Emphasizing Profitable Growth amidst
Consumption Mix-shift
Adjusted Net
Income Grew
15.8% to RMB2.2
Billion
Parcel Volume Increased 13.9% to 7.2
Billion
SHANGHAI, May 15, 2024
/PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK:
2057), a leading and fast-growing express delivery company in
China ("ZTO" or the "Company"),
today announced its unaudited financial results for the first
quarter ended March 31,
2024[1]. The Company grew parcel volume by 13.9%
year over year while maintaining high quality of service and
customer satisfaction. Adjusted net income[2] increased
15.8% to reach RMB2.2 billion. Net
cash generated from operating activities was RMB2.0 billion.
First Quarter 2024 Financial Highlights
- Revenues were RMB9,960.0 million
(US$1,379.4 million), an increase of
10.9% from RMB8,983.2 million in the
same period of 2023.
- Gross profit was RMB3,002.1million (US$415.8million), an increase of 19.0% from
RMB2,523.4 million in the same period
of 2023.
- Net income was RMB1,447.7 million
(US$200.5 million), a decrease of
13.0% from RMB1,664.8 million in the
same period of 2023.
- Adjusted EBITDA[3] was RMB3,660.4 million (US$507.0 million), an increase of 16.8% from
RMB3,133.0 million in the same period
of 2023.
- Adjusted net income was RMB2,224.0
million (US$308.0 million), an
increase of 15.8% from RMB1,919.8
million in the same period of 2023.
- Basic and diluted net earnings per American depositary share
("ADS"[4]) were RMB1.77
(US$0.25) and RMB1.75 (US$0.24),
a decrease of 14.5% and 13.8% from RMB2.07 and RMB2.03
in the same period of 2023, respectively.
- Adjusted basic and diluted earnings per American depositary
share attributable to ordinary shareholders[5] were
RMB2.74 (US$0.38) and RMB2.68 (US$0.37),
an increase of 15.1% and 15.0% from RMB2.38 and RMB2.33
in the same period of 2023, respectively.
- Net cash provided by operating activities was RMB2,031.0 million (US$281.3 million), compared with RMB2,738.0 million in the same period of
2023.
Operational Highlights for First Quarter 2024
- Parcel volume was 7,171 million, an increase of 13.9% from
6,297 million in the same period of 2023.
- Number of pickup/delivery outlets was over 31,000 as of
March 31, 2024.
- Number of direct network partners was over 6,000 as of
March 31, 2024.
- Number of self-owned line-haul vehicles was approximately
10,000 as of March 31, 2024.
- Out of the approximately 10,000 self-owned trucks,
approximately 9,100 were high capacity 15 to 17-meter-long models
as of March 31, 2024, compared to
approximately 9,500 as of March 31,
2023.
- Number of line-haul routes between sorting hubs was
approximately 3,800 as of March 31,
2024, which is similar to the same period last year
- Number of sorting hubs was 96 as of March 31, 2024, among which 88 are operated by
the Company and 8 by the Company's network partners.
(1) An
investor relations presentation accompanies this earnings release
and can be found at http://zto.investorroom.com.
|
(2)
Adjusted 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 or loss on disposal of equity
investments and subsidiaries and corresponding tax impact which
management aims to better represent the underlying business
operations.
|
(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 investments and subsidiaries which
management aims to better represent the underlying business
operations.
|
(4) One ADS
represents one Class A ordinary share.
|
(5)
Adjusted basic and diluted earnings per American depositary share
attributable to ordinary shareholders is a non-GAAP financial
measure. It is defined as adjusted net income attributable to
ordinary shareholders divided by weighted average number of basic
and diluted American depositary shares, respectively.
|
Mr. Meisong Lai, Founder,
Chairman and Chief Executive Officer of ZTO, commented, "For the
first quarter, parcel volume of the express delivery industry
increased 25.2% year over year, far exceeded expectations. The boom of live
video streaming and social network retailing has helped stimulating
consumption and fueled the increase
in express delivery volume;
On the other hand, however, it has also contributed to an increase
in the proportion of low-priced parcels. Meanwhile, price
competition intensified further
particularly in major output regions. A greater portion of
industry parcel volume became less profitable or loss making.
