On January 18, Best Group (BEST.US) announced that it had received a letter from the New York Stock Exchange on January 5, 2022, informing it that it did not meet the price standards applicable to the NYSE's continued listing criteria, and that as of January 4, 2022, the average closing price of the company's American Depositary Receipts (ADS) was less than $1 per ADS for 30 consecutive trading days. It is reported that Best Express has 6 months to re-reach the stock price that meets the minimum requirements after receiving the notice.
It is reported that Best Group has responded that there are 6 months to adjust after receiving the notice until the minimum share price requirements are re-met, during which time the company's American depositary receipts will continue to be listed on the New York Stock Exchange.
Listed on the New York Stock Exchange on September 20, 2017, Best Group issued 45 million American Depositary Shares at a price of US$10 per share, raising a total of US$450 million.
In recent years, the domestic express price war has been fierce, and the Best Express business has been under pressure. According to best group financial reports, its revenue in 2020 fell by 7.3% year-on-year to 30 billion yuan; net loss was 2.051 billion yuan; gross profit also fell 85.5% to 238 million yuan. In the first half of 2021, Best Group's revenue was 13.87 billion yuan, an increase of 8.68% year-on-year; but the gross profit was a loss of 338.0 million yuan, and the gross profit increased by -237.08%; the net profit attributable to the mother was a loss of 1.074 billion yuan, and the net profit attributable to the mother increased by -39.97%.
Previously, at the end of October 2021, Jitu Express announced that Best Group had agreed to transfer its domestic express delivery business to J&T Jitu Express for about 6.8 billion yuan (US$1.1 billion). At that time, the relevant personnel of Best Express said that the transfer was limited to domestic express delivery business, and in the future, Best Group will further focus on express transportation, supply chain and international core logistics business, and deeply cultivate comprehensive and intelligent supply chain services.
On January 20, Best Group responded to the Red Star Capital Bureau and said that in response to the delisting warning, the content of the announcement shall prevail, saying that the notice does not affect the normal operation of the company's business. Red Star Capital Bureau noted that since November this year, the stock price of Best Group has begun to decline, from $2 / share to $1 / share, and in the past half a month, Best's stock price has been hovering between $0.8 / share and $0.9 / share. As of press time, Best Group closed at $0.805 per share, with a latest market capitalization of $313 million.
Red Star News reporter Yu Yao Shen Mengyun
Edited by Yang Cheng
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