3.1 Billion Parcels Expanded Market Share to
19.9%
Adjusted Net Income Increased 25.6% to Reach
RMB1.38 Billion
SHANGHAI, Aug. 15, 2019 /PRNewswire/ -- ZTO Express
(Cayman) Inc. (NYSE: ZTO), a leading and fast-growing
express delivery company in China
("ZTO" or the "Company"), today announced its unaudited financial
results for the second quarter ended June
30, 2019[1]. The Company beat market expectations
by generating parcel volume growth of 46.8%, 18.5 percentage points
higher than the industry average. Market share in terms of parcel
volume expanded to 19.9% during the second quarter of 2019.
Adjusted net income increased 25.6% to reach RMB1,375.9 million.
Second Quarter 2019 Financial Highlights
- Revenues were RMB5,423.6 million
(US$790.0 million), an increase of
29.2% from RMB4,197.9 million in the
same period of 2018
- Gross profit was RMB1,768.6
million (US$257.6 million), an
increase of 21.4% from RMB1,457.3
million in the same period of 2018
- Net income was RMB 1,365.1
million (US$198.8 million), a
decrease of 8.5% from RMB 1,492.2
million in the same period of 2018
- Adjusted EBITDA[2] was RMB1,962.8 million (US$285.9 million), an increase of 29.1% from
RMB1,520.2 million in the same period
of 2018
- Adjusted net income[3] was RMB 1,375.9 million (US$200.4 million), an increase of 25.6% from
RMB1,095.7 million in the same period
of 2018
- Basic and diluted earnings per American depositary share
("ADS"[4]) attributable to ordinary shareholders were
RMB1.73 (US$0.25), a decrease of 16.4% from RMB2.07 in the same period of 2018
- Adjusted basic and diluted earnings per American depositary
share[5] attributable to ordinary shareholders were
RMB1.74 (US$0.25), an increase of 14.5% from RMB1.52 in the same period of 2018
- Net cash provided by operating activities was RMB1,992.8 million (US$290.3 million), compared with RMB1,475.8 million in the same period of
2018
Operational Highlights for Second quarter 2019
- Parcel volume was 3,106.6 million, an increase of 46.8% from
2,115.6 million in the same period of 2018
- Number of pickup/delivery outlets was approximately 30,000 as
of June 30, 2019, while the number of
direct network partners was approximately 4,650 as of June 30, 2019
- Number of line-haul vehicles was over 5,800 as of June 30, 2019, which included over 4,950
self-owned vehicles and over 850 vehicles owned and operated by
Tonglu Tongze Logistics Ltd., a transportation operator that works
exclusively for ZTO. Among the 4,950 self-owned vehicles, over
3,150 were high capacity 15-to-17-meter-long trailer trucks
compared to over 3,000 as of March 31,
2019
- Number of line-haul routes between sorting hubs was over 2,200
as of June 30, 2019
- Number of sorting hubs was 87 as of June
30, 2019, among which 78 are operated by the Company and the
other nine by the Company's network partners
[1] An investor
relations presentation accompanies this earnings release and can be
found at ir.zto.com
[2] Adjusted EBITDA is a non-GAAP financial measure,
which is defined as net income before depreciation, amortization,
interest expenses and income tax expenses, and further adjusted to
exclude the shared-based compensation expense and non-recurring
items such as the gain on disposal of equity investees and
subsidiary which management aims to better represent the underlying
business operations
[3] Adjusted net income is a non-GAAP financial measure,
which is defined as net income before share-based compensation
expense and non-recurring items such as gain on disposal of equity
investees and subsidiary in which management aims to better
represent the underlying business operations
[4] One ADS represents one Class A ordinary share
[5] Adjusted basic and diluted earnings per American
depositary share attributable to ordinary shareholders is a
non-GAAP financial measure. It is defined as net income
attributable to ordinary shareholders per weighted average number
of basic and diluted shares before share-based compensation expense
and non-recurring items such as gain on disposal of equity
investees and subsidiary in which management aims to better
represent the underlying business operations
|
Mr. Meisong Lai, Founder, Chairman and Chief Executive
Officer of ZTO, commented "ZTO's market share by parcel volume
expanded 2.5 percentage points to 19.9% during the second quarter
of 2019. Our consistent strategy has been continuous market
expansion based on high quality of services and targeted net
earnings. Second quarter's performance reflected the soundness of
our overall strategy and solid execution."
