Adjusted Net Income Reached RMB 1.45 Billion
ZTO Reports Second Quarter 2020 Unaudited
Financial Results
SHANGHAI, Aug. 12, 2020 /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,
20201. The Company maintained high quality of
service and customer satisfaction, and expanded parcel volume
market share by 1.6 percentage points to 21.5%. Adjusted net income
increased 5.6% to reach RMB1,453.6
million.
Second Quarter 2020 Financial Highlights
- Revenues were RMB6,402.4 million
(US$906.2 million), an increase of
18.0% from RMB5,423.6 million in the
same period of 2019.
- Gross profit was RMB1,769.2
million (US$250.4 million),
relatively flat compared to RMB1,768.6
million in the same period of 2019.
- Net income was RMB1,453.6 million
(US$205.7 million), an increase of
6.5% from RMB1,365.1 million in the
same period of 2019.
- Adjusted EBITDA²was RMB2,187.0
million (US$309.6 million), an
increase of 11.4% from RMB1,962.8
million in the same period of 2019.
- Adjusted net income³ was RMB1,453.6
million (US$205.7 million), an
increase of 5.6% from RMB1,375.9
million in the same period of 2019.
- Basic and diluted earnings per American depositary share
("ADS"⁴) were RMB1.85 (US$0.26), an increase of 6.9% from RMB1.73 in the same period of 2019.
- Adjusted basic and diluted earnings per American depositary
share⁵ attributable to ordinary shareholders were RMB1.85 (US$0.26),
an increase of 6.3% from RMB1.74 in
the same period of 2019.
- Net cash provided by operating activities was RMB1,252.3 million (US$177.2 million), compared with RMB1,992.8 million in the same period of
2019.
Operational Highlights for Second Quarter 2020
- Parcel volume was 4,595 million, an increase of 47.9% from
3,107 million in the second quarter of 2019.
- Number of pickup/delivery outlets was approximately 30,000 as
of June 30, 2020.
- Number of direct network partners was over 5,000 as of
June 30, 2020.
- Number of line-haul vehicles was over 9,900 as of June 30, 2020, which included approximately 9,050
self-owned vehicles, increased from 6,800 as of March 31, 2020, and over 850 vehicles owned and
operated by Tonglu Tongze Logistics Ltd., a transportation operator
that works exclusively for ZTO.
- Out of the self-owned trucks, over 7,100 were high capacity 15
to 17-meter-long models as of June 30,
2020, compared to over 5,000 as of March 31, 2020.
- Number of line-haul routes between sorting hubs was over 3,400
as of June 30, 2020, compared to over
2,900 as of March 31, 2020.
- Number of sorting hubs was 90 as of June
30, 2020, among which 81 are operated by the Company and 9
by the Company's network partners.
(1)
|
An investor relations
presentation accompanies this earnings release and can be found at
http://zto.investorroom.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 "Benefited
from a strong e-commerce-driven consumption rebound subsequent
to the COVID-19 containment in China, the Chinese express delivery industry
generated more than 5.7 billion incremental parcels year over year
during the second quarter. According to the State Post Bureau, the
express industry grew 36.7%, a quarterly record high since the
first quarter of 2017. ZTO grew volume 47.9% and expanded our
volume market share by 1.6 points to reach 21.5%. During this
record-breaking quarter, our industry also witnessed escalated
price erosion and we observed insensibly low pricing in a number of
key markets. As the Company prioritized quality of service and
market share gains, we boosted support to our network partners who
faced-off price erosions and maintained confidence in our unified
goals and positive business outlook."
Mr. Lai added, "Despite an over 80% volume concentration by a
handful scaled express delivery companies in China, the few leading ones are in relatively
close range, and competition is to be expected. It is all the more
compelling for us to focus on strengthening and leveraging our
competitive advantages in scale, capacity and cost efficiency to
expand our lead. Our track record has consistently
demonstrated our strong determination, execution and stamina.
We are confident in our ability to achieve preeminence in market
share with high customer satisfaction and profit generation as we
journey ahead towards our goal of becoming a world-leading
comprehensive logistic services provider."
