Adjusted Net Income
Reached RMB1.27 Billion
5.8 Billion Parcels Attained 21.0% Market Share
SHANGHAI, Aug. 18, 2021 /PRNewswire/ -- ZTO Express
(Cayman) Inc. (NYSE: ZTO and SEHK: 2057), 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, 2021[1].
The Company delivered a parcel volume growth of 25.6% while
maintaining high quality of service and customer satisfaction.
Adjusted net income reached
RMB1,272.2 million. Cash generated
from operating activities was RMB1,932.4
million.
Second Quarter 2021 Financial Highlights
- Revenues were RMB7,325.1 million
(US$1,134.5 million), an increase of
14.4% from RMB6,402.4 million in the
same period of 2020.
- Gross profit was RMB1,673.6
million (US$259.2 million), a
decrease of 5.4% from RMB1,769.2
million in the same period of 2020.
- Net income was RMB1,272.2 million
(US$197.0 million), a decrease of
12.5% from RMB1,453.6 million in the
same period of 2020.
- Adjusted EBITDA[2] was RMB2,125.7 million (US$329.2 million), a decrease of 2.8% from
RMB2,187.0 million in the same period
of 2020.
- Adjusted net income[3] was RMB1,272.2 million (US$197.0 million), a decrease of 12.5% from
RMB1,453.6 million in the same period
of 2020.
- Basic and diluted net
earnings per American depositary share ("ADS"[4]) were
RMB1.56 (US$0.24), a decrease of 15.7% from RMB1.85 in the same period of 2020.
- Adjusted basic and diluted net earnings per American depositary
share[5] attributable to ordinary shareholders were
RMB1.56 (US$0.24), a decrease of 15.7% from RMB1.85 in the same period of 2020.
- Net cash provided by operating activities was RMB1,932.4 million (US$299.3 million), compared with RMB1,252.3 million in the same period of
2020.
Operational Highlights for Second Quarter 2021
- Parcel volume was 5,772 million, an increase of 25.6% from
4,595 million in the same period of 2020.
- Number of pickup/delivery outlets was over 30,100 as of
June 30, 2021.
- Number of direct network partners was over 5,450 as of
June 30, 2021.
- Number of line-haul vehicles was approximately 10,300 as of
June 30, 2021, which included
approximately 10,100 self-owned vehicles and approximately 200
vehicles owned and operated by Tonglu Tongze Logistics Ltd., a
transportation operator that works exclusively for ZTO.
- Out of the approximately 10,100 self-owned trucks,
approximately 8,150 were high capacity 15 to 17-meter-long models
as of June 30, 2021, compared to over
8,100 as of March 31, 2021.
- Number of line-haul routes between sorting hubs was
approximately 3,600 as of June 30,
2021, compared to over 3,650 as of March 31, 2021.
- Number of sorting hubs was 96 as of June
30, 2021, among which 85 are operated by the Company and 11
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 investment 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 investment
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 attributable to
ordinary shareholders 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 consistent strategy to balance competing
priorities of service quality, volume growth and earnings withstood
the test of shifting policy environment and evolving market
dynamics during the quarter. Our customer satisfaction scores
ranked top of the peer group with a widening lead. The slight
retreat in our market share for the quarter was a direct result of
reemphasizing profitable volume when it was neither sensible nor
sustainable to trade profits for short-term market share
gain. We achieved strong corporate earnings. Meanwhile, our
network policies and protective initiatives enabled thousands of
our entrepreneurial partners including couriers to feel safe and
secured, and they maintained high quality operations amidst
persisted competition and diminishing profits."