ZTO adhered to the principle of profitable growth and kept
loss-making parcels out of our network. While our volume
market share declined over last year, our profit share among
industry peers further increased demonstrating the effectiveness of
our strategy."
Mr. Lai added, "Our consistent strategy is to achieve balanced
development in service quality, volume scale and earnings. At the
beginning of 2024, we shifted our strategic focus to quality of
services. While maintaining a scale-leveraged volume and healthy
earnings level, we put greater effort towards the development of
differentiated product and services to meet the diverse and
personalized needs of customers aimed to enhance ZTO's brand awareness and value recognition.
The transformation of Chinese express delivery from high quantity
to a combination of quantity plus quality is inevitable. We have
prioritized quality of product and services, with the intention of
breaking away from homogeneous competition, enhancing product mix,
improving profitability of our network partners and couriers, and
creating strong moat for ZTO's long term viability and value
preposition."
Ms. Huiping Yan, Chief Financial
Officer of ZTO, commented, "Our core express ASP decreased
2.5% or 4 cents, which was well below
industry level. Combined unit sorting and transportation
cost decreased 6 cents as our standardization and digitization
initiatives continued to generate positive results despite softer
volume. SG&A cost structure remained stable and efficient. Our
adjusted net income for the quarter increased 15.8% to 2.2 billion.
Cash flow from operating activities was 2.0 billion, and capital
spending outlay was 1.7 billion for the quarter."
Ms. Yan added, "We believe that the Chinese economic conditions
will improve over time and express delivery industry's long term
growth prospect is intact. Our focus on development of
differentiated product and service will ensure our enterprise value
creation and longevity. We anticipate that the industry growth for
the year to be between 15-20%, and we are prepared to allow a
necessary level of retreat in market share while avoiding
meaningless losses. The Company maintains its previous volume
growth guidance for the year to be in the range of 15%-18%, or
34.73billion to 35.64 billion parcels."
First Quarter 2024
Unaudited Financial Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31,
|
|
2023
|
|
2024
|
|
RMB
|
|
%
|
|
RMB
|
|
US$
|
|
%
|
|
(in thousands,
except percentages)
|
Express delivery
services
|
8,388,743
|
|
93.4
|
|
9,240,172
|
|
1,279,749
|
|
92.8
|
Freight forwarding
services
|
192,725
|
|
2.1
|
|
202,747
|
|
28,080
|
|
2.0
|
Sale of
accessories
|
368,838
|
|
4.1
|
|
485,062
|
|
67,180
|
|
4.9
|
Others
|
32,933
|
|
0.4
|
|
32,025
|
|
4,436
|
|
0.3
|
Total
revenues
|
8,983,239
|
|
100.0
|
|
9,960,006
|
|
1,379,445
|
|
100.0
|
Total Revenues were RMB9,960.0 million (US$1,379.4 million), an increase of 10.9% from
RMB8,983.2 million in the same period
of 2023. Revenue from the core express delivery business increased
by 11.0% compared to the same period of 2023, as a net result of a
13.9% increase in parcel volume and a 2.5% decrease in parcel unit
price. KA revenue including delivery fees from direct sales
organizations, established to serve core express KA customers,
decreased by 7.1% as a result of mix shift towards higher-value
customers. Revenue from freight forwarding services increased by
5.2% compared to the same period of 2023. Revenue from sales of
accessories, largely consisted of sales of thermal paper used for
digital waybills' printing, increased by 31.5%. Other revenues were
mainly derived from financing services.
|
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2024
|
|
|
|
% of
|
|
|
|
|
|
% of
|
|
RMB
|
|
revenues
|
|
RMB
|
|
US$
|
|
revenues
|
|
|
|
(in thousands,
except percentages)
|
|
|
Line-haul
transportation cost
|
3,181,820
|
|
35.4
|
|
3,371,493
|
|
466,946
|
|
33.9
|
Sorting hub operating
cost
|
2,013,371
|
|
22.4
|
|
2,168,201
|
|
300,292
|
|
21.8
|
Freight forwarding
cost
|
182,972
|
|
2.0
|
|
188,382
|
|
26,091
|
|
1.9
|
Cost of accessories
sold
|
107,428
|
|
1.2
|
|
133,047
|
|
18,427
|
|
1.3
|
Other costs
|
974,240
|
|
10.9
|
|
1,096,798
|
|
151,905
|
|
11.0
|
Total cost of
revenues
|
6,459,831
|
|
71.9
|
|
6,957,921
|
|
963,661
|
|
69.9
|
Total cost of revenues was RMB6,957.9 million (US$963.7 million), an increase of 7.7% from
RMB6,459.8 million in the same period
last year.
