SHANGHAI, Nov. 20, 2017
/PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO) ("ZTO" or
the "Company"), a leading and fast-growing express delivery
company in China, today announced
its unaudited financial results for the third quarter ended
September 30, 20171.
Third Quarter 2017 Financial Highlights
- Revenues were RMB3,143.1 million
(US$472.4 million), an increase of
33.6% from the same period of 2016, exceeding the higher end of the
Company's guidance of RMB3.0 billion
for the third quarter of 2017.
- Gross profit was RMB1,137.8
million (US$171.0 million), an
increase of 33.5% from RMB852.5
million in the same period of 2016.
- Net income was RMB717.2 million
(US$107.8
million), an increase of 31.1% from RMB547.2 million in the same period of 2016.
- Adjusted EBITDA2 was RMB1,118.1 million (US$168.1 million), an increase of 34.2% from
RMB833.1 million in the same period
of 2016.
- Adjusted net income3 was RMB730.7 million (US$109.8million), an increase of 33.5% from
RMB547.4 million in the same period
of 2016.
- Basic and diluted earnings per American depositary share
("ADS"4) were RMB1.00 (US$0.15), an increase of 28.2% from
RMB0.78 in the same period of
2016.
- Net cash provided by operating activities was RMB1,024.4 million (US$154.0 million), compared with RMB846.9 million in the same period of 2016.
Third Quarter 2017 Operational Highlights
- Parcel volume in the third quarter of 2017 was 1,535.9 million,
an increase of 39.4% from 1,102.0 million in the same period of
2016.
- Number of pickup/delivery outlets was approximately 28,900 as
of September 30, 2017.
- Number of network partners was over 9,400, which included over
3,800 direct network partners and over 5,600 indirect network
partners as of September 30,
2017.
- Number of line-haul vehicles was over 4,410 as of September 30, 2017, which included around 3,250
self-operated vehicles and around 1,160 vehicles owned and operated
by Tonglu Tongze Logistics Ltd., a transportation operator that
works exclusively for ZTO.
- Number of self-operated trucks increased to around 3,250 as of
September 30, 2017 from 3,190 as of
June 30, 2017. Among the
self-operated trucks, over 1,400 were high capacity
15-17-meter-long models as of September 30,
2017, compared to over 1,260 as of June 30, 2017.
- Number of line-haul routes between sorting hubs was over 1,920
as of September 30, 2017.
- Number of sorting hubs was 79 as of September 30, 2017, among which 73 are operated
by the Company and 6 by the Company's network partners.
1 An
investor relations presentation accompanies this earnings release
and can be found at ir.zto.com
|
2 Adjusted EBITDA is a non-GAAP
financial measure, which is defined as net income before
depreciation, amortization, interest expenses and income tax
expenses, and further adjusted to exclude (i) shared-based
compensation expense; and (ii) gain on deemed disposal of
equity method investments.
|
3 Adjusted
net income is a non-GAAP financial measure, which is defined as net
income before (i) share-based compensation expense and
(ii) gain on deemed disposal of equity method
investments.
|
4 One ADS
represents one Class A ordinary share.
|
"I'm pleased to report that our
revenues for the third quarter of 2017 came in at RMB3,143.1 million, exceeding the high end of our
guidance for the quarter by 4.8% as we continue to gain growth
momentum," commented Mr. Meisong
Lai, Founder, Chairman and Chief Executive Officer of ZTO.
"Parcel volume growth also accelerated sequentially, increasing
39.4% year-over-year to 1,535.9 million during the quarter. Both
our revenues and parcel volume outgrew the industry average as our
market share steadily expands when compared to the same period last
year. According to data published by the PRC State Post
Bureau, ZTO once again received one of the highest scores for
customer satisfaction among the major express delivery companies in
China during the third quarter. As
part of our strategy of aligning the interests of our network
partners with ZTO while carefully balancing growth with service
quality and profitability, we announced certain increases in the
prices of our delivery services last month, which we expect will
further enhance service quality, protect the interests of our
customers, and offset rising costs for our network partners.
