22.3 Billion Annual Parcels Increased Market
Share to 20.6%
Adjusted Net
Income Reached RMB4.9 Billion while
Price Competition Cooled
US$0.25 per Share Dividend Announced for
2021
SHANGHAI, March 16, 2022 /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 fourth quarter
and fiscal year ended December 31,
2021[1]. The Company grew parcel volume 5.3
billion, or 31.1%, for 2021 while achieving high customer
satisfaction as well as earnings growth. Cash generated from
operating activities totaled RMB7.2
billion for the year.
Fourth Quarter 2021 Financial Highlights
- Revenues were RMB9,217.5 million
(US$1,446.4 million), an increase of
11.6% from RMB8,257.1 million in the
same period of 2020.
- Gross profit was RMB2,250.9
million (US$353.2 million), an
increase of 21.1% from RMB1,858.3
million in the same period of 2020.
- Net income was RMB1,747.7 million
(US$274.2 million), an increase of
35.3% from RMB1,291.6 million in the
same period of 2020.
- Adjusted EBITDA[2] was RMB2,739.2 million (US$429.8 million), an increase of 29.3% from
RMB2,119.3 million in the same period
of 2020.
- Adjusted net income[3] was RMB1,745.3 million (US$273.9 million), an increase of 35.2% from
RMB1,290.5 million in the same period
of 2020.
- Basic and diluted net earnings per American depositary share
("ADS"[4]) were RMB2.18
(US$0.34), an increase of 40.6% from
RMB1.55 in the same period of
2020.
- Adjusted basic and diluted net earnings per American depositary
share[5] attributable to ordinary shareholders were
RMB2.18 (US$0.34), an increase of 40.6% from RMB1.55 in the same period of 2020.
- Net cash provided by operating activities was RMB 3,023.8 million (US$474.5 million), compared with RMB2,040.3 million in the same period of
2020.
Fiscal Year 2021 Financial Highlights
- Revenues were RMB30,405.8 million
(US$4,771.3 million), an increase of
20.6% from RMB25,214.3 million in the
same period of 2020.
- Gross profit was RMB6,589.4
million (US$1,034.0 million),
an increase of 12.9% from RMB5,837.1
million in the same period of 2020.
- Net income was RMB4,701.3 million
(US$737.7 million), an increase of
8.7% from RMB4,326.4 million in the
same period of 2020.
- Adjusted EBITDA[2] was RMB
8,300.7 million (US$1,302.6
million), an increase of 16.0% from RMB7,155.1 million in the same period of
2020.
- Adjusted net income[3] was RMB4,947.0 million (US$776.3 million), an increase of 7.8% from
RMB4,589.5 million in the same period
of 2020.
- Basic and diluted net earnings per American depositary share
("ADS"[4]) were RMB 5.80
(US$0.91), an increase of 7.0% from
RMB 5.42 in the same period of
2020.
- Adjusted basic and diluted net earnings per American depositary
share[5] attributable to ordinary shareholders were
RMB 6.10 (US$0.96), an increase of 6.1% from RMB5.75 in the same period of 2020.
- Net cash provided by operating activities was RMB7,220.2 million (US$1,133.0 million), compared with RMB4,950.7 million in the same period of
2020.
Operational Highlights for Fourth Quarter 2021
- Parcel volume was 6,343 million, an increase of 17.2% from
5,410 million in the same period of 2020.
- Number of pickup/delivery outlets was over 30,400 as of
December 31, 2021.
- Number of direct network partners was over 5,700 as of
December 31, 2021.
- Number of line-haul vehicles was approximately 10,900 as of
December 31, 2021, which were
self-owned vehicles.
- Out of the approximately 10,900 self-owned trucks, over 9,000
were high capacity 15 to 17-meter-long models as of December 31, 2021, compared to approximately
7,900 as of September 30, 2021.
- Number of line-haul routes between sorting hubs was approximately 3,700 as of December 31, 2021, compared to over 3,600 as of
September 30, 2021.
- Number of sorting hubs was 99 as of December 31, 2021, among which 88 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 net 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
net 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, "Facing COVID-19 pandemic shockwaves, signs of weakness
in the economy and dislocations in industry dynamics, ZTO once
again achieved satisfactory results in all three areas of our
strategic focus for 2021. First, our quality of service and
customer satisfaction continued to rank top above our industry
peers; Secondly, our parcel volume grew 5.3 billion or 31.1% to
reach 22.3 billion, with which, we maintained our number one
position in market share at 20.6%; Thirdly, our adjusted net
earnings expanded 7.8% to 4.9 billion, setting us further apart
from the rest."
