- 2.1 Billion Parcel -- Clear Volume
Leader Expanding Market Share to 16.6%
- RMB 1.06
Billion Net Income Increased 47.7% -- Profitable Growth with
Improving Scale & Cost Efficiency
SHANGHAI, China, Nov. 14, 2018 /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, 2018[1]. Parcel volume grew 36.5%,
outpacing the industry average of 25.7%. Adjusted net income
exceeded the high end of guidance, increasing 44.9% to RMB 1.06 billion. The Company puts emphasis on
the effectiveness of its approach to profitable volume growth and
steady market share gain and expresses confidence in the overall
business prospects of the express delivery industry, its team of
people, financial strength and ability to further enhance core
competitive advantages for sustainable long-term value
creation.
Third Quarter 2018 Financial Highlights
- Revenues[2] were
RMB4,234.6 million (US$616.6 million), an increase of 34.7% from
RMB3,143.1 million in the same period
of 2017.
- Gross profit was RMB1,325.3
million (US$193.0 million), an
increase of 16.5% from RMB1,137.8
million in the same period of 2017.
- Net income was RMB1,059.4 million
(US$154.2 million), an increase of
47.7% from RMB717.2 million in the
same period of 2017.
- Adjusted EBITDA[3]was RMB1,473.1 million (US$214.5 million), an increase of 31.8% from
RMB1,118.1 million in the same period
of 2017.
- Adjusted net income[4] was RMB1,058.5 million (US$154.1 million), an increase of 44.9% from
RMB730.7 million in the same period
of 2017.
- Basic and diluted earnings per American depositary share
("ADS"[5]) were
RMB1.35 (US$0.20) and RMB
1.34 (US$0.20), respectively,
an increase of 35.0% and 34.0% from RMB1.00 in the same period of 2017.
- Net cash provided by operating activities was RMB911.7 million (US$132.8
million), compared with RMB1,024.4
million in the same period of 2017.
Operational Highlights for Third Quarter 2018
- Parcel volume was 2,096 million, an increase of 36.5% from
1,536 million in the same period of 2017.
- Number of pickup/delivery outlets was approximately 30,000 as
of September 30, 2018.
- Number of network partners was over 9,500, which included over
4,150 direct network partners and over 5,350 indirect network
partners as of September 30,
2018.
- Number of line-haul vehicles was over 4,900 as of September 30, 2018, which included over 4,000
self-owned vehicles and over 900 vehicles owned and operated by
Tonglu Tongze Logistics Ltd., a transportation operator that works
exclusively for ZTO.
- Number of self-owned trucks increased to around 4,000 as of
September 30, 2018 from 3,800 as of
June 30, 2018. Among the self-owned trucks, over 2,270 were
high capacity 15-17 meter long models as of September 30, 2018, compared to over 2,070 as of
June 30, 2018.
- Number of line-haul routes between sorting hubs was over 2,000
as of September 30, 2018.
- Number of sorting hubs was 83 as of September 30, 2018, among which 76 are operated
by the Company and 7 by the Company's network partners.
[1]
|
An investor relations
presentation accompanies this earnings release and can be found at
ir.zto.com.
|
[2]
|
Starting from January
1, 2018, the Company adopted a newly enacted revenue accounting
standard (ASC 606), which requires its delivery services revenue to
be recognized over time, and uses a modified retrospective approach
to adopt this standard. The January 1, 2018 balance of retained
earnings was not adjusted due to the immaterial cumulative net
impact of adopting ASC 606. The impact of applying ASC 606 as
compared with previous guidance applied to revenues and costs was
not material for the three months ended September 30,
2018.
|
[3]
|
Adjusted EBITDA is a
non-GAAP financial measure, which is defined as net income before
depreciation, amortization, interest expenses and income tax
expenses, and further adjusted to exclude the shared-based
compensation expense and non-recurring items such as the gain on
disposal of equity investees and subsidiary which management aims
to better represent the underlying business operations.
|
[4]
|
Adjusted net income
is a non-GAAP financial measure, which is defined as net income
before share-based compensation expense and non-recurring items
such as gain on disposal of equity investees and subsidiary in
which management aims to better represent the underlying business
operations.
|
[5]
|
One ADS represents one
Class A ordinary share.
|
Mr. Meisong Lai, Founder,
Chairman and Chief Executive Officer of ZTO, commented "ZTO
achieved strong volume growth and generated sound financial
performances during this quarter. Our market share increased
steadily to 16.6% by the end of the quarter from 15.2% for the same
time last year. According to a survey conducted by the China
Postal Bureau, ZTO ranked first among China's leading express delivery companies for
having the least customer complaints in the June through September
period. Our strategy of achieving profitable volume growth and
consistent market expansion is working effectively."