Mr. Lai added, "At the current rate of
medium to high level of growth, China's express delivery industry will likely
grow daily volume to surpass 400 million or more parcels in the
next 2-3 years. Capacity and operational efficiencies will
set apart the winners and the rest. ZTO has undoubtedly
established infrastructure advantages with years of consistent
investments and innovations. Our network will further evolve
with volume growth to become less layered and more streamlined
generating greater cost efficiencies. Furthermore, our
distinct shared-success philosophy and long-term practice are
consistent with recent regulatory interventions aimed to establish
fairness and restore healthy competition. ZTO stands to benefit
because we have been relying on our operational edge to profit
while allowing our network partners their fair share so that they
can flourish. That is why ZTO's network is more stable, and going
forward, our network partners will be more resilient and will
invest with greater confidence to develop their own capabilities
that are in synch with our expanding transit and sorting
operations, so together, we can continue to thrive."
Ms. Huiping
Yan, Chief Financial Officer of ZTO, commented, "We achieved
RMB1.27billion net income in the
second quarter by focusing on effectively priced volume that
contributed profit instead of loss-making. Normalized for one-time
benefits from pandemic fee waivers and low oil prices last year,
our combined transportation and sorting costs per unit generated
positive productivity gains despite operating below the optimal
capacity level."
Ms. Yan added, "We generated
RMB1.93 billion net operating cash
flow which increased 54.3% from last year. Capital
expenditures totaled RMB 2.2 billion
for the quarter with nearly 70% used for acquisition of land use
rights and sorting hub construction and upgrades. We are
strengthening infrastructure for the core express delivery and
developing comprehensive logistic service capabilities to form
competitive edge for the long run."
Second Quarter 2021 Financial Results
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
2020
|
|
|
|
|
2021
|
|
|
|
2020
|
|
|
|
|
|
2021
|
|
|
|
RMB
|
%
|
|
RMB
|
US$
|
|
%
|
|
RMB
|
%
|
|
RMB
|
US$
|
|
%
|
|
|
|
|
(in thousands,
except percentages)
|
|
|
|
Express delivery
services
|
5,540,664
|
|
|
86.5
|
|
6,652,936
|
|
|
1,030,409
|
|
90.8
|
|
8,947,074
|
|
|
86.7
|
|
12,325,745
|
|
|
1,909,015
|
|
89.3
|
Freight forwarding
services
|
467,095
|
|
|
7.3
|
|
313,553
|
|
|
48,563
|
|
4.3
|
|
762,571
|
|
|
7.4
|
|
806,540
|
|
|
124,917
|
|
5.8
|
Sale of
accessories
|
321,189
|
|
|
5.0
|
|
314,131
|
|
|
48,653
|
|
4.3
|
|
498,214
|
|
|
4.8
|
|
574,311
|
|
|
88,949
|
|
4.2
|
Others
|
73,473
|
|
|
1.2
|
|
44,440
|
|
|
6,882
|
|
0.6
|
|
110,451
|
|
|
1.1
|
|
91,001
|
|
|
14,095
|
|
0.7
|
Total
revenues
|
6,402,421
|
|
|
100.0
|
|
7,325,060
|
|
|
1,134,507
|
|
100.0
|
|
10,318,310
|
|
|
100.0
|
|
13,797,597
|
|
|
2,136,976
|
|
100.0
|
Total Revenues were RMB7,325.1 million (US$1,134.5 million), an increase of 14.4% from
RMB6,402.4 million in the same period
of 2020. Revenue from the core express delivery business increased
by 18.1% compared to the same period of 2020, as a combined result
of a 25.6% increase in parcel volume and a 5.9% decrease in parcel
unit price mainly driven by per parcel weight decline. Revenue from
freight forwarding services decreased by 32.9% compared to the same
period of 2020 as cross border e-commerce demand and pricing
gradually returned to normal post COVID-19 recovery. Revenue from
sales of accessories, largely consisted of sales of thermal paper
used for digital waybills' printing, decreased by 2.2%. Other
revenues were mainly derived from financing services and
advertising services.