Mr. Lai added, "Chinese express delivery industry is likely
to maintain steady growth in the
near term. While innovations in commerce impacting consumption and
manufacturing are changing supply chain management, including
logistics, express delivery industry is facing new demands and
challenges. To maintain our competitive edge, ZTO must continue to
focus on strengthening our core competencies as well as widening
our business moat to sustain future growth. In addition to
continued improvements in productivity and cost efficiencies, we
will further advance our initiatives on industry-leading courier
pay and last mile capabilities going forward in order to maintain a
healthy growth momentum and be well prepared for the long run."
Ms. Huiping Yan, Chief Financial Officer of ZTO, added,
"ZTO's performance adds to our confidence in our ability to deliver
on our corporate strategy. Year-over-year ASP decline for the
quarter was more than previously planned, however, it was kept
level with the market, and we achieved higher volume increase as
well as targeted earnings growth through scale leverage and
effective resource planning. Combined sorting hub and line-haul
transportation costs per parcel declined 8.6% year over year, and
corporate SG&A, excluding share-based compensation, was 5.4% of
total revenues compared to that of 5.7% last year. Adjusted net
income rose 25.6% to RMB1.38 billion,
and cash from operating activities rose 35.0% to RMB1.99 billion."
Second Quarter 2019 Financial Results
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
RMB
|
|
%
|
|
RMB
|
|
US$
|
|
%
|
|
RMB
|
|
%
|
|
RMB
|
|
US$
|
|
%
|
|
|
(in thousands, except percentages)
|
Express delivery
services
|
|
3,664,535
|
|
87.3
|
|
4,763,902
|
|
693,940
|
|
87.8
|
|
6,751,532
|
|
87.2
|
|
8,823,274
|
|
1,285,255
|
|
88.3
|
Freight forwarding
services
|
|
301,789
|
|
7.2
|
|
350,088
|
|
50,996
|
|
6.5
|
|
595,063
|
|
7.7
|
|
639,402
|
|
93,139
|
|
6.4
|
Sale of
accessories
|
|
209,219
|
|
5.0
|
|
292,570
|
|
42,618
|
|
5.4
|
|
360,062
|
|
4.7
|
|
501,407
|
|
73,038
|
|
5.0
|
Others
|
|
22,376
|
|
0.5
|
|
17,080
|
|
2,488
|
|
0.3
|
|
35,666
|
|
0.4
|
|
33,588
|
|
4,893
|
|
0.3
|
Total
revenues
|
|
4,197,919
|
|
100.0
|
|
5,423,640
|
|
790,042
|
|
100.0
|
|
7,742,323
|
|
100.0
|
|
9,997,671
|
|
1,456,325
|
|
100.0
|
Revenues were RMB5,423.6
million (US$790.0 million), an
increase of 29.2% from RMB4,197.9
million in the same period of 2018. Revenue from express
delivery services increased by 30.0% compared to the same period of
2018, mainly driven by a 46.8% increase in parcel volume and
partially offset by a 11.3% decrease in unit price per parcel
largely for incremental volume incentives in response to
competition. Revenue from freight forwarding services increased
16.0% when compared to the same period of 2018. The increase in
revenue from sales of accessories was in-line with the increase in
the sale of thermal paper used for the printing of digital
waybills. Other revenues are mainly associated with financing
services and advertising services.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
RMB
|
|
% of
revenues
|
|
RMB
|
|
US$
|
|
% of
revenues
|
|
RMB
|
|
% of
revenues
|
|
RMB
|
|
US$
|
|
% of
revenues
|
|
|
(in thousands, except percentages)
|
Line-haul
transportation
cost
|
|
1,272,267
|
|
30.3
|
|
1,695,866
|
|
247,031
|
|
31.3
|
|
2,455,904
|
|
31.7
|
|
3,289,873
|
|
479,224
|
|
32.9
|
Sorting hub
cost
|
|
701,961
|
|
16.7
|
|
953,901
|
|
138,952
|
|
17.6
|
|
1,388,398
|
|
17.9
|
|
1,844,970
|
|
268,750
|
|
18.5
|
Freight forwarding
cost
|
|
288,348
|
|
6.9
|
|
345,283
|
|
50,296
|
|
6.4
|
|
572,018
|
|
7.4
|
|
628,397
|
|
91,536
|
|
6.3
|
Cost of accessories
sold
|
|
125,724
|
|
3.0
|
|
156,371
|
|
22,778
|
|
2.9
|
|
214,441
|
|
2.8
|
|
276,057
|
|
40,212
|
|
2.8
|
Other
costs
|
|
352,365
|
|
8.4
|
|
503,651
|
|
73,364
|
|
9.2
|
|
622,182
|
|
8.0
|
|
930,214
|
|
135,502
|
|
9.2
|
Total cost of
revenues
|
|
2,740,665
|
|
65.3
|
|
3,655,072
|
|
532,421
|
|
67.4
|
|
5,252,943
|
|
67.8
|
|
6,969,511
|
|
1,015,224
|
|
69.7
|
Total cost of revenues was RMB3,665.1 million (US$
532.4million), an increase of 33.4% from RMB2,740.7 million in the same period last
year.
