ZTO Reports First Quarter 2020 Unaudited
Financial Results
SHANGHAI, May 20, 2020
/PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO), a
leading and fast-growing express delivery company in China ("ZTO" or the "Company"), today
announced its unaudited financial results for the first quarter
ended March 31, 2020[1].
Although adversely affected by the global pandemic COVID-19
outbreak, the Company delivered 4.9% volume growth to reach 2.4
billion parcels and achieved better than expected adjusted net
income of RMB635.1 million.
First Quarter 2020 Financial Highlights
- Revenues were RMB3,915.9 million
(US$553.0 million), a decrease of
14.4% from RMB4,574.0 million in the
same period of 2019.
- Gross profit was RMB818.7 million
(US$115.6 million), a decrease of
35.0% from RMB1,259.6 million in the
same period of 2019.
- Net income was RMB371.0 million
(US$52.4 million), a decrease of
45.6% from RMB681.6 million in the
same period of 2019.
- Adjusted EBITDA[2] was RMB1,173.4 million (US$165.7 million), a decrease of 18.6% from
RMB1,441.0 million in the same period
of 2019.
- Adjusted net income[3] was RMB635.1 million (US$89.7
million), a decrease of 34.3% from RMB966.4 million in the same period of 2019.
- Basic and diluted earnings per American depositary share
("ADS"[4]) were RMB0.48
(US$0.07), a decrease of 44.8% from
RMB0.87 in the same period of
2019.
- Adjusted basic and diluted earnings per American depositary
share[5] attributable to ordinary shareholders were
RMB0.82 (US$0.12), a decrease of
- 33.3% from RMB1.23 in the same
period of 2019.
- Net cash provided by operating activities was RMB 177.8 million (US$25.1
million), compared with RMB 633.3
million in the same period of 2019.
Operational Highlights for First Quarter 2020
- Parcel volume was 2,374 million, an increase of 4.9% from 2,264
million in the same period of 2019.
- Number of pickup/delivery outlets was approximately 30,000 as
of March 31, 2020.
- Number of direct network partners was over 4,850 as of
March 31, 2020.
- Number of line-haul vehicles was over 7,700 as of March 31, 2020, which included over 6,800
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 6,800 as of
March 31, 2020 from 6,450 as of
December 31, 2019. Among the
self-owned trucks, over 5,000 were high capacity 15 to
17-meter-long models as of March 31,
2020, compared to over 4,650 as of December 31, 2019.
- Number of line-haul routes between sorting hubs was over 2,900
as of March 31, 2020, compared to
over 2,600 as of December 31,
2019.
- Number of sorting hubs was 90 as of March 31, 2020, among which 81 are operated by
the Company and 9 by the Company's network partners.
[1] An
investor relations presentation accompanies this earnings release
and can be found at 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 the
shared-based compensation expense and non-recurring items such as
the gain on disposal of
equity investees and subsidiary which management aims to better
represent the underlying business operations
|
[3]
Adjusted net income is a non-GAAP financial measure, which is
defined as net income before share-based compensation expense
and
non-recurring items such as gain on disposal of equity investees
and subsidiary in which management aims to better represent the
underlying
business operations
|
[4] One
ADS represents one Class A ordinary share
|
[5]
Adjusted basic and diluted earnings per American depositary share
attributable to ordinary shareholders is a non-GAAP financial
measure. It is
defined as adjusted net income divided by weighted average number
of basic and diluted shares, respectively.
|
Mr. Meisong Lai, Founder,
Chairman and Chief Executive Officer of ZTO, commented, "ZTO's overall results for the quarter
were satisfactory. The entire country faced challenges brought by
COVID-19 outbreak and made tremendous effort and sacrifices.
Express delivery business as a whole was able to return to normal
operations ahead of many other industries, thanks to policy support
and robust consumption demand. We saw our daily volume in the first
half of May reached record high and peaked over 50 million
parcels. Our core business strategy is intact, which is
focused on accelerated market share gain and increasing volume lead
while maintaining quality of services and achieving net profit
growth."