Ms. Huiping Yan, Chief Financial
Officer of ZTO, added, "In response to intense price
competition during the quarter, our core express delivery
price per parcel declined 20.9% year over year given more
aggressive yet necessary subsidies to incentivize volume growth.
The negative price impact was dampened by a corresponding 13.9%
cost productivity gain, and together with healthy corporate cost
leverage, adjusted net income increased 5.6% to reach 1.45 billion.
Cash from operating activities was 1.25 billion."
Ms. Yan added, "Nearly halfway into the third quarter, we
observed steady parcel volume growth yet persistent price
competition. We remain steadfast on market share gain, and
are raising our full year volume target to be between 162 to 170
billion parcels. We have adjusted down our earnings estimates to
anchor our conviction to protect our market share gain and maintain
network stability. Looking beyond the next few quarters,
China express delivery industry
volume is likely to reach 300 million daily in the next 2-3 years,
and we aim to capture a lion share of that volume and associated
pricing power."
Second Quarter 2020 Financial Results
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
RMB
|
|
%
|
|
RMB
|
|
US$
|
%
|
|
RMB
|
|
|
%
|
|
RMB
|
|
US$
|
|
%
|
|
|
|
|
|
|
|
(in thousands,
except percentages)
|
|
|
|
|
|
|
|
Express delivery
services
|
4,763,902
|
|
87.8
|
|
5,540,664
|
|
|
784,230
|
|
|
86.5
|
|
8,823,274
|
|
|
88.3
|
|
8,947,074
|
|
1,266,376
|
|
86.7
|
Freight forwarding
services
|
350,088
|
|
6.5
|
|
467,095
|
|
|
66,113
|
|
|
7.3
|
|
639,402
|
|
|
6.4
|
|
762,571
|
|
107,935
|
|
7.4
|
Sale of
accessories
|
292,570
|
|
5.4
|
|
321,189
|
|
|
45,461
|
|
|
5.0
|
|
501,407
|
|
|
5.0
|
|
498,214
|
|
70,518
|
|
4.8
|
Others
|
17,080
|
|
0.3
|
|
73,473
|
|
|
10,400
|
|
|
1.2
|
|
33,588
|
|
|
0.3
|
|
110,451
|
|
15,633
|
|
1.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
5,423,640
|
|
100.0
|
|
6,402,421
|
|
906,204
|
|
100.0
|
|
9,997,671
|
|
|
100.0
|
|
10,318,310
|
|
1,460,462
|
|
100.0
|
Revenues were RMB6,402.4
million (US$906.2 million), an
increase of 18.0% from RMB5,423.6
million in the same period of 2019. Revenue from
the core express delivery business increased by 17.0% compared
to the same period of 2019, as a combined result of an increase of
47.9% in parcel volume and a decrease of 20.9% in parcel unit price
in response to competition. Revenue from freight forwarding
services increased 33.4% compared to the same period of 2019,
driven by increased cross border e-commerce demand and improved
pricing as a result of the COVID-19 outbreak globally. The increase
in revenue from sales of accessories was in-line with the increase
in the sale of thermal paper used for digital waybills, portable
scanning devices and uniforms. Other revenues were mainly
derived from financing services and advertising services.
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
2019
|
|
|
|
|
2020
|
|
|
|
2019
|
|
|
|
|
2020
|
|
|
|
|
|
|
RMB
|
% of
|
|
RMB
|
US$
|
% of
|
|
RMB
|
% of
|
|
RMB
|
US$
|
%
of
|
|
|
|
revenues
|
revenues
|
revenues
|
revenues
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands,
except percentages)
|
|
|
|
|
|
|
|
|
|
|
Line-haul
transportation cost
|
1,695,866
|
|
|
31.3
|
|
1,996,562
|
|
282,595
|
|
31.2
|
|
3,289,873
|
|
|
32.9
|
|
3,293,979
|
|
466,232
|
|
31.9
|
|
|
|
Sorting hub
cost
|
953,901
|
|
|
17.6
|
|
1,254,278
|
|
177,532
|
|
19.6
|
|
1,844,970
|
|
|
18.5
|
|
2,220,035
|
|
314,225
|
|
21.5
|
|
|
|
Freight forwarding
cost
|
345,283
|
|
|
6.4
|
|
416,659
|
|
58,974
|
|
6.5
|
|
628,397
|
|
|
6.3
|
|
704,273
|
|
99,683
|
|
6.8
|
|
|
|
Cost of accessories
sold
|
156,371
|
|
|
2.9
|
|
112,483
|
|
15,921
|
|
1.8
|
|
276,057
|
|
|
2.8
|
|
186,958
|
|
26,462
|
|
1.8
|
|
|
|
Other
costs
|
503,651
|
|
|
9.2
|
|
853,276
|
|
120,773
|
|
13.3
|
|
930,214
|
|
|
9.2
|
|
1,325,242
|
|
187,577
|
|
12.9
|
|
|
|
Total cost of
revenues
|
3,655,072
|
|
|
67.4
|
|
4,633,258
|
|
655,795
|
|
72.4
|
|
6,969,511
|
|
|
69.7
|
|
7,730,487
|
|
1,094,179
|
|
74.9
|
|
|
|
|
Total cost of revenues was RMB4,633.3 million (US$655.8 million), an increase of 26.8% from
RMB3,655.1 million in the same period
last year.