- Line haul transportation cost was RMB1,695.9 million (US$247.0 million), an increase of 33.3% from
RMB1,272.3 million in the same period
last year. Higher usage of self-owned fleet with increasing number
of higher-capacity trailer trucks, improved line-haul route
planning and better load rate enhanced the transportation cost
leverage
- Sorting hub operating cost was RMB953.9 million (US$139.0
million), an increase of 35.9% or RMB
251.9 million from RMB702.0
million in the same period last year. Of this increase: (i)
RMB178.5 million (US$26.0 million) was associated with sorting hub
labor costs, the headcount of sorting hub workers increased 18.6%
year over year, which was much slower than the parcel volume
increase; and (ii) RMB50.1 million
(US$7.3 million) came from
depreciation costs associated with the newly installed automated
sorting equipment. As of June 30,
2019, 155 sets of automated sorting equipment have been put
into use, compared to 64 sets as of June 30,
2018
- Cost of accessories was RMB156.4
million (US$22.8 million), an
increase of 24.4% from RMB125.7
million in the same period last year. The increase was in
line with the increase in the sale of accessories for thermal
paper
- Other costs were RMB503.7
million (US$73.4 million), an
increase of RMB151.3 million
(US$22.0 million) compared to the
same period last year, which mainly resulted from (i) an increase
of RMB117.7 million (US$17.2 million) in dispatching costs associated
with serving enterprise customers, (ii) an increase of RMB47.7 million (US$6.9
million) in expenses related to IT and technology
development and (iii) a decrease of RMB 5.5
million (US$0.8 million) in
tax surcharges
Gross Profit was RMB1,768.6 million (US$257.6 million), an increase of 21.4% from
RMB1,457.3million in the same period
last year. Gross margin rate decreased to 32.6% from 34.7% year
over year, which resulted from combined effects of increase in
volume incentives, parcel volume increase, and cost productivity
gains.
Total Operating Expenses were RMB275.8 million (US$40.2
million), compared to RMB268.4
million in the same period last year.
- Selling, general and administrative expenses were
RMB305.4 million (US$44.5 million), compared to RMB269.2 million in the same period last year.
The increase was mainly due to an increase in salaries and accrued
bonuses from RMB132.4 million
(US$19.3 million) to RMB177.7 million (US$25.9
million). Selling, general and administrative expenses,
excluding share-based compensation expense accounted for 5.4% of
total revenues compared to 5.7% during the same period last
year
- Other operating income, net was RMB29.5 million (US$4.3
million) for the quarter. Other operating income mainly
consisted of government subsidies and tax rebates of RMB24.6 million (US$3.6
million) received in the second quarter of 2019
Income from operations was RMB1,492.7 million (US$217.4 million), an increase of 25.6% from
RMB1,188.8 million for the same
period last year. Operating margin rate decreased by 0.8 percentage
point to 27.5% year over year while the gross margin rate decreased
by 2.1 percentage points. This reflects sound corporate cost
control and healthy scale leverage.
Interest income was RMB144.5
million (US$21.0 million),
compared with RMB70.7 million in the
same period in 2018 primarily due to an increase in the amount of
cash and interest-bearing bank deposits. In June 2018, the company received majority portion
of the proceeds from the US$1.38
billion strategic investment led by Alibaba.
Foreign currency exchange gain, before tax was
RMB22.3million (US$3.2 million) in the second quarter of 2019,
resulted from the appreciation of the U.S. dollar against the
Chinese renminbi in the second quarter of 2019.
Income tax expenses were RMB288.8 million (US$42.1
million) and the effective income tax rate was 17.4% for the
second quarter of 2019.
Net income was RMB1,365.1
million (US$198.8 million), a
decrease of 8.5% from RMB1,492.2
million in the same period last year, which included
one-time gains on disposal of equity investees of RMB424.5 million (net of income taxes), mainly
composed of the share disposal of Shenzhen Feng Chao Technology
Ltd. associated with the Hive Box operations.