Mr. Lai added, "Despite uncertainties in the near-term
macro-economic environment, we believe China's express delivery industry will
continue to play an important role in the continued growth of
Chinese domestic consumption even as overall growth moderates. Over
the years, we have systemically made investments in infrastructure,
people and technology, and have established scale and cost
advantage, fortified operational know-how and strengthened
financial position. We will monitor the market conditions and
continue to focus on scaling up capabilities, operational
efficiencies and overall network stability. Our track record has
proven that we are able to achieve profitable growth and expand
market share while enhancing brand recognition through consistent
quality of service and customer satisfaction."
Ms. Huiping Yan, Chief Financial Officer of ZTO, added,
"ZTO continued to expand scale capacity and improve operational
efficiency during the quarter which allowed us to drive down unit
cost to partially offset the effects of a decline in unit price.
Combined unit line-haul transportation and sorting hub costs for
the quarter decreased by RMB 9 cents
which help absorbed a portion of the decline in per parcel price.
As a result, gross margin was 31.3% for the current quarter, which
included a 2.1 percentage points dilutive impact from the freight
forwarding business that we acquired in the fourth quarter 2017.
SG&A costs as a percentage of total revenue decreased to 5.9%
from 6.2% last year demonstrating the healthy leverage of corporate
structure. The consistent execution of our strategy to achieve
profitable market expansion resulted in RMB
1.06 billion in net income for the quarter, a 47.7%
year-over-year increase which was faster than the revenue
growth."
Third Quarter 2018 Financial
Results
|
Three Months Ended September
30,
|
|
Nine
Months Ended September 30,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
RMB
|
|
%
|
|
RMB
|
|
US$
|
|
%
|
|
RMB
|
|
%
|
|
RMB
|
|
US$
|
|
%
|
|
(in thousands, except percentages)
|
Express delivery
services
|
2,990,801
|
|
95.2
|
|
3,688,358
|
|
537,035
|
|
87.1
|
|
8,339,167
|
|
95.5
|
|
10,439,890
|
|
1,520,077
|
|
87.2
|
Freight forwarding
services
|
-
|
|
-
|
|
291,153
|
|
42,393
|
|
6.9
|
|
-
|
|
-
|
|
886,216
|
|
129,036
|
|
7.4
|
Sale of
accessories
|
152,290
|
|
4.8
|
|
199,997
|
|
29,120
|
|
4.7
|
|
389,952
|
|
4.5
|
|
560,059
|
|
81,546
|
|
4.7
|
Others
|
-
|
|
-
|
|
55,088
|
|
8,021
|
|
1.3
|
|
-
|
|
-
|
|
90,754
|
|
13,214
|
|
0.7
|
Total
revenues
|
3,143,091
|
|
100.0
|
|
4,234,596
|
|
616,569
|
|
100.0
|
|
8,729,119
|
|
100.0
|
|
11,976,919
|
|
1,743,873
|
|
100.0
|
Revenues were RMB4,234.6
million (US$616.6 million), an
increase of 34.7% from RMB3,143.1
million in the same period of 2017. Revenue from express
delivery services increased by 23.3% compared to the same period of
2017, mainly driven by a 36.5% increase in parcel volume which was
partially offset by a decrease in unit price per parcel as a result
of a decrease in weight per parcel and an increase in incremental
volume incentives. Freight forwarding services acquired during the
fourth quarter of 2017 contributed revenue of RMB291.2 million (US$42.4
million) during the third quarter of 2018. The increase in
revenue from sales of accessories was mainly due to an increase in
sales of thermal paper used for printing of digital waybills. Other
revenues are composed of exploratory new service offerings such as
financing services, advertising services and cloud warehousing
solutions.
