Best Group's average share price for 30 consecutive trading days was below $1 and was delisted by the New York Stock Exchange

Nandu reporter learned that on January 18, Best Group issued an announcement announcing that it had received a letter from the New York Stock Exchange on January 5, 2022, informing the company that it did not meet the price standards applicable in the continuous listing standards of the New York Stock Exchange, and as of January 4, 2022, the average closing price of the company's American Depositary Shares ("ADS") for 30 consecutive trading days was lower than $1.00 per ADS.

At present, Best's stock price has fallen from the highest $2.77 / share last year to $0.9 / share, the stock price has been below the "danger line" of $1 for many consecutive days, and the market value has also fallen from the highest $1.07 billion last year to $350 million, a contraction of 205%.

The announcement said the Company had six months (the "Remediation Period") to reconvene the minimum share price requirements after receiving the notice. The Company's American Depositary Receipts ("ADS") will continue to be listed and traded on the NYSE during this period. If the average closing price on the last trading day of expiration still does not meet the above requirements, the New York Stock Exchange will initiate suspension and delisting procedures. Best Group said that the company currently complies with the standards of continuous listing on the New York Stock Exchange and the notice does not affect the company's business operations.

In the second half of last year, Best Group announced that it would sell its domestic express delivery business to Jitu Express for 6.8 billion yuan, and by December last year, the transaction had been completed and approved by the relevant regulators. According to the State Administration for Market Regulation, the market share of Jitu and Baishi totaled 10%-15%, second only to Zhongtong, Yunda and Yuantong.

Best Group has been in a state of loss for a long time, and Nandu Reporter has reported that in order to alleviate losses, in 2020, Best Group tried to gradually close its Best Store Plus ("Store+") business, handing over the online commodity procurement and store management platform to an independent third party to eliminate a large number of cash flow needs related to the early business. In the same year, affected by the industry's "price war", Best made strategic adjustments and organizational changes to the business: concentrated resources into the main business including express delivery, express transportation and supply chain, improved operational efficiency and organizational flexibility, strengthened the core competitiveness of the main business and enhanced profitability. However, it still failed to reverse the trend of losses. Its stock price was basically below the $2/share level in the second half of last year.

At the end of the third quarter of 2021, best group net loss of 654.9 million yuan, the loss range continued to expand year-on-year. Zhou Shaoning, Chairman and Chief Executive Officer of Best Group, said, "The completion of the transaction (sale of Best's express business in China) allows us to further strengthen our supply chain-based logistics solutions while significantly improving balance sheets and profitability. In the future, we will firmly focus our business on three key pillars – integrated supply chain, freight and global logistics services. "We are optimistic that the supply chain and freight will be profitable in 2022, and after exiting the Chinese express market operation, cash will be better used for the remaining business, especially in freight and global supply chain."

Some insiders analyzed the Nandu reporter that the above transaction is expected to make it "light", concentrate existing resources to further focus on express transportation, supply chain, and international, and may usher in new development opportunities; but the business integration of the two sides does not mean that the business volume of the two sides is simply added, and then it also needs to face the integration of the management teams of both sides, the perfection of network integration, the linkage and terminal stability of outlets, and how franchisees integrate.

Written by: Nandu reporter Fu Xiaoling