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
2020
|
|
|
|
|
2021
|
|
|
|
2020
|
|
|
|
|
|
2021
|
|
|
|
RMB
|
% of
revenues
|
|
RMB
|
US$
|
|
% of
revenues
|
|
RMB
|
% of
revenues
|
|
RMB
|
US$
|
|
% of
revenues
|
|
(in thousands,
except percentages)
|
Line-haul
transportation cost
|
1,996,562
|
|
|
31.2
|
|
2,763,264
|
|
|
427,975
|
|
37.7
|
|
3,293,979
|
|
|
31.9
|
|
5,297,177
|
|
|
820,428
|
|
38.4
|
Sorting hub operating
cost
|
1,254,278
|
|
|
19.6
|
|
1,612,704
|
|
|
249,776
|
|
22.0
|
|
2,220,035
|
|
|
21.5
|
|
3,124,074
|
|
|
483,857
|
|
22.6
|
Freight forwarding
cost
|
416,659
|
|
|
6.5
|
|
266,229
|
|
|
41,234
|
|
3.6
|
|
704,273
|
|
|
6.8
|
|
702,621
|
|
|
108,822
|
|
5.1
|
Cost of accessories
sold
|
112,483
|
|
|
1.8
|
|
98,141
|
|
|
15,200
|
|
1.3
|
|
186,958
|
|
|
1.8
|
|
172,716
|
|
|
26,750
|
|
1.3
|
Other
costs
|
853,276
|
|
|
13.3
|
|
911,080
|
|
|
141,108
|
|
12.6
|
|
1,325,242
|
|
|
12.9
|
|
1,730,834
|
|
|
268,073
|
|
12.5
|
Total cost of
revenues
|
4,633,258
|
|
|
72.4
|
|
5,651,418
|
|
|
875,293
|
|
77.2
|
|
7,730,487
|
|
|
74.9
|
|
11,027,422
|
|
|
1,707,930
|
|
79.9
|
Total cost of revenues was RMB5,651.4 million (US$875.3 million), an increase of 22.0% from
RMB4,633.3 million in the same period
last year.
Line haul transportation cost
was RMB2,763.3 million (US$428.0 million), an increase of 38.4% from
RMB1,996.6 million in the same period
last year. Other than incremental volume driven, the increase
reflected (i) expiration of federal toll road fee waiver policy
from mid-February to early May 2020
during the pandemic, and (ii) lower domestic diesel price during
the pandemic outbreak last year. Line-haul transportation cost per
parcel increased by 10.2% to RMB0.48
due to the combined effect of absence of one-time benefits existed
last year and efficiency gains from increased usage of more
self-owned high-capacity vehicles. There were approximately 1,050
more high-capacity vehicles in our fleet compared to the same
period last year.
Sorting hub operating cost was
RMB1,612.7 million (US$249.8 million), an increase of 28.6% from
RMB1,254.3 million in the same period
last year. The increase was primarily consisted of (i) RMB251.3 million (US$38.9
million) increase in labor-associated costs resulted from
wage increases offset by automation-driven headcount productivity
gain, and (ii) RMB68.5 million
(US$10.6 million) increase in
depreciation and amortization costs from increased number of
installed automated sorting equipment and facilities. Sorting hub
operating cost per unit increased 2.4%. As of June 30, 2021, 361 sets of automated sorting
equipment were in service, compared to 282 sets as of June 30, 2020.
Cost of accessories sold was
RMB98.1 million (US$15.2 million), decreased 12.8% compared with
RMB112.5 million in the same period
last year.
Other costs were RMB911.1
million (US$141.1 million), an
increase of RMB57.8 million
(US$9.0 million) compared to the same
period last year. The increase was mainly consisted of (i) an
increase of RMB36.4 million
(US$5.6 million) in expenses related
to the development of technology platform, (ii) an increase of
RMB35.8 million (US$5.5 million) in tax surcharge, and (iii) a
decrease of RMB29.4 million
(US$4.6 million) in the costs of the
advertising services.