I am confident that this increase in price
will aid in further improving the stability of our network and
enhancing service quality, while helping to create a
healthier and more sustainable market environment. We continue to
further strengthen our cost leadership position through greater
economies of scale and cost cutting initiatives. As part of our
efforts to prepare for China's
peak e-commerce season, we have been reinvesting in our
infrastructure and capacity by installing more automated sorting
equipment, expanding our self-owned fleet of high-capacity trucks
and increasing the use of digital waybills. According to data from
the State Post Bureau, total parcel volume during China's Singles' Day was 331 million, an
increase of 31.5% when compared to the same day of last year. Our
parcel volume was approximately 65.7 million on the Singles' Day
this year, outgrowing the industry average by over 10 percentage
points from the same period last year."
Mr. James Guo, Chief Financial
Officer of ZTO, added, "Our gross margin during the quarter
remained unchanged at 36.2% this quarter compared with the same
period last year despite rising labor and fuel costs. Adjusted
EBITDA margin also improved to 35.6% from 35.4% in the same period
last year as a result of our growing economies of scale and cost
cutting initiatives."
Third Quarter 2017 Financial Results
|
|
Three Months Ended September
30,
|
|
Nine
Months Ended September 30,
|
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
RMB
|
|
%
|
|
RMB
|
|
US$
|
|
%
|
|
RMB
|
|
%
|
|
RMB
|
|
US$
|
|
%
|
|
|
|
(in thousands, except percentages)
|
|
Express delivery
services
|
|
2,254,803
|
|
95.8
|
|
2,990,801
|
|
449,521
|
|
95.2
|
|
6,338,210
|
|
96.1
|
|
8,339,167
|
|
1,253,388
|
|
95.5
|
|
Sale of
accessories
|
|
98,269
|
|
4.2
|
|
152,290
|
|
22,890
|
|
4.8
|
|
260,039
|
|
3.9
|
|
389,952
|
|
58,610
|
|
4.5
|
|
Total
revenues
|
|
2,353,072
|
|
100.0
|
|
3,143,091
|
|
472,411
|
|
100.0
|
|
6,598,249
|
|
100.0
|
|
8,729,119
|
|
1,311,998
|
|
100.0
|
|
Revenues were RMB3,143.1
million (US$472.4 million), an
increase of 33.6% from RMB2,353.1
million in the same period of 2016. The increase was mainly
driven by an increase in parcel volume as a result of overall
market growth and an increase in the Company's market share in
terms of parcel volume. The Company's parcel volume grew to 1,535.9
million during the third quarter of 2017, an increase of 39.4% from
1,102.0 million in the same period of 2016. Revenue from the sale
of accessories were RMB152.3 million,
an increase of 55.0% from the same period of 2016, primarily due to
increased sales of thermal paper used for digital waybill
printing.