Mr. Lai added, "Chinese domestic consumption and particularly,
innovations in ecommerce is rapidly transforming the Chinese
economy and augmenting the traditional distribution channels.
The time and spatial distance between consumers and the origins of
goods and services are compressing. We believe competition is
likely to further escalate in the near term, however, the industry
growth prospects remain positive. We must, on one hand,
constantly reach up to find new equilibrium in higher capacity and
utilization in order to ensure operational efficiencies and quality
of earnings. On the other hand, we must seize opportunities and
evolve with the economy, and regenerate relevant competitive
advantages to stay ahead of the curve. At the recent celebration of
our founding anniversary, we recounted our journey in the past 18
years and renewed our resolve and commitment. Our road ahead may
present many challenges but even more opportunities. We have only
just begun."
Ms. Huiping Yan, Chief Financial
Officer of ZTO, added, "Because of the orderly recovery in
operations as well as a healthy growth in ecommerce spending since
March, we achieved positive results during the first quarter by
expanding volume market share by 0.3 points to 18.9%, and achieving
an adjusted net income of 635.1 million. During the quarter, we
kept up with market level subsidies to incentivize volume
growth. At the same time, we leveraged our strong cash
reserves to support many of our network partners to ease liquidity
pressures and ensure pickup and delivery activities were normalized
and outlets could stay ahead as competition intensified."
Ms. Yan added, "Relief and stimulus policies are positively
supporting the economic recovery, and consumer demands appeared
strong. Statistics shown that ecommerce growth lead the
retail spending, and express delivery industry is at the
forefront acting as a catalyst. Our parcel volume has
surged to a new level and we must recalibrate capacity investment
and output efficiencies while navigating through a highly
competitive landscape. Our recent corporate initiatives for
building standardized operations and procedures, which emphasize
more on process management and measurable outcomes, will help
further harness efficiencies, improve productivities and drive
results."
First Quarter 2020 Financial Results
|
Three Months Ended
March 31,
|
|
2019
|
|
2020
|
|
RMB
|
|
%
|
|
RMB
|
|
US$
|
|
%
|
|
(in thousands,
except percentages)
|
Express delivery
services
|
4,059,372
|
|
88.7
|
|
3,406,410
|
|
481,077
|
|
87.0
|
Freight forwarding
services
|
289,314
|
|
6.3
|
|
295,476
|
|
41,729
|
|
7.5
|
Sale of
accessories
|
208,838
|
|
4.6
|
|
177,025
|
|
25,001
|
|
4.5
|
Others
|
16,506
|
|
0.4
|
|
36,978
|
|
5,222
|
|
1.0
|
Total
revenues
|
4,574,030
|
|
100.0
|
|
3,915,889
|
|
553,029
|
|
100.0
|
Revenues were RMB3,915.9
million (US$553.0 million), a
decrease of 14.4% from RMB4,574.0
million in the same period of 2019. Revenue from the core
express delivery business decreased by 15.5% compared to the same
period of 2019, as a combined result of a 4.9% increase in parcel
volume and a 19.4% decrease in unit price per parcel mainly to
provide extra support to the network partners in order to maintain
competitiveness and to cope with the negative impact of the
COVID-19 outbreak. Revenue from freight forwarding services
increased 2.1% compared to the same period of 2019, mainly due to
increased cross border e-commerce demand during the COVID-19
outbreak. Revenue from sales of accessories, largely consisting of
the sales of thermal paper used for digital waybills' printing,
declined 15.2% due to use of lower-priced single-sheet digital
waybill since second half of last year. Other revenues were mainly
derived from financing services and advertising services.