Line haul transportation cost was
RMB3,371.5 million (US$466.9 million), an increase of 6.0% from
RMB3,181.8 million in the same period
last year. The unit transportation cost decreased 7.0% or
4 cents mainly attributable to better
economies of scale, optimized line-haul route planning and improved
load rate.
Sorting hub operating cost was
RMB2,168.2 million (US$300.3 million), an increase of 7.7% from
RMB2,013.4 million in the same period
of last year. The increase primarily consisted of (i)
RMB81.1 million (US$11.2 million) increase in depreciation and
amortization costs associated with automation equipment and other
facilities, and (ii) RMB68.7million
(US$9.5 million) increase in
labor-associated costs, a net result of wage increases partially
offset by automation-driven efficiency improvements. With
standardization in operating procedures, effective performance
evaluation system, the unit sorting cost decreased by 5.4% or
2 cents. As of March 31, 2024, there were 461 sets of automated
sorting equipment in service, compared to 454 sets as of March 31,
2023, which enhanced overall sorting efficiencies.
Cost of accessories sold was RMB133.0 million (US$18.4
million), increased by 23.8% compared with RMB107.4 million in the same period last
year.
Other costs were RMB1,096.8 million (US$151.9 million), an increase of 12.6% from
RMB974.2 million in the same period
last year. The increase was mainly driven by RMB124.3 million (US$17.2
million) increase in costs associated with serving
higher-value enterprise customers, level of which is consistent
with related revenue increases.
Gross Profit was RMB3,002.1
million (US$415.8 million),
increased by 19.0% from RMB2,523.4
million in the same period last year as a combined result of
revenue growth and cost productivity gain. Gross margin rate
improved to 30.1% from 28.1% in the
same period last year.
Total Operating Expenses were RMB735.4 million (US$101.8
million), compared to RMB573.0
million in the same period last year.
Selling, general and administrative
expenses were RMB896.6 million (US$124.2 million), increased by 14.0% from
RMB786.6 million in the
same period last year. The increase primarily consisted of (i)
RMB40.4 million (US$5.6 million) increase in compensation and
benefit expenses, and (ii) RMB37.3
million (US$5.2 million)
provisional loss related to a collection against certain
supplier.
Other operating income was RMB161.3 million (US$22.3 million), compared to RMB213.6 million in the same period last year.
Other operating income mainly consisted of (i) RMB118.9 million (US$16.5
million) of government subsidies and tax rebates, and (ii)
RMB40.2 million (US$5.6 million) of rental and other income.
Income from operations was RMB2,266.7 million (US$313.9 million), an increase of 16.2% from
RMB1,950.4 million for the same
period last year. Operating margin rate increased to 22.8% from
21.7% in the same period last year.
Interest income was RMB245.0
million (US$33.9million),
compared with RMB91.9 million in the
same period last year.
Interest expenses was RMB83.9
million (US$11.6 million),
compared with RMB71.7 million in the
same period last year.
Gain from fair value changes of
financial instruments was RMB42.7
million (US$5.9 million),
compared with RMB155.6 million in the
same period last year. Such gain or loss from fair value
changes of the financial instruments are quoted by commercial banks according to
market-based estimation of future redemption prices.
Impairment of investment in equity investee was
RMB478.4million (US$66.3 million). In the first quarter of 2024,
Alibaba Group Holding Limited ("Alibaba") initiated a tender offer to purchase all the
outstanding shares of Cainiao Smart Logistics Network Limited
("Cainiao"). The offer price to all shares
held by the Company was below the carrying amount, hence a
RMB478.4million (US$66.3 million) impairment of investment was
reported for this accounting period.