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
RMB
|
|
% of
revenues
|
|
RMB
|
|
US$
|
|
% of
revenues
|
|
RMB
|
|
% of
revenues
|
|
RMB
|
|
US$
|
|
% of
revenues
|
|
(in thousands, except percentages)
|
Line-haul
transportation cost
|
1,103,947
|
|
35.1
|
|
1,354,209
|
|
197,177
|
|
32.0
|
|
3,286,540
|
|
37.7
|
|
3,810,114
|
|
554,763
|
|
31.8
|
Sorting hub
cost
|
586,060
|
|
18.6
|
|
765,863
|
|
111,512
|
|
18.1
|
|
1,670,114
|
|
19.1
|
|
2,154,262
|
|
313,667
|
|
18.0
|
Freight forwarding
cost
|
-
|
|
-
|
|
281,967
|
|
41,055
|
|
6.7
|
|
-
|
|
-
|
|
853,985
|
|
124,343
|
|
7.1
|
Cost of accessories
sold
|
93,008
|
|
3.0
|
|
119,211
|
|
17,357
|
|
2.8
|
|
239,141
|
|
2.7
|
|
333,651
|
|
48,581
|
|
2.8
|
Other costs
|
222,308
|
|
7.1
|
|
388,032
|
|
56,499
|
|
9.2
|
|
540,998
|
|
6.2
|
|
1,010,213
|
|
147,089
|
|
8.4
|
Total cost of
revenues
|
2,005,323
|
|
63.8
|
|
2,909,282
|
|
423,600
|
|
68.8
|
|
5,736,793
|
|
65.7
|
|
8,162,225
|
|
1,188,443
|
|
68.1
|
Total cost of revenues was RMB2,909.3 million (US$423.6 million), an increase of 45.1% from
RMB2,005.3 million in the same period
last year. Total cost of revenues includes RMB282.0 million (US$41.1
million) in costs associated with the freight forwarding
business acquired during the fourth quarter of 2017, which is
mainly composed of shipping, last-mile delivery, and cargo handling
costs.
- Line haul transportation cost was RMB1,354.2 million (US$197.2 million), an increase of 22.7% from
RMB1,103.9 million in the same period
last year. As a percentage of revenues, line-haul transportation
cost decreased to 32.0% from 35.1% in the same period last year,
which was mainly driven by (i) a decrease in weight per parcel,
(ii) increased usage of self-owned and more efficient high capacity
trailer trucks, and (iii) improved route planning. Total
transportation cost of self-owned trucks accounted for 66.5% of the
total truck transportation cost for the quarter, compared to 53.9%
in the same period last year.
- Sorting hub operating cost was RMB765.9 million (US$111.5 million), an increase of 30.7% from
RMB586.1 million in the same
period last year. As a percentage of revenues, sorting hub cost
decreased to 18.1% from 18.6% in the same period last year, mainly
due to an increased level of automation in the Company's sorting
facilities which offset a portion of the continuous increase in
labor cost per headcount. As of September
30, 2018, 78 sets of automated sorting equipment have been
put into use, compared to 41 sets as of September 30, 2017. As a result, the average
number of sorting hub workers increased by only 17.2% when compared
to the third quarter of 2017, significantly less than the 36.5%
increase in parcel volume during the third quarter of 2018.
- Cost of accessories was RMB119.2 million (US$17.4 million), an increase of 28.2% from
RMB93.0 million in the same
period last year. The increase was in line with the increase in the
sale of thermal paper for waybill printing by 57.1% compared to the
same period last year.
- Other costs were RMB388.0 million (US$56.5 million), increased by RMB165.7 million compared to the same period last
year, primarily due to (i) an increase of RMB91.8 million (US$13.4
million) in dispatching costs associated with serving
enterprise customers, (ii) an increase of RMB45.7 million (US$6.7
million) in the IT expenses related to IT and technology
development, and (iii) an increase of RMB18.3 million (US$2.7
million) in tax surcharges
Gross Profit was
RMB1,325.3 million (US$193.0million), an increase of 16.5% from
RMB1,137.8 million in the same period
last year. Gross margin decreased to 31.3% from 36.2% in the same
period last year, driven by parcel volume growth plus cost of goods
sold efficiency gain and partially offset by a decrease in unit
price per parcel. In addition, the lower-margin freight forwarding
business caused minor dilution.