Line haul transportation cost was RMB1,996.6 million (US$282.6 million), an increase of 17.7% from
RMB1,695.9 million in the same period
last year. The line-haul transportation cost per parcel
declined 20.4% to RMB0.43. The
decrease resulted from (i) reduced toll road fee charges based on a
federal waiver policy which took effect in mid-February and lasted
through early May, and (ii) higher usage of self-owned vehicles
with an increasing number of higher-capacity trailer trucks. As a
percentage of total line haul transportation costs, the self-owned
portion increased to 84.6% from 66.3% in the same period last
year.
Sorting hub operating cost was RMB1,254.3 million (US$177.5 million), an increase of 31.5% from
RMB953.9 million in the same period
last year. The increase was primarily due to (i) an
RMB207.5 million (US$29.4 million) increase in labor associated
costs, and (ii) an RMB65.5 million
(US$9.3 million) increase in
depreciation and amortization costs associated with the increased
number of installed automated sorting equipment. As of June 30, 2020, 282 sets of automated sorting
equipment have been placed into service, compared to 155 sets as of
June 30, 2019. The sorting hub
operating cost per parcel decreased 11.1% to RMB0.27 as the result of increased level of
automation and less labor dependencies.
Cost of accessories was RMB112.5
million (US$15.9 million), a
decrease of 28.1% from RMB156.4
million in the same period last year. The decrease was
mainly driven by the increased use of lower-cost single-sheet
digital waybills since the second half of 2019.
Other costs were RMB853.3
million (US$120.8 million), an
increase of RMB349.6 million
(US$49.5 million) compared to the
same period last year. The increase was mainly consisted of
(i) an increase of RMB255.5 million
(US$36.2 million) in dispatching
costs serving enterprise customers with an associated volume
increase of 80.4%, and (ii) an increase of RMB75.1million (US$10.6
million) in technology related expenses.
Gross Profit was RMB1,769.2
million (US$250.4million),
which remained flat compared to RMB1,768.6
million in the same period last year. Gross margin
rate decreased to 27.6% from 32.6% in the same period last
year as net effects of 47.9% volume growth, competition-led ASP
decline of 20.2% and unit cost productivity gain of 14.3%.
Total Operating Expenses were RMB122.6 million (US$17.3
million), compared to RMB275.8
million in the same period last year.
Selling, general and administrative expenses were
RMB312.4 million (US$44.2 million), increased 2.3% from
RMB305.4 million in the same period
last year. SG&A as a percentage of total revenue
decreased to 4.9% from 5.6% from second quarter 2019 demonstrating
healthy corporate structure and positive scale leverage.
Other operating income, net was RMB189.9 million (US$26.9
million) for the second quarter, compared to RMB29.5 million in the same period last
year. Other operating income mainly consisted of (i)
government subsidies and tax rebates of RMB95.4 million (US$13.5
million) received, (ii) RMB60.0
million (US$8.5 million) of
VAT super deduction recognized, and (iii) RMB23.6 million (US$3.3
million) ADR fee rebate.