Gross Profit was RMB1,673.6 million (US$259.2 million), decreased 5.4% from
RMB1,769.2 million in the same period
last year as a combined result of increased volume at a lower price
and increased costs absent one-time benefits during COVID-19
outbreak. Gross margin rate was 22.8% compared to 27.6% in the same
period last year. Average selling price declined 5.9% for the core
express delivery business and unit cost increased 1.7%.
Total Operating Expenses were RMB218.0 million (US$33.8
million), compared to RMB122.6
million in the same period last year.
Selling, general and administrative expenses
were RMB394.0 million (US$61.0 million), increased by 26.1% from
RMB312.4 million in the same period
last year, mainly from increases of compensation and benefits,
office expenditures, depreciation and write-off of obsolete
assets.
Other operating income, net
was RMB176.0 million (US$27.3 million), compared to RMB189.9 million in the same period last year.
Other operating income mainly consisted of (i) RMB95.8 million (US$14.8
million) of VAT super deduction, and (ii) government
subsidies and tax rebates of RMB38.5
million (US$6.0 million).
Income from operations was RMB1,455.7 million (US$225.5 million), a decrease of 11.6% from
RMB1,646.6 million for the same
period last year. Operating margin rate decreased to 19.9% from
25.7% in the same period last year, mainly driven by a 4.8
percentage points decrease in gross margin.
Interest income was RMB102.4
million (US$15.9 million),
compared with RMB114.3 million in the
same period last year.
Interest expenses was RMB33.8
million (US$5.2 million),
compared with RMB9.1 million in the
same period last year.
Gain from fair value changes of
financial instruments was RMB32.3
million (US$5.0 million),
which reflected fair value changes, assessed using market based
redemption prices estimated by selling banks, on dual currency
deposits, foreign currency options and forward contracts. There
were no similar financial instruments in the same period last
year.
Income tax expenses were RMB254.9
million (US$39.5 million)
compared to RMB298.3 million in the
same period last year.
Net income was RMB1,272.2
million (US$197.0 million),
which decreased by 12.5% from RMB1,453.6
million in the same period.
Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB1.56
(US$0.24), compared to basic and
diluted earnings per ADS of RMB1.85 in the same period last year.
Adjusted basic and diluted earnings per ADS attributable to
ordinary shareholders were RMB1.56 (US$0.24),
compared with RMB1.85 in the
same period last year.
Adjusted net income was RMB1,272.2
million (US$197.0 million),
compared with RMB1,453.6 million
during the same period last year.
EBITDA was RMB2,125.7
million (US$329.2 million),
compared with RMB2,187.0 million in
the same period last year.
Adjusted EBITDA was RMB2,125.7
million (US$329.2 million),
compared to RMB2,187.0 million in the
same period last year.
Net cash provided by operating activities was
RMB1,932.4 million (US$299.3 million), compared with RMB1,252.3 million in the same period last
year.
Business Outlook
Based on current market and operating
conditions, the Company maintains its previously stated annual
guidance. Parcel volume for 2021 is expected to be in the range of
22.95 billion to 23.80 billion, representing a 35% to 40% increase
year over year. Such estimates represent management's current and
preliminary view, which 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 active share
repurchase program to June 30, 2021.
On March 31, 2021, the board of
directors has approved changes to the share repurchase program,
increasing the aggregate value of shares that may be repurchased
from US$500 million to US$1 billion and extending the effective time by
two years through June 30, 2023. The
Company expects to fund the repurchases out of its existing cash
balance. As of June 30, 2021, the
Company has purchased an aggregate of 17,519,583 ADSs at an average
purchase price of US$23.17, 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
RMB6.4566 to US$1.00, the noon buying rate on June 30, 2021 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, adjusted
net income attributable to ordinary shareholders and adjusted basic
and diluted earnings per American depositary share, 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,
adjusted net income attributable to ordinary shareholders and
adjusted basic and diluted earnings per American depositary share
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,
adjusted net income attributable to ordinary shareholders and
adjusted basic and diluted earnings per American depositary share
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, adjusted net income
attributable to ordinary shareholders and adjusted basic and
diluted earnings per American depositary share 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
compare the historical non-GAAP financial measures to the most
directly comparable GAAP measures. Adjusted EBITDA, adjusted net
income, adjusted net income attributable to ordinary shareholders
and adjusted basic and diluted earnings per American depositary
share 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
8:30 PM U.S. Eastern Time on
Wednesday, August 18, 2021
(8:30 AM Beijing Time on August 19, 2021).
