytics, machine learning, and AI.

Share Structure and Ownership

• The company's share capital consists of Class A, B, and C ordinary shares.
• Class A shares are not convertible, while Class B and C shares are convertible into Class A shares.
• Class A shares have 1 vote, Class B have 15 votes, and Class C have 30 votes.
• Mr. Shao-Ning Johnny Chou, the founder and CEO, beneficially owns all Class C shares, which represent approximately 13.0% of total issued and outstanding share capital and 46.7% of the voting power.
• Alibaba Investment Limited and Cainiao Smart Logistics Investment Limited beneficially own all Class B shares, representing approximately 25.5% of total issued and outstanding share capital.

Financial Highlights

• Total revenue increased by 71.5% from RMB3,065.8 million in 2014 to RMB5,256.3 million in 2015, and further by 68.3% to RMB8,844.1 million (US$1,304.6 million) in 2016.
• In the six months ended June 30, 2017, total revenue increased by 133.5% from RMB3,470.1 million to RMB8,104.1 million (US$1,195.4 million).
• Gross margin improved from negative 12.2% in 2014 to negative 6.0% in 2016, and from negative 8.0% to negative 0.1% in the six months ended June 30, 2016 and 2017.

Market Opportunities

• The New Retail era, characterized by the seamless integration of online and offline retail, is driving growth in the logistics and supply chain industry.
• China's logistics market is the world's largest, with total logistics spending of US$1.6 trillion in 2016.
• The e-commerce market is expected to grow from US$2.8 trillion in 2016 to US$5.8 trillion in 2021, with a CAGR of 15.4%.

Risk Factors

• Investing in BEST Inc.'s ADSs involves risks, including those related to the competitive logistics and supply chain market, regulatory changes, and the company's reliance on its technology platform and ecosystem.

Underwriting and Distribution

• The underwriters include Citigroup, Credit Suisse, Goldman Sachs, J.P. Morgan, Deutsche Bank, CITIC CLSA, KeyBane Capital Markets, Oppenheimer & Co., and Stifel.
• The underwriters have the right to purchase up to an additional 6,750,000 ADSs to cover over-allotments.
• The ADSs are expected to be delivered to purchasers in U.S. dollars on or about September 19, 2017.

Ecosystem and Network

• BEST Inc. operates a multi-sided platform with a growing ecosystem that includes merchants, consumers, franchisee partners, and transportation service providers.
• The company has a nationwide service network covering 29 provinces and 174 cities, with 305 Cloud OFCs, 64 hubs, 117 sortation centers, and 21,000+ service stations.
• The company's flat franchise network minimizes tiers of franchisees to maintain flexibility and control.

Conclusion

BEST Inc. is well-positioned to capitalize on the rapid growth of the logistics and supply chain industry in China, leveraging its integrated services, proprietary technology, and extensive network. The company is seeking to expand its market share and enhance its value proposition through its asset-light business model and strategic ecosystem development.