(Yicai Global) Jan. 21 -- Best has refuted a report that the Chinese express delivery firm’s founder and chairman is planning to sell his holdings in the company, China Business Journal reported today.

Johnny Chou believes in the bright future and long-term value of Best's integrated smart supply chain and logistics solutions, the Hangzhou-based company said.

Best “is considering a sale as part of a strategic review,” Reuters reported yesterday, citing six people with knowledge of the matter. The company’s two biggest shareholders, e-commerce giant Alibaba Group Holding, with 33 percent equity, and Chou, who owns 11 percent, could “both end up selling their stakes,” the report said.

Despite the denials, a company insider told China Business Journal that "selling is only a matter of time." There was a big staff shake up at Best Express outlets two months ago and plans to automate the facilities have been shelved, he added.

In a further indication that there is trouble afoot, the firm’s senior vice president, Zhou Jian, who was responsible for Best’s international business, resigned in November last year. The firm has since stated it will focus on logistics and drop peripheral businesses.

Best was the only Chinese courier firm to lose money last year. It posted losses of CNY640 million (USD99 million) in the third quarter 2020, largely due to the pandemic.

But the company has been underperforming for several years and its share price has lost over 80 percent of its value since it hit a peak of USD12.55 in June 2018. Yesterday, the firm's stock closed up 5.37 percent to USD2.16.

Founded in 2007, Best raised USD15 million in Series A financing from Alibaba and Apple supplier Hon Hai Precision Industry the following year. However, Hangzhou-based Alibaba has reportedly found it difficult to integrate Best with other courier firms under its portfolio, such as its logistics arm Cainiao.

Editor: Kim Taylor