|
Three Months Ended
March 31,
|
|
2019
|
|
2020
|
|
RMB
|
|
%
of
|
|
RMB
|
|
US$
|
|
%
of
|
|
|
|
revenues
|
|
|
|
|
|
revenues
|
|
(in thousands,
except percentages)
|
Line-haul
transportation cost
|
1,594,007
|
|
34.8
|
|
1,297,417
|
|
183,231
|
|
33.1
|
Sorting hub
cost
|
891,069
|
|
19.5
|
|
965,756
|
|
136,391
|
|
24.7
|
Freight forwarding
cost
|
283,115
|
|
6.2
|
|
287,613
|
|
40,619
|
|
7.3
|
Cost of accessories
sold
|
119,686
|
|
2.6
|
|
74,475
|
|
10,518
|
|
1.9
|
Other
costs
|
426,562
|
|
9.4
|
|
471,968
|
|
66,653
|
|
12.1
|
Total cost of
revenues
|
3,314,439
|
|
72.5
|
|
3,097,229
|
|
437,412
|
|
79.1
|
Total cost of revenues was RMB3,097.2 million (US$437.4 million), a decrease of 6.6% from
RMB3,314.4 million in the same period
last year.
- Line haul transportation cost was RMB1,297.4 million (US$183.2 million), a decrease of 18.6% from
RMB1,594.0 million in the same
period last year, accordingly, line-haul transportation cost
per parcel declined 22.4% to RMB0.55.
The decrease was primarily due to (i) reduced toll road fee charges
based on a federal waiver policy which took effect in mid-February
and lasted through early May,(ii) higher usage of self-owned
vehicles with increasing number of higher-capacity trailer trucks,
and(iii)decrease in domestic diesel price due to decline in global
oil demand triggered by the COVID-19 outbreak.
- Sorting hub operating cost was RMB965.8 million (US$136.4
million), an increase of 8.4% from RMB891.1 million in the same period
last year. The increase was primarily due to (i) an
RMB8.8 million (US$1.2 million) increase associated with labor
costs, the headcount of sorting hub workers increased 12.7% year
over year, and (ii) an RMB58.1
million (US$8.2 million)
increase in depreciation and amortization costs associated with the
increased number of installed automated sorting equipment. As of
March 31, 2020, 265 sets of automated
sorting equipment have been placed into service, compared to 130
sets as of March 31, 2019. The
sorting hub operation cost per parcel increased 3.4% to
RMB0.41, as a result of declined
parcel volume in the first two months of 2020 where sorting hubs
were forced to temporarily close down due to the COVID-19 outbreak
until gradually returned to operations in mid-to-late
February.
- Cost of accessories was RMB74.5
million (US$10.5 million), a
decrease of 37.8% from RMB119.7
million in the same period last year. The decrease was
mainly driven by the increased use of lower-cost single-sheet
digital waybill since the second half of 2019.
- Other costs were RMB472.0
million (US$66.7 million), an
increase of RMB45.4 million
(US$6.4 million) compared to the same
period last year. The increase was mainly resulted from (i) an
increase of RMB27.3 million
(US$3.9 million) in expenses related
to IT and technology development, and (ii) an increase of
RMB12.8 million (US$1.8 million) in dispatching costs serving
enterprise customers with associated volume increase of
12.8%.
Gross Profit was RMB818.7
million (US$115.6million), a
decrease of 35.0% from RMB1,259.6
million in the same period last year. Gross margin rate
decreased to 20.9% from 27.5% in the same period last year mainly
driven by combined effects of 4.9% volume growth, unit cost
productivity gain of 10.9% partially offsetting overall ASP decline
of 18.4% due to competition and COVID-19 outbreak.
Total Operating Expenses were RMB446.6 million (US$63.1
million), compared to RMB499.7
million in the same period last year.
- Selling, general and administrative expenses were
RMB560.1 million (US$79.1 million), compared to RMB557.8 million in the same period
last year.