Income tax expenses were RMB566.3 million (US$78.4 million) compared to RMB455.0 million in the same period last year.
Overall income tax rate increased by 6.8 percentage points
year over year, mainly due to (i) RMB44.0 million accrual of
withholding tax on distributable earnings planned for dividend
payment to ZTO Express (Hong Kong)
Limited attributable for the first quarter, and
(ii) RMB478.4million (US$66.3
million) impairment losses on investment in Cainiao upon a
tender offer.
Net income was RMB1,447.7
million (US$200.5 million),
which decreased by 13.0% from RMB1,664.8
million in the same period last year.
Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB1.77
(US$0.25) and RMB1.75 (US$0.24),
compared with basic and diluted earnings per ADS of RMB2.07 and RMB2.03
in the same period last year, respectively.
Adjusted basic and diluted earnings per ADS attributable to
ordinary shareholders were RMB2.74 (US$0.38)
and RMB2.68 (US$0.37), compared with RMB2.38 and RMB2.33
in the same period last year, respectively.
Adjusted net income was RMB2,224.0
million (US$308.0 million),
compared with RMB1,919.8 million
during the same period last year.
EBITDA[1] was RMB2,884.1 million (US$399.4 million), compared with RMB2,878.0 million in the same period last
year.
Adjusted EBITDA was RMB3,660.4
million (US$507.0 million),
compared to RMB3,133.0 million in the
same period last year.
Net cash provided by operating activities was
RMB2,031.0 million (US$281.3 million), compared with RMB2,738.0 million in the same period last
year.
(1) EBITDA
is a non-GAAP financial measure, which is defined as net income
before depreciation, amortization, interest expenses and income tax
expenses which management aims to better represent the underlying
business operations.
|
Business Outlook
Based on current market conditions and current operations, the
Company reiterates that its parcel
volume for 2024 is expected to be in the range of 34.73 billion to
35.64 billion, representing a 15% to 18% increase year over year.
Such estimates represent management's current and preliminary view,
which are subject to change.
Sale of Equity Investment In Cainiao
On March 28, 2024, the Company
received an offer from Alibaba to purchase all the outstanding
shares of Cainiao held by the Company for US$0.62 per share, with an aggregate
consideration of approximately US$94.3
million. The cost of the investment
is US$54.0 million. The
Company has accepted the offer and expects to enter into a share
purchase agreement with Alibaba. Upon the completion of the
transaction, the Company will cease to hold any equity interest in
Cainiao.
Appointment of President
Mr. Jingxi Zhu, vice president of
information technology of the Company, has been appointed as the
president of the Company to be primarily responsible for the
overall operational executions. Mr. Zhu will continue to
oversee technology and information matters of the Company.
Mr. Zhu has been the head of information technology of the
Company since July 2003 and has
served as vice president of information technology since
September 2016. Mr. Zhu received an
EMBA from Renmin University of China in 2021.
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
RMB7.2203 to US$1, the noon buying rate on March 29, 2024 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 net income attributable to ordinary shareholders, and
adjusted basic and diluted earnings per American depositary share
attributable to ordinary shareholders, 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 net income attributable to ordinary shareholders
and adjusted basic and diluted earnings per American depositary
share attributable to ordinary shareholders 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 net income attributable to ordinary shareholders and
adjusted basic and diluted earnings per American depositary share
attributable to ordinary shareholders 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 net
income attributable to ordinary shareholders and adjusted basic and
diluted earnings per American depositary share attributable to
ordinary shareholders should not be considered in isolation or
construed as an alternative to net income or any other measure of
performance or as an indicator of the Company's operating
performance. Investors are encouraged to compare the historical
non-GAAP financial measures to the most directly comparable GAAP
measures. EBITDA, adjusted EBITDA, adjusted net income, adjusted
net income attributable to ordinary shareholders and adjusted basic
and diluted earnings per American depositary share attributable to
ordinary shareholders presented here may not be comparable to
similarly titled measures presented by other companies. Other
companies may calculate similarly titled measures differently,
limiting their usefulness as comparative measures to ZTO's data.