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
RMB
|
|
% of
revenues
|
|
RMB
|
|
US$
|
|
% of
revenues
|
|
RMB
|
|
% of
revenues
|
|
RMB
|
|
US$
|
|
% of
revenues
|
|
|
|
(in thousands, except percentages)
|
|
Line-haul
transportation
cost
|
|
880,186
|
|
37.4
|
|
1,103,947
|
|
165,925
|
|
35.1
|
|
2,484,403
|
|
37.7
|
|
3,286,540
|
|
493,972
|
|
37.7
|
|
Sorting hub
cost
|
|
473,118
|
|
20.1
|
|
586,060
|
|
88,086
|
|
18.6
|
|
1,358,481
|
|
20.6
|
|
1,670,114
|
|
251,020
|
|
19.1
|
|
Cost of accessories
sold
|
|
67,846
|
|
2.9
|
|
93,008
|
|
13,979
|
|
3.0
|
|
186,385
|
|
2.8
|
|
239,141
|
|
35,943
|
|
2.7
|
|
Other costs
|
|
79,446
|
|
3.4
|
|
222,308
|
|
33,413
|
|
7.1
|
|
287,237
|
|
4.4
|
|
540,998
|
|
81,313
|
|
6.2
|
|
Total cost of
revenues
|
|
1,500,596
|
|
63.8
|
|
2,005,323
|
|
301,403
|
|
63.8
|
|
4,316,506
|
|
65.5
|
|
5,736,793
|
|
862,248
|
|
65.7
|
|
Total cost of revenues was RMB2,005.3 million (US$301.4 million), an increase of 33.6% from
RMB1,500.6 million in the same period
last year. The increase was primarily a result of increases in
line-haul transportation costs, sorting hub operating costs, cost
of accessories sold, and other costs, which were partially offset
by a decrease in waybill material cost due to the increased use of
digital waybills by the Company's end customers which bear lower
costs than paper waybills. The percentage of ZTO's end customers
using digital waybills was approximately 88.0% during the third
quarter of 2017, an increase from approximately 73.0% during the
same period of 2016.
- Line haul transportation cost was RMB1,103.9 million (US$165.9 million), an increase of 25.4% from
RMB880.2 million in the same period
last year. The increase was mainly due to an increase of
RMB188.1 million (US$28.3 million) in costs associated with the
Company's self-owned fleet which includes fuel, tolls, drivers'
compensation, depreciation and maintenance expenses, and an
increase of RMB51.9 million
(US$7.8 million) in outsourced
transportation costs. As a percentage of revenues, line haul
transportation cost accounted for 35.1%, a decrease from 37.4% in
the same period last year, mainly due to (i) economies of scale,
(ii) increased use of self-owned, more cost-efficient, higher
capacity trailer trucks in place of third-party trucks and
outsourced transportation, and (iii) increased truck utilization
through optimized route planning and back-haul transportation.
- Sorting hub operating cost was RMB586.1 million (US$88.1
million), an increase of 23.9% from RMB473.1 million in the same period last year.
The increase was mainly due to (i) increased labor costs of
RMB71.7 million (US$10.8 million) as a result of an increase in
wages and headcount; (ii) an RMB22.4 million (US$3.4 million) increase in depreciation and
amortization costs, and (iii) an increase of RMB12.3 million (US$1.8
million) in rental and related utilities costs. As a
percentage of revenues, sorting hub operating cost accounted for
18.6%, a decrease from 20.1% in the same period last year, mainly
due to economies of scale and improved operating efficiency as a
result of the increased use of automation in the Company's sorting
facilities.
- Cost of accessories was RMB93.0
million (US$14.0 million), an
increase of 37.2% from RMB67.8
million in the same period last year. The increase was in
line with growth in the Company's revenue from the sale of
accessories to its network partners, which includes thermal paper
for digital waybill printing, portable bar code readers, and
ZTO-branded packaging materials and uniforms. As a percentage of
revenues, cost of accessories accounted for 3.0%, an increase from
2.9% in the same period last year.
- Other costs were RMB222.3
million (US$33.4 million), an
increase of 180.0% from RMB79.4
million in the same period last year, primarily due to an
increase in dispatching costs associated with serving enterprise
customers, which were partially offset by a decrease in costs
associated with the increased use of digital waybills.
Gross Profit was RMB1,137.8 million (US$171.0 million), an increase of 33.5% from
RMB852.5 million in the same period
last year. Gross margin remained unchanged at 36.2% compared with
the same period last year.
Total Operating Expenses were RMB193.0 million (US$29.0
million), an increase of 66.3% from RMB116.0 million in the same period last
year.