- Other operating income, net was RMB113.4 million (US$16.0
million) for the quarter, compared to RMB 58.1 million in the same period
last year. Other operating income mainly consisted of (i)
government subsidies and tax rebates of RMB75.4 million (US$10.6
million) received in the first quarter of 2020, and (ii)
RMB41.7 million (US$5.9 million) of VAT super deduction recognized
in the first quarter of 2020.
Income from operations was RMB372.0 million (US$52.5
million), a decrease of 51.0% from RMB759.9 million for the same period last year.
Operating margin rate decreased to 9.5% from 16.6% in the same
period last year, mainly driven by a 6.6 percentage
points decrease in gross margin.
Interest income was RMB126.2
million (US$17.8 million),
compared with RMB146.5 million in the
same period in 2019.
Foreign currency exchange gain, before tax was
RMB16.5million (US$2.3 million) in the first quarter of 2020.
Income tax expenses were RMB129.8
million (US$18.3 million)
compared to RMB191.9 million in the same period in 2019. The
decrease in the income tax expenses was mainly due to the decrease
of operational profit before tax. The effective income tax rate was
25.2% while the share-based compensation expenses were
non-tax-deductible and interest income from onshore US dollar
deposits was taxed at a reduced 10% rate.
Net income was RMB371.0
million (US$52.4 million), a
decrease of 45.6% from RMB681.6
million in the same period last year.
Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB0.48
(US$0.07), compared with
basic and diluted earnings per ADS of RMB0.87 in the same period last year.
Adjusted basic and diluted earnings per ADS attributable to
ordinary shareholders were RMB0.82 (US$0.12),
compared with RMB1.23 in the
same period last year.
Adjusted net income was RMB635.1
million (US$89.7 million),
compared with RMB966.4 million during
the same period last year.
EBITDA was RMB909.3 million
(US$128.4 million), compared with
RMB1,156.2 million in the same period
last year.
Adjusted EBITDA was RMB1,173.4
million (US$165.7 million),
compared to RMB1,441.0 million in the
same period last year.
Net cash provided by operating activities was
RMB177.8 million (US$25.1 million), compared with RMB633.3 million in the same period
last year. The decrease in net cash provided by operating
activities resulted mainly from (i) RMB310.7
million (US$43.9 million)
decrease in net profit, and (ii) RMB209.1 million (US$29.5
million) increase in accounts receivables related to
qualified network partners who were granted late payment terms for
transit fees during COVID-19 outbreak.
Business Outlook
Even though there still exist uncertainties in the economic
development in the world, the management maintains an optimistic
outlook and is confident in delivering positive top and bottom-line
growth for the entire year. The Company targets to achieve an
annual parcel volume in the range of 15.9 billion to 16.4 billion
for 2020, representing a 37% to 42% increase for the combined last
three quarters of the year, and the adjusted net income is expected
to be in the range of RMB5.39 billion
to RMB5.83 billion, representing a
10% to 20% increase for the combined last three quarters of the
year. Above 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 was authorized
to repurchase its own Class A ordinary shares in the form of ADSs
with an aggregate value of up to US$500
million during an 18-month period thereafter. On
March 13, 2020, the board of
directors of the Company approved the extension of the current
share repurchase program to June 30,
2021. The Company expects to fund the repurchase out of its
existing cash balance. As of March 31,
2020, the Company has purchased an aggregate of 7,716,436
ADSs at an average purchase price of US$17.33, including repurchase commissions.
Exchange Rate
This announcement contains translation of certain Renminbi
amounts into U.S. dollars at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations
from Renminbi to U.S. dollars were made at the exchange rate of
RMB7.0808 to US$1.00, the noon buying rate on March 31, 2020 as set forth in the H.10
statistical release of the Board of Governors of the Federal
Reserve Systems.
Use of Non-GAAP Financial Measures
The Company uses adjusted EBITDA and adjusted net income, each a
non-GAAP financial measure, in evaluating ZTO's operating results
and for financial and operational decision-making purposes.
Reconciliations of the Company's non-GAAP financial measures to
its U.S. GAAP financial measures are shown in tables at the end of
this earnings release, which provide more details about the
non-GAAP financial measures.