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
|
Singapore:
|
800-120-5863
|
International:
|
1-412-317-6061
|
Passcode:
|
4725527
|
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 25,
2021:
United
States:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Passcode:
|
10158503
|
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 and SEHK:2057) ("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 2021, 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 2021 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 31,
|
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
6,402,421
|
|
7,325,060
|
|
1,134,507
|
|
10,318,310
|
|
13,797,597
|
|
2,136,976
|
Cost of
revenues
|
|
(4,633,258)
|
|
(5,651,418)
|
|
(875,293)
|
|
(7,730,487)
|
|
(11,027,422)
|
|
(1,707,930)
|
Gross
profit
|
|
1,769,163
|
|
1,673,642
|
|
259,214
|
|
2,587,823
|
|
2,770,175
|
|
429,046
|
Operating income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
(312,421)
|
|
(394,006)
|
|
(61,024)
|
|
(872,472)
|
|
(1,014,230)
|
|
(157,084)
|
Other operating
income, net
|
189,867
|
|
176,019
|
|
27,262
|
|
303,270
|
|
332,590
|
|
51,512
|
Total operating
expenses
|
(122,554)
|
|
(217,987)
|
|
(33,762)
|
|
(569,202)
|
|
(681,640)
|
|
(105,572)
|
Income from
operations
|
1,646,609
|
|
1,455,655
|
|
225,452
|
|
2,018,621
|
|
2,088,535
|
|
323,474
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
114,258
|
|
102,400
|
|
15,860
|
|
240,485
|
|
177,882
|
|
27,550
|
Interest
expense
|
|
(9,135)
|
|
(33,798)
|
|
(5,235)
|
|
(9,426)
|
|
(49,380)
|
|
(7,648)
|
Gain from fair value
changes of financial
instruments
|
-
|
|
32,331
|
|
5,007
|
|
-
|
|
48,130
|
|
7,454
|
Foreign currency
exchange gain/(loss),
before tax
|
2,594
|
|
(25,751)
|
|
(3,988)
|
|
19,047
|
|
(26,084)
|
|
(4,040)
|
Income before income
tax, and share of
loss in equity method
|
1,754,326
|
|
1,530,837
|
|
237,096
|
|
2,268,727
|
|
2,239,083
|
|
346,790
|
Income tax
expense
|
(298,302)
|
|
(254,859)
|
|
(39,473)
|
|
(428,074)
|
|
(404,497)
|
|
(62,649)
|
Share of loss in
equity method investments
|
(2,453)
|
|
(3,753)
|
|
(581)
|
|
(16,109)
|
|
(28,835)
|
|
(4,466)
|
Net income
|
|
1,453,571
|
|
1,272,225
|
|
197,042
|
|
1,824,544
|
|
1,805,751
|
|
279,675
|
Net (income)/loss
attributable to
noncontrolling interests
|
(5,217)
|
|
19,947
|
|
3,089
|
|
(1,490)
|
|
20,046
|
|
3,105
|
Net income
attributable to ZTO Express
(Cayman) Inc.
