3.1 Billion Parcels to Expand Market Share 2.3
pts to 18.9%
Adjusted Net Income Increased 24.6% to Reach
RMB1.32 Billion
SHANGHAI, Nov. 18, 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 third quarter ended September 30, 2019[1]. The Company beat
market expectations by generating parcel volume growth of 45.9%, or
18.4 percentage points faster than the industry average.
Market share by parcel volume expanded to 18.9% during the third
quarter of 2019. Adjusted net income increased 24.6% to reach
RMB1,318.5 million.
Third Quarter 2019 Financial Highlights
- Revenues were RMB5,265.8 million
(US$736.7 million), an increase of
24.4% from RMB4,234.6 million in the
same period of 2018
- Gross profit was RMB1,596.9
million (US$223.4 million), an
increase of 20.5% from RMB1,325.3
million in the same period of 2018
- Net income was RMB 1,307.7
million (US$183.0 million), an
increase of 23.4% from RMB 1,059.4
million in the same period of 2018
- Adjusted EBITDA[2]
was RMB1,887.5 million (US$264.1 million), an increase of 28.1% from
RMB1,473.1 million in the same period
of 2018
- Adjusted net income[3] was RMB
1,318.5 million (US$184.5
million), an increase of 24.6% from RMB1,058.5 million in the same period of
2018
- Basic and diluted earnings per American depositary share
("ADS"[4]) attributable
to ordinary shareholders were RMB1.67
(US$0.23), an increase of 23.7% and
24.6% from RMB1.35 and RMB1.34 in the same period of 2018,
respectively
- Adjusted basic and diluted earnings per American depositary
share[5] attributable to
ordinary shareholders were RMB1.69
(US$0.24), an increase of 25.2% and
26.1% from RMB1.35 and RMB1.34 in the same period of 2018,
respectively
- Net cash provided by operating activities was RMB1,417.7 million (US$198.3 million), compared with RMB911.7 million in the same period of 2018
Operational Highlights for Third quarter 2019
- Parcel volume was 3,057.9 million, an increase of 45.9% from
2,095.9 million in the same period of 2018
- Number of pickup/delivery outlets was approximately 30,000 as
of September 30, 2019, while the
number of direct network partners was approximately 4,750 as of
September 30, 2019
- Number of line-haul vehicles was over 6,600 as of September 30, 2019, which included over 5,700
self-owned vehicles and over 900 vehicles owned and operated by
Tonglu Tongze Logistics Ltd., a transportation operator that works
exclusively for ZTO. Among the 6,600 vehicles, over 3,950 were high
capacity 15-to-17-meter-long trailer trucks compared to over 3,150
as of June 30, 2019
- Number of line-haul routes between sorting hubs was over 2,400
as of September 30, 2019
- Number of sorting hubs was 89 as of September 30, 2019, among which 80 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 adjusted net income divided by weighted
average number of basic and diluted shares,
respectively.
|
Mr. Meisong Lai, Founder, Chairman and Chief Executive
Officer of ZTO, commented, "ZTO's
market share by parcel volume expanded 2.3 percentage points
to 18.9% during the third quarter of 2019. With the strong
partnership with thousands of our network partners, ZTO delivered
sound execution on our corporate strategy by maintaining high
quality of services and achieving targeted net earnings growth
as we continue to strengthen our industry leadership."
Mr. Lai added, "Since the founding of our business 17 years
ago, we have followed the philosophy of taking control of our own
destiny and invest wisely in the future. Throughout the
years, we have consistently built infrastructure that are
suitable to the stage of market development and operational needs,
and we have not only cumulated valuable resources but also
developed ability to leverage and maximize value creation and
recreation by consolidating resources and expand on our product and
service capabilities. We believe that the Chinese express
delivery industry and the Chinese logistic industry have great
potential for further steady growth as Chinese economy continue to
expand. ZTO is on one hand focusing on execution of our near-term
strategies surrounding last mile effectiveness including courier
advantages, we are also working towards our longer-term goal of
becoming a world-leading comprehensive logistics service
provider."