Basic and diluted earnings per ADS attributable
to ordinary shareholders were RMB1.73 (US$0.25),
compared with basic and diluted earnings per ADS attributable to
ordinary shareholders of RMB2.07 in
the same period last year.
Adjusted basic and diluted earnings per ADS attributable to
ordinary shareholders were RMB1.74 (US$0.25),
compared with adjusted basic and diluted earnings per ADS
attributable to ordinary shareholders of RMB1.52 in the same period last year.
Adjusted net income was RMB1,375.9 million (US$200.4 million), compared with adjusted net
income of RMB1,095.7 million during
the same period last year.
EBITDA was RMB1,952.0
million (US$284.3 million),
compared with RMB2,042.0 million in
the same period last year which included one-time gains on disposal
of equity investees of RMB549.7
million.
Adjusted EBITDA was RMB1,962.8 million (US$285.9 million), compared to RMB1,520.2 million in the same period last
year.
Net cash provided by operating activities was
RMB1,992.8 million (US$290.3 million), compared with RMB1,475.8 million in the same period last
year.
Business Outlook
The Company makes no changes to
its previously stated annual guidance: parcel volume for 2019 is
expected to be in the range of 11.51 billion to 11.93 billion,
representing a 35% to 40% increase year over year, and the
Company's adjusted net income is expected to be in the range of
RMB4.8 billion to RMB5.2 billion, representing a 14.3% to 23.8%
increase from the same period of 2018. Above estimates are subject
to change.
Company Share Purchase
On November 15, 2018, the Company
announced a new share repurchase program whereby ZTO was authorized
to repurchase its own Class A ordinary shares in the form of ADSs
with an aggregate value of up to US$500
million during an 18-month period thereafter. The Company
expects to fund the repurchase out of its existing cash
balance. As of June 30, 2019,
the Company has purchased an aggregate of 7,549,423 ADSs at an
average purchase price of US$17.32,
including repurchase commissions.
The Company believes that the share repurchase program
represents ZTO's confidence in the overall market opportunities as
well as ZTO's solid operating fundamentals and financial strength
for sustained profitable growth and value creation for its
shareholders.
Exchange Rate
This announcement contains translation of certain Renminbi
amounts into U.S. dollars at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations
from Renminbi to U.S. dollars were made at the exchange rate of
RMB6.8650 to US$1.00, the noon buying rate on June 28, 2019 as set forth in the H.10
statistical release of the Board of Governors of the Federal
Reserve Systems.
Use of Non-GAAP Financial Measures
The Company uses adjusted EBITDA, adjusted net income, and
adjusted basic and diluted earnings per American depositary share
attributable to ordinary shareholders, each a non-GAAP financial
measure, in evaluating ZTO's operating results and for financial
and operational decision-making purposes.
Reconciliations of the Company's non-GAAP financial measures to
its U.S. GAAP financial measures are shown in tables at the end of
this earnings release, which provide more details about the
non-GAAP financial measures.
The Company believes that adjusted EBITDA, adjusted net income
and adjusted basic and diluted earnings per American depositary
share attributable to ordinary shareholders help identify
underlying trends in ZTO's business that could otherwise be
distorted by the effect of the expenses and gains that the Company
includes in income from operations and net income. The Company
believes that adjusted EBITDA, adjusted net income and adjusted
basic and diluted earnings per American depositary share
attributable to ordinary shareholders provide useful information
about its operating results, enhance the overall understanding of
its past performance and future prospects and allow for greater
visibility with respect to key metrics used by ZTO's management in
its financial and operational decision-making.
Adjusted EBITDA, adjusted net income and adjusted basic and
diluted earnings per American depositary share attributable to
ordinary shareholders should not be considered in isolation or
construed as an alternative to net income or any other measure of
performance or as an indicator of the Company's operating
performance. Investors are encouraged to review the historical
non-GAAP financial measures to the most directly comparable GAAP
measures. Adjusted EBITDA, adjusted net income and adjusted basic
and diluted earnings per American depositary share attributable to
ordinary shareholders presented here may not be comparable to
similarly titled measures presented by other companies. Other
companies may calculate similarly titled measures differently,
limiting their usefulness as comparative measures to ZTO's data.
ZTO encourages investors and others to review the Company's
financial information in its entirety and not rely on a single
financial measure.
Conference Call Information
ZTO's management team will host an earnings conference call at
9:00 P.M. U.S. Eastern Time on
Thursday, August 15, 2019 or
9:00 A.M. Beijing Time on
Friday, August 16, 2019.