|
1,448,354
|
|
1,292,172
|
|
200,131
|
|
1,823,054
|
|
1,825,797
|
|
282,780
|
Net income
attributable to ordinary
shareholders
|
|
1,448,354
|
|
1,292,172
|
|
200,131
|
|
1,823,054
|
|
1,825,797
|
|
282,780
|
Net earnings per
share attributed to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1.85
|
|
1.56
|
|
0.24
|
|
2.33
|
|
2.21
|
|
0.34
|
Diluted
|
|
1.85
|
|
1.56
|
|
0.24
|
|
2.33
|
|
2.21
|
|
0.34
|
Weighted average
shares used in
calculating net earnings per ordinary
share/ADS
|
|
|
|
|
|
|
|
|
|
Basic
|
|
783,894,733
|
|
827,015,267
|
|
827,015,267
|
|
783,124,385
|
|
827,755,090
|
|
827,755,090
|
Diluted
|
|
783,894,733
|
|
827,015,267
|
|
827,015,267
|
|
783,224,329
|
|
827,755,090
|
|
827,755,090
|
Other comprehensive
(expenses)/ income,
net of tax of nil:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
(23,558)
|
|
(102,171)
|
|
(15,824)
|
|
153,368
|
|
(84,260)
|
|
(13,050)
|
Comprehensive
income
|
1,430,013
|
|
1,170,054
|
|
181,218
|
|
1,977,912
|
|
1,721,491
|
|
266,625
|
Comprehensive income
attributable to
noncontrolling interests
|
(5,217)
|
|
19,947
|
|
3,089
|
|
(1,490)
|
|
20,046
|
|
3,105
|
Comprehensive income
attributable to
ZTO Express (Cayman) Inc.
|
1,424,796
|
|
1,190,001
|
|
184,307
|
|
1,976,422
|
|
1,741,537
|
|
269,730
|
Unaudited
Consolidated Balance Sheets Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
December 31,
2020
|
|
June 30,
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
(in thousands,
except for share data)
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
14,212,778
|
|
12,098,453
|
|
1,873,812
|
Restricted cash
|
|
133,196
|
|
51,716
|
|
8,010
|
Accounts
receivable, net
|
|
746,013
|
|
767,851
|
|
118,925
|
Financing receivables
|
|
492,159
|
|
984,796
|
|
152,525
|
Short-term investment
|
|
3,690,402
|
|
3,138,782
|
|
486,135
|
Inventories
|
|
53,070
|
|
39,589
|
|
6,132
|
Advances
to suppliers
|
|
589,042
|
|
695,319
|
|
107,691
|
Prepayments and other current assets
|
|
2,334,688
|
|
2,746,873
|
|
425,436
|
Amounts
due from related parties
|
|
73,278
|
|
71,951
|
|
11,144
|
Total current
assets
|
|
22,324,626
|
|
20,595,330
|
|
3,189,810
|
Investments in equity
investee
|
|
3,224,463
|
|
3,293,405
|
|
510,083
|
Property and
equipment, net
|
|
18,565,161
|
|
21,370,865
|
|
3,309,926
|
Land use rights,
net
|
|
4,360,673
|
|
4,922,064
|
|
762,331
|
Intangible assets,
net
|
|
41,832
|
|
38,733
|
|
5,999
|
Operating lease
right-of-use assets
|
|
876,259
|
|
852,270
|
|
132,000
|
Goodwill
|
|
4,241,541
|
|
4,241,541
|
|
656,931
|
Deferred tax
assets
|
|
720,561
|
|
929,866
|
|
144,018
|
Long-term
investment
|
|
1,842,000
|
|
2,140,160
|
|
331,469
|
Long-term financing
receivables
|
|
1,970,340
|
|
1,540,859
|
|
238,649
|
Other non-current
assets
|
|
537,294
|
|
821,750
|
|
127,273
|
Amounts due from
related parties-non current
|
|
500,000
|
|
521,000
|
|
80,693
|
TOTAL
ASSETS
|
|
59,204,750
|
|
61,267,843
|
|
9,489,182
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Short-term bank borrowing
|
|
1,432,929
|
|
3,391,472