Ms. Huiping Yan, Chief Financial Officer of ZTO, added,
"ZTO is increasingly benefiting from its brand recognition for wide
service coverage and deep penetration into the Chinese express
delivery industry. We are on track to deliver another year of
strong volume and solid profit growth based on the first three
quarters performances and the most recent assessment of the market
and operational conditions for the rest of 2019. Supported by
the increase in economies of scale, consistent cost productivity
gain and corporate structure efficiency, we are able to dampen the
impact of price pressure and achieve healthy net income
growth. Combined sorting hub and line-haul transportation costs per
parcel declined 10.7% year over year, and corporate SG&A,
excluding share-based compensation, was 5.3% of total revenues down
from 5.6% last year. Adjusted net income rose 24.6% to
RMB1.32 billion, and cash from
operating activities rose 55.5% to RMB1.42 billion."
Third Quarter 2019 Financial Results
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
RMB
|
|
%
|
|
RMB
|
|
US$
|
|
%
|
|
RMB
|
|
%
|
|
RMB
|
|
US$
|
|
%
|
|
|
(in thousands, except percentages)
|
Express delivery
services
|
|
3,688,358
|
|
87.1
|
|
4,675,993
|
|
654,195
|
|
88.8
|
|
10,439,890
|
|
87.2
|
|
13,499,267
|
|
1,888,617
|
|
88.4
|
Freight forwarding
services
|
|
291,153
|
|
6.9
|
|
274,356
|
|
38,384
|
|
5.2
|
|
886,216
|
|
7.4
|
|
913,758
|
|
127,839
|
|
6.0
|
Sale of
accessories
|
|
199,997
|
|
4.7
|
|
276,452
|
|
38,677
|
|
5.3
|
|
560,059
|
|
4.7
|
|
777,859
|
|
108,826
|
|
5.1
|
Others
|
|
55,088
|
|
1.3
|
|
38,959
|
|
5,451
|
|
0.7
|
|
90,754
|
|
0.7
|
|
72,546
|
|
10,150
|
|
0.5
|
Total
revenues
|
|
4,234,596
|
|
100.0
|
|
5,265,760
|
|
736,707
|
|
100.0
|
|
11,976,919
|
|
100.0
|
|
15,263,430
|
|
2,135,432
|
|
100.0
|
Revenues were RMB5,265.8
million (US$736.7 million), an
increase of 24.4% from RMB4,234.6
million in the same period of 2018. Revenue from express
delivery services increased by 26.8% compared to the same period of
2018, mainly driven by a 45.9% increase in parcel volume and
partially offset by a 13.2% decrease in unit price per parcel
largely for incremental volume incentives in response to
competition. Revenue from freight forwarding services decreased
5.8% when compared to the same period of 2018. The increase in
revenue from sales of accessories was in-line with the increase in
the sale of thermal paper used for the printing of digital
waybills. Other revenues are mainly associated with equipment
sales, financing services and advertising services.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
RMB
|
|
% of
revenues
|
|
RMB
|
|
US$
|
|
% of
revenues
|
|
RMB
|
|
% of
revenues
|
|
RMB
|
|
US$
|
|
% of
revenues
|
|
|
(in thousands, except percentages)
|
Line-haul
transportation cost
|
|
1,354,209
|
|
32.0
|
|
1,783,180
|
|
249,476
|
|
33.9
|
|
3,810,114
|
|
31.8
|
|
5,073,052
|
|
709,746
|
|
33.2
|
Sorting hub
cost
|
|
765,863
|
|
18.1
|
|
978,417
|
|
136,886
|
|
18.6
|
|
2,154,262
|
|
18.0
|
|
2,823,387
|
|
395,007
|
|
18.5
|
Freight forwarding
cost
|
|
281,967
|
|
6.7
|
|
265,426
|
|
37,134
|
|
5.0
|
|
853,985
|
|
7.1
|
|
893,823
|
|
125,050
|
|
5.9
|
Cost of accessories
sold
|
|
119,211
|
|
2.8
|
|
138,112
|
|
19,323
|
|
2.6
|
|
333,651
|
|
2.8
|
|
414,169
|
|
57,944
|
|
2.7
|
Other
costs
|
|
388,032
|
|
9.2
|
|
503,686
|
|
70,468
|
|
9.6
|
|
1,010,213
|
|
8.4
|
|
1,433,901
|
|
200,610
|
|
9.4
|
Total cost of
revenues
|
|
2,909,282
|
|
68.8
|
|
3,668,821
|
|
513,287
|
|
69.7
|
|
8,162,225
|
|
68.1
|
|
10,638,332
|
|
1,488,357
|
|
69.7
|
Total cost of revenues was RMB3,668.8 million (US$
513.3million), an increase of 26.1% from RMB2,909.3 million in the same period last
year.