Income from operations was RMB1,646.6 million (US$233.1 million), an increase of 10.3% from
RMB1,492.7 million for the same
period last year. Operating margin rate decreased to 25.7%
from 27.5% in the same period last year, as a net result of
decrease in gross margin and increase in other operating
income.
Interest income was RMB114.3
million (US$16.2 million),
compared with RMB144.5 million in the
same period last year.
Foreign currency exchange gain, before tax was
RMB2.6million (US$0.4 million) in the second quarter of
2020.
Income tax expenses were RMB298.3
million (US$42.2 million)
compared to RMB288.8 million in the
same period last year. The effective income tax rate was 17.0%,
compared with 17.4% in the same period last year.
Net income was RMB1,453.6
million (US$205.7 million), an
increase of 6.5% from RMB1,365.1
million in the same period last year.
Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB1.85
(US$0.26), compared with basic and
diluted earnings per ADS of RMB1.73 in the same period last year.
Adjusted basic and diluted earnings per ADS attributable to
ordinary shareholders were RMB1.85 (US$0.26),
compared with RMB1.74 in the
same period last year.
Adjusted net income was RMB1,453.6
million (US$205.7 million),
compared with RMB1,375.9 million
during the same period last year.
EBITDA was RMB2,187.0
million (US$309.6 million),
compared with RMB1,952.0 million in
the same period last year.
Adjusted EBITDA was RMB2,187.0
million (US$309.6 million),
compared to RMB1,962.8 million in the
same period last year.
Net cash provided by operating activities was
RMB1,252.3 million (US$177.2 million), compared with RMB1,992.8 million in the same period last year.
The decrease in net cash provided by operating activities
resulted mainly from (i) RMB270.2
million (US$38.2 million)
increase in loans to qualified network partners, and (ii)
RMB245.2 million (US$34.7 million) increase in prepaid fuel and
toll cost driven by increased self-owned vehicles.
Business Outlook
The Company raises its 2020 annual parcel volume projection to
be in the range of 16.2 billion to 17.0 billion, representing a
33.7% to 40.3% increase year over year, and lowers the adjusted net
income for 2020 to be in the range of RMB4.8
billion to RMB5.2 billion,
representing a 1.7% to 9.3% decrease year over year. These
estimates represent management's current and preliminary view,
which takes into consideration the current market condition, the
negative impact from COVID-19, price competition and the Company's
prioritized goal to achieve accelerated market share gains while
maintaining a targeted level of earnings, and are subject to
change.
Company Share Purchase
On November 15, 2018, the Company
announced a 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. On
March 13, 2020, the board of
directors of the Company approved the extension of the current
share repurchase program to June 30,
2021. The Company expects to fund the repurchases out of its
existing cash balance. As of June 30,
2020, the Company has purchased an aggregate of 7,716,436
ADSs at an average purchase price of US$17.33, including repurchase commissions.
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
RMB7.0651 to US$1.00, the noon buying rate on June 30, 2020 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 and adjusted net income, 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 and adjusted net
income 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 and adjusted net income
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 and adjusted net income 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 and adjusted net income
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 PM U.S. Eastern Time on
Wednesday, August 12, 2020
(9:00 AM Beijing Time on August 13, 2020).