The Company believes that adjusted EBITDA and adjusted net
income help identify underlying trends in ZTO's business that could
otherwise be distorted by the effect of the expenses and gains that
the Company includes in income from operations and net income. The
Company believes that adjusted EBITDA and adjusted net income
provide useful information about its operating results, enhance the
overall understanding of its past performance and future prospects
and allow for greater visibility with respect to key metrics used
by ZTO's management in its financial and operational
decision-making.
Adjusted EBITDA and adjusted net income should not be considered
in isolation or construed as an alternative to net income or any
other measure of performance or as an indicator of the Company's
operating performance. Investors are encouraged to review the
historical non-GAAP financial measures to the most directly
comparable GAAP measures. Adjusted EBITDA and adjusted net income
presented here may not be comparable to similarly titled measures
presented by other companies. Other companies may calculate
similarly titled measures differently, limiting their usefulness as
comparative measures to ZTO's data. ZTO encourages investors and
others to review the Company's financial information in its
entirety and not rely on a single financial measure.
Conference Call Information
ZTO's management team will host an earnings conference call at
9:00 PM U.S. Eastern Time
on Wednesday, May 20, 2020 (9:00
AM Beijing Time on May 21, 2020).
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
|
International:
|
1-412-317-6061
|
Passcode:
|
5776219
|
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 27,
2020:
United
States:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Passcode:
|
10143427
|
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 2020, ZTO management quotes and the Company's
financial outlook.
These forward-looking statements are not historical facts but
instead represent only the Company's belief regarding expected
results and events, many of which, by their nature, are inherently
uncertain and outside of its control. The Company's actual results
and other circumstances may differ, possibly materially, from the
anticipated results and events indicated in these forward-looking
statements. Announced results for the first quarter of
2020 are preliminary, unaudited and subject to audit
adjustment. In addition, the Company may not meet its financial
outlook included in this news release and may be unable to grow its
business in the manner planned. The Company may also modify its
strategy for growth. In addition, there are other risks and
uncertainties that could cause the Company's actual results to
differ from what it currently anticipates, including those relating
to the development of the e-commerce industry in China, its significant reliance on the Alibaba
ecosystem, risks associated with its network partners and their
employees and personnel, intense competition which could adversely
affect the Company's results of operations and market share, any
service disruption of the Company's sorting hubs or the outlets
operated by its network partners or its technology system. For
additional information on these and other important factors that
could adversely affect the Company's business, financial condition,
results of operations, and prospects, please see its filings with
the U.S. Securities and Exchange Commission.
All information provided in this press release and in the
attachments is as of the date of the press release. The Company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events or otherwise,
after the date of this release, except as required by law. Such
information speaks only as of the date of this release.
UNAUDITED CONSOLIDATED FINANCIAL DATA
Summary of
Unaudited Consolidated Comprehensive Income Data:
|
|
|
|
Three Months Ended
March 31,
|
|
2019
|
|
2020
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in thousands,
except for share and per share data)
|
|
|
|
|
|
|
Revenues
|
4,574,030
|
|
3,915,889
|
|
553,029
|
Cost of
revenues
|
(3,314,439)
|
|
(3,097,229)
|
|
(437,412)
|
Gross
profit
|
1,259,591
|
|
818,660
|
|
115,617
|
Operating income
(expenses):
|
|
|
|
|
|
Selling, general and
administrative
|
(557,778)
|
|
(560,051)
|
|
(79,094)
|
Other operating
income, net
|
58,102
|
|
113,403
|
|
16,016
|
Total operating
expenses
|
(499,676)
|
|
(446,648)
|
|
(63,078)
|
Income from
operations
|
759,915
|
|
372,012
|
|
52,539
|
Other income
(expenses):
|
|
|
|
|
|
Interest
income
|
146,471
|
|
126,227
|
|
17,827
|
Interest
expense
|
—
|
|
(291)
|
|
(41)
|
Loss on disposal of
equity investees and subsidiary
|
(529)
|
|
—
|
|
—
|
Foreign currency
exchange gain/(loss), before tax
|
(25,954)
|
|
16,453
|
|
2,324
|
Income before income
tax, and share of loss in equity method investments
|
879,903
|
|
514,401
|
|
72,649
|
Income tax
expense
|
(191,858)
|
|
(129,772)
|
|
(18,327)
|
Share of loss in
equity method investments
|
(6,398)
|
|
(13,656)
|
|
(1,929)
|
Net income
|
681,647
|
|
370,973
|
|
52,393
|
Net (income)/loss
attributable to noncontrolling interests
|
(932)
|
|
3,727
|
|
526
|
Net income
attributable to ZTO Express (Cayman) Inc.