Dial-in details for the earnings conference call are as
follows:
United
States:
|
1-888-317-6003
|
Hong Kong:
|
852-5808-1995
|
China:
|
4001-206-115
|
International:
|
1-412-317-6061
|
Passcode:
|
9994827
|
Please dial in 15 minutes before the call is scheduled to begin
and provide the passcode to join the call.
A replay of the conference call may be accessible through
August 22, 2019 by dialing the
following numbers:
United
States:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Passcode:
|
10133925
|
A live and archived webcast of the conference call will also be
available at the Company's investor relations website at
http://zto.investorroom.com.
About ZTO Express (Cayman) Inc.
ZTO Express (Cayman) Inc. (NYSE: ZTO) ("ZTO" or the "Company")
is a leading and fast-growing express delivery company in
China. ZTO provides express
delivery service as well as other value-added logistics services
through its extensive and reliable nationwide network coverage in
China.
ZTO operates a highly scalable network partner model, which the
Company believes is best suited to support the significant growth
of e-commerce in China. The
Company leverages its network partners to provide pickup and
last-mile delivery services, while controlling the mission-critical
line-haul transportation and sorting network within the express
delivery service value chain.
For more information, please visit
http://zto.investorroom.com.
Safe Harbor Statement
This news release contains "forward-looking" statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended, and as defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
include but are not limited to the Company's unaudited results for
the second quarter of 2019, ZTO management quotes and the Company's
financial outlook.
These forward-looking statements are not historical facts but
instead represent only the Company's belief regarding expected
results and events, many of which, by their nature, are inherently
uncertain and outside of its control. The Company's actual results
and other circumstances may differ, possibly materially, from the
anticipated results and events indicated in these forward-looking
statements. The financial results to which this news release is
related are preliminary, unaudited and subject to audit adjustment.
In addition, the Company may not meet its financial outlook
included in this news release and may be unable to grow its
business in the manner planned. The Company may also modify its
strategy for growth. In addition, there are other risks and
uncertainties that could cause the Company's actual results to
differ from what it currently anticipates, including those relating
to the development of the e-commerce industry in China, its significant reliance on the Alibaba
ecosystem, risks associated with its network partners and their
employees and personnel, intense competition which could
adversely affect the Company's results of operations and
market share, any service disruption of the Company's sorting
hubs or the outlets operated by its network partners or its
technology system. For additional information on these and other
important factors that could adversely affect the Company's
business, financial condition, results of operations, and
prospects, please see its filings with the U.S. Securities and
Exchange Commission.
All information provided in this press release and in the
attachments is as of the date of the press release. The Company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events or otherwise,
after the date of this release, except as required by law. Such
information speaks only as of the date of this release.
UNAUDITED
CONSOLIDATED FINANCIAL DATA
|
Summary of
Unaudited Consolidated Comprehensive
Income Data:
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
4,197,919
|
|
5,423,640
|
|
790,042
|
|
7,742,323
|
|
9,997,671
|
|
1,456,325
|
Cost of
revenues
|
|
(2,740,665)
|
|
(3,655,072)
|
|
(532,421)
|
|
(5,252,943)
|
|
(6,969,511)
|
|
(1,015,224)
|
Gross
profit
|
|
1,457,254
|
|
1,768,568
|
|
257,621
|
|
2,489,380
|
|
3,028,160
|
|
441,101
|
Operating income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
and
administrative
|
|
(269,178)
|
|
(305,350)
|
|
(44,479)
|
|
(684,801)
|
|
(863,128)
|
|
(125,729)
|
Other operating
income, net
|
|
773
|
|
29,531
|
|
4,302
|
|
82,680
|
|
87,633
|
|
12,765
|
Total operating
expenses
|
|
(268,405)
|
|
(275,819)
|
|
(40,177)
|
|
(602,121)
|
|
(775,495)
|
|
(112,964)
|
Income from
operations
|
|
1,188,849
|
|
1,492,749
|
|
217,444
|
|
1,887,259
|
|
2,252,665
|
|
328,137
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
70,708
|
|
144,470
|
|
21,044
|
|
131,029
|
|
290,941
|
|
42,380
|
Interest
expense
|
|
(3)
|
|
-
|
|
-
|
|
(776)
|
|
-
|
|
-
|
Gain/(loss) on
disposal of
equity investees
|
|
549,733
|
|
-
|
|
-
|
|
549,733
|
|
(529)
|
|
(77)
|
Foreign currency
exchange
gain/(loss), before tax
|
|
35,901
|
|
22,293
|
|
3,247
|
|
(852)
|
|
(3,662)
|
|
(533)
|
Income before income
tax, and
share of loss in equity
method investments
|
|
1,845,188
|
|
1,659,512
|
|
241,735
|
|
2,566,393
|
|
2,539,415
|
|
369,907
|
Income tax
expense
|
|
(350,858)
|
|
(288,803)
|
|
(42,069)
|
|
(505,138)
|
|
(480,661)
|
|
(70,016)
|
Share of loss in
equity
method investments
|
|
(2,104)
|
|
(5,614)
|
|
(818)
|
|
(11,574)
|
|
(12,013)
|
|
(1,750)
|
Net income
|
|
1,492,226
|
|
1,365,095
|
|
198,848
|
|
2,049,681
|
|
2,046,741
|
|
298,141
|
Net income
attributable to
noncontrolling interests
|
|
(1,141)
|
|
(5,614)
|
|
(818)
|
|
(1,837)
|
|
(6,547)
|
|
(954)
|
Net income
attributable to
ZTO Express (Cayman) Inc.