Mr. Lai added, "While the growth
prospects are intact for the long run, 2022 is likely a year of
volatility or unexpectedness. We are watchful of what is taking
place in the world and maintain vigilance and diligence in doing
what we can and must. Capacity and efficiency are critical to the
scale-dependent express delivery business. Our past success is
built upon the strength of our vast network of infrastructure and
well-integrated franchise-partners, both of which, took us years of
consistent investments and cultivation. Together with an increasing
level of standardization and digitization throughout our operations
and our developing comprehensive logistic capabilities, we are ever
so confident to secure a larger share of the growing market with
greater cost efficiencies and achieve a bigger share of the profit
than any of our competitors."
Ms. Huiping
Yan, Chief Financial Officer of ZTO, commented, "The impact
from competition-driven price decline continued to diminish and,
the 1.3% ASP decline for the fourth quarter brought the full year
ASP decline for our core express delivery business to 5.7% or
7 cents, out of which, 3 cents was resulted from average parcel weight
drop. During the second half of the year, various corporate
initiatives were systemically implemented to improve visibility to
pertinent and timely data valuable for analytics and quicker
response. More of such implementations are on the way and, we have
begun to see benefit on our earnings quality."
Ms. Yan added, "Our corporate cost
structure remained stable and efficient. SG&A as a
percentage of revenue declined 0.2 pts to 5.4%. For the full
year, capital expenditure totaled 9.3 billion and, we generated 7.2
billion of cash from operating activities which grew 45.8% year
over year. We reasonably anticipate that cash generated from
operating activities would well exceed capital expenditures for
2022."
Fourth Quarter 2021 Financial Results
|
Three Months Ended
December 31,
|
|
2020
|
|
2021
|
|
RMB
|
%
|
|
RMB
|
US$
|
|
%
|
|
(in thousands,
except percentages)
|
Express delivery
services
|
7,172,717
|
|
86.9
|
|
8,428,942
|
|
1,322,685
|
|
91.4
|
Freight forwarding
services
|
618,930
|
|
7.5
|
|
378,248
|
|
59,355
|
|
4.1
|
Sale of
accessories
|
336,628
|
|
4.1
|
|
352,414
|
|
55,301
|
|
3.8
|
Others
|
128,869
|
|
1.5
|
|
57,915
|
|
9,089
|
|
0.7
|
Total
revenues
|
8,257,144
|
|
100.0
|
|
9,217,519
|
|
1,446,430
|
|
100.0
|
Total Revenues were RMB9,217.5 million (US$1466.4 million), an increase of 11.6% from
RMB8,257.1 million in the same period
of 2020. Revenue from the core express delivery business
increased 15.7% compared to the same period of 2020, as a combined
result of a 17.2% increase in parcel volume and a 1.3% decrease in
parcel unit price. Revenue from freight forwarding services
decreased by 38.9% compared to the same period of 2020 as cross
border e-commerce demand and pricing gradually returned to
normal post COVID-19 recovery. Revenue from sales of accessories,
largely consisted of sales of thermal paper used for digital
waybills, increased 4.7%. Other revenues were mainly consisted of
financing services and advertising services receipts.
|
Three Months Ended
December 31,
|
|
2020
|
|
2021
|
|
RMB
|
|
% of
revenues
|
|
RMB
|
|
US$
|
|
% of
revenues
|
|
(in thousands,
except percentages)
|
Line-haul
transportation cost
|
2,956,311
|
|
35.8
|
|
3,350,847
|
|
525,821
|
|
36.4
|
Sorting hub operating
cost
|
1,650,757
|
|
20.0
|
|
2,014,763
|
|
316,160
|
|
21.9
|
Freight forwarding
cost
|
561,273
|
|
6.8
|
|
322,785
|
|
50,652
|
|
3.5
|
Cost of accessories
sold
|
109,288
|
|
1.3
|
|
85,104
|
|
13,355
|
|
0.9
|
Other
costs
|
1,121,184
|
|
13.6
|
|
1,193,096
|
|
187,223
|
|
12.9
|
Total cost of
revenues
|
6,398,813
|
|
77.5
|
|
6,966,595
|
|
1,093,211
|
|
75.6
|
Total cost of revenues was RMB6,966.6 million (US$1,093.2 million) compared to RMB6,398.8 million in the same period last year,
an increase of 8.9% against 17.2% volume increase year over
year.
Line haul transportation cost was RMB3,350.8 million (US$525.8 million), an increase of 13.3% from
RMB2,956.3 million in the same period
last year. Line-haul transportation cost per parcel decreased
3.3% to RMB0.53 benefited mainly from
improved operating efficiency through increased usage of
high-capacity vehicles and better route planning. There were
approximately 1,100 more self-owned and operated high-capacity
vehicles in operation compared to the same period last year.