ZTO encourages investors and others to review the Company's
financial information in its entirety and not rely on a single
financial measure.
Conference Call Information
ZTO's management team will host an earnings conference call at
8:30 PM U.S. Eastern Time on
Wednesday, May 15, 2024 (8:30 AM Beijing Time on Thursday, May 16, 2024).
Dial-in details for the earnings conference call are as
follows:
United States:
|
1-888-317-6003
|
Hong Kong:
|
800-963-976
|
Mainland
China:
|
4001-206-115
|
Singapore:
|
800-120-5863
|
International:
|
1-412-317-6061
|
Passcode:
|
1526153
|
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 May 22,
2024:
United States:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Passcode:
|
5307524
|
Additionally, a live and archived webcast of the conference call
will be available at http://zto.investorroom.com.
About ZTO Express (Cayman) Inc.
ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057) ("ZTO" or
the "Company") is a leading and fast-growing express delivery
company in China. ZTO provides
express delivery service as well as other value-added logistics
services through its extensive and reliable nationwide network
coverage in China.
ZTO operates a highly scalable network partner model, which the
Company believes is best suited to support the significant growth
of e-commerce in China. The
Company leverages its network partners to provide pickup and
last-mile delivery services, while controlling the mission-critical
line-haul transportation and sorting network within the express
delivery service value chain.
For more information, please visit
http://zto.investorroom.com.
Safe Harbor Statement
This announcement contains statements that may constitute
"forward-looking" statements pursuant to the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "aims,"
"future," "intends," "plans," "believes," "estimates," "likely to,"
and other similar expressions. Among other things, the business
outlook and quotations from management in this announcement contain
forward-looking statements. ZTO may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the "SEC") and The Stock
Exchange of Hong Kong Limited (the "HKEX"), in its interim and
annual reports to shareholders, in announcements, circulars or
other publications made on the website of the HKEX, in press
releases and other written materials, and in oral statements made
by its officers, directors, or employees to third parties.
Statements that are not historical facts, including but not limited
to statements about ZTO's beliefs, plans, and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: risks relating to the development of the e-commerce and
express delivery industries in China; its significant reliance on certain
third-party e-commerce platforms; 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; ZTO's ability to build its brand and withstand
negative publicity, or other favorable government policies. Further
information regarding these and other risks is included in ZTO's
filings with the SEC and the HKEX. All information provided in this
announcement is as of the date of this announcement, and ZTO does
not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
UNAUDITED
CONSOLIDATED FINANCIAL DATA
|
|
Summary of Unaudited
Consolidated Comprehensive Income Data:
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2024
|
|
|
RMB
|
|
RMB
|
|
|
US$
|
|
|
(in thousands,
except for share and per share data)
|
|
Revenues
|
8,983,239
|
|
9,960,006
|
|
|
1,379,445
|
|
Cost of
revenues
|
(6,459,831)
|
|
(6,957,921)
|
|
|
(963,661)
|
|
Gross profit
|
2,523,408
|
|
3,002,085
|
|
|
415,784
|
|
Operating
(expenses)/income:
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
(786,607)
|
|
(896,641)
|
|
|
(124,183)
|
|
Other operating income,
net
|
213,641
|
|
161,257
|
|
|
22,334
|
|
Total operating
expenses
|
(572,966)
|
|
(735,384)
|
|
|
(101,849)
|
|
Income from
operations
|
1,950,442
|
|
2,266,701
|
|
|
313,935
|
|
Other
income/(expenses):
|
|
|
|
|
|
|
|
Interest
income
|
91,912
|
|
245,021
|
|
|
33,935
|
|
Interest
expense
|
(71,710)
|
|
(83,916)
|
|
|
(11,622)
|
|
Gain from fair value changes of financial instruments
|
155,573
|
|
42,720
|
|
|
5,917
|
|
Gain on disposal of
equity investees and subsidiaries and others
|
-
|
|
451
|
|
|
62
|
|
Impairment of
investment in equity investee
|
-
|
|
(478,364)
|
|
|
(66,253)
|
|
Foreign currency
exchange (loss)/gain
before tax
|
(10,213)
|
|
5,384
|
|
|
746
|
|
Income before income
tax, and share of gain in equity method investments
|
2,116,004
|
|
1,997,997
|
|
|
276,720
|
|
Income tax
expense
|
(455,007)
|
|
(566,305)
|
|
|
(78,432)
|
|
Share of gain in equity
method investments
|
3,824
|
|
16,055
|
|
|
2,224
|
|
Net income
|
1,664,821
|
|
1,447,747
|
|
|
200,512
|
|
Net loss/(income) attributable to non-controlling interests
|
5,515
|
|
(21,701)
|
|
|
(3,006)
|
|
Net income attributable
to ZTO Express (Cayman)
Inc.