|
|
1,491,085
|
|
1,359,481
|
|
198,030
|
|
2,047,844
|
|
2,040,194
|
|
297,187
|
Net income
attributable to
ordinary shareholders
|
|
1,491,085
|
|
1,359,481
|
|
198,030
|
|
2,047,844
|
|
2,040,194
|
|
297,187
|
Net earnings per
share
attributable to ordinary
shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
2.07
|
|
1.73
|
|
0.25
|
|
2.86
|
|
2.60
|
|
0.38
|
Diluted
|
|
2.07
|
|
1.73
|
|
0.25
|
|
2.86
|
|
2.59
|
|
0.38
|
Weighted average
shares used
in calculating net earnings
per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
721,183,933
|
|
786,106,219
|
|
786,106,219
|
|
715,978,664
|
|
786,069,533
|
|
786,069,533
|
Diluted
|
|
722,033,183
|
|
786,385,711
|
|
786,385,711
|
|
716,706,186
|
|
786,262,099
|
|
786,262,099
|
Other comprehensive
income,
net of tax of nil:
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
adjustment
|
|
554,487
|
|
293,376
|
|
42,735
|
|
287,984
|
|
(50,852)
|
|
(7,407)
|
Comprehensive
income
|
|
2,046,713
|
|
1,658,471
|
|
241,583
|
|
2,337,665
|
|
1,995,889
|
|
290,734
|
Comprehensive
income
attributable to
noncontrolling interests
|
|
(1,141)
|
|
(5,614)
|
|
(818)
|
|
(1,837)
|
|
(6,547)
|
|
(954)
|
Comprehensive
income
attributable to ZTO Express
(Cayman) Inc.
|
|
2,045,572
|
|
1,652,857
|
|
240,765
|
|
2,335,828
|
|
1,989,342
|
|
289,780
|
Unaudited
Consolidated Balance Sheets Data:
|
|
|
|
As of
|
|
|
December 31,
2018
|
|
June
30, 2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
4,622,554
|
|
7,111,684
|
|
1,035,934
|
Restricted
cash
|
|
400
|
|
979
|
|
143
|
Accounts receivable,
net of allowance for doubtful accounts
of RMB13,996 and RMB16,347 at
December 31, 2018
and June 30, 2019, respectively
|
|
596,995
|
|
573,624
|
|
83,558
|
Financing
receivables, net of allowance for doubtful
accounts of RMB4,139 and RMB6,739 at
December 31,
2018 and June 30, 2019,
respectively
|
|
517,983
|
|
507,096
|
|
73,867
|
Short-term
investment
|
|
13,599,852
|
|
9,260,975
|
|
1,349,013
|
Inventories
|
|
43,813
|
|
35,354
|
|
5,150
|
Advances to
suppliers
|
|
337,874
|
|
328,199
|
|
47,808
|
Prepayments and other
current assets
|
|
1,507,996
|
|
2,124,817
|
|
309,512
|
Amounts due from
related parties
|
|
6,600
|
|
79,625
|
|
11,599
|
Total current
assets
|
|
21,234,067
|
|
20,022,353
|
|
2,916,584
|
Investments in equity
investees
|
|
2,207,410
|
|
2,200,334
|
|
320,515
|
Property and
equipment, net
|
|
9,035,704
|
|
9,671,468
|
|
1,408,808
|
Land use rights,
net
|
|
1,969,176
|
|
2,169,262
|
|
315,989
|
Intangible assets,
net
|
|
54,227
|
|
51,128
|
|
7,448
|
Right-of-use
assets[6]
|
|
-
|
|
656,653
|
|
95,652
|
Goodwill
|
|
4,241,541
|
|
4,241,541
|
|
617,850
|
Deferred tax
assets
|
|
318,063
|
|
324,548
|
|
47,276
|
Other non-current
assets
|
|
622,669
|
|
1,194,426
|
|
173,986
|
TOTAL
ASSETS
|
|
39,682,857
|
|
40,531,713
|
|
5,904,108
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
1,311,807
|
|
1,185,274
|
|
172,655
|
Advances from
customers
|
|
436,710
|
|
902,012
|
|
131,393
|
Income tax
payable
|
|
405,683
|
|
167,105
|
|
24,342
|
Amounts due to
related parties
|
|
132,216
|
|
67,324
|
|
9,807
|
Lease
liabilities[6]
|
|
-
|
|
232,067
|
|
33,804
|
Acquisition