Sorting hub operating cost was RMB2,014.8 million (US$316.2 million), an increase of 22.1% from
RMB1,650.8 million in the same period
last year. The increase was primarily consisted of (i) RMB234.5 million (US$36.8
million) increase in labor-associated costs, a net result
of wage increases offset by automation-driven headcount
reductions, and (ii) RMB77.5 million
(US$12.2 million) increase in
depreciation and amortization costs from increased number of
installed automated sorting equipment and facilities. Sorting hub
operating cost per unit increased 4.1% to RMB0.32. As of December
31, 2021, 385 sets of automated sorting equipment were in
service, compared to 339 sets as of December
31, 2020.
Cost of accessories sold was RMB85.1 million (US$13.4
million), decreased 22.1% compared with RMB109.3 million in the same period last
year.
Other costs were RMB1,193.1
million (US$187.2 million), an
increase of RMB71.9 million
(US$11.3 million) compared to the
same period last year. The increase was mainly consisted of an
increase of RMB71.2 million
(US$11.2 million) in tax surcharge
driven by the expiration of tax relief policies during Covid-19
outbreak.
Gross Profit was RMB2,250.9
million (US$353.2 million),
increased 21.1% from RMB1,858.3
million in the same period last year as a combined result of
increased volume and decreased ASP absorbed by unit cost
efficiency. Gross margin rate increased to 24.4% from 22.5%
for the same period last year.
Total Operating Expenses were RMB196.9 million (US$30.9
million), compared to RMB291.7
million in the same period last year.
Selling, general and administrative expenses were
RMB472.3 million (US$74.1 million), increased by 13.1% from
RMB417.6 million in the same period
last year, mainly from increases of compensation and benefits and
office expenditures.
Other operating income, net was RMB275.4 million (US$43.2
million), compared to RMB125.9
million in the same period last year. Other operating
income/expense mainly consisted of (i) RMB140.5 million (US$22.0
million) of VAT super deduction and (ii) government
subsidies and tax rebates of RMB56.7
million (US$8.9 million).
Income from operations was RMB2,054.0 million (US$322.3 million), an increase of 31.1% from
RMB1,566.6 million for the same
period last year. Operating margin rate increased to 22.3% from
19.0% in the same period last year.
Interest income was RMB94.2
million (US$14.8 million),
compared with RMB105.6 million in the
same period last year.
Interest expenses was RMB24.9
million (US$3.9 million),
compared with RMB12.2 million in the
same period last year.
Loss from fair value changes of financial instruments was
RMB0.3 million (US$0.1 million), compared with RMB0.9 million in the same period last year,
which reflected fair value changes, assessed
using market-based redemption prices estimated by selling
banks, on financial instruments.
Income tax expenses were RMB371.4
million (US$58.3 million)
compared to RMB289.6 million in the
same period last year.
Net income was RMB1,747.7
million (US$274.2 million),
which increased by 35.3% from RMB1,291.6
million in the same period last year.
Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB2.18
(US$0.34), compared to basic and
diluted earnings per ADS of RMB1.55 in the same period last year.
Adjusted basic and diluted earnings per ADS attributable to
ordinary shareholders were RMB2.18 (US$0.34),
compared with RMB 1.55 in the
same period last year.
Adjusted net income was RMB1,745.3
million (US$273.9 million),
compared with RMB1,290.5 million
during the same period last year.
EBITDA was RMB2,741.6
million (US$430.2 million),
compared with RMB2,120.4 million in
the same period last year.
Adjusted EBITDA was RMB2,739.2
million (US$429.8 million),
compared to RMB2,119.3 million in the
same period last year.
Net cash provided by operating activities was
RMB3,023.8 million (US$474.5 million), compared with RMB2,040.3 million in the same period last
year.
Fiscal Year 2021 Financial Results
|
Year Ended
December 31,
|
|
2020
|
|
2021
|
|
RMB
|
%
|
|
RMB
|
US$
|
|
%
|
|
(in thousands,
except percentages)
|
Express delivery
services
|
21,900,201
|
|
86.9
|
|
27,450,922
|
|
4,307,649
|
|
90.3
|
Freight forwarding
services
|
1,862,689
|
|
7.4
|
|
1,529,601
|
|
240,028
|
|
5.0
|
Sale of
accessories
|
1,133,712
|
|
4.5
|
|
1,231,283
|
|
193,215
|
|
4.0
|
Others
|
317,688
|
|
1.2
|
|
194,033
|
|
30,448
|
|
0.7
|
Total
revenues
|
25,214,290
|
|
100.0
|
|
30,405,839
|
|
4,771,340
|
|
100.0
|
Total Revenues were RMB30,405.8
million (US$4,771.3 million),
an increase of 20.6% from RMB25,214.3
million last year. Revenue from the core express
delivery business increased by 23.7%, as a combined result of a
31.1% increase in parcel volume and a 5.7% decrease in parcel unit
price mainly driven by per parcel weight decline and volume
incentives. Revenue from freight forwarding services decreased by
17.9% compared to last year as cross border e-commerce demand and
pricing gradually returned to normal post COVID-19 recovery.