Total Operating Expenses were RMB233.6 million (US$34.0
million), compared to RMB193.0
million in the same period last year.
- Selling, general and administrative expenses were
RMB249.5 million (US$36.3 million), compared to RMB193.4 million in the same period last year.
The increase was mainly due to (i) an increase of RMB33.1 million in salaries and accrued bonuses,
and (ii) an increase of RMB5.3
million in depreciation and amortization expenses, and (iii)
an increase of RMB3.0 million in
rental costs. As a percentage of revenue, selling, general and
administrative expenses accounted for 5.9%, compared to 6.2% during
the same period last year, indicating corporate cost leverage.
- Other operating income, net was RMB15.9 million (US$2.3
million) for the quarter. Other operating income mainly
includes the subsidy income of RMB12.3
million (US$1.8 million)
received in the third quarter of 2018.
Income from operations was RMB1,091.7 million (US$159.0 million), an increase of 15.6% from
RMB944.7 million for the same period
last year. Operating margin decreased to 25.8% from 30.1% in the
same period last year, mainly driven by the decrease in gross
margin by 4.9 percentage points.
Interest income was RMB124.0
million (US$18.1 million),
compared with RMB45.2 million in the
same period in 2017, resulting from an increased amount of cash and
interest-earning bank deposits.
Interest expense was zero on bank borrowings, compared
with RMB2.5 million in the same
period in 2017. There was no borrowing during the third quarter of
2018.
Gain on disposal of equity investees and subsidiary was
RMB12.9 million (US$1.9 million), from sale of equity shares of
Shanghai Zhongtongji Electronic Commerce Co., Ltd. for a cash
consideration of RMB10 million
(US$1.5 million).
Foreign currency exchange gain, before tax was
RMB40.4million (US$5.9 million), resulted from the appreciation
of the U.S. dollar against the Chinese renminbi in the third
quarter of 2018.
Income tax expenses were RMB201.4
million (US$29.3 million),
which were associated with an effective income tax rate of 15.9%
for the third quarter of 2018. The lower than normal effective tax
rate was mainly due to the offshore interest income which was
subject to zero income tax.
Net income was RMB1,059.4
million (US$154.2 million), an
increase of 47.7% from RMB717.2
million in the same period last year.
Basic and diluted earnings per ADS were RMB1.35 (US$0.20)
and RMB1.34 (US$0.20), respectively, compared with basic and
diluted earnings per ADS of RMB1.00
in the same period last year.
Adjusted net income was RMB1,058.5
million (US$154.1 million),
compared with adjusted net income of RMB730.7 million during the same quarter last
year.
EBITDA was RMB1,475.7
million (US$214.9 million),
compared with RMB1,104.6 million in
the same period last year.
Adjusted EBITDA was RMB1,473.1
million (US$214.5 million),
compared to RMB1,118.1 million in the
same period last year.
Net cash provided by operating activities was
RMB911.7 million (US$132.8 million), compared with RMB1,024.4 million in the same period last year.
There was an approximately RMB 130
million year-over-year increase in short-term cash used to
support selected network partners for operational and business
expansion needs.
Business Outlook
Based on the current market conditions and current operations,
the Company's parcel volume for the fourth quarter of 2018 is
expected to be in the range of 2,620 million to 2,660 million,
representing a 30% to 32% increase year over year, and the
Company's adjusted net income is expected to be in the range of
RMB1.2 billion to RMB1.3 billion, representing a normalized 13.4%
to 22.8% increase from the same period of 2017. Note that the
adjusted net income for the fourth quarter of 2017 included a
one-time full year income tax benefit of RMB285.9 million by one of the Company's
subsidiaries that qualified for the 15% reduced HNTE tax rate from
the 25% statutory rate in December
2017. Approximately RMB207.2
million of this tax benefit was attributed to the first
three quarters of 2017. These estimates represent management's
current and preliminary view, which are subject to change.