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
|
Singapore:
|
800-120-5863
|
International:
|
1-412-317-6061
|
Passcode:
|
4219745
|
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 accessed by phone at the
following numbers until August 19,
2020:
United
States:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Passcode:
|
10146155
|
Additionally, a live and archived webcast of the conference call
will be available 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 2020, 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. Announced results for the second quarter of 2020 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,
|
|
|
|
|
2019
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
|
|
|
|
|
RMB
|
|
RMB
|
US$
|
|
RMB
|
|
|
RMB
|
US$
|
|
|
|
|
|
|
|
(in thousands,
except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
5,423,640
|
|
6,402,421
|
|
|
906,204
|
|
9,997,671
|
|
|
10,318,310
|
|
|
1,460,462
|
|
|
|
|
|
Cost of
revenues
|
(3,655,072)
|
|
(4,633,258)
|
|
|
(655,795)
|
|
(6,969,511)
|
|
|
(7,730,487)
|
|
|
(1,094,179)
|
|
|
|
|
|
Gross
profit
|
1,768,568
|
|
1,769,163
|
|
|
250,409
|
|
3,028,160
|
|
|
2,587,823
|
|
|
366,283
|
|
|
|
|
Operating income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
(305,350)
|
|
(312,421)
|
|
|
(44,220)
|
|
(863,128)
|
|
|
(872,472)
|
|
|
(123,490)
|
|
|
|
|
|
Other operating
income, net
|
29,531
|
|
189,867
|
|
|
26,874
|
|
87,633
|
|
|
303,270
|
|
|
42,924
|
|
|
|
|
|
Total operating
expenses
|
(275,819)
|
|
(122,554)
|
|
|
(17,346)
|
|
(775,495)
|
|
|
(569,202)
|
|
|
(80,566)
|
|
|
|
|
Income from
operations
|
1,492,749
|
|
1,646,609
|
|
|
233,063
|
|
2,252,665
|
|
|
2,018,621
|
|
|
285,717
|
|
|
|
|
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
144,470
|
|
114,258
|
|
|
16,172
|
|
290,941
|
|
|
240,485
|
|
|
34,038
|
|
|
|
|
|
Interest
expense
|
—
|
|
(9,135)
|
|
|
(1,293)
|
|
—
|
|
|
(9,426)
|
|
|
(1,334)
|
|
|
|
|
|
Loss on disposal of
equity investees and
subsidiary
|
—
|
|
—
|
|
|
—
|
|
(529)
|
|
|
—
|
|
|
—
|
|
|
|
|
|
Foreign currency
exchange gain/(loss), before
tax
|
22,293
|
|
2,594
|
|
|
367
|
|
(3,662)
|
|
|
19,047
|
|
|
2,696
|
|
|
|
|
|
Income before income
tax, and share of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
loss in equity method
investments
|
1,659,512
|
|
1,754,326
|
|
|
248,309
|
|
2,539,415
|
|
|
2,268,727
|
|
|
321,117
|
|
|
|
|
|
Income tax
expense
|
(288,803)
|
|
(298,302)
|
|
|
(42,222)
|
|
(480,661)
|
|
|
(428,074)
|
|
|
(60,590)
|
|
|
|
|
|
Share of loss in
equity method
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investments
|
(5,614)
|
|
(2,453)
|
|
|
(347)
|
|
(12,013)
|
|
|
(16,109)
|
|
|
(2,280)
|
|
|
|
|
|
Net income
|
1,365,095
|
|
1,453,571
|
|
|
205,740
|
|
2,046,741
|
|
|
1,824,544
|
|
|
258,247
|
|
|
|
|
Net income
attributable to noncontrolling
interests
|
(5,614)
|
|
(5,217)
|
|
|
(738)
|
|
(6,547)
|
|
|
(1,490)
|
|
|
(211)
|
|
|
|
|
|
Net income
attributable to ZTO Express
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Cayman)
Inc.
|
1,359,481
|
|
1,448,354
|
|
|
205,002
|
|
2,040,194
|
|
|
1,823,054
|
|
|
258,036
|
|
|
|
|
|
Net earnings per
share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ordinary
shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1.73
|
|
1.85
|
|
|
0.26
|
|
2.60
|
|
|
2.33
|
|
|
0.33
|
|
|
|
|
|
Diluted
|
1.73
|
|
1.85
|
|
|
0.26
|
|
2.59
|
|
|
2.33
|
|
|
0.33
|
|
|
|
|
|
Weighted average
shares used in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
calculating net
earnings per ordinary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
786,106,219
|