|
|
525,272
|
Accounts payable
|
|
1,635,888
|
|
1,596,483
|
|
247,264
|
Notes payable
|
|
326,200
|
|
351,107
|
|
54,380
|
Advances from customers
|
|
1,119,666
|
|
1,191,605
|
|
184,556
|
Income tax payable
|
|
48,628
|
|
80,192
|
|
12,420
|
Amounts due to related parties
|
|
16,655
|
|
21,495
|
|
3,329
|
Operating lease liabilities
|
|
246,394
|
|
226,037
|
|
35,009
|
Acquisition consideration payable
|
|
22,942
|
|
22,942
|
|
3,553
|
Dividends payable
|
|
11,198
|
|
2,438
|
|
378
|
Other current liabilities
|
|
4,487,084
|
|
4,409,817
|
|
682,994
|
Total
current liabilities
|
|
9,347,584
|
|
11,293,588
|
|
1,749,155
|
Non-current
operating lease liabilities
|
|
502,481
|
|
549,690
|
|
85,136
|
Deferred tax
liabilities
|
|
254,987
|
|
256,346
|
|
39,703
|
TOTAL
LIABILITIES
|
|
10,105,052
|
|
12,099,624
|
|
1,873,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary
shares (US$0.0001 par value; 10,000,000,000 shares authorized,
855,301,115
shares issued and 828,869,972 shares
outstanding as of December 31, 2020; 845,497,968
shares issued and 827,002,948 shares
outstanding as of June 30, 2021)
|
|
553
|
|
546
|
|
85
|
Additional
paid-in capital
|
|
30,613,948
|
|
29,096,081
|
|
4,506,409
|
Treasury
shares, at cost
|
|
(2,578,870)
|
|
(2,018,504)
|
|
(312,626)
|
Retained
earnings
|
|
21,038,753
|
|
22,160,492
|
|
3,432,223
|
Accumulated
other comprehensive loss
|
|
(95,571)
|
|
(179,831)
|
|
(27,852)
|
ZTO Express
(Cayman) Inc. shareholders' equity
|
|
48,978,813
|
|
49,058,784
|
|
7,598,239
|
Noncontrolling interests
|
|
120,885
|
|
109,435
|
|
16,949
|
Total
Equity
|
|
49,099,698
|
|
49,168,219
|
|
7,615,188
|
TOTAL LIABILITIES
AND EQUITY
|
|
59,204,750
|
|
61,267,843
|
|
9,489,182
|
Summary of Unaudited
Consolidated Cash Flow Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
1,252,270
|
|
1,932,405
|
|
299,291
|
|
1,430,061
|
|
2,409,357
|
|
373,162
|
|
Net cash used in
investing activities
|
(1,097,851)
|
|
(184,468)
|
|
(28,570)
|
|
(1,812,554)
|
|
(4,556,458)
|
|
(705,705)
|
|
Net cash provided by
/ (used in) financing
activities
|
65,298
|
|
(943,506)
|
|
(146,130)
|
|
362,952
|
|
50,462
|
|
7,816
|
|
Effect of exchange
rate changes on cash,
cash equivalents and restricted cash
|
2,145
|
|
(133,881)
|
|
(20,736)
|
|
19,460
|
|
(100,613)
|
|
(15,584)
|
|
Net increase/
(decrease) in cash, cash
equivalents and restricted cash
|
221,862
|
|
670,550
|
|
103,855
|
|
(81)
|
|
(2,197,252)
|
|
(340,311)
|
|
Cash, cash
equivalents and restricted cash
at beginning of period
|
5,055,471
|
|
11,492,290
|
|
1,779,929
|
|
5,277,414
|
|
14,360,092
|
|
2,224,095
|
|
Cash, cash
equivalents and restricted cash
at end of period
|
5,277,333
|
|
12,162,840
|
|
1,883,784
|
|
5,277, 333
|
|
12,162,840
|
|
1,883,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
2020
|
|
June 30,
2021
|
|
|
|
|
|
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
5,261,920
|
|
12,098,453
|
|
1,873,812
|
|
|
|
|
|
|
Restricted
cash,current
|
|
|
1,300
|
|
51,716
|
|
8,010
|
|
|
|
|
|
|
Restricted
cash,non-current
|
|
