omniture

ZTO Reports Second Quarter 2023 Unaudited Financial Results

Expanded Market Share to 23.5% with 7.7 Billion Parcels
Grew Adjusted Net Income 43.9% to Reach RMB2.5 Billion 
Annual Volume Guidance Reiterated to Grow 20%-24%

SHANGHAI, Aug. 30, 2023 /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 second quarter ended June 30, 2023[1]. The Company grew parcel volume by 23.8% year over year and expanded market share to 23.5%. Adjusted net income increased 43.9%[2] to reach RMB2,531.0 million. Cash generated from operating activities was RMB3,761.6 million.

Second Quarter 2023 Financial Highlights

  • Revenues were RMB9,740.3 million (US$1,343.3 million), an increase of 12.5% from RMB8,656.7 million in the same period of 2022.
  • Gross profit was RMB3,304.4 million (US$455.7 million), an increase of 50.0% from RMB2,202.8 million in the same period of 2022.
  • Net income was RMB2,530.2 million (US$348.9 million), an increase of 43.9% from RMB1,758.7 million in the same period of 2022.
  • Adjusted EBITDA[3] was RMB3,883.9 million (US$535.6 million), an increase of 34.3% from RMB2,892.0 million in the same period of 2022.
  • Adjusted net income was RMB2,531.0 million (US$349.0 million), an increase of 43.9% from RMB1,758.7 million in the same period of 2022.
  • Basic and diluted net earnings per American depositary share ("ADS"[4]) were RMB3.14 (US$0.43) and RMB3.07 (US$0.42), an increase of 40.8% and 37.7% from RMB2.23 and RMB2.23 in the same period of 2022, respectively.
  • Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders[5] were RMB3.14 (US$0.43) and RMB3.07 (US$0.42), an increase of 40.8% and 37.7% from RMB2.23 and RMB2.23 in the same period of 2022, respectively.
  • Net cash provided by operating activities was RMB3,761.6 million (US$518.8 million), compared with RMB3,780.8 million in the same period of 2022.

Operational Highlights for Second Quarter 2023

  • Parcel volume was 7,677 million, an increase of 23.8% from 6,203 million in the same period of 2022.
  • Number of pickup/delivery outlets was over 31,000 as of June 30, 2023.
  • Number of direct network partners was approximately 6,000 as of June 30, 2023.
  • Number of self-owned line-haul vehicles was over 10,000 as of June 30, 2023.
  • Out of the over 10,000 self-owned trucks, over 9,300 were high capacity 15 to 17-meter-long models as of June 30, 2023, compared to over 9,250 as of June 30, 2022.
  • Number of line-haul routes between sorting hubs was approximately 3,800 as of June 30, 2023, compared to approximately 3,700 as of June 30, 2022.
  • Number of sorting hubs was 96 as of June 30, 2023, among which 87 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 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 on disposal of equity investment and subsidiary 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 investment and subsidiary 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 American depositary diluted shares, respectively.


Mr. Meisong Lai, Founder, Chairman and Chief Executive Officer of ZTO, commented, "Amidst an overall soft economic environment, we achieved solid performance results in the second quarter. We continued to widen our lead in industry volume, market share and net profit while maintaining high levels of services quality and customer satisfaction. At 23.5% market share for the second quarter, our 7.7 billion parcels brought in 2.5 billion of net income as we firmly execute our consistent corporate strategy and dig deeper on company-wide initiatives that focus on quality of earnings and strength of partner network."

Mr. Lai added, "With near term uncertainties in the marketplace, it is more crucial for us to stay disciplined and stay long-term focused. The nature of our business is not that of a quick sprint, and short-term strategies often generate gains that are not only costly but also unsustainable. Our immediate pricing strategy is either defensive or offensive on a case-by-case basis given strategic considerations. Meanwhile, we are enabling our network partners to direct their financial resources towards ramping up their pickup-delivery capabilities to synch up with our sort-transit network so that the ZTO brand value, particularly associated with timeliness, can be meaningfully differentiated so as to drive long-term pricing power and shareholder value."

Ms. Huiping Yan, Chief Financial Officer of ZTO, commented, "Core express ASP decreased 7.8% as a combined result from mix impact of KA volume decrease, pricing adjustments to attract lighter or smaller packages and volume incentives. Combined unit sorting and transportation cost decreased over 15%, or 12 cents thanks to scale leverage and continued productivity gain through standardization and digitization programs. SG&A as a percentage of revenue remained stable at approximately 5%. Cash flow from operating activities was 3.8 billion, and capital spending outlay was 2.2 billion."