|
783,894,733
|
|
|
783,894,733
|
|
786,069,533
|
|
|
783,124,385
|
|
|
783,124,385
|
|
|
|
|
|
Diluted
|
786,385,711
|
|
783,894,733
|
|
|
783,894,733
|
|
786,262,099
|
|
|
783,224,329
|
|
|
783,224,329
|
|
|
|
|
|
Other comprehensive
income, net of tax of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nil:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
293,376
|
|
(23,558)
|
|
|
(3,334)
|
|
(50,852)
|
|
|
153,368
|
|
|
21,708
|
|
|
|
|
|
Comprehensive
income
|
1,658,471
|
|
1,430,013
|
|
|
202,406
|
|
1,995,889
|
|
|
1,977,912
|
|
|
279,955
|
|
|
|
|
|
Comprehensive income
attributable to
noncontrolling interests
|
(5,614)
|
|
(5,217)
|
|
|
(738)
|
|
(6,547)
|
|
|
(1,490)
|
|
|
(211)
|
|
|
|
|
|
Comprehensive income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,652,857
|
|
1,424,796
|
|
|
201,668
|
|
1,989,342
|
|
|
1,976,422
|
|
|
279,744
|
|
|
|
|
|
ZTO Express (Cayman)
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Consolidated Balance Sheets Data:
|
|
|
As
of
|
|
|
|
December
31,
|
|
June 30,
2020
|
|
|
|
2019
|
|
|
|
RMB
|
|
RMB
|
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
5,270,204
|
|
5,261,920
|
|
|
744,776
|
|
|
Restricted
cash
|
7,210
|
|
1,300
|
|
|
184
|
|
|
Accounts receivable,
net
|
675,567
|
|
628,466
|
|
|
88,954
|
|
|
Financing receivables,
net
|
511,124
|
|
471,837
|
|
|
66,784
|
|
|
Short-term
investment
|
11,113,217
|
|
8,437,887
|
|
|
1,194,305
|
|
|
Inventories
|
43,845
|
|
64,152
|
|
|
9,080
|
|
|
Advances to
suppliers
|
438,272
|
|
631,220
|
|
|
89,343
|
|
|
Prepayments and other
current assets
|
1,964,506
|
|
2,239,249
|
|
|
316,945
|
|
|
Amounts due from
related parties
|
74,312
|
|
81,529
|
|
|
11,540
|
|
|
Total current
assets
|
20,098,257
|
|
17,817,560
|
|
|
2,521,911
|
|
|
Investments in equity
investees
|
3,109,494
|
|
3,319,697
|
|
|
469,873
|
|
|
Property and
equipment, net
|
12,470,632
|
|
14,651,069
|
|
|
2,073,724
|
|
|
Land use rights,
net
|
2,508,860
|
|
3,829,158
|
|
|
541,982
|
|
|
Intangible assets,
net
|
48,029
|
|
44,930
|
|
|
6,359
|
|
|
Operating lease
right-of-use assets
|
901,956
|
|
784,780
|
|
|
111,078
|
|
|
Goodwill
|
4,241,541
|
|
4,241,541
|
|
|
600,351
|
|
|
Deferred tax
assets
|
403,587
|
|
552,671
|
|
|
78,226
|
|
|
Long-term
investment
|
946,180
|
|
1,390,510
|
|
|
196,814
|
|
|
Long-term financing
receivables, net
|
549,775
|
|
1,240,680
|
|
|
175,607
|
|
|
Other non-current
assets
|
612,191
|
|
607,178
|
|
|
85,940
|
|
|
TOTAL
ASSETS
|
45,890,502
|
|
48,479,774
|
|
|
6,861,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Short-term bank
borrowing
|
—
|
|
1,690,000
|
|
|
239,204
|
|
|
Accounts
payable
|
1,475,258
|
|
1,105,673
|
|
|
156,498
|
|
|
Notes
payable
|
—
|
|
496,200
|
|
|
70,232
|
|
|
Advances from
customers
|
1,210,887
|
|
1,208,970
|
|
|
171,119
|
|
|
Income tax
payable
|
80,272
|
|
166,035
|
|
|
23,501
|
|
|
Amounts due to related
parties
|
38,943
|
|
23,101
|
|
|
3,270
|
|
|
Operating lease
liabilities
|
298,728
|
|
240,240
|
|
|
34,004
|
|
|
Acquisition
consideration payable
|
22,942
|
|
22,942
|
|
|
3,247
|
|
|
Dividends
payable
|
1,629
|
|
334,313
|
|
|
47,319
|
|
|
Other current
liabilities
|
3,552,288
|
|
3,490,285
|
|
|
494,015
|
|
|
Total current
liabilities
|
6,680,947
|
|
8,777,759
|
|
|
1,242,409
|
|
|
Non-current operating
lease liabilities
|
504,442
|
|
420,310
|
|
|
59,491
|
|
|
Deferred tax
liabilities
|
207,896
|
|
215,617
|
|
|
30,519
|
|
|
Other non-current
liabilities
|
93,820
|
|
71,409
|
|
|
10,107
|
|
|
TOTAL
LIABILITIES
|
7,487,105
|
|
9,485,095
|
|
|
1,342,526
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