|
1,670,336
|
|
1,426,046
|
|
|
197,506
|
|
Net income attributable
to ordinary shareholders
|
1,670,336
|
|
1,426,046
|
|
|
197,506
|
|
Net earnings per share
attributed to ordinary
shareholders
|
|
|
|
|
|
|
|
Basic
|
2.07
|
|
1.77
|
|
|
0.25
|
|
Diluted
|
2.03
|
|
1.75
|
|
|
0.24
|
|
Weighted average shares
used in calculating net earnings
per ordinary share/ADS
|
|
|
|
|
|
|
|
Basic
|
808,865,862
|
|
804,935,791
|
|
|
804,935,791
|
|
Diluted
|
840,491,415
|
|
836,144,858
|
|
|
836,144,858
|
|
Net income
|
1,664,821
|
|
1,447,747
|
|
|
200,512
|
|
Other comprehensive
income/(expenses), net of tax of
nil:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
19,271
|
|
(82,330)
|
|
|
(11,403)
|
|
Comprehensive
income
|
1,684,092
|
|
1,365,417
|
|
|
189,109
|
|
Comprehensive
loss/(income)
attributable to non-controlling
interests
|
5,515
|
|
(21,701)
|
|
|
(3,006)
|
|
Comprehensive income
attributable to ZTO Express (Cayman) Inc.
|
1,689,607
|
|
1,343,716
|
|
|
186,103
|
|
Unaudited
Consolidated Balance Sheets Data:
|
|
|
|
|
|
|
As of
|
|
December
31,
|
|
March
31,
|
|
2023
|
|
2024
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in thousands,
except for share data)
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
12,333,884
|
|
12,583,834
|
|
1,742,841
|
Restricted
cash
|
686,568
|
|
272,266
|
|
37,708
|
Accounts receivable,
net
|
572,558
|
|
559,200
|
|
77,448
|
Financing
receivables
|
1,135,445
|
|
986,822
|
|
136,673
|
Short-term
investment
|
7,454,633
|
|
7,038,556
|
|
974,829
|
Inventories
|
28,074
|
|
41,449
|
|
5,741
|
Advances to
suppliers
|
821,942
|
|
903,693
|
|
125,160
|
Prepayments and other
current assets
|
3,772,377
|
|
4,159,042
|
|
576,021
|
Amounts due from
related parties
|
148,067
|
|
194,523
|
|
26,941
|
Total current
assets
|
26,953,548
|
|
26,739,385
|
|
3,703,362
|
Investments in equity
investee
|
3,455,119
|
|
2,945,826
|
|
407,992
|
Property and
equipment, net
|
32,181,025
|
|
32,933,680
|
|
4,561,262
|
Land use rights,
net
|
5,637,101
|
|
5,675,825
|
|
786,093
|
Intangible assets,
net
|
23,240
|
|
21,691
|
|
3,004
|
Operating lease
right-of-use assets
|
672,193
|
|
609,448
|
|
84,408
|
Goodwill
|
4,241,541
|
|
4,241,541
|
|
587,447
|
Deferred tax
assets
|
879,772
|
|
950,530
|
|
131,647
|
Long-term
investment
|
12,170,881
|
|
13,450,088
|
|
1,862,816
|
Long-term financing
receivables
|
964,780
|
|
1,079,928
|
|
149,568
|
Other non-current
assets
|
701,758
|
|
719,082
|
|
99,592
|
Amounts due from
related parties-non current
|
584,263
|
|
508,333
|
|
70,403
|
TOTAL
ASSETS
|
88,465,221
|
|
89,875,357
|
|
12,447,594
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term bank
borrowing
|
7,765,990
|
|
8,040,790
|
|
1,113,637
|
Accounts
payable
|
2,557,010
|
|
2,334,476
|
|
323,321
|
Notes
payable
|
-
|
|
-
|
|
-
|
Advances from
customers
|
1,745,727
|
|
1,672,339
|
|
231,616
|
Income tax
payable
|