Revenue from sales of accessories, largely consisted of sales of
thermal paper used for digital waybills, increased by 8.6%. Other
revenues were mainly consisted of financing services and
advertising services receipts.
|
Year Ended
December 31,
|
|
2020
|
|
2021
|
|
RMB
|
|
% of
revenues
|
|
RMB
|
|
US$
|
|
% of
revenues
|
|
(in thousands,
except percentages)
|
Line-haul
transportation cost
|
8,697,081
|
|
34.5
|
|
11,487,810
|
|
1,802,688
|
|
37.8
|
Sorting hub operating
cost
|
5,224,544
|
|
20.7
|
|
6,774,595
|
|
1,063,081
|
|
22.3
|
Freight forwarding
cost
|
1,712,592
|
|
6.8
|
|
1,326,557
|
|
208,166
|
|
4.4
|
Cost of accessories
sold
|
391,253
|
|
1.6
|
|
349,647
|
|
54,867
|
|
1.1
|
Other
costs
|
3,351,714
|
|
13.3
|
|
3,877,853
|
|
608,521
|
|
12.7
|
Total cost of
revenues
|
19,377,184
|
|
76.9
|
|
23,816,462
|
|
3,737,323
|
|
78.3
|
Total cost of revenues was RMB23,816.5 million (US$3,737.3 million) compared to RMB19,377.2 million in the same period last year,
an increase of 22.9% against 31.1% volume increase year over
year.
Line haul transportation cost was RMB11,487.8 million (US$1,802.7 million), an increase of 32.1% from
RMB8,697.1 million last year.
Line-haul transportation cost per parcel was RMB 0.52, which increased 0.8% compared to last
year. This was primarily due to improved operating efficiency
through increased usage of high-capacity vehicles and better route
planning offset by (i) reduced toll road fee charges by a federal
waiver policy which took effect in mid-February and lasted
through early May in 2020 to provide relief and support economic
recovery from COVID-19 outbreak, and (ii) the increase of diesel
price.
Sorting hub operating cost was RMB6,774.6 million (US$1,063.1 million), an increase of 29.7% from
RMB5,224.5 million last year. The
increase was primarily consisted of (i) RMB1,109.6 million (US$174.1 million) increase in labor-associated
costs, a result of wage increases and headcount increase against
higher volume growth, and (ii) RMB269.8
million (US$42.3 million)
increase in depreciation and amortization costs from increased
number of installed automated sorting equipment and facilities.
Sorting hub operating cost per unit declined by 1.1% to
RMB0.30 compared with last year
mainly driven by higher utilization of automation equipment and
improved economies of scale.
Cost of accessories sold was RMB349.6 million (US$54.9
million), decreased 10.6% compared with RMB391.3 million last year.
Other costs were RMB3,877.9
million (US$608.5 million), an
increase of RMB526.1 million
(US$82.6 million) from RMB3,351.7 million in 2020, primarily due to (i)
an increase in costs associated with serving key enterprise
customers of RMB269.6 million
(US$42.3 million); and (ii)
an increase of RMB188.3 million
(US$29.5 million) in tax surcharge
driven by the expiration of tax relief policies during Covid-19
outbreak.
Gross Profit was RMB6,589.4
million (US$1,034.0 million),
an increase of 12.9% from RMB5,837.1
million last year. Gross profit margin decreased
to 21.7% from 23.1% in 2020, which resulted mainly from
competition-led ASP decline partially offset by cost productivity
gain.
Total Operating Expenses were RMB1,086.4 million (US$170.5 million), compared to RMB1,082.7 million last year.
Selling, general and administrative expenses were
RMB1,875.9 million (US$294.4 million), an increase of 12.8% from
RMB1,663.7 million last year. The
increase was primarily due to (i) an increase of RMB124.6 million (US$19.5
million) in compensation and benefit expenses; (ii) an
increase of RMB62.9 million
(US$9.9 million) in headquarter
facility expenses; and (iii) an increase of RMB22.2 million (US$3.5
million) in depreciation and amortization expenses.
Other operating income, net was RMB789.5 million (US$123.9
million), compared with RMB581.0
million last year. The increase is mainly composed of (i)
the RMB250.3 million (US$39.3 million) of VAT super deduction, (ii) an
increase in government subsidies and tax rebate of RMB23.4 million (US$3.7
million), and offset by (iii) RMB91.5
million (US$14.4 million) ADR
fee rebate.
