BEST Inc. announces wind down of BEST Store+ and management change to increase focus on core businesses

BEST Inc. (NYSE: BEST) ("BEST" or the "Company"), a leading integrated smart supply chain solutions and logistics services provider in China, today announced that it will begin to wind down its BEST Store+ ("Store+") business.

The Company believes that by phasing out Store+, it can eliminate the significant cashflow requirements associated with this early stage business, allowing the Company to further prioritize capital allocation towards its core businesses.

The Company expects to cease all operations of Store+ by the end of the year except for the self-operated WoWo convenience stores, which the Company plans to continue running while evaluating various strategic options. The online merchandise sourcing and store management platform will be handed over to independent third parties for continued operations.

"Store+ provided a creative solution for last-mile delivery and empowered many small merchants to participate in online-to-offline commerce," said Johnny Chou, Chairman and Chief Executive Officer of BEST Inc. "Over the past several quarters, Store+ has been making encouraging progress in reducing losses. However, as we continue to deploy capital towards our core businesses in order to strengthen our position in the increasingly competitive market environment, we concluded that phasing out Store+ is in the best interest of our Company as a whole and in line with our commitment to sustainable profitability and enhancing shareholder value."

In addition, the Company announced a management change to BEST Express. Effective as of the date of this announcement, Mr. Shaohua Zhou will cease his role as Senior Vice President, General Manager of BEST Express, and take up a new role as special assistant to Mr. Johnny Chou. Mr. Xiaoqing Wang will assume the position of Vice President, General Manager of BEST Express.

Prior to taking up the new role, Mr. Wang had been General Manager of BEST's Jiangsu province branch since 2009, spearheading BEST Express and other service lines in Jiangsu province, China. From 2004 to 2009, Mr. Wang was senior sales manager of the Nanjing branch of UTStarcom China. Mr. Wang received a bachelor's degree in economics and management from Nanjing Agricultural University and an EMBA degree from the University of Texas.