Ms. Yan added, "ZTO is focused on profitable growth and our track records have been consistent in that regards. We have established a clear leadership in all three aspects of our strategic focus, that is, service quality, volume and market share, and net profit. We have strong financial resources, staying power and a healthy partner network. In times of macro-economic uncertainties, and facing digressive competitive behaviors in the industry, we are even more diligent and disciplined to carry out appropriate actions. We are reiterating our 2023 volume growth guidance of 20% to 24%. More importantly, we are keeping our eyes on the future in strengthening long-term competitive edge, because the vast opportunities ahead will favor those who are well-prepared."

 

Second Quarter 2023 Unaudited Financial Results



Three Months Ended June 30,


Six Months Ended June 30,



2022


2023


2022


2023



RMB



%


RMB


US$


%


RMB



%


RMB


US$


%



(in thousands, except percentages)


Express delivery services

7,931,608



91.6


8,998,444


1,240,942


92.4


15,151,869



91.5


17,387,187


2,397,803


92.9


Freight forwarding services

329,959



3.8


238,872


32,942


2.5


661,044



4.0


431,597


59,520


2.3


Sale of accessories

349,683



4.0


467,778


64,510


4.8


631,754



3.8


836,616


115,375


4.5


Others

45,427



0.6


35,230


4,858


0.3


116,060



0.7


68,163


9,399


0.3


Total revenues

8,656,677



100.0


9,740,324


1,343,252


100.0


16,560,727



100.0


18,723,563


2,582,097


100.0


 

Total Revenues were RMB9,740.3 million (US$1,343.3 million), an increase of 12.5% from RMB8,656.7 million in the same period of 2022. Revenue from the core express delivery business increased by 14.1% compared to the same period of 2022, as a combined result of a 23.8% increase in parcel volume and a 7.8% decrease in parcel unit price. KA revenue (includes delivery fees) from direct sales organizations, established to serve core express KA customers, decreased 40.1% through either reengagement of partner outlets who can serve just as well or rationalization due to loss-making. Revenue from freight forwarding services decreased by 27.6% compared to the same period of 2022 due to shrinking cross border e-commerce demand and declining pricing. Revenue from sales of accessories, largely consisted of sales of thermal paper used for digital waybills' printing, increased by 33.8% in line with parcel volume growth. Other revenues were mainly derived from financing services.

 


Three Months Ended June 30,


Six Months Ended June 30,





2022


2023


2022


2023





RMB


% of


RMB


US$



% of


RMB


% of


RMB



US$


% of




revenues



revenues


revenues


revenues




(in thousands, except percentages)




Line-haul
























transportation

3,029,904


35.0


3,199,832


441,277


32.9


5,983,896


36.1


6,381,652



880,070


34.1



  cost








Sorting hub

1,891,440


21.8


1,934,666


266,803


19.9


3,771,806


22.8


3,948,037



544,459


21.1



  operating cost








Freight

307,005


3.5


222,272


30,653


2.3


614,906


3.7


405,244



55,886


2.2



  forwarding cost








Cost of

119,886


1.4


126,700


17,473


1.3


202,789


1.2


234,128



32,288


1.3



  accessories sold








Other costs

1,105,620


12.9


952,429


131,345



9.7


2,165,029


13.1


1,926,669



265,699


10.2



Total cost of

























  revenues

6,453,855


74.6


6,435,899


887,551



66.1


12,738,426


76.9


12,895,730



1,778,402


68.9



 

Total cost of revenues was RMB6,435.9 million (US$887.6 million), a decrease of 0.3% from RMB6,453.9 million in the same period last year.

Line haul transportation cost was RMB3,199.8 million (US$441.3 million), an increase of 5.6% from RMB3,029.9 million in the same period last year. The unit transportation cost decreased 14.7% or 7 cents mainly attributable to better economies of scale, optimized line-haul route planning and decreased fuel price. There were approximately 50 more self-owned high-capacity vehicles in operation compared to the same period last year which helped to improve operating efficiencies.