Ordinary shares
(US$0.0001 par value; 10,000,000,000 shares authorized,
|
|
|
|
|
|
|
|
|
803,551,115 shares
issued and 781,947,464 shares outstanding as of
|
|
|
|
|
|
|
|
|
December 31, 2019;
803,551,115 shares issued and 783,894,733 shares
|
|
|
|
|
|
|
|
|
outstanding as of June
30, 2020)
|
517
|
|
517
|
|
|
73
|
|
|
Additional paid-in
capital
|
22,336,594
|
|
20,852,513
|
|
|
2,951,482
|
|
|
Treasury shares, at
cost
|
(1,436,767)
|
|
(1,350,529)
|
|
|
(191,155)
|
|
|
Retained
earnings
|
16,726,540
|
|
18,549,594
|
|
|
2,625,525
|
|
|
Accumulated other
comprehensive income
|
675,720
|
|
829,087
|
|
|
117,350
|
|
|
ZTO Express
(Cayman) Inc. shareholders' equity
|
38,302,604
|
|
38,881,182
|
|
|
5,503,275
|
|
|
Noncontrolling
interests
|
100,793
|
|
113,497
|
|
|
16,064
|
|
|
Total
Equity
|
38,403,397
|
|
38,994,679
|
|
|
5,519,339
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
45,890,502
|
|
48,479,774
|
|
|
6,861,865
|
|
|
|
|
|
In June 2016, the FASB issued ASU
2016-13, Financial Instruments—Credit Losses (Topic 326), which
requires all entities to disclose their current estimate of all
expected credit losses. The Group adopted this ASU on January 1, 2020 using the modified retrospective
transition method and no material adjustment to the opening balance
of retained earnings of 2020 was necessary. The adoption of this
new ASU has no material impact on its consolidated financial
position, results of operations or cashflow.
Summary of Unaudited Consolidated Cash Flow Data:
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
2019
|
|
2020
|
|
|
2019
|
|
2020
|
|
|
|
|
|
RMB
|
|
RMB
|
US$
|
|
RMB
|
|
RMB
|
US$
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
1,992,804
|
|
1,252,270
|
|
|
177,247
|
|
2,626,074
|
|
1,430,061
|
|
202,415
|
|
|
Net cash provided
by/(used in) investing
activities
|
1,498,752
|
|
(1,097,851)
|
|
|
(155,390)
|
|
2,394,117
|
|
(1,812,554)
|
|
(256,552)
|
|
|
Net cash (used in)/
provided by financing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
activities
|
(2,493,043)
|
|
65,298
|
|
|
9,242
|
|
(2,507,052)
|
|
362,952
|
|
51,372
|
|
|
Effect of exchange
rate changes on cash,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
cash equivalents and
restricted cash
|
21,803
|
|
2,145
|
|
|
304
|
|
(23,430)
|
|
19,460
|
|
2,754
|
|
|
Net
increase/(decrease) in cash, cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equivalents and
restricted cash
|
1,020,316
|
|
221,862
|
|
|
31,403
|
|
2,489,709
|
|
(81)
|
|
(11)
|
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
at beginning of
period
|
6,092,347
|
|
5,055,471
|
|
|
715,555
|
|
4,622,954
|
|
5,277,414
|
|
746,969
|
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,112,663
|
|
5,277,333
|
|
|
746,958
|
|
7,112,663
|
|
5,277, 333
|
|
746,958
|
|
|
at end of
period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table provides a reconciliation of cash, cash
equivalents and restricted cash reported within the condensed
consolidated balance sheets that sum to the total of the same such
amounts shown in the condensed consolidated statements of cash
flows:
|
|
|
|
As
of
|
|
|
|
|
June 30,
2019
|
June 30,
2020
|
|
|
|
|
RMB
|
|
RMB
|
US$
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
7,111,684
|
|
5,261,920
|
|
|
744,776
|
|
Restricted cash,
current
|
979
|
|
1,300
|
|
|
184
|
|
Restricted cash,
non-current
|
|
—
|
|
14,113
|
|
|
1,998
|
|
Total cash, cash
equivalents and restricted cash
|
|
7,112,663
|
|
5,277,333
|
|
|
746,958
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of GAAP and Non-GAAP Results
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands,