- Selling, general and administrative expenses were
RMB193.4 million (US$29.1 million), an increase of 50.6% from
RMB128.4 million in the same period
last year. The increase was mainly due to increases in (i)
share-based compensation expenses from RMB0.3 million in the third quarter of 2016 to
RMB13.5 million (US$2.0 million) in the third quarter of 2017;
(ii) payroll and social welfare costs of RMB26.6 million (US$4.0
million) due to an increase in headcount and wages; and
(iii) accrual for annual performance bonuses and incentives
associated with cost-cutting initiatives of RMB16.5 million (US$2.5
million) in the third quarter of 2017.
- Other operating income, net was RMB0.4 million (US$0.1
million), compared with RMB12.4
million in the same period last year. The decrease was
mainly due to a decrease in government subsidies.
Income from operations was RMB944.7 million (US$142.0
million), an increase of 28.3% from RMB736.4 million in the same period last year.
Operating margin decreased to 30.1% from 31.3% in the same period
last year, primarily due to an increase in employee compensation
expenses.
Interest income was RMB45.2 million (US$6.8
million), compared with RMB9.7
million in the same period in 2016, primarily due to the
increased amount of cash and bank deposits available for investment
since the Company's initial public offering in October 2016.
Interest expense was RMB2.5
million (US$0.4 million), compared with
RMB3.8 million in the same period in
2016. The decrease was mainly due to the repayment of bank loans
during the previous quarters.
Foreign currency exchange loss, before tax was
RMB27.5 million (US$4.1 million), primarily arising from the
remeasurement of U.S. dollar denominated bank deposits at the
Company's balance sheet date due to the depreciation of the U.S.
dollar against the Chinese Renminbi.
Net income was RMB717.2
million (US$107.8 million),
compared with RMB547.2 million in the
same period last year. Net margin decreased slightly to 22.8% from
23.3% in the same period last year.
Basic and diluted earnings per ADS were RMB1.00 (US$0.15),
compared with basic and diluted earnings per ADS of RMB0.78 in the same period last year.
Adjusted net income was RMB730.7
million (US$109.8 million),
compared with adjusted net income of RMB547.4 million during the same quarter last
year. Adjusted net margin decreased slightly to 23.2% from 23.3% in
the same period last year.
EBITDA5 was
RMB1,104.6 million (US$166.0 million), compared with RMB832.9 million in the same period last year.
EBITDA margin decreased slightly to 35.1% from 35.4% in the same
period last year.
Adjusted EBITDA was RMB1,118.1
million (US$168.1 million),
compared to RMB833.1 million in the
same period last year. Adjusted EBITDA margin increased to 35.6%
from 35.4% in the same period last year.
Net cash provided by operating activities was
RMB1,024.4 million (US$154.0
million), compared with 846.9 million in the same
period last year, mainly attributable to growth in net income and
increased deposits for last-mile delivery fees.
5 EBITDA is a non-GAAP
financial measure, which is defined as net income before
depreciation, amortization, interest expenses and income tax
expenses.
Business Outlook
Based on current market conditions and current operations,
revenues for the fourth quarter of 2017 is expected to be in the
range of RMB3.9 billion (US$586.2 million) to RMB4.1 billion
(US$616.2 million), representing a
22.2% to 28.5% increase from the
same period of 2016. This represents management's current and
preliminary view, which is subject to change.
Company Share Purchase
On May 21, 2017, the Company
announced a new share repurchase program whereby ZTO is authorized
to repurchase its own Class A ordinary shares in the form of ADSs
with an aggregate value of up to US$300
million during the 12-month period thereafter. As of
September 30, 2017, the Company has
purchased an aggregate of 7,240,865 ADSs at an average purchase
price of US$13.89, net of repurchase
commissions.
The Company believes that the share repurchase program
represents ZTO's confidence in its cash flow and the long-term
outlook for the express delivery industry in China. ZTO's fast-growing strategy,
asset-light business model and solid operation sallow the Company
to generate strong cash flow. The Company believes that the share
repurchase program is consistent with the goal of increasing
shareholders' value.