Income from operations was RMB5,503.0 million (US$
863.5 million), an increase of 15.7% from RMB4,754.4 million last year. Operating margin
decreased to 18.1% from 18.9% last year.
Interest income was RMB363.9
million (US$57.1 million),
compared with RMB442.7 million in
2020.
Gain on disposal of equity investees and subsidiary was
RMB2.4 million (US$0.4 million), compared with RMB1.1 million in 2020.
Gain from fair value changes of financial instruments was
RMB52.9 million (US$8.3 million), compared with negative
RMB0.9 million in 2020, which
reflected fair value changes, assessed using market-based
redemption prices estimated by selling banks, on financial
instruments.
Foreign currency exchange loss, before tax was
RMB56.5 million (US$8.9 million), mainly due to the depreciation
of the onshore U.S. dollar-denominated bank deposits against
the Chinese Renminbi.
Income tax expenses were RMB1,005.5 million (US$157.8 million) compared to RMB689.8 million in 2020. In the third quarter of
2020, an income tax refund of RMB200.7
million was received by Shanghai Zhongtongji Network, a
wholly owned subsidiary, for being recognized as a "Key Software
Enterprise" that qualified for a preferential tax rate of 10% for
tax year 2019.
Net income increased 8.7% to RMB4,701.3 million (US$737.7 million) from RMB4,326.4 million in 2020. Net
income margin was 15.5% in 2021 compared with 17.2% in
2020.
Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB5.80
(US$ 0.91), compared to basic and
diluted earnings per ADS of RMB5.42 in the same period last year.
Adjusted basic and diluted earnings per ADS attributable to
ordinary shareholders were RMB6.10 (US$0.96),
compared with that of RMB5.75
for 2020.
Adjusted net income was RMB4,947.0
million (US$776.3 million),
compared with RMB4,589.5 million last
year.
EBITDA was RMB8,055.0
million (US$1,264.0 million),
compared with RMB6,892.0 million last
year.
Adjusted EBITDA was RMB8,300.7
million (US$1,302.6 million),
compared with RMB7,155.1 million last
year.
Net cash provided by operating activities was
RMB 7,220.2 million (US$ 1,133.0 million), increased by 45.8% from
RMB4,950.7 million last year.
Business Outlook
Based on current market conditions and current operations, the
Company's parcel volume for 2022 is expected to be in the range of
26.30 billion to 27.64 billion, representing a 18% to 24%
increase year over year. Above estimates represent management's
current and preliminary view, which are subject to change.
Special Dividend
The board of directors has approved a special dividend of
US$0.25 per ADS and share for 2021 to
shareholders of record as of the close of business on April 8, 2022. For holders of class A ordinary
shares, in order to qualify for the dividend, all valid documents
for the transfer of shares accompanied by the relevant share
certificates must be lodged for registration with the Company's
Hong Kong branch share registrar,
Computershare Hong Kong Investor Services Limited, at Shops
1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East,
Wanchai, Hong Kong no later than
4:30 p.m. on April 8, 2022 (Hong Kong Time). The payment date
is expected to be April 22, 2022 for
holders of class A ordinary shares and on April 27, 2022 for holders of ADSs.
Company Share Purchase
On November 14, 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 December 31, 2021, the
Company has purchased an aggregate of 36,074,242 ADSs at an
average purchase price of US$25.21,
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
RMB6.3726 to US$1.00, the noon buying rate on December 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, March 16, 2022
(8:30 AM Beijing Time on March 17, 2022).