except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
1,365,095
|
|
1,453,571
|
|
|
205,740
|
|
2,046,741
|
|
1,824,544
|
|
258,247
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
10,800
|
|
—
|
|
|
—
|
|
295,065
|
|
264,154
|
|
37,389
|
|
Loss on disposal of
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investees and
subsidiary, net of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
taxes
|
—
|
|
—
|
|
|
—
|
|
529
|
|
—
|
|
—
|
|
Adjusted net
income
|
1,375,895
|
|
1,453,571
|
|
|
205,740
|
|
2,342,335
|
|
2,088,698
|
|
295,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
1,365,095
|
|
1,453,571
|
|
|
205,740
|
|
2,046,741
|
|
1,824,544
|
|
258,247
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
283,409
|
|
408,426
|
|
|
57,809
|
|
554,832
|
|
801,006
|
|
113,375
|
|
Amortization
|
14,676
|
|
17,602
|
|
|
2,491
|
|
25,969
|
|
33,250
|
|
4,706
|
|
Interest
expenses
|
—
|
|
9,135
|
|
|
1,293
|
|
—
|
|
9,426
|
|
1,334
|
|
Income tax
expenses
|
288,803
|
|
298,302
|
|
|
42,222
|
|
480,661
|
|
428,074
|
|
60,590
|
|
EBITDA
|
1,951,983
|
|
2,187,036
|
|
|
309,555
|
|
3,108,203
|
|
3,096,300
|
|
438,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
10,800
|
|
—
|
|
|
—
|
|
295,065
|
|
264,154
|
|
37,389
|
|
Loss on disposal of
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investees and
subsidiary, before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
taxes
|
—
|
|
—
|
|
|
—
|
|
529
|
|
—
|
|
—
|
|
Adjusted
EBITDA
|
1,962,783
|
|
2,187,036
|
|
|
309,555
|
|
3,403,797
|
|
3,360,454
|
|
475,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
|
|
RMB
|
|
RMB
|
US$
|
|
RMB
|
|
|
RMB
|
US$
|
|
|
|
(in thousands,
except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to ordinary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders
|
1,359,481
|
|
1,448,354
|
|
|
205,002
|
|
2,040,194
|
|
1,823,054
|
|
258,036
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
10,800
|
|
—
|
|
|
—
|
|
295,065
|
|
264,154
|
|
37,389
|
|
Impairment of
investment in equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on disposal of
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investees and
subsidiary, net of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
taxes
|
—
|
|
—
|
|
|
—
|
|
529
|
|
—
|
|
—
|
|
Adjusted Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,370,281
|
|
1,448,354
|
|
|
205,002
|
|
2,335,788
|
|
2,087,208
|
|
295,425
|
|
ordinary
shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
calculating net
earnings per ordinary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
share/ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
786,106,219
|
|
783,894,733
|
|
|
783,894,733
|
|
786,069,533
|
|
783,124,385
|
|
783,124,385
|
|
Diluted
|
786,385,711
|
|
783,894,733
|
|
|
783,894,733
|
|
786,262,099
|
|
783,224,329
|
|
783,224,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share/ADS attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ordinary
shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1.73
|
|
1.85
|
|
|
0.26
|
|
2.60
|
|
2.33
|
|
0.33
|
|
Diluted
|
1.73
|
|
1.85
|
|
|
0.26
|
|
2.59
|
|
2.33
|
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings
per share/ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to
ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1.74
|
|
1.85
|
|
|
0.26
|
|
2.97
|
|
2.67
|
|
0.38
|
|
Diluted
|
1.74
|
|
1.85
|
|
|
0.26
|
|
2.97
|
|
2.66
|
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/market-share-expanded-to-21-5-volume-grew-47-9-to-4-6-billion-parcels-301111239.html
SOURCE ZTO Express (Cayman) Inc.