|
680,715
|
|
374,700
|
|
52,919
|
Net income
attributable to ordinary shareholders
|
680,715
|
|
374,700
|
|
52,919
|
Net earnings per
share/ADS attributable to ordinary shareholders
|
|
|
|
|
|
Basic
|
0.87
|
|
0.48
|
|
0.07
|
Diluted
|
0.87
|
|
0.48
|
|
0.07
|
Weighted average
shares used in
|
|
|
|
|
|
calculating net
earnings per ordinary share/ADS
|
|
|
|
|
|
Basic
|
786,032,440
|
|
782,354,037
|
|
782,354,037
|
Diluted
|
786,212,265
|
|
782,553,924
|
|
782,553,924
|
Other comprehensive
income, net of tax of nil:
|
|
|
|
|
|
Foreign currency
translation adjustment
|
(344,228)
|
|
176,926
|
|
24,987
|
Comprehensive
income
|
337,419
|
|
547,899
|
|
77,380
|
Comprehensive
(income)/loss attributable to noncontrolling interests
|
(932)
|
|
3,727
|
|
526
|
Comprehensive income
attributable to ZTO Express (Cayman) Inc.
|
336,487
|
|
551,626
|
|
77,906
|
Unaudited
Consolidated Balance Sheets Data:
|
|
|
As
of
|
|
December
31,
|
|
March 31,
2020
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
5,270,204
|
|
5,020,188
|
|
708,986
|
Restricted
cash
|
7,210
|
|
21,169
|
|
2,990
|
Accounts receivable,
net
|
675,567
|
|
750,400
|
|
105,977
|
Financing receivables,
net
|
511,124
|
|
500,373
|
|
70,666
|
Short-term
investment
|
11,113,217
|
|
10,117,308
|
|
1,428,837
|
Inventories
|
43,845
|
|
56,129
|
|
7,927
|
Advances to
suppliers
|
438,272
|
|
341,798
|
|
48,271
|
Prepayments and other
current assets
|
1,964,506
|
|
2,035,863
|
|
287,518
|
Amounts due from
related parties
|
74,312
|
|
84,246
|
|
11,898
|
Total current
assets
|
20,098,257
|
|
18,927,474
|
|
2,673,070
|
Investments in equity
investees
|
3,109,494
|
|
3,134,650
|
|
442,697
|
Property and
equipment, net
|
12,470,632
|
|
13,370,657
|
|
1,888,298
|
Land use rights,
net
|
2,508,860
|
|
3,028,158
|
|
427,658
|
Intangible assets,
net
|
48,029
|
|
46,480
|
|
6,564
|
Operating lease
right-of-use assets
|
901,956
|
|
810,479
|
|
114,462
|
Goodwill
|
4,241,541
|
|
4,241,541
|
|
599,020
|
Deferred tax
assets
|
403,587
|
|
424,898
|
|
60,007
|
Long-term
investment
|
946,180
|
|
1,058,080
|
|
149,429
|
Long-term financing
receivables, net
|
549,775
|
|
697,313
|
|
98,479
|
Other non-current
assets
|
612,191
|
|
713,003
|
|
100,695
|
TOTAL
ASSETS
|
45,890,502
|
|
46,452,733
|
|
6,560,379