333,257
|
|
343,697
|
|
47,601
|
Amounts due to related
parties
|
234,683
|
|
198,235
|
|
27,455
|
Operating lease
liabilities
|
186,253
|
|
182,195
|
|
25,234
|
Dividends
payable
|
1,548
|
|
3,612,693
|
|
500,352
|
Other current
liabilities
|
7,236,716
|
|
6,876,129
|
|
952,334
|
Total current
liabilities
|
20,061,184
|
|
23,260,554
|
|
3,221,550
|
Non-current operating
lease liabilities
|
455,879
|
|
404,073
|
|
55,963
|
Deferred tax
liabilities
|
638,200
|
|
661,049
|
|
91,554
|
Convertible senior
bond
|
7,029,550
|
|
7,159,324
|
|
991,555
|
TOTAL
LIABILITIES
|
28,184,813
|
|
31,485,000
|
|
4,360,622
|
Shareholders'
equity
|
|
|
|
|
|
Ordinary shares
(US$0.0001 par value; 10,000,000,000 shares authorized;
812,866,663
|
|
|
|
|
|
shares issued and
804,719,252 shares outstanding as of December 31, 2023;
812,866,663 shares issued and 806,668,101 shares outstanding as of
March 31,
2024)
|
525
|
|
525
|
|
73
|
Additional paid-in
capital
|
24,201,745
|
|
24,470,474
|
|
3,389,122
|
Treasury shares, at
cost
|
(510,986)
|
|
(377,156)
|
|
(52,236)
|
Retained
earnings
|
36,301,185
|
|
34,022,542
|
|
4,712,068
|
Accumulated other
comprehensive loss
|
(190,724)
|
|
(273,054)
|
|
(37,817)
|
ZTO Express (Cayman)
Inc. shareholders' equity
|
59,801,745
|
|
57,843,331
|
|
8,011,210
|
Noncontrolling
interests
|
478,663
|
|
547,026
|
|
75,762
|
Total
Equity
|
60,280,408
|
|
58,390,357
|
|
8,086,972
|
TOTAL LIABILITIES
AND EQUITY
|
88,465,221
|
|
89,875,357
|
|
12,447,594
|
Summary of Unaudited
Consolidated Cash Flow Data:
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2023
|
|
2024
|
|
|
RMB
|
|
RMB
|
|
|
US$
|
|
|
|
|
(in
thousands)
|
|
|
|
|
Net cash provided by
operating activities
|
2,737,974
|
|
2,031,020
|
|
|
281,293
|
|
Net cash used in investing activities
|
(5,866,601)
|
|
(2,378,652)
|
|
|
(329,439)
|
|
Net cash provided by financing activities
|
840,572
|
|
130,130
|
|
|
18,023
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(8,937)
|
|
38,603
|
|
|
5,346
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
(2,296,992)
|
|
(178,899)
|
|
|
(24,777)
|
|
Cash, cash equivalents and restricted cash at
beginning of period
|
12,603,087
|
|
13,051,310
|
|
|
1,807,585
|
|
Cash, cash equivalents and restricted cash at end of
period
|
10,306,095
|
|
12,872,411
|
|
|
1,782,808
|
|
|
|
|
|
|
|
|
|
|
|
The following table provides a reconciliation of cash, cash
equivalents and restricted cash reported within the condensed
consolidated balance sheets that sum to the total of the same such
amounts shown in the condensed consolidated statements of cash
flows:
|
As of
|
|
December
31,
|
|
March
31,
|
|
2023
|
|
2024
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in
thousands)
|
|
|
Cash and cash
equivalents
|
12,333,884
|
|
12,583,834
|
|
1,742,841
|
Restricted cash,
current
|
686,568
|
|
272,266
|
|
37,708
|
Restricted cash,
non-current
|
30,858