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
RMB6.6533 to US$1.00, the noon buying rate on September 30, 2017 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 EBITDA, adjusted EBITDA, adjusted net
income, adjusted EBITDA margin and adjusted net margin, 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 EBITDA, adjusted EBITDA, adjusted net
income, adjusted EBITDA margin and net margin 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 EBITDA, adjusted
EBITDA, adjusted net income, adjusted EBITDA margin and adjusted
net margin 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.
EBITDA, adjusted EBITDA,
adjusted net income, adjusted EBITDA margin and adjusted net margin
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. EBITDA, adjusted EBITDA, adjusted net
income, adjusted EBITDA margin and adjusted net margin presented
here may not be comparable to similarly titled measures presented
by other companies. Other companies may calculate similarly titled
measures differently, limiting their usefulness as comparative
measures to ZTO's data. ZTO encourages investors and others to
review the Company's financial information in its entirety and not
rely on a single financial measure.
Conference Call Information
ZTO's management team will host an earnings conference call at
8:00 PM U.S. Eastern Time on
Monday, November 20 (9:00 AM Beijing Time on November 21, 2017).
Dial-in details for the earnings conference call are as
follows:
United
States:
|
1-888-317-6003
|
Hong Kong:
|
852-5808-1995
|
China:
|
4001-206115
|
International:
|
1-412-317-6061
|
Passcode:
|
4787417
|
Please dial in ten 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 November 27,
2017:
United
States:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Passcode:
|
10114011
|
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 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 third quarter of 2017 are
preliminary, unaudited and subject to audit adjustment. In
addition, the Company may not meet its financial outlook included
in this news release and may be unable to grow its business in the
manner planned. The Company may also modify its strategy for
growth. In addition, there are other risks and uncertainties that
could cause the Company's actual results to differ from what it
currently anticipates, including those relating to the development
of the e-commerce industry in China, its significant reliance on the Alibaba
ecosystem, risks associated with its network partners and their
employees and personnel, intense competition which could
adversely affect the Company's results of operations and
market share, any service disruption of the Company's sorting
hubs or the outlets operated by its network partners or its
technology system. For additional information on these and other
important factors that could adversely affect the Company's
business, financial condition, results of operations, and
prospects, please see its filings with the U.S. Securities and
Exchange Commission.
All information provided in this press release and in the
attachments is as of the date of the press release. The Company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events or otherwise,
after the date of this release, except as required by law. Such