|
14,113
|
|
12,671
|
|
1,962
|
|
|
|
|
|
|
Total cash, cash
equivalents and restricted cash
|
|
5,277,333
|
|
12,162,840
|
|
1,883,784
|
|
|
|
|
|
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
Net income
|
|
1,453,571
|
|
1,272,225
|
|
197,042
|
|
1,824,544
|
|
1,805,751
|
|
279,675
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense (1)
|
|
-
|
|
-
|
|
-
|
|
264,154
|
|
248,027
|
|
38,414
|
Adjusted net
income
|
|
1,453,571
|
|
1,272,225
|
|
197,042
|
|
2,088,698
|
|
2,053,778
|
|
318,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
1,453,571
|
|
1,272,225
|
|
197,042
|
|
1,824,544
|
|
1,805,751
|
|
279,675
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
408,426
|
|
530,874
|
|
82,222
|
|
801,006
|
|
1,026,582
|
|
158,997
|
Amortization
|
|
17,602
|
|
33,928
|
|
5,255
|
|
33,250
|
|
59,579
|
|
9,228
|
Interest
expenses
|
|
9,135
|
|
33,798
|
|
5,235
|
|
9,426
|
|
49,380
|
|
7,648
|
Income tax
expenses
|
|
298,302
|
|
254,859
|
|
39,473
|
|
428,074
|
|
404,497
|
|
62,649
|
EBITDA
|
|
2,187,036
|
|
2,125,684
|
|
329,227
|
|
3,096,300
|
|
3,345,789
|
|
518,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
|
-
|
|
-
|
|
-
|
|
264,154
|
|
248,027
|
|
38,414
|
Adjusted
EBITDA
|
|
2,187,036
|
|
2,125,684
|
|
329,227
|
|
3,360,454
|
|
3,593,816
|
|
556,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net of income
taxes of nil
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
Net income
attributable to ordinary
shareholders
|
|
1,448,354
|
|
1,292,172
|
|
200,131
|
|
1,823,054
|
|
1,825,797
|
|
282,780
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense (1)
|
|
-
|
|
-
|
|
-
|
|
264,154
|
|
248,027
|
|
38,414
|
Adjusted Net income
attributable to
ordinary shareholders
|
|
1,448,354
|
|
1,292,172
|
|
200,131
|
|
2,087,208
|
|
2,073,824
|
|
321,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in
calculating net earnings per ordinary
share/ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
783,894,733
|
|
827,015,267
|
|
827,015,267
|
|
783,124,385
|
|
827,755,090
|
|
827,755,090
|
Diluted
|
|
783,894,733
|
|
827,015,267
|
|
827,015,267
|
|
783,224,329
|
|
827,755,090
|
|
827,755,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share/ADS attributable
to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1.85
|
|
1.56
|
|
0.24
|
|
2.33
|
|
2.21
|
|
0.34
|
Diluted
|
|
1.85
|
|
1.56
|
|
0.24
|
|
2.33
|
|
2.21
|
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings
per share/ADS
attributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1.85
|
|
1.56
|
|
0.24
|
|
2.67
|
|
2.51
|
|
0.39
|
Diluted
|
|
1.85
|
|
1.56
|
|
0.24
|
|
2.66
|
|
2.51
|
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net of income
taxes of nil
|
|
|
|
|
|
|
|
|
|
|
|
|
For investor and media inquiries, please contact:
ZTO Express (Cayman) Inc.
Investor Relations
E-mail: ir@zto.com
Phone: +86 21 5980 4508
View original
content:https://www.prnewswire.com/news-releases/zto-reports-second-quarter-2021-unaudited-financial-results-301357694.html
SOURCE ZTO Express (Cayman) Inc.