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:
|
6877338
|
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 March 23,
2022:
United
States:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Passcode:
|
6411558
|
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
fourth quarter and fiscal year 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 fourth quarter and
fiscal year of 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 CONDENSED
CONSOLIDATED FINANCIAL DATA
Summary of
Unaudited Consolidated Comprehensive
Income Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in thousands, except for share and per share data)
|
Revenues
|
8,257,144
|
|
9,217,519
|
|
1,446,430
|
|
25,214,290
|
|
30,405,839
|
|
4,771,340
|
Cost of
revenues
|
(6,398,813)
|
|
(6,966,595)
|
|
(1,093,211)
|
|
(19,377,184)
|
|
(23,816,462)
|
|
(3,737,323)
|
Gross
profit
|
1,858,331
|
|
2,250,924
|
|
353,219
|
|
5,837,106
|
|
6,589,377
|
|
1,034,017
|
Operating income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
(417,572)
|
|
(472,284)
|
|
(74,112)
|
|
(1,663,712)
|
|
(1,875,869)
|
|
(294,365)
|
Other operating
income, net
|
125,867
|
|
275,363
|
|
43,210
|
|
580,973
|
|
789,503
|
|
123,890
|
Total operating
expenses
|
(291,705)
|
|
(196,921)
|
|
(30,902)
|
|
(1,082,739)
|
|
(1,086,366)
|
|
(170,475)
|
Income from
operations
|
1,566,626
|
|
2,054,003
|
|
322,317
|
|
4,754,367
|
|
5,503,011
|
|
863,542
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
105,559
|
|
94,208
|
|
14,783
|
|
442,697
|
|
363,890
|
|
57,102
|
Interest
expense
|
(12,174)
|
|
(24,852)
|
|
(3,900)
|
|
(35,307)
|
|
(126,503)
|
|
(19,851)
|
(Loss)/Gain from fair
value changes of
financial instruments
|
(877)
|
|
(337)
|
|
(53)
|
|
(877)
|
|
52,909
|
|
8,303
|
Gain on disposal of
equity investees and
subsidiary
|
1,086
|
|
2,357
|
|
370
|
|
1,086
|
|
2,357
|
|
370
|
Foreign currency
exchange loss,
before tax
|
(81,873)
|
|
(22,310)
|
|
(3,501)
|
|
(127,180)
|
|
(56,467)
|
|
(8,861)
|
Income before income
tax, and share of
loss in equity method
|
1,578,347
|
|
2,103,069
|
|
330,016
|
|
5,034,786
|
|
5,739,197
|
|
900,605
|
Income tax
expense
|
(289,605)
|
|
(371,429)
|
|
(58,285)
|
|
(689,833)
|
|
(1,005,451)
|
|
(157,777)
|
Share of gain/(loss)
in equity method
investments
|
2,871
|
|
16,046
|
|
2,518
|
|
(18,507)
|
|
(32,419)
|
|
(5,087)
|
Net income
|
1,291,613
|
|
1,747,686
|
|
274,249
|
|
4,326,446
|
|
4,701,327
|
|
737,741
|
Net (loss)/income
attributable to
noncontrolling interests
|
(3,472)
|
|
14,644
|
|
2,298
|
|
(14,233)
|
|
53,500
|
|
8,395
|
Net income
attributable to ZTO Express
(Cayman) Inc.
|
1,288,141
|
|
1,762,330
|
|
276,547
|
|
4,312,213
|
|
4,754,827
|
|
746,136
|
Net income
attributable to ordinary
shareholders
|
1,288,141
|
|
1,762,330
|
|
276,547
|
|
4,312,213
|
|
4,754,827
|
|
746,136
|
Net earnings per
share attributed to
ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1.55
|
|
2.18
|
|
0.34
|
|
5.42
|
|
5.80
|
|
0.91
|
Diluted
|
1.55
|
|
2.18
|
|
0.34
|
|
5.42
|
|
5.80
|
|
0.91
|
Weighted average
shares used in
calculating net earnings per ordinary
share/ADS
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
832,986,610
|
|
808,448,289
|
|
808,448,289
|
|
796,097,532
|
|
819,961,265
|
|
819,961,265
|
Diluted
|
832,986,610
|
|
808,448,289
|
|
808,448,289
|
|
796,147,504
|
|
819,961,265
|
|
819,961,265
|
Other comprehensive loss,
net of tax of nil:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
(597,778)
|
|
(17,602)
|
|
(2,762)
|
|
(771,291)
|
|
(146,533)
|
|
(22,994)
|
Comprehensive
income
|
693,835
|
|
1,730,084
|
|
271,487
|
|
3,555,155
|
|
4,554,794
|
|
714,747
|
Comprehensive
(loss)/income attributable
to noncontrolling interests
|
(3,472)
|
|
14,644
|
|
2,298
|
|
(14,233)
|
|
53,500
|
|
8,395
|
Comprehensive income
attributable to
ZTO Express (Cayman) Inc.