information speaks only as of the date of this release.
UNAUDITED
CONSOLIDATED FINANCIAL DATA
|
Summary of
Unaudited Consolidated Comprehensive
Income Data:
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
2,353,072
|
|
3,143,091
|
|
472,411
|
|
6,598,249
|
|
8,729,119
|
|
1,311,998
|
Cost of
revenues
|
|
(1,500,596)
|
|
(2,005,323)
|
|
(301,403)
|
|
(4,316,506)
|
|
(5,736,793)
|
|
(862,248)
|
Gross profit
|
|
852,476
|
|
1,137,768
|
|
171,008
|
|
2,281,743
|
|
2,992,326
|
|
449,750
|
Operating income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
(128,396)
|
|
(193,422)
|
|
(29,072)
|
|
(509,124)
|
|
(558,060)
|
|
(83,877)
|
Other operating
income, net
|
|
12,354
|
|
398
|
|
60
|
|
20,377
|
|
88,455
|
|
13,295
|
Total operating
expenses
|
|
(116,042)
|
|
(193,024)
|
|
(29,012)
|
|
(488,747)
|
|
(469,605)
|
|
(70,582)
|
Income from
operations
|
|
736,434
|
|
944,744
|
|
141,996
|
|
1,792,996
|
|
2,522,721
|
|
379,168
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
9,717
|
|
45,177
|
|
6,790
|
|
30,528
|
|
113,374
|
|
17,040
|
Interest
expense
|
|
(3,766)
|
|
(2,479)
|
|
(373)
|
|
(12,152)
|
|
(13,216)
|
|
(1,986)
|
Gain on deemed
disposal of equity method
investments
|
|
—
|
|
—
|
|
—
|
|
9,551
|
|
—
|
|
—
|
Foreign currency
exchange loss, before tax
|
|
5,021
|
|
(27,542)
|
|
(4,139)
|
|
5,021
|
|
(33,386)
|
|
(5,018)
|
Income before income
tax, and share of loss in
equity method investments
|
|
747,406
|
|
959,900
|
|
144,274
|
|
1,825,944
|
|
2,589,493
|
|
389,204
|
Income tax
expense
|
|
(186,468)
|
|
(237,670)
|
|
(35,722)
|
|
(480,440)
|
|
(637,602)
|
|
(95,832)
|
Share of loss in
equity method investments
|
|
(13,761)
|
|
(5,000)
|
|
(751)
|
|
(33,711)
|
|
(14,868)
|
|
(2,235)
|
Net income
|
|
547,177
|
|
717,230
|
|
107,801
|
|
1,311,793
|
|
1,937,023
|
|
291,137
|
Net loss (income)
attributable to
noncontrolling interests
|
|
(115)
|
|
(260)
|
|
(39)
|
|
1,863
|
|
333
|
|
50
|
Net income attributable
to ZTO Express
(Cayman) Inc.
|
|
547,062
|
|
716,970
|
|
107,762
|
|
1,313,656
|
|
1,937,356
|
|
291,187
|
Change in redemption
value of convertible
redeemable preferred shares
|
|
(40,269)
|
|
—
|
|
—
|
|
(119,992)
|
|
—
|
|
—
|
Net income attributable
to ordinary
shareholders
|
|
506,793
|
|
716,970
|
|
107,762
|
|
1,193,664
|
|
1,937,356
|
|
291,187
|
Net earnings per
share/ADS attributable to
ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.78
|
|
1.00
|
|
0.15
|
|
1.85
|
|
2.70
|
|
0.40
|
Diluted
|
|
0.78
|
|
1.00
|
|
0.15
|
|
1.85
|
|
2.69
|
|
0.40
|
Weighted average shares
used in calculating
net earnings per ordinary
share/ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
618,384,686
|
|
716,138,386
|
|
716,138,386
|
|
615,406,907
|
|
718,790,306
|
|
718,790,306
|
Diluted
|
|
618,384,686
|
|
716,478,593
|
|
716,478,593
|
|
615,406,907
|
|
719,221,212
|
|
719,221,212
|
Other comprehensive
income, net of tax of nil:
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
3,701
|
|
(179,986)
|
|
(27,052)
|
|
29,530
|
|
(413,408)
|
|
(62,136)
|
Comprehensive
income
|
|
550,878
|
|
537,244
|
|
80,749
|
|
1,341,323
|
|
1,523,615
|
|
229,001
|
Comprehensive loss
(income) attributable to
noncontrolling interests
|
|
(115)
|
|
(260)
|
|
(39)
|
|
1,863
|
|
333
|
|
50
|
Comprehensive income
attributable to ZTO
Express (Cayman) Inc.