Sorting hub operating cost was RMB1,934.7 million (US$266.8 million), an increase of 2.3% from RMB1,891.4 million in the same period last year. The increase primarily consisted of (i) RMB47.1 million (US$6.5 million) increase in labor-associated costs, a net result of wage increases partially offset by automation-driven efficiency improvement and (ii) RMB35.4 million (US$4.9 million) increase in depreciation and amortization costs associated with automation equipment and other facilities, partially offset by (iii) RMB39.2 million (US$5.4 million) decrease in utilities. With standardization in operating procedures, improved performance evaluation system, the unit sorting cost decreased 17.4% or 5 cents. As of June 30, 2023, 460 sets of automated sorting equipment were in service, compared to 431 sets as of June 30, 2022 which enhanced overall sorting operational efficiencies.

Cost of accessories sold was RMB126.7 million (US$17.5 million), increased 5.7% compared with RMB119.9 million in the same period last year.

Other costs were RMB952.4 million (US$131.3 million), a decrease of 13.9% from RMB1,105.6 million in the same period last year. The decrease mainly consisted of (i) RMB258.2 million (US$35.6 million) decrease in dispatching costs serving enterprise customers, (ii) increase of RMB79.1 million (US$10.9 million) in information technology and related costs, and (iii) increase of RMB23.6 million (US$3.3 million) in Tax surcharge.

Gross Profit was RMB3,304.4 million (US$455.7 million), increased 50.0% from RMB2,202.8 million in the same period last year as a combined result of increased revenues and cost productivity gain. Gross margin rate improved to 33.9% from 25.4% for the same period last year.

Total Operating Expenses were RMB425.7 million (US$58.7 million), compared to RMB217.3 million in the same period last year.

Selling, general and administrative expenses were RMB504.6 million (US$69.6 million), increased by 10.4% from RMB456.9 million in the same period last year, mainly due to the increases of compensation and benefits.

Other operating income, net was RMB79.0 million (US$10.9 million), compared to RMB239.6 million in the same period last year. Other operating income mainly consisted of (i) government subsidies and tax rebates of RMB68.0 million (US$9.4 million), (ii) RMB41.9 million (US$5.8 million) of VAT super deduction, (iii) RMB39.1 million (US$5.4 million) of rental income, partially offset by (iv) RMB70.0 million (US$9.7million) loss from machinery and equipment, due to the upgrading of automated sorting equipment.

Income from operations was RMB2,878.8 million (US$397.0 million), an increase of 45.0% from RMB1,985.5 million for the same period last year.

Operating margin rate increased to 29.6% from 22.9% in the same period last year.

Interest income was RMB167.1 million (US$23.0 million), compared with RMB118.5 million in the same period last year.

Interest expenses was RMB72.2 million (US$10.0 million), compared with RMB23.1 million in the same period last year.

Gain from fair value changes of financial instruments was RMB51.6 million (US$7.1 million), compared with a loss of RMB13.6 million in the same period last year. Such gain or loss from fair value changes of the financial instruments are determined by selling banks according to market-based estimation of future redemption prices.

Income tax expenses were RMB575.6 million (US$79.4 million) compared to RMB438.2 million in the same period last year. Overall income tax rate decreased by 1.5 percentage points this quarter compared to the same period last year due to a decreased mix of taxable income generated by local operating entities, taxes at the full 25% tax rate, than taxable income from one of the headquarter entities that enjoys a 15% preferential rate given its High and New Technology Enterprise qualification.

Net income was RMB2,530.2 million (US$348.9 million), which increased by 43.9% from RMB1,758.7 million in the same period last year.

Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB3.14 (US$0.43) and RMB3.07 (US$0.42), compared to basic and diluted earnings per ADS of RMB2.23 and RMB2.23 in the same period last year, respectively.

Adjusted basic and diluted earnings per ADS attributable to ordinary shareholders were RMB3.14 (US$0.43) and RMB3.07 (US$0.42), compared with RMB2.23 and RMB2.23 in the same period last year, respectively.

Adjusted net income was RMB2,531.0 million (US$349.0 million), compared with RMB1,758.7 million during the same period last year.

EBITDA[1] was RMB3,883.1 million (US$535.5 million), compared with RMB2,892.0 million in the same period last year.

Adjusted EBITDA was RMB3,883.9 million (US$535.6 million), compared to RMB2,892.0 million in the same period last year.

Net cash provided by operating activities was RMB3,761.6 million (US$518.8 million), compared with RMB3,780.8 million in the same period last year. 