Company Share
Purchase
On November 15, 2018, 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$500
million during an 18-month period thereafter. The Company
expects to fund the repurchase out of its existing cash
balance.
The Company believes that the share repurchase program
represents ZTO's confidence in the overall market opportunities as
well as ZTO's solid operating fundamentals and financial strength
for sustained profitable growth and value creation for its
shareholders.
Exchange Rate
This announcement contains translation of certain Renminbi
amounts into U.S. dollars at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations
from Renminbi to U.S. dollars were made at the exchange rate of
RMB6.8680 to US$1.00, the noon buying rate on September 28, 2018 as set forth in the H.10
statistical release of the Board of Governors of the Federal
Reserve Systems.
Use of Non-GAAP Financial Measures
The Company uses adjusted EBITDA and adjusted net income, each a
non-GAAP financial measure, in evaluating ZTO's operating results
and for financial and operational decision-making purposes.
Reconciliations of the Company's non-GAAP financial measures to
its U.S. GAAP financial measures are shown in tables at the end of
this earnings release, which provide more details about the
non-GAAP financial measures.
The Company believes that adjusted EBITDA and adjusted net
income help identify underlying trends in ZTO's business that could
otherwise be distorted by the effect of the expenses and gains that
the Company includes in income from operations and net income. The
Company believes that adjusted EBITDA and adjusted net income
provide useful information about its operating results, enhance the
overall understanding of its past performance and future prospects
and allow for greater visibility with respect to key metrics used
by ZTO's management in its financial and operational
decision-making.
Adjusted EBITDA and adjusted net income should not be considered
in isolation or construed as an alternative to net income or any
other measure of performance or as an indicator of the Company's
operating performance. Investors are encouraged to review the
historical non-GAAP financial measures to the most directly
comparable GAAP measures. Adjusted EBITDA and adjusted net income
presented here may not be comparable to similarly titled measures
presented by other companies. Other companies may calculate
similarly titled measures differently, limiting their usefulness as
comparative measures to ZTO's data. ZTO encourages investors and
others to review the Company's financial information in its
entirety and not rely on a single financial measure.
Conference Call
Information
ZTO's management team will host an earnings conference call at
8:00 PM U.S. Eastern Time on
Wednesday, November 14, 2018
(9:00 AM Beijing Time on November 15, 2018).
Dial-in details for the earnings conference call are as
follows:
United
States:
|
1-888-317-6003
|
Hong Kong:
|
852-5808-1995
|
Mainland
China:
|
4001-201203
|
International:
|
1-412-317-6061
|
Passcode:
|
2612461
|
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 November 21,
2018:
United
States:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Passcode:
|
10125874
|
Additionally, a live and archived webcast of the conference call
will be available at http://zto.investorroom.com.
About ZTO Express (Cayman) Inc.
ZTO Express (Cayman) Inc. (NYSE: ZTO) ("ZTO" or the "Company")
is a leading and fast-growing express delivery company in
China. ZTO provides express
delivery service as well as other value-added logistics services
through its extensive and reliable nationwide network coverage in
China.
ZTO operates a highly scalable network partner model, which the
Company believes is best suited to support the significant growth
of e-commerce in China. The
Company leverages its network partners to provide pickup and
last-mile delivery services, while controlling the mission-critical
line-haul transportation and sorting network within the express
delivery service value chain.
For more information, please visit
http://zto.investorroom.com.