|
|
550,763
|
|
536,984
|
|
80,710
|
|
1,343,186
|
|
1,523,948
|
|
229,051
|
Unaudited
Consolidated Balance Sheets Data:
|
|
|
|
As of
|
|
|
December 31,
2016
|
|
September
30, 2017
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
11,287,789
|
|
5,180,344
|
|
778,613
|
Restricted
cash
|
|
635,366
|
|
257,945
|
|
38,769
|
Accounts receivable,
net of allowance for doubtful accounts of
RMB5,124and RMB13,867 at December 31, 2016
and September 30,
2017, respectively
|
|
197,803
|
|
198,908
|
|
29,896
|
Short-term
investment
|
|
—
|
|
5,522,239
|
|
830,000
|
Inventories
|
|
33,959
|
|
28,549
|
|
4,291
|
Advances to
suppliers
|
|
646,666
|
|
245,556
|
|
36,907
|
Prepayments and other
current assets
|
|
379,055
|
|
655,658
|
|
98,547
|
Amounts due from
related parties
|
|
5,400
|
|
9,900
|
|
1,488
|
Total current
assets
|
|
13,186,038
|
|
12,099,099
|
|
1,818,511
|
Investments in equity
investees
|
|
537,175
|
|
556,556
|
|
83,651
|
Property and
equipment, net
|
|
4,065,562
|
|
5,839,191
|
|
877,638
|
Land use rights,
net
|
|
1,302,869
|
|
1,512,024
|
|
227,259
|
Goodwill
|
|
4,157,111
|
|
4,157,111
|
|
624,819
|
Deferred tax
assets
|
|
109,030
|
|
185,197
|
|
27,835
|
Other non-current
assets
|
|
45,953
|
|
123,550
|
|
18,571
|
TOTAL
ASSETS
|
|
23,403,738
|
|
24,472,728
|
|
3,678,284
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Short-term bank
borrowing
|
|
450,000
|
|
250,000
|
|
37,575
|
Accounts
payable
|
|
636,422
|
|
572,145
|
|
85,994
|
Advances from
customers
|
|
229,724
|
|
247,824
|
|
37,248
|
Income tax
payable
|
|
418,310
|
|
290,269
|
|
43,628
|
Amounts due to
related parties
|
|
131,425
|
|
94,219
|
|
14,161
|
Other current
liabilities
|
|
1,656,590
|
|
2,191,011
|
|
329,313
|
Total current
liabilities
|
|
3,522,471
|
|
3,645,468
|
|
547,919
|
Deferred tax
liabilities
|
|
130,520
|
|
128,315
|
|
19,286
|
Other non-current
liabilities
|
|
—
|
|
73,980
|
|
11,119
|
TOTAL
LIABILITIES
|
|
3,652,991
|
|
3,847,763
|
|
578,324
|
|
|
|
As of
|
|
|
December 31,
2016
|
|
September
30, 2017
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Ordinary shares
(US$0.0001 par value; 10,000,000,000 shares authorized,
731,406,440 shares issued and 720,564,604
shares outstanding as of
December 31, 2016, and 713,323,739 shares
outstanding as of September
30, 2017)
|
|
471
|
|
471
|
|
71
|
Additional paid-in
capital
|
|
15,940,206
|
|
15,963,031
|
|
2,399,265
|
Treasury shares, at
cost
|
|
—
|
|
(671,733)
|
|
(100,962)
|
Retained
earnings
|
|
3,509,707
|
|
5,447,063
|
|
818,701
|
Accumulated other
comprehensive (loss) income
|
|
294,649
|
|
(118,759)
|
|
(17,850)
|
ZTO Express
(Cayman) Inc. shareholders' equity
|
|
19,745,033
|
|
20,620,073
|
|
3,099,225
|
Noncontrolling
interests
|
|
5,714
|
|
4,892
|
|
735
|
Total
Equity
|
|
19,750,747
|
|
20,624,965
|
|
3,099,960
|
TOTAL LIABILITIES
AND EQUITY
|
|
23,403,738
|
|
24,472,728
|
|
3,678,284
|
Summary of
Unaudited Consolidated Cash Flow Data:
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating
activities
|
|
846,932
|
|
1,024,381
|
|
153,966
|
|
1,388,992
|
|
2,259,137
|
|
339,551
|
Net cash used in investing
activities6
|
|
(888,202)
|
|
(1,128,970)
|
|
(169,686)
|
|
(1,996,929)
|
|
(7,572,212)
|
|
(1,138,114)
|
Net cash provided by
financing
activities
|
|
(26,754)
|
|
(403,295)
|
|
(60,616)
|
|
71,246
|
|
(859,685)
|
|
(129,211)
|
Effect of exchange rate
changes
on cash and cash equivalents
|
|
2,732
|
|
(117,917)
|
|
(17,723)
|
|
22,417
|
|
(312,106)
|
|
(46,910)
|
Net decrease in cash
and cash
equivalents
|
|
(65,292)
|
|
(625,801)
|
|
(94,059)
|
|
(514,274)
|
|
(6,484,866)
|
|
(974,684)
|
Cash and cash equivalents
at
beginning
of period7
|
|
2,269,780
|
|
6,064,090
|
|
911,441
|
|
2,718,762
|
|
11,923,155
|
|
1,792,066
|
Cash and cash equivalents at
end
of period7
|
|
2,204,488
|
|
5,438,289
|
|
817,382
|
|
2,204,488
|
|
5,438,289
|
|
817,382
|
6 The amount
of cash used in investing activities mainly includes purchases of
the fixed term bank deposits with an original maturity of six to
nine months. For the third quarter of 2017, the Company purchased
approximately RMB2.4 billion (US$365.0 million) of such
deposits.