Business Outlook

Based on current market and operating conditions, the Company reiterates that its parcel volume for 2023 is expected to be in the range of 29.27 billion to 30.24 billion, representing a 20% to 24% increase year over year. Further, the Company remains committed to achieve at least 1.5 percentage point increase in volume market share for the entire year. Aforementioned estimates represent management's current and preliminary view, which are subject to change.

(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.

Supplemental Information on Zhongrong Trust Product

Through other public announcements, the Company became aware of the delay in repayments by Zhongrong International Trust Co. Ltd. ("Zhongrong Trust") of certain trust products under its management after Zhongrong Trust's second-largest shareholder, Zhongzhi Enterprise Group Co. Ltd., reportedly faced liquidity issues. The Company currently has two outstanding tranches in one of the products managed by Zhongrong Trust. The aggregate principal amount of these two investment tranches is RMB100 million, representing 0.4% of the Company's cash and cash equivalents, short-term and long-term investments as of June 30, 2023. These two tranches are due for redemption on August 24 and November 22, 2023, respectively. The Company has been proactively following up with Zhongrong Trust on the latest status. As of the date of this press release, it remains uncertain whether Zhongrong Trust will be able to make redemption payments upon maturity. The Company will continue to closely follow-up and provide updates to investors of any progress. The Company is prepared to take appropriate actions against Zhongrong Trust to protect its legal rights under the trust agreements and applicable laws and regulations.

Company Share Purchase

On November 14, 2018, the Company announced a share repurchase program whereby ZTO was authorized to repurchase its own Class A ordinary shares in the form of ADSs with an aggregate value of up to US$500 million during an 18-month period thereafter. On March 13, 2021, the board of directors of the Company approved the extension of the active share repurchase program to June 30, 2021. On March 31, 2021, the board of directors has approved changes to the share repurchase program, increasing the aggregate value of shares that may be repurchased from US$500 million to US$1 billion and extending the effective time by two years through June 30, 2023. On November 17, 2022, the board of directors has approved further changes to the share repurchase program, increasing the aggregate value of shares that may be repurchased from US$1 billion to US$1.5 billion and extending the effective time by one year through June 30, 2024. The Company expects to fund the repurchases out of its existing cash balance. As of June 30, 2023, the Company has purchased an aggregate of 38,473,231 ADSs at an average purchase price of US$25.18, 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 RMB7.2513 to US$1.00, the noon buying rate on June 30, 2023 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 Tuesday, August 29, 2023 (8:30 AM Beijing Time on August 30, 2023).

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:

6463487

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 September 5, 2023:

United States:



1-877-344-7529

International:



1-412-317-0088

Passcode:



2111843

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 report 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 June 30,


Six Months Ended June 30


2022


2023


2022


2023



RMB


RMB



US$


RMB


RMB



US$



(in thousands, except for share and per share data)


Revenues

8,656,677


9,740,324



1,343,252


16,560,727


18,723,563



2,582,097


Cost of revenues

(6,453,855)


(6,435,899)



(887,551)


(12,738,426)


(12,895,730)



(1,778,402)


Gross profit

2,202,822


3,304,425



455,701


3,822,301


5,827,833



803,695


Operating (expenses)/income:















Selling, general and administrative

(456,907)


(504,607)



(69,588)


(1,075,106)


(1,291,214)



(178,067)


Other operating income, net

239,634


78,957



10,889


354,612


292,598



40,351


Total operating expenses

(217,273)


(425,650)



(58,699)


(720,494)


(998,616)



(137,716)


Income from operations

1,985,549


2,878,775



397,002


3,101,807


4,829,217



665,979


Other income (expenses):















Interest income

118,490


167,108



23,045


229,588


259,020



35,720


Interest expense

(23,102)


(72,218)



(9,959)


(82,737)


(143,928)



(19,849)


 (Loss)/ gain from fair value changes of















financial instruments

(13,575)


51,640



7,121


(14,456)


207,213



28,576


Loss on disposal of equity investees and















subsidiaries


(764)



(105)



(764)



(105)


Foreign currency exchange gain















before tax

119,805


81,134



11,189


106,940


70,921



9,780


Income before income tax, and share of















loss in equity method

2,187,167


3,105,675



428,293


3,341,142


5,221,679



720,101


Income tax expense

(438,205)


(575,585)



(79,377)


(693,424)


(1,030,592)



(142,125)


Share of gain/ (loss) in equity method















investments

9,740


123



17


(13,492)


3,947



544


Net income

1,758,702


2,530,213



348,933


2,634,226


4,195,034



578,520


Net loss attributable to non-controlling















interests

46,479


10,991



1,516


77,225


16,506



2,276


Net income attributable to ZTO Express















(Cayman) Inc.