Safe Harbor Statement
This news release contains "forward-looking" statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended, and as defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
include but are not limited to the Company's unaudited results for
the first quarter of 2018, 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 first quarter of 2018 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,
|
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
3,143,091
|
|
4,234,596
|
|
616,569
|
|
8,729,119
|
|
11,976,919
|
|
1,743,873
|
Cost of
revenues
|
|
(2,005,323)
|
|
(2,909,282)
|
|
(423,600)
|
|
(5,736,793)
|
|
(8,162,225)
|
|
(1,188,443)
|
Gross profit
|
|
1,137,768
|
|
1,325,314
|
|
192,969
|
|
2,992,326
|
|
3,814,694
|
|
555,430
|
Operating income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
(193,422)
|
|
(249,493)
|
|
(36,327)
|
|
(558,060)
|
|
(934,292)
|
|
(136,036)
|
Other operating
income, net
|
|
398
|
|
15,918
|
|
2,318
|
|
88,455
|
|
98,598
|
|
14,356
|
Total operating
expenses
|
|
(193,024)
|
|
(233,575)
|
|
(34,009)
|
|
(469,605)
|
|
(835,694)
|
|
(121,680)
|
Income from
operations
|
|
944,744
|
|
1,091,739
|
|
158,960
|
|
2,522,721
|
|
2,979,000
|
|
433,750
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
45,177
|
|
123,995
|
|
18,054
|
|
113,374
|
|
255,024
|
|
37,132
|
Interest
expense
|
|
(2,479)
|
|
(4)
|
|
(1)
|
|
(13,216)
|
|
(780)
|
|
(114)
|
Gain on disposal of
equity investees and
subsidiary
|
|
—
|
|
12,904
|
|
1,879
|
|
—
|
|
562,637
|
|
81,922
|
Foreign currency
exchange gain/(loss),
before tax
|
|
(27,542)
|
|
40,382
|
|
5,880
|
|
(33,386)
|
|
39,530
|
|
5,756
|
Income before income
tax, and share of loss in
equity method investments
|
|
959,900
|
|
1,269,016
|
|
184,772
|
|
2,589,493
|
|
3,835,411
|
|
558,446
|
Income tax
expense
|
|
(237,670)
|
|
(201,355)
|
|
(29,318)
|
|
(637,602)
|
|
(706,494)
|
|
(102,868)
|
Share of loss in
equity method investments
|
|
(5,000)
|
|
(8,286)
|
|
(1,206)
|
|
(14,868)
|
|
(19,859)
|
|
(2,892)
|
Net income
|
|
717,230
|
|
1,059,375
|
|
154,248
|
|
1,937,023
|
|
3,109,058
|
|
452,686
|
Net loss (income)
attributable to
noncontrolling interests
|
|
(260)
|
|
262
|
|
38
|
|
333
|
|
(1,575)
|
|
(229)
|
Net income attributable
to ZTO Express
(Cayman) Inc.
|
|
716,970
|
|
1,059,637
|
|
154,286
|
|
1,937,356
|
|
3,107,483
|
|
452,457
|
Change in redemption
value of convertible
redeemable preferred shares
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Net income attributable
to ordinary
shareholders
|
|
716,970
|
|
1,059,637
|
|
154,286
|
|
1,937,356
|
|
3,107,483
|
|
452,457
|
Net earnings per
share/ADS attributable to
ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1.00
|
|
1.35
|
|
0.20
|
|
2.70
|
|
4.20
|
|
0.61
|
Diluted
|
|
1.00
|
|
1.34
|
|
0.20
|
|
2.69
|
|
4.19
|
|
0.61
|
Weighted average shares
used in calculating
net earnings per ordinary share/ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
716,138,386
|
|
787,163,859
|
|
787,163,859
|
|
718,790,306
|
|
739,967,814
|
|
739,967,814
|
Diluted
|
|
716,478,593
|
|
788,144,763
|
|
788,144,763
|
|
719,221,212
|
|
740,779,797
|
|
740,779,797
|
Other comprehensive
income, net of tax of nil:
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
(179,986)
|
|
556,140
|
|
80,976
|
|
(413,408)
|
|
844,123
|
|
122,907
|
Comprehensive
income
|
|
537,244
|
|
1,615,515
|
|
235,224
|
|
1,523,615
|
|
3,953,181
|
|
575,593
|
Comprehensive loss
(income) attributable to
noncontrolling interests
|
|
(260)
|
|
262
|
|
38
|
|
333
|
|
(1,575)
|
|
(229)
|
Comprehensive income
attributable to ZTO
Express (Cayman) Inc.