|
690,363
|
|
1,744,728
|
|
273,785
|
|
3,540,922
|
|
4,608,294
|
|
723,142
|
Unaudited
Condensed
Consolidated Balance Sheets Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
December 31,
2020
|
|
December 31,
2021
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in thousands,
except for share data)
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
14,212,778
|
|
9,721,225
|
|
1,525,472
|
Restricted
cash
|
133,196
|
|
27,736
|
|
4,352
|
Accounts receivable,
net
|
746,013
|
|
933,444
|
|
146,478
|
Financing
receivables
|
492,159
|
|
1,111,461
|
|
174,412
|
Short-term
investment
|
3,690,402
|
|
2,845,319
|
|
446,493
|
Inventories
|
53,070
|
|
82,961
|
|
13,018
|
Advances to
suppliers
|
589,042
|
|
667,855
|
|
104,801
|
Prepayments and other
current assets
|
2,334,688
|
|
3,142,368
|
|
493,106
|
Amounts due from
related parties
|
73,278
|
|
133,990
|
|
21,026
|
Total current
assets
|
22,324,626
|
|
18,666,359
|
|
2,929,158
|
Investments in equity
investee
|
3,224,463
|
|
3,730,448
|
|
585,389
|
Property and
equipment, net
|
18,565,161
|
|
24,929,897
|
|
3,912,045
|
Land use rights,
net
|
4,360,673
|
|
5,335,549
|
|
837,264
|
Intangible assets,
net
|
41,832
|
|
35,634
|
|
5,592
|
Operating lease
right-of-use assets
|
876,259
|
|
897,238
|
|
140,796
|
Goodwill
|
4,241,541
|
|
4,241,541
|
|
665,590
|
Deferred tax
assets
|
720,561
|
|
934,848
|
|
146,698
|
Long-term
investment
|
1,842,000
|
|
1,214,500
|
|
190,582
|
Long-term financing
receivables
|
1,970,340
|
|
1,412,956
|
|
221,724
|
Other non-current
assets
|
537,294
|
|
762,273
|
|
119,617
|
Amounts due from
related parties-non current
|
500,000
|
|
611,100
|
|
95,895
|
TOTAL
ASSETS
|
59,204,750
|
|
62,772,343
|
|
9,850,350
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term bank
borrowing
|
1,432,929
|
|
3,458,717
|
|
542,748
|
Accounts
payable
|
1,635,888
|
|
1,957,529
|
|
307,179
|
Notes
payable
|
326,200
|
|
174,920
|
|
27,449
|
Advances from
customers
|
1,119,666
|
|
1,226,549
|
|
192,472
|
Income tax
payable
|
48,628
|
|
86,789
|
|
13,619
|
Amounts due to
related parties
|
16,655
|
|
22,786
|
|
3,576
|
Operating lease
liabilities
|
246,394
|
|
250,995
|
|
39,387
|
Acquisition
consideration payable
|
22,942
|
|
22,942
|
|
3,600
|
Dividends
payable
|
11,198
|
|
708
|
|
111
|
Other current
liabilities
|
4,487,084
|
|
5,794,380
|
|
909,263
|
Total current
liabilities
|
9,347,584
|
|
12,996,315
|
|
2,039,404
|
Non-current operating
lease liabilities
|
502,481
|
|
556,091
|
|
87,263
|
Deferred tax
liabilities
|
254,987
|
|
292,356
|
|
45,877
|
TOTAL
LIABILITIES
|
10,105,052
|
|
13,844,762
|
|
2,172,544
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Ordinary shares
(US$0.0001 par value; 10,000,000,000 shares authorized,
855,301,115
shares issued and 828,869,972 shares outstanding as of
December 31, 2020; 826,943,309
shares issued and 808,448,289 shares outstanding as of
December 31, 2021)
|
553
|
|
535
|
|
84
|
Additional paid-in
capital
|
30,613,948
|
|
28,229,026
|
|
4,429,750
|
Treasury shares, at
cost
|
(2,578,870)
|
|
(2,067,009)
|
|
(324,359)
|
Retained
earnings
|
21,038,753
|
|
22,716,799
|
|
3,564,762
|
Accumulated other
comprehensive loss
|
(95,571)
|
|
(242,104)
|
|
(37,991)
|
ZTO Express
(Cayman) Inc. shareholders' equity
|
48,978,813
|
|
48,637,247
|
|
7,632,246
|
Noncontrolling
interests
|
120,885
|
|
290,334
|
|
45,560
|
Total
Equity
|
49,099,698
|
|
48,927,581
|
|
7,677,806
|
TOTAL LIABILITIES
AND EQUITY
|
59,204,750
|
|
62,772,343
|
|
9,850,350
|
Summary of
Condensed
Unaudited Consolidated Cash Flow Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
2,040,259
|
|
3,023,783
|
|
474,498
|
|
4,950,749
|
|
7,220,217
|
|
1,133,010
|
Net cash (used in)
investing activities
|
(2,916,733)
|
|
(2,814,265)
|
|
(441,620)
|
|
(3,549,341)
|
|
(8,756,533)
|
|
(1,374,091)
|
Net cash (used in)
/provided by financing
activities
|
(628,169)
|
|
(787,457)
|
|
(123,569)
|
|
8,337,407
|
|
(2,903,985)
|
|
(455,699)
|
Effect of exchange
rate changes on cash,
cash equivalents and restricted cash
|
(566,354)
|
|
(47,876)
|
|
(7,513)
|
|
(656,137)
|
|
(150,430)
|
|
(23,606)
|
Net
(decrease)/increase in cash, cash
equivalents and restricted cash