1,805,181


2,541,204



350,449


2,711,451


4,211,540



580,796


Net income attributable to ordinary















shareholders

1,805,181


2,541,204



350,449


2,711,451


4,211,540



580,796


Net earnings per share attributed to















ordinary shareholders















Basic

2.23


3.14



0.43


3.35


5.21


0.72


Diluted

2.23


3.07



0.42


3.35


5.10


0.70


Weighted average shares used in















calculating net earnings per ordinary















share/ADS















Basic

809,733,116


808,967,248



808,967,248


809,214,926


808,916,820


808,916,820


Diluted

809,733,116


840,176,316



840,176,316


809,214,926


840,125,888


840,125,888

















Net income

1,758,702


2,530,213



348,933


2,634,226


4,195,034


578,520


Other comprehensive income/(loss),















net of tax of nil:















Foreign currency translation adjustment

97,328


(161,168)



(22,226)


85,143


(141,897)


(19,568)


Comprehensive income

1,856,030


2,369,045



326,707


2,719,369


4,053,137



558,952


Comprehensive loss attributable to non-















controlling interests

46,479


10,991



1,516


77,225


16,506



2,276


Comprehensive income attributable to ZTO















Express (Cayman) Inc.

1,902,509


2,380,036



328,223


2,796,594


4,069,643



561,228

















 

 

 

Unaudited Consolidated Balance Sheets Data:












As of





December 31,

June 30,





2022


2023





RMB


RMB



US$





(in thousands, except for share data)



ASSETS









Current assets:









Cash and cash equivalents

11,692,773


7,781,443



1,073,110



Restricted cash

895,483


851,899



117,482



Accounts receivable, net

818,968


571,176



78,769



Financing receivables

951,349


1,002,429



138,241



Short-term investment

5,753,483


7,956,404



1,097,238



Inventories

40,537


26,637



3,673



Advances to suppliers

861,573


852,970



117,630



Prepayments and other current assets

3,146,378


3,547,514



489,225



Amounts due from related parties

314,483


745,142



102,760



Total current assets

24,475,027


23,335,614



3,218,128



Investments in equity investee

3,950,544


4,042,303



557,459



Property and equipment, net

28,813,204


30,871,299



4,257,347



Land use rights, net

5,442,951


5,673,188



782,368



Intangible assets, net

29,437


26,339



3,632



Operating lease right-of-use assets

808,506


831,296



114,641



Goodwill

4,241,541


4,241,541



584,935



Deferred tax assets

750,097


880,166



121,380



Long-term investment

7,322,545


10,862,204



1,497,966



Long-term financing receivables

1,295,755


836,453



115,352



Other non-current assets

816,839


374,485



51,644



Amounts due from related parties-non current

577,140


79,660



10,986



TOTAL ASSETS

78,523,586


82,054,548



11,315,838



LIABILITIES AND EQUITY









Current liabilities









Short-term bank borrowing

5,394,423


6,701,000



924,110



Accounts payable

2,202,692


1,928,915



266,010



Notes payable

200,000


-



-



Advances from customers

1,374,691


1,441,876



198,844



Income tax payable

228,422


486,861



67,141



Amounts due to related parties

49,138


197,131



27,186



Operating lease liabilities

229,718


251,404



34,670



Dividends payable

1,497


1,581



218



Other current liabilities

6,724,743


6,718,899



926,575



Total current liabilities

16,405,324


17,727,667



2,444,754



Non-current operating lease liabilities

510,349


487,266



67,197



Deferred tax liabilities

346,472


347,490



47,921



Convertible bond

6,788,971


7,158,372



987,185



TOTAL LIABILITIES

24,051,116


25,720,795



3,547,057



Shareholders' equity









Ordinary shares (US$0.0001 par value; 10,000,000,000 shares authorized; 826,943,309









shares issued and 809,247,109 shares outstanding as of December 31, 2022; 817,117,539









shares issued and 808,747,346 shares outstanding as of June 30, 2023)

535


528



73



Additional paid-in capital

26,717,727


24,380,754



3,362,260



Treasury shares, at cost

(2,062,530)


(572,247)



(78,916)



Retained earnings

29,459,491


32,324,038



4,457,689



Accumulated other comprehensive loss