|
|
536,984
|
|
1,615,777
|
|
235,262
|
|
1,523,948
|
|
3,951,606
|
|
575,364
|
Unaudited Consolidated
Balance Sheets Data:
|
As of
|
|
December 31,
|
|
September
30,
|
2017
|
2018
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
5,425,024
|
|
6,271,359
|
|
913,127
|
Restricted
cash
|
348,710
|
|
—
|
|
—
|
Accounts receivable,
net of allowance for doubtful accounts of
|
287,835
|
|
404,747
|
|
58,932
|
RMB13,798 and RMB13,815 at December 31, 2017 and
September
|
30, 2018, respectively
|
Financing
receivables
|
64,030
|
|
429,327
|
|
62,511
|
Short-term
investment
|
5,224,559
|
|
11,895,376
|
|
1,732,000
|
Inventories
|
34,231
|
|
37,409
|
|
5,447
|
Advances to
suppliers
|
263,574
|
|
341,673
|
|
49,749
|
Prepayments and other
current assets
|
719,983
|
|
1,182,955
|
|
172,242
|
Amounts due from
related parties
|
9,900
|
|
24,600
|
|
3,582
|
Total current
assets
|
12,377,846
|
|
20,587,446
|
|
2,997,590
|
Investments in equity
investees
|
610,160
|
|
1,709,801
|
|
248,952
|
Property and
equipment, net
|
6,473,010
|
|
7,981,433
|
|
1,162,119
|
Land use rights,
net
|
1,602,908
|
|
1,942,027
|
|
282,765
|
Intangible assets,
net
|
60,424
|
|
55,776
|
|
8,121
|
Goodwill
|
4,241,541
|
|
4,241,541
|
|
617,580
|
Deferred tax
assets
|
152,763
|
|
288,618
|
|
42,024
|
Other non-current
assets
|
308,986
|
|
487,758
|
|
71,019
|
TOTAL
ASSETS
|
25,827,638
|
|
37,294,400
|
|
5,430,170
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term bank
borrowing
|
250,000
|
|
—
|
|
—
|
Accounts
payable
|
889,139
|
|
837,297
|
|
121,913
|
Advances from
customers
|
258,965
|
|
410,865
|
|
59,823
|
Income tax
payable
|
221,926
|
|
258,436
|
|
37,629
|
Amounts due to
related parties
|
114,913
|
|
117,039
|
|
17,041
|
Acquisition
consideration payable
|
130,004
|
|
19,616
|
|
2,856
|
Dividends
payable
|
—
|
|
1,697
|
|
247
|
Other current
liabilities
|
2,281,067
|
|
2,279,669
|
|
331,928
|
Total current
liabilities
|
4,146,014
|
|
3,924,619
|
|
571,437
|
Deferred tax
liabilities
|
157,320
|
|
153,628
|
|
22,369
|
Acquisition
consideration payable
|
22,942
|
|
22,942
|
|
3,340
|
Other non-current
liabilities
|
60,045
|
|
63,384
|
|
9,229
|
TOTAL
LIABILITIES
|
4,386,321
|
|
4,164,573
|
|
606,375
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares
(US$0.0001 par value; 10,000,000,000 shares authorized,
|
471
|
|
523
|
|
76
|
731,406,440 shares issued and 710,804,716 shares outstanding
as of
|
December 31, 2017; 811,267,551 shares issued and
787,163,859 shares
|
outstanding as of September 30, 2018)
|
Additional paid-in
capital
|
15,975,979
|
|
24,126,869
|
|
3,512,940
|
Treasury shares, at
cost
|
(914,611)
|
|
(1,359,404)
|
|
(197,933)
|
Retained
earnings
|
6,669,370
|
|
9,776,853
|
|
1,423,537
|
Accumulated other
comprehensive (loss) income
|
(295,896)
|
|
548,227
|
|
79,823
|
ZTO Express
(Cayman) Inc. shareholders' equity
|
21,435,313
|
|
33,093,068
|
|
4,818,443
|
Noncontrolling
interests
|
6,004
|
|
36,759
|
|
5,352
|
Total
Equity
|
21,441,317
|
|
33,129,827
|
|
4,823,795
|
TOTAL LIABILITIES
AND EQUITY
|
25,827,638
|
|
37,294,400
|
|
5,430,170
|
Summary of Unaudited
Consolidated Cash Flow Data:
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating
activities
|
|
1,024,381
|
|
911,741
|
|
132,750
|
|
2,259,137
|
|
2,601,711
|
|
378,817
|
Net cash used in