- Line haul transportation cost was RMB1,783.2 million (US$249.5 million), an increase of 31.7% from
RMB1,354.2 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 RMB978.4 million (US$136.9
million), an increase of 27.8% or RMB
212.6 million from RMB765.9
million in the same period last year. Of this increase: (i)
RMB130.1 million (US$18.2 million) was associated with sorting hub
labor costs, the headcount of sorting hub workers increased 16.7%
year over year, much slower than the 45.9% volume increase; and
(ii) RMB40.8 million (US$5.7 million) came from depreciation costs
associated with the newly installed automated sorting equipment. As
of September 30, 2019, 208 sets of
automated sorting equipment have been put into use, compared to 78
sets as of September 30, 2018.
- Cost of accessories was RMB138.1
million (US$19.3 million), an
increase of 15.9% from RMB119.2
million in the same period last year.
- Other costs were RMB503.7
million (US$70.5 million), an
increase of RMB115.7 million
(US$16.2 million) compared to the
same period last year, which mainly resulted from (i) an increase
of RMB66.4 million (US$9.3 million) in dispatching costs associated
with serving enterprise customers, (ii) an increase of RMB57.8 million (US$8.1
million) in expenses related to IT and technology
development. The Company increased its level of investment in IT
research and development to support digitized operational
management.
Gross Profit was RMB1,596.9 million (US$223.4 million), an increase of 20.5% from
RMB1,325.3million in the same period
last year. Gross margin rate decreased one percentage point to
30.3% from 31.3% year over year, as a net result of parcel volume
growth, increase in volume incentives and cost productivity
gains.
Total Operating Expenses were RMB196.4 million (US$27.5
million), compared to RMB233.6
million in the same period last year.
- Selling, general and administrative expenses were
RMB290.9 million (US$40.7 million), compared to RMB249.5 million in the same period last year.
The increase was mainly due to an increase in salaries and accrued
performance-based bonuses from RMB142.4
million to RMB154.3 million
(US$21.6 million). Selling, general
and administrative expenses, excluding share-based compensation
expense accounted for 5.3% of total revenues compared to 5.6%
during the same period last year.
- Other operating income, net was RMB94.5 million (US$13.2
million) for the quarter which was mainly consisted of
government subsidies and tax rebates of RMB84.8 million (US$11.9
million) received in the third quarter of 2019
Income from operations was RMB1,400.5 million (US$195.9 million), an increase of 28.3% from
RMB1,091.7 million for the same
period last year. Operating margin rate increased by 0.8 percentage
point to 26.6% year over year while the gross margin rate decreased
by 1.0 percentage points. This demonstrated sound corporate cost
control and healthy economy of scale.
Interest income was RMB146.4
million (US$20.5 million),
compared with RMB124.0 million in the
same period in 2018.
Foreign currency exchange gain, before tax was
RMB28.5million (US$4.0 million) in the third quarter of 2019,
resulted from the appreciation of the U.S. dollar against the
Chinese renminbi in the third quarter of 2019.
Income tax expenses were RMB266.3 million (US$37.3
million) and the effective income tax rate was 16.9% for the
third quarter of 2019.
Net income was RMB1,307.7
million (US$183.0 million), an
increase of 23.4% from RMB1,059.4
million in the same period last year.
Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB1.67
(US$0.23), compared with basic and
diluted earnings per ADS attributable to ordinary shareholders of
RMB1.35 and RMB1.34in the same period last year,
respectively.
Adjusted basic and diluted earnings per ADS attributable to
ordinary shareholders were RMB1.69 (US$0.24),
compared with adjusted basic and diluted earnings per ADS
attributable to ordinary shareholders of RMB1.35 and RMB1.34
in the same period last year, respectively.
Adjusted net income was RMB1,318.5 million (US$184.5 million), compared with adjusted net
income of RMB1,058.5 million during
the same period last year.
EBITDA was RMB1,876.7
million (US$262.6 million),
compared with RMB1,475.1 million in
the same period last year.
Adjusted EBITDA was RMB1,887.5 million (US$264.1 million), compared to RMB1,473.1 million in the same period last
year.
Net cash provided by operating activities was
RMB1,417.7 million (US$198.3 million), compared with RMB911.7 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
September 30, 2019, the Company has purchased an aggregate of
7,716,436 ADSs at an average purchase price of US$17.33, 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
RMB7.1477 to US$1.00, the noon buying rate on
September 30, 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
8:00 P.M. U.S. Eastern Time on Monday, November 18, 2019
or 9:00 A.M. Beijing Time on Tuesday,
November 19, 2019.
Dial-in details for the earnings conference call are as
follows:
United
States:
|
1-888-317-6003
|
Hong Kong:
|
852-5808-1995
|
Mainland
China:
|
4001-206-115
|
International:
|
1-412-317-6061
|
Passcode:
|
8033711
|
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
November 25, 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 third 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 September 30,
|
|
Nine Months Ended September 30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
4,234,596
|
|
5,265,760
|
|
736,707
|
|
11,976,919
|
|
15,263,430
|
|
2,135,432
|
Cost of
revenues
|
|
(2,909,282)
|
|
(3,668,821)
|
|
(513,287)
|
|
(8,162,225)
|
|
(10,638,332)
|
|
(1,488,357)
|
Gross
profit
|
|
1,325,314
|
|
1,596,939
|
|
223,420
|
|
3,814,694
|
|
4,625,098
|
|
647,075
|
Operating income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
(249,493)
|
|
(290,893)
|
|
(40,697)
|
|
(934,292)
|
|
(1,154,021)
|
|
(161,453)
|
Other operating
income, net
|
|
15,918
|
|
94,469
|
|
13,217
|
|
98,598
|
|
182,102
|
|
25,477
|
Total operating
expenses
|
|
(233,575)
|
|
(196,424)
|
|
(27,480)
|
|
(835,694)
|
|
(971,919)
|
|
(135,976)
|
Income from
operations
|
|
1,091,739
|
|
1,400,515
|
|
195,940
|
|
2,979,000
|
|
3,653,179
|
|
511,099
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
123,995
|
|
146,372
|
|
20,478
|
|
255,024
|
|
437,313
|
|
61,182
|
Interest
expense
|
|
(4)
|
|
-
|
|
-
|
|
(780)
|
|
-
|
|
-
|
Gain/(loss) on
disposal of
equity investees
|
|
12,904
|
|
-
|
|
-
|
|
562,637
|
|
(529)
|
|
(74)
|
Foreign currency
exchange
gain, before tax
|
|
40,382
|
|
28,511
|
|
3,989
|
|
39,530
|
|
24,850
|
|
3,477
|
Income before income
tax,
and share of loss in equity
method investments
|
|
1,269,016
|
|
1,575,398
|
|
220,407
|
|
3,835,411
|
|
4,114,813
|
|
575,684
|
Income tax
expense
|
|
(201,355)
|
|
(266,297)
|
|
(37,256)
|
|
(706,494)
|
|
(746,958)
|
|
(104,503)
|
Share of loss in
equity method
investments
|
|
(8,286)
|
|
(1,420)
|
|
(199)
|
|
(19,859)
|
|
(13,433)
|
|
(1,879)
|
Net income
|
|
1,059,375
|
|
1,307,681
|
|
182,952
|
|
3,109,058
|
|
3,354,422
|
|
469,302
|
Net income/(loss)
attributable
to noncontrolling interests
|
|
262
|
|
(153)
|
|
(21)
|
|
(1,575)
|
|
(6,700)
|
|
(937)
|
Net income
attributable to
ZTO Express (Cayman) Inc.