|
(2,070,997)
|
|
(625,815)
|
|
(98,204)
|
|
9,082,678
|
|
(4,590,731)
|
|
(720,386)
|
Cash, cash
equivalents and restricted cash
at beginning of period
|
16,431,089
|
|
10,395,176
|
|
1,631,230
|
|
5,277,414
|
|
14,360,092
|
|
2,253,412
|
Cash, cash
equivalents and restricted cash
at end of period
|
14,360,092
|
|
9,769,361
|
|
1,533,026
|
|
14,360,092
|
|
9,769,361
|
|
1,533,026
|
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
|
|
|
|
|
|
|
|
December 31,
2020
|
|
December,
2021
|
|
|
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
(in
thousands)
|
Cash and cash
equivalents
|
|
|
|
|
|
|
14,212,778
|
|
9,721,225
|
|
1,525,472
|
Restricted cash,
current
|
|
|
|
|
|
|
133,196
|
|
27,736
|
|
4,352
|
Restricted cash,
non-current
|
|
|
|
|
|
|
14,118
|
|
20,400
|
|
3,202
|
Total cash, cash
equivalents and restricted cash
|
|
|
|
|
|
14,360,092
|
|
9,769,361
|
|
1,533,026
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in thousands, except for share and per share data)
|
Net income
|
1,291,613
|
|
1,747,686
|
|
274,249
|
|
4,326,446
|
|
4,701,327
|
|
737,741
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense (1)
|
-
|
|
-
|
|
-
|
|
264,154
|
|
248,027
|
|
38,921
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposal of
equity investees and
subsidiary (1)
|
(1,086)
|
|
(2,357)
|
|
(370)
|
|
(1,086)
|
|
(2,357)
|
|
(370)
|
Adjusted net
income
|
1,290,527
|
|
1,745,329
|
|
273,879
|
|
4,589,514
|
|
4,946,997
|
|
776,292
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
1,291,613
|
|
1,747,686
|
|
274,249
|
|
4,326,446
|
|
4,701,327
|
|
737,741
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
503,814
|
|
567,264
|
|
89,016
|
|
1,758,638
|
|
2,102,310
|
|
329,898
|
Amortization
|
23,184
|
|
30,354
|
|
4,763
|
|
81,824
|
|
119,458
|
|
18,746
|
Interest
expenses
|
12,174
|
|
24,852
|
|
3,900
|
|
35,307
|
|
126,503
|
|
19,851
|
Income tax
expenses
|
289,605
|
|
371,429
|
|
58,285
|
|
689,833
|
|
1,005,451
|
|
157,777
|
EBITDA
|
2,120,390
|
|
2,741,585
|
|
430,213
|
|
6,892,048
|
|
8,055,049
|
|
1,264,013
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
-
|
|
-
|
|
-
|
|
264,154
|
|
248,027
|
|
38,921
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposal of
equity investees and
subsidiary
|
(1,086)
|
|
(2,357)
|
|
(370)
|
|
(1,086)
|
|
(2,357)
|
|
(370)
|
Adjusted
EBITDA
|
2,119,304
|
|
2,739,228
|
|
429,843
|
|
7,155,116
|
|
8,300,719
|
|
1,302,564
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net of income
taxes of nil
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
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
|
1,288,141
|
|
1,762,330
|
|
276,547
|
|
4,312,213
|
|
4,754,827
|
|
746,136
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense(1)
|
-
|
|
-
|
|
-
|
|
264,154
|
|
248,027
|
|
38,921
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposal of
equity investees and subsidiary (1)
|
(1,086)
|
|
(2,357)
|
|
(370)
|
|
(1,086)
|
|
(2,357)
|
|
(370)
|
Adjusted net income
attributable to
ordinary shareholders
|
1,287,055
|
|
1,759,973
|
|
276,177
|
|
4,575,281
|
|
5,000,497
|
|
784,687
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in
calculating net earnings per ordinary
share/ADS
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
832,986,610
|
|
808,448,289
|
|
808,448,289
|
|
796,097,532
|
|
819,961,265
|
|
819,961,265
|
Diluted
|
832,986,610
|
|
808,448,289
|
|
808,448,289
|
|
796,147,504
|
|
819,961,265
|
|
819,961,265
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share/ADS attributable
to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1.55
|
|
2.18
|
|
0.34
|
|
5.42
|
|
5.80
|
|
0.91
|
Diluted
|
1.55
|
|
2.18
|
|
0.34
|
|
5.42
|
|
5.80
|
|
0.91
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings
per share/ADS
attributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1.55
|
|
2.18
|
|
0.34
|
|
5.75
|
|
6.10
|
|
0.96
|
Diluted
|
1.55
|
|
2.18
|
|
0.34
|
|
5.75
|
|
6.10
|
|
0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
(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-fourth-quarter-2021-and-fiscal-year-2021-unaudited-financial-results-301504152.html
SOURCE ZTO Express (Cayman) Inc.