|
|
16,311
|
|
2,259
|
Total cash, cash
equivalents and restricted cash
|
13,051,310
|
|
12,872,411
|
|
1,782,808
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2024
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands,
except for share and per share data)
|
|
Net income
|
1,664,821
|
|
1,447,747
|
|
200,512
|
|
Add:
|
|
|
|
|
|
|
Share-based
compensation expense [1]
|
254,976
|
|
298,387
|
|
41,326
|
|
Impairment of
investment in equity investee[1]
|
-
|
|
478,364
|
|
66,253
|
|
Gain on disposal of
equity investees and subsidiaries and others, net of income
taxes
|
-
|
|
(451)
|
|
(62)
|
|
Adjusted net
income
|
1,919,797
|
|
2,224,047
|
|
308,029
|
|
Net income
|
1,664,821
|
|
1,447,747
|
|
200,512
|
|
Add:
|
|
|
|
|
|
|
Depreciation
|
651,685
|
|
752,119
|
|
104,167
|
|
Amortization
|
34,793
|
|
33,980
|
|
4,706
|
|
Interest
expenses
|
71,710
|
|
83,916
|
|
11,622
|
|
Income tax
expenses
|
455,007
|
|
566,305
|
|
78,432
|
|
EBITDA
|
2,878,016
|
|
2,884,067
|
|
399,439
|
|
Add:
|
|
|
|
|
|
|
Share-based
compensation expense
|
254,976
|
|
298,387
|
|
41,326
|
|
Impairment of
investment in equity investee
|
-
|
|
478,364
|
|
66,253
|
|
Gain on disposal of
equity investees and subsidiaries and others
|
-
|
|
(451)
|
|
(62)
|
|
Adjusted
EBITDA
|
3,132,992
|
|
3,660,367
|
|
506,956
|
|
|
|
|
|
|
|
|
|
(1) Net of
income taxes of nil
|
|
|
|
|
|
|
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
Three Months Ended
March 31,
|
|
2023
|
|
2024
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Net income attributable
to ordinary shareholders
|
1,670,336
|
|
1,426,046
|
|
197,506
|
Add:
|
|
|
|
|
|
Share-based
compensation expense [1]
|
254,976
|
|
298,387
|
|
41,326
|
Impairment of
investment in equity investee[1]
|
-
|
|
478,364
|
|
66,253
|
Gain on disposal of
equity investees and subsidiaries and others, net of income
taxes
|
-
|
|
(451)
|
|
(62)
|
Adjusted Net income
attributable to ordinary shareholders
|
1,925,312
|
|
2,202,346
|
|
305,023
|
|
|
|
|
|
|
Weighted average shares
used in calculating net earnings
per ordinary share/ADS
|
|
|
|
|
|
Basic
|
808,865,862
|
|
804,935,791
|
|
804,935,791
|
Diluted
|
840,491,415
|
|
836,144,858
|
|
836,144,858
|
|
|
|
|
|
|
Net earnings per
share/ADS attributable to ordinary
shareholders
|
|
|
|
|
|
Basic
|
2.07
|
|
1.77
|
|
0.25
|
Diluted
|
2.03
|
|
1.75
|
|
0.24
|
|
|
|
|
|
|
Adjusted net earnings
per share/ADS attributable to
ordinary shareholders
|
|
|
|
|
|
Basic
|
2.38
|
|
2.74
|
|
0.38
|
Diluted
|
2.33
|
|
2.68
|
|
0.37
|
|
|
|
|
|
|
(1) Net of
income taxes of nil
|
|
|
|
|
|
For investor and media inquiries, please contact:
ZTO Express (Cayman) Inc.
Investor Relations
E-mail: ir@zto.com
Phone: +86 21 5980 4508
View original
content:https://www.prnewswire.com/news-releases/zto-reports-first-quarter-2024-unaudited-financial-results-302146605.html
SOURCE ZTO Express (Cayman) Inc.