|
7 In November
2016, the FASB issued ASU No. 2016-18 ("ASU 2016-18"), Statement of
Cash Flows (Topic 230) - Restricted Cash. This ASU requires amounts
generally described as restricted cash and restricted cash
equivalents to be included with cash and cash equivalents when
reconciling beginning-of-period and end-of-period total amounts
shown on the statement of cash flows. The provisions of ASU 2016-18
are effective for reporting periods beginning after December 15,
2017 and are to be applied retrospectively; early adoption is
permitted. We elected, as permitted by the standards, to early
adopt ASU 2016-18 in the first quarter of 2017.In connection with
the adoption of this update, we have reclassified RMB15.2 million
and RMB39.6 million of restricted cash from operating activities to
the cash, cash equivalents, and restricted cash balance in the
three-month and nine-month periods ended September 30, 2016,
respectively, to be consistent with the 2017
presentation.
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
Net income
|
|
547,177
|
|
717,230
|
|
107,801
|
|
1,311,793
|
|
1,937,023
|
|
291,137
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
|
251
|
|
13,492
|
|
2,028
|
|
122,251
|
|
27,235
|
|
4,093
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on deemed
disposal of equity
method investment
|
|
—
|
|
—
|
|
—
|
|
(9,551)
|
|
—
|
|
—
|
Adjusted net
income
|
|
547,428
|
|
730,722
|
|
109,829
|
|
1,424,493
|
|
1,964,258
|
|
295,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
547,177
|
|
717,230
|
|
107,801
|
|
1,311,793
|
|
1,937,023
|
|
291,137
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
89,174
|
|
138,757
|
|
20,855
|
|
202,635
|
|
387,851
|
|
58,295
|
Amortization
|
|
6,310
|
|
8,455
|
|
1,271
|
|
16,347
|
|
24,752
|
|
3,720
|
Interest
expenses
|
|
3,766
|
|
2,479
|
|
373
|
|
12,152
|
|
13,216
|
|
1,986
|
Income tax
expenses
|
|
186,468
|
|
237,670
|
|
35,722
|
|
480,440
|
|
637,602
|
|
95,832
|
EBITDA
|
|
832,895
|
|
1,104,591
|
|
166,022
|
|
2,023,367
|
|
3,000,444
|
|
450,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
|
251
|
|
13,492
|
|
2,028
|
|
122,251
|
|
27,235
|
|
4,093
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on deemed
disposal of equity
method investments
|
|
—
|
|
—
|
|
—
|
|
(9,551)
|
|
—
|
|
—
|
Adjusted
EBITDA
|
|
833,146
|
|
1,118,083
|
|
168,050
|
|
2,136,067
|
|
3,027,679
|
|
455,063
|
For investor and media inquiries, please contact:
ZTO
Ms. Sophie Li
Investor Relations Director
E-mail: ir@zto.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In US
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com
View original
content:http://www.prnewswire.com/news-releases/zto-reports-third-quarter-2017-unaudited-financial-results-300559288.html
SOURCE ZTO Express (Cayman) Inc.