consideration payable
|
|
19,581
|
|
22,942
|
|
3,342
|
Dividends
payable
|
|
1,699
|
|
3,723
|
|
542
|
Other current
liabilities
|
|
2,833,769
|
|
2,729,341
|
|
397,573
|
Total current
liabilities
|
|
5,141,465
|
|
5,309,788
|
|
773,458
|
Lease
liabilities[6]
|
|
-
|
|
385,183
|
|
56,108
|
Deferred tax
liabilities
|
|
157,940
|
|
155,470
|
|
22,647
|
Acquisition
consideration payable
|
|
22,942
|
|
-
|
|
-
|
Other non-current
liabilities
|
|
90,961
|
|
90,822
|
|
13,230
|
TOTAL
LIABILITIES
|
|
5,413,308
|
|
5,941,263
|
|
865,443
|
|
[6] In February
2016, the FASB issued ASU 2016-02, Leases (Topic 842), which
requires lessees to recognize a right-of-use asset and lease
liability on their balance sheet for all leases. The Group adopted
this ASU on January 1, 2019 using the modified retrospective
approach and
will not restate comparative periods
|
|
|
|
As of
|
|
|
December 31,
2018
|
|
June
30, 2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares
(US$0.0001 par value; 10,000,000,000 shares
authorized, 811,267,551 shares issued and
785,463,859 shares
outstanding as of December 31, 2018;
803,718,128 shares
issued and 782,114,477 shares outstanding
as of June 30, 2019)
|
|
523
|
|
518
|
|
75
|
Additional paid-in
capital
|
|
24,137,681
|
|
22,337,619
|
|
3,253,841
|
Treasury shares, at
cost
|
|
(1,545,077)
|
|
(1,438,257)
|
|
(209,506)
|
Retained
earnings
|
|
11,052,395
|
|
13,092,589
|
|
1,907,150
|
Accumulated other
comprehensive income
|
|
571,716
|
|
520,864
|
|
75,872
|
ZTO Express
(Cayman) Inc. shareholders' equity
|
|
34,217,238
|
|
34,513,333
|
|
5,027,432
|
Noncontrolling
interests
|
|
52,311
|
|
77,117
|
|
11,233
|
Total
Equity
|
|
34,269,549
|
|
34,590,450
|
|
5,038,665
|
TOTAL LIABILITIES
AND EQUITY
|
|
39,682,857
|
|
40,531,713
|
|
5,904,108
|
Summary of
Unaudited Consolidated Cash Flow Data:
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating
activities
|
|
1,475,795
|
|
1,992,804
|
|
290,285
|
|
1,689,970
|
|
2,626,074
|
|
382,532
|
Net cash provided
by/(used in)
investing
activities[7]
|
|
(5,649,363)
|
|
1,498,752
|
|
218,318
|
|
(7,246,921)
|
|
2,394,117
|
|
348,742
|
Net cash provided
by/(used in)
financing activities
|
|
6,620,184
|
|
(2,493,043)
|
|
(363,153)
|
|
5,815,067
|
|
(2,507,052)
|
|
(365,193)
|
Effect of exchange
rate changes
on cash, cash equivalents and
restricted cash
|
|
231,350
|
|
21,803
|
|
3,177
|
|
141,807
|
|
(23,430)
|
|
(3,413)
|
Net increase in cash,
cash
equivalents and restricted cash
|
|
2,677,966
|
|
1,020,316
|
|
148,627
|
|
399,923
|
|
2,489,709
|
|
362,668
|
Cash, cash
equivalents and
restricted cash at beginning of
period
|
|
3,495,691
|
|
6,092,347
|
|
887,450
|
|
5,773,734
|
|
4,622,954
|
|
673,409
|
Cash, cash
equivalents and
restricted cash at end of
period
|
|
6,173,657
|
|
7,112,663
|
|
1,036,077
|
|
6,173,657
|
|
7,112,663
|
|
1,036,077
|
|
[7] The amount of
cash provided by investing activities mainly includes mature of the
fixed term bank deposits with an original maturity of three
months to one year. For the second quarter of 2019, the amounts of
cash flow in for receiving the short-term investment are
approximately
RMB2,288.6 million (US$333.4 million), and the amounts of cash flow