investing activities[6]
|
|
(1,128,970)
|
|
(2,295,672)
|
|
(334,255)
|
|
(7,572,212)
|
|
(9,542,593)
|
|
(1,389,429)
|
Net cash provided
by/(used in) financing activities[7]
|
|
(403,295)
|
|
1,380,280
|
|
200,972
|
|
(859,685)
|
|
7,195,347
|
|
1,047,662
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
|
(117,917)
|
|
101,353
|
|
14,758
|
|
(312,106)
|
|
243,160
|
|
35,405
|
Net increase/(decrease)
in cash, cash equivalents and restricted cash
|
|
(625,801)
|
|
97,702
|
|
14,225
|
|
(6,484,866)
|
|
497,625
|
|
72,455
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
6,064,090
|
|
6,173,657
|
|
898,902
|
|
11,923,155
|
|
5,773,734
|
|
840,672
|
Cash, cash equivalents
and restricted cash at end of period
|
|
5,438,289
|
|
6,271,359
|
|
913,127
|
|
5,438,289
|
|
6,271,359
|
|
913,127
|
[6]
|
The amount of cash
used in investing activities mainly includes purchases of the fixed
term bank deposits with an original maturity of three months to one
year. For the third quarter of 2017 and 2018, the amounts of net
cashflow out for purchasing the short-term investment are
approximately RMB397.8 million and RMB1,857.9 million (US$270.5
million) of such deposits, respectively.
|
[7]
|
The amount of cash
provided by/(used in) financing activities mainly includes the
proceeds from Alibaba's investment, which are approximately RMB7.6
billion (US$1.2 billion) received before June 30, 2018, while the
rest of approximately RMB1.3 billion (US$0.2 billion) were received
in early July 2018.
|
Reconciliations of GAAP and
Non-GAAP Results
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
Net income
|
|
717,230
|
|
1,059,375
|
|
154,248
|
|
1,937,023
|
|
3,109,058
|
|
452,686
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
|
13,492
|
|
10,876
|
|
1,584
|
|
27,235
|
|
238,603
|
|
34,741
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposal of
equity
investees and subsidiary, net of
income taxes
|
|
—
|
|
(11,756)
|
|
(1,712)
|
|
—
|
|
(436,277)
|
|
(63,524)
|
|
Adjusted net
income
|
|
730,722
|
|
1,058,495
|
|
154,120
|
|
1,964,258
|
|
2,911,384
|
|
423,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
717,230
|
|
1,059,375
|
|
154,248
|
|
1,937,023
|
|
3,109,058
|
|
452,686
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
138,757
|
|
202,669
|
|
29,509
|
|
387,851
|
|
565,066
|
|
82,275
|
|
Amortization
|
|
8,455
|
|
11,709
|
|
1,705
|
|
24,752
|
|
35,072
|
|
5,107
|
|
Interest
expenses
|
|
2,479
|
|
4
|
|
1
|
|
13,216
|
|
780
|
|
114
|
|
Income tax
expenses
|
|
237,670
|
|
201,355
|
|
29,318
|
|
637,602
|
|
706,494
|
|
102,868
|
|
EBITDA
|
|
1,104,591
|
|
1,475,112
|
|
214,781
|
|
3,000,444
|
|
4,416,470
|
|
643,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
|
13,492
|
|
10,876
|
|
1,584
|
|
27,235
|
|
238,603
|
|
34,741
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposal of
equity
investees and subsidiary,
before income taxes
|
|
—
|
|
(12,904)
|
|
(1,879)
|
|
—
|
|
(562,637)
|
|
(81,922)
|
|
Adjusted
EBITDA
|
|
1,118,083
|
|
1,473,084
|
|
214,486
|
|
3,027,679
|
|
4,092,436
|
|
595,869
|
|
For investor and media
inquiries, please contact:
ZTO
Investor Relations Department
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-2018-unaudited-financial-results-300750728.html
SOURCE ZTO Express (Cayman) Inc.