|
|
1,059,637
|
|
1,307,528
|
|
182,931
|
|
3,107,483
|
|
3,347,722
|
|
468,365
|
Net earnings per
share
attributable to ordinary
shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1.35
|
|
1.67
|
|
0.23
|
|
4.20
|
|
4.27
|
|
0.60
|
Diluted
|
|
1.34
|
|
1.67
|
|
0.23
|
|
4.19
|
|
4.26
|
|
0.60
|
Weighted average
shares used
in calculating net earnings per
ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
787,163,859
|
|
782,011,037
|
|
782,011,037
|
|
739,967,814
|
|
784,701,835
|
|
784,701,835
|
Diluted
|
|
788,144,763
|
|
782,389,377
|
|
782,389,377
|
|
740,779,797
|
|
784,981,054
|
|
784,981,054
|
Other comprehensive
income,
net of tax of nil:
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
adjustment
|
|
556,140
|
|
480,712
|
|
67,254
|
|
844,123
|
|
429,859
|
|
60,139
|
Comprehensive
income
|
|
1,615,515
|
|
1,788,393
|
|
250,206
|
|
3,953,181
|
|
3,784,281
|
|
529,441
|
Comprehensive
income
attributable to noncontrolling
interests
|
|
262
|
|
(153)
|
|
(21)
|
|
(1,575)
|
|
(6,700)
|
|
(937)
|
Comprehensive
income
attributable to ZTO Express
(Cayman) Inc.
|
|
1,615,777
|
|
1,788,240
|
|
250,185
|
|
3,951,606
|
|
3,777,581
|
|
528,504
|
Unaudited
Consolidated Balance Sheets Data:
|
|
|
|
|
|
As of
|
|
|
December 31,
2018
|
|
September 30, 2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
4,622,554
|
|
5,058,640
|
|
707,730
|
Restricted
cash
|
|
400
|
|
912
|
|
128
|
Accounts receivable,
net of allowance for doubtful accounts of
RMB13,996 and RMB13,525 at December 31, 2018 and
September 30, 2019, respectively
|
|
596,995
|
|
538,063
|
|
75,278
|
Financing
receivables, net of allowance for doubtful accounts of
RMB4,139 and RMB13,369 at December 31, 2018 and
September 30,
2019, respectively
|
|
517,983
|
|
477,259
|
|
66,771
|
Short-term
investment
|
|
13,599,852
|
|
11,304,068
|
|
1,581,497
|
Inventories
|
|
43,813
|
|
35,954
|
|
5,030
|
Advances to
suppliers
|
|
337,874
|
|
341,216
|
|
47,738
|
Prepayments and other
current assets
|
|
1,507,996
|
|
1,666,941
|
|
233,213
|
Amounts due from
related parties
|
|
6,600
|
|
87,017
|
|
12,174
|
Total current
assets
|
|
21,234,067
|
|
19,510,070
|
|
2,729,559
|
Investments in equity
investees
|
|
2,207,410
|
|
2,228,272
|
|
311,747
|
Property and
equipment, net
|
|
9,035,704
|
|
10,906,604
|
|
1,525,890
|
Land use rights,
net
|
|
1,969,176
|
|
2,309,558
|
|
323,119
|
Intangible assets,
net
|
|
54,227
|
|
49,578
|
|
6,936
|
Right-of-use
assets6
|
|
-
|
|
726,375
|
|
101,624
|
Goodwill
|
|
4,241,541
|
|
4,241,541
|
|
593,413
|
Deferred tax
assets
|
|
318,063
|
|
360,334
|
|
50,413
|
Other non-current
assets
|
|
622,669
|
|
2,149,305
|
|
300,697
|
TOTAL
ASSETS
|
|
39,682,857
|
|
42,481,637
|
|
5,943,398
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
1,311,807
|
|
1,071,867
|
|
149,960
|
Advances from
customers
|
|
436,710
|
|
990,764
|
|
138,613
|
Income tax
payable
|
|
405,683
|
|
117,064
|
|
16,378
|
Amounts due to
related parties
|
|
132,216
|
|
44,548
|
|
6,232
|
Lease
liabilities6
|
|
-
|
|
281,352
|
|