out for purchasing the short-term investment are approximately
RMB3,736.7 million in the same period last year
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
1,492,226
|
|
1,365,095
|
|
198,848
|
|
2,049,681
|
|
2,046,741
|
|
298,141
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
|
27,983
|
|
10,800
|
|
1,573
|
|
227,727
|
|
295,065
|
|
42,981
|
(Gain)/loss on
disposal of
equity investees, net of
income taxes
|
|
(424,521)
|
|
-
|
|
-
|
|
(424,521)
|
|
529
|
|
77
|
Adjusted net
income
|
|
1,095,688
|
|
1,375,895
|
|
200,421
|
|
1,852,887
|
|
2,342,335
|
|
341,199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
1,492,226
|
|
1,365,095
|
|
198,848
|
|
2,049,681
|
|
2,046,741
|
|
298,141
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
186,200
|
|
283,409
|
|
41,283
|
|
362,397
|
|
554,832
|
|
80,820
|
Amortization
|
|
12,693
|
|
14,676
|
|
2,138
|
|
23,363
|
|
25,969
|
|
3,783
|
Interest
expenses
|
|
3
|
|
-
|
|
-
|
|
776
|
|
-
|
|
-
|
Income tax
expenses
|
|
350,858
|
|
288,803
|
|
42,069
|
|
505,138
|
|
480,661
|
|
70,016
|
EBITDA
|
|
2,041,980
|
|
1,951,983
|
|
284,338
|
|
2,941,355
|
|
3,108,203
|
|
452,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
expense
|
|
27,983
|
|
10,800
|
|
1,573
|
|
227,727
|
|
295,065
|
|
42,981
|
(Gain)/loss on
disposal of
equity investees, before
income taxes
|
|
(549,733)
|
|
-
|
|
-
|
|
(549,733)
|
|
529
|
|
77
|
Adjusted
EBITDA
|
|
1,520,230
|
|
1,962,783
|
|
285,911
|
|
2,619,349
|
|
3,403,797
|
|
495,818
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to ordinary
shareholders
|
|
1,491,085
|
|
1,359,481
|
|
198,030
|
|
2,047,844
|
|
2,040,194
|
|
297,187
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
expense
|
|
27,983
|
|
10,800
|
|
1,573
|
|
227,727
|
|
295,065
|
|
42,981
|
(Gain)/loss on
disposal of equity
investees, net of income taxes
|
|
(424,521)
|
|
-
|
|
-
|
|
(424,521)
|
|
529
|
|
77
|
Adjusted net income
attributable to
ordinary shareholders
|
|
1,094,547
|
|
1,370,281
|
|
199,603
|
|
1,851,050
|
|
2,335,788
|
|
340,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used
in calculating net earnings
per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
721,183,933
|
|
786,106,219
|
|
786,106,219
|
|
715,978,664
|
|
786,069,533
|
|
786,069,533
|
Diluted
|
|
722,033,183
|
|
786,385,711
|
|
786,385,711
|
|
716,706,186
|
|
786,262,099
|
|
786,262,099
|
Net earnings per
share
attributable to ordinary
shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
2.07
|
|
1.73
|
|
0.25
|
|
2.86
|
|
2.60
|
|
0.38
|
Diluted
|
|
2.07
|
|
1.73
|
|
0.25
|
|
2.86
|
|
2.59
|
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings per share
attributable to ordinary
shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1.52
|
|
1.74
|
|
0.25
|
|
2.59
|
|
2.97
|
|
0.43
|
Diluted
|
|
1.52
|
|
1.74
|
|
0.25
|
|
2.58
|
|
2.97
|
|
0.43
|
For investor and media inquiries, please contact:
ZTO Express
Investor
Relations Department
Phone: +86-21-6978 7037
E-mail: ir@zto.com
View original
content:http://www.prnewswire.com/news-releases/zto-reports-second-quarter-2019-unaudited-financial-results-300902507.html
SOURCE ZTO Express (Cayman) Inc.