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term bank
borrowing
|
—
|
|
300,000
|
|
42,368
|
Accounts
payable
|
1,475,258
|
|
1,176,627
|
|
166,171
|
Advances from
customers
|
1,210,887
|
|
1,237,940
|
|
174,831
|
Income tax
payable
|
80,272
|
|
—
|
|
—
|
Amounts due to related
parties
|
38,943
|
|
17,042
|
|
2,407
|
Operating lease
liabilities
|
298,728
|
|
268,483
|
|
37,917
|
Acquisition
consideration payable
|
22,942
|
|
22,942
|
|
3,240
|
Dividends
payable
|
1,629
|
|
1,666,837
|
|
235,402
|
Other current
liabilities
|
3,552,288
|
|
3,459,218
|
|
488,535
|
Total current
liabilities
|
6,680,947
|
|
8,149,089
|
|
1,150,871
|
Non-current operating
lease liabilities
|
504,442
|
|
444,899
|
|
62,832
|
Deferred tax
liabilities
|
207,896
|
|
204,715
|
|
28,911
|
Other non-current
liabilities
|
93,820
|
|
95,424
|
|
13,476
|
TOTAL
LIABILITIES
|
7,487,105
|
|
8,894,127
|
|
1,256,090
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares
(US$0.0001 par value; 10,000,000,000 shares authorized,
|
|
|
|
|
|
803,551,115 shares
issued and 781,947,464 shares outstanding as of
|
|
|
|
|
|
December 31, 2019;
803,551,115 shares issued and 783,894,733 shares
|
|
|
|
|
|
outstanding as of
March 31, 2020)
|
517
|
|
517
|
|
73
|
Additional paid-in
capital
|
22,336,594
|
|
20,852,512
|
|
2,944,937
|
Treasury shares, at
cost
|
(1,436,767)
|
|
(1,350,529)
|
|
(190,731)
|
Retained
earnings
|
16,726,540
|
|
17,101,240
|
|
2,415,157
|
Accumulated other
comprehensive income
|
675,720
|
|
852,646
|
|
120,417
|
ZTO Express
(Cayman) Inc. shareholders' equity
|
38,302,604
|
|
37,456,386
|
|
5,289,853
|
Noncontrolling
interests
|
100,793
|
|
102,220
|
|
14,436
|
Total
Equity
|
38,403,397
|
|
37,558,606
|
|
5,304,289
|
TOTAL LIABILITIES
AND EQUITY
|
45,890,502
|
|
46,452,733
|
|
6,560,379
|
In June 2016, the FASB issued ASU
2016-13, Financial Instruments—Credit Losses (Topic 326), which
requires all entities to disclose their current estimate of all
expected credit losses. The Group adopted this ASU on January 1, 2020 using the modified retrospective
transition method and no material adjustment to the opening balance
of retained earnings of 2020 was necessary. The adoption of this
new ASU has no material impact on its consolidated financial
position, results of operations or cashflow.