39,363
|
Acquisition
consideration payable
|
|
19,581
|
|
22,942
|
|
3,210
|
Dividends
payable
|
|
1,699
|
|
1,672
|
|
234
|
Other current
liabilities
|
|
2,833,769
|
|
2,948,569
|
|
412,520
|
Total current
liabilities
|
|
5,141,465
|
|
5,478,778
|
|
766,510
|
Lease liabilities
[6]
|
|
-
|
|
365,715
|
|
51,165
|
Deferred tax
liabilities
|
|
157,940
|
|
154,236
|
|
21,578
|
Acquisition
consideration payable
|
|
22,942
|
|
-
|
|
-
|
Other non-current
liabilities
|
|
90,961
|
|
94,562
|
|
13,230
|
TOTAL
LIABILITIES
|
|
5,413,308
|
|
6,093,291
|
|
852,483
|
|
[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
|
|
September 30, 2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares
(US$0.0001 par value; 10,000,000,000 shares
authorized, 811,267,551 shares issued and 785,463,859 shares
outstanding as of December 31, 2018; 803,551,115 shares
issued and 781,947,464 shares outstanding as of
September 30,
2019)
|
|
523
|
|
517
|
|
72
|
Additional paid-in
capital
|
|
24,137,681
|
|
22,325,786
|
|
3,123,492
|
Treasury shares, at
cost
|
|
(1,545,077)
|
|
(1,436,767)
|
|
(201,011)
|
Retained
earnings
|
|
11,052,395
|
|
14,400,117
|
|
2,014,650
|
Accumulated other
comprehensive income
|
|
571,716
|
|
1,001,575
|
|
140,125
|
ZTO Express
(Cayman) Inc. shareholders' equity
|
|
34,217,238
|
|
36,291,228
|
|
5,077,328
|
Noncontrolling
interests
|
|
52,311
|
|
97,118
|
|
13,587
|
Total
Equity
|
|
34,269,549
|
|
36,388,346
|
|
5,090,915
|
TOTAL LIABILITIES
AND EQUITY
|
|
39,682,857
|
|
42,481,637
|
|
5,943,398
|
Summary of
Unaudited Consolidated Cash Flow Data:
|
|
|
|
|
|
|
|
|
Three Months Ended September
30,
|
|
Nine
Months Ended September 30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
911,741
|
|
1,417,706
|
|
198,345
|
|
2,601,711
|
|
4,043,780
|
|
565,746
|
Net cash used in
investing activities[7]
|
|
(2,295,672)
|
|
(4,015,458)
|
|
(561,783)
|
|
(9,542,593)
|
|
(1,621,341)
|
|
(226,834)
|
Net cash provided by/
(used in) financing
activities
|
|
1,380,280
|
|
511,528
|
|
71,565
|
|
7,195,347
|
|
(1,995,524)
|
|
(279,184)
|
Effect of exchange
rate changes on cash,
cash equivalents and restricted cash
|
|
101,353
|
|
33,113
|
|
4,633
|
|
243,160
|
|
9,683
|
|
1,355
|
Net
increase/(decrease) in cash, cash
equivalents and restricted cash
|
|
97,702
|
|
(2,053,111)
|
|
(287,240)
|
|
497,625
|
|
436,598
|
|
61,083
|
Cash, cash
equivalents and restricted cash
at beginning of period
|
|
6,173,657
|
|
7,112,663
|
|
995,098
|
|
5,773,734
|
|
4,622,954
|
|
646,775
|
Cash, cash
equivalents and restricted cash
at end of period
|
|
6,271,359
|
|
5,059,552
|
|
707,858
|
|
6,271,359
|
|
5,059,552
|
|
707,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[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 third
quarter of 2019, the amounts of cash flow out for purchasing
the
short-term investment are approximately RMB1,613.3 million
(US$225.7 million), and the amounts of cash flow out for
purchasing the short-term investment are approximately RMB1,857.9
million in the same period last year.