Summary of
Unaudited Consolidated Cash Flow Data:
|
|
|
Three Months Ended
March 31,
|
|
2019
|
|
2020
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
633,270
|
|
177,791
|
|
25,109
|
Net cash (used
in)/provided by investing activities
|
895,365
|
|
(714,703)
|
|
(100,935)
|
Net cash provided
by/(used in) financing activities
|
(14,009)
|
|
297,654
|
|
42,037
|
Effect of exchange
rate changes on cash,
|
|
|
|
|
|
cash equivalents and
restricted cash
|
(45,233)
|
|
17,315
|
|
2,445
|
Net
increase/(decrease) in cash, cash
|
|
|
|
|
|
equivalents and
restricted cash
|
1,469,393
|
|
(221,943)
|
|
(31,344)
|
Cash, cash
equivalents and restricted cash at beginning of period
|
4,622,954
|
|
5,277,414
|
|
745,313
|
Cash, cash
equivalents and restricted cash at end of period
|
6,092,347
|
|
5,055,471
|
|
713,969
|
|
|
|
|
|
|
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
|
|
March 31,
2019
|
|
March 31,
2020
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in
thousands)
|
Cash and cash
equivalents
|
6,092,247
|
|
5,020,188
|
|
708,986
|
Restricted cash,
current
|
100
|
|
21,169
|
|
2,990
|
Restricted cash,
non-current
|
—
|
|
14,114
|
|
1,993
|
Total cash, cash
equivalents and restricted cash
|
6,092,347
|
|
5,055,471
|
|
713,969
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
|
Three Months Ended
March 31,
|
|
2019
|
|
2020
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in thousands,
except for share and per share data)
|
|
|
|
|
|
|
Net income
|
681,647
|
|
370,973
|
|
52,393
|
Add:
|
|
|
|
|
|
Share-based
compensation expense
|
284,264
|
|
264,154
|
|
37,306
|
Loss on disposal of
equity investees and subsidiary, net
of income taxes
|
529
|
|
—
|
|
—
|
Adjusted net
income
|
966,440
|
|
635,127
|
|
89,699
|
|
|
|
|
|
|
Net income
|
681,647
|
|
370,973
|
|
52,393
|
Add:
|
|
|
|
|
|
Depreciation
|
271,423
|
|
392,580
|
|
55,443
|
Amortization
|
11,293
|
|
15,648
|
|
2,210
|
Interest
expenses
|
—
|
|
291
|
|
41
|
Income tax
expenses
|
191,858
|
|
129,772
|
|
18,327
|
EBITDA
|
1,156,221
|
|
909,264
|
|
128,414
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
Share-based
compensation expense
|
284,264
|
|
264,154
|
|
37,306
|
Loss on disposal of
equity investees and subsidiary, net
of income taxes
|
529
|
|
—
|
|
—
|
Adjusted
EBITDA
|
1,441,014
|
|
1,173,418
|
|
165,720
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2019
|
|
2020
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in thousands,
except for share and per share data)
|
|
|
|
|
|
|
Net income
attributable to ordinary shareholders
|
680,715
|
|
374,700
|
|
52,919
|
Add:
|
|
|
|
|
|
Share-based compensation
expense
|
284,264
|
|
264,154
|
|
37,306
|
Loss on disposal of
equity investees, net of income taxes
|
529
|
|
—
|
|
—
|
Adjusted Net income
attributable to ordinary shareholders
|
965,508
|
|
638,854
|
|
90,225
|
|
|
|
|
|
|
Weighted average
shares used in calculating net earnings per
ordinary share/ADS
|
|
|
|
|
|
Basic
|
786,032,440
|
|
782,354,037
|
|
782,354,037
|
Diluted
|
786,212,265
|
|
782,553,924
|
|
782,553,924
|
|
|
|
|
|
|
Net earnings per
share/ADS attributable to ordinary shareholders
|
|
|
|
|
|
Basic
|
0.87
|
|
0.48
|
|
0.07
|
Diluted
|
0.87
|
|
0.48
|
|
0.07
|
|
|
|
|
|
|
Adjusted net earnings
per share/ADS attributable to ordinary
shareholders
|
|
|
|
|
|
Basic
|
1.23
|
|
0.82
|
|
0.12
|
Diluted
|
1.23
|
|
0.82
|
|
0.12
|
For investor and media inquiries, please contact:
ZTO
Investor Relations Department
E-mail: ir@zto.com
Phone: +86 21 5980 4508
View original
content:http://www.prnewswire.com/news-releases/2-4-billion-parcels-expanded-market-share-to-18-9-amidst-pandemic-achieved-rmb-635-1-million-adjusted-net-income-despite-headwind-301062749.html
SOURCE ZTO Express (Cayman) Inc.