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
1,059,375
|
|
1,307,681
|
|
182,952
|
|
3,109,058
|
|
3,354,422
|
|
469,302
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
|
10,876
|
|
10,800
|
|
1,511
|
|
238,603
|
|
305,865
|
|
42,792
|
(Gain)/loss on
disposal of equity
investees, net of income taxes
|
|
(11,756)
|
|
-
|
|
-
|
|
(436,277)
|
|
529
|
|
74
|
Adjusted net
income
|
|
1,058,495
|
|
1,318,481
|
|
184,463
|
|
2,911,384
|
|
3,660,816
|
|
512,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
1,059,375
|
|
1,307,681
|
|
182,952
|
|
3,109,058
|
|
3,354,422
|
|
469,302
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
202,669
|
|
288,749
|
|
40,397
|
|
565,066
|
|
843,581
|
|
118,021
|
Amortization
|
|
11,709
|
|
13,951
|
|
1,952
|
|
35,072
|
|
39,920
|
|
5,585
|
Interest
expenses
|
|
4
|
|
-
|
|
-
|
|
780
|
|
-
|
|
-
|
Income tax
expenses
|
|
201,355
|
|
266,297
|
|
37,256
|
|
706,494
|
|
746,958
|
|
104,503
|
EBITDA
|
|
1,475,112
|
|
1,876,678
|
|
262,557
|
|
4,416,470
|
|
4,984,881
|
|
697,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
|
10,876
|
|
10,800
|
|
1,511
|
|
238,603
|
|
305,865
|
|
42,792
|
(Gain)/loss on
disposal of equity
investees, before income taxes
|
|
(12,904)
|
|
-
|
|
-
|
|
(562,637)
|
|
529
|
|
74
|
Adjusted
EBITDA
|
|
1,473,084
|
|
1,887,478
|
|
264,068
|
|
4,092,436
|
|
5,291,275
|
|
740,277
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 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
|
|
1,059,637
|
|
1,307,528
|
|
182,931
|
|
3,107,483
|
|
3,347,722
|
|
468,365
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
|
10,876
|
|
10,800
|
|
1,511
|
|
238,603
|
|
305,865
|
|
42,792
|
(Gain)/loss on
disposal of equity investees,
net of income taxes
|
|
(11,756)
|
|
-
|
|
-
|
|
(436,277)
|
|
529
|
|
74
|
Adjusted net income
attributable to
ordinary shareholders
|
|
1,058,757
|
|
1,318,328
|
|
184,442
|
|
2,909,809
|
|
3,654,116
|
|
511,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in
calculating net earnings per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
787,163,859
|
|
782,011,037
|
|
782,011,037
|
|
739,967,814
|
|
784,701,835
|
|
784,701,835
|
Diluted
|
|
788,144,763
|
|
782,389,377
|
|
782,389,377
|
|
740,779,797
|
|
784,981,054
|
|
784,981,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share attributable
to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1.35
|
|
1.67
|
|
0.23
|
|
4.20
|
|
4.27
|
|
0.60
|
Diluted
|
|
1.34
|
|
1.67
|
|
0.23
|
|
4.19
|
|
4.26
|
|
0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings
per share attributable
to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1.35
|
|
1.69
|
|
0.24
|
|
3.93
|
|
4.66
|
|
0.65
|
Diluted
|
|
1.34
|
|
1.69
|
|
0.24
|
|
3.93
|
|
4.66
|
|
0.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For investor and media inquiries, please contact:
ZTO
Investor Relations Department
Phone: +86-21-6978 7037
E-mail: ir@zto.com
View original
content:http://www.prnewswire.com/news-releases/zto-reports-third-quarter-2019-unaudited-financial-results-300959858.html
SOURCE ZTO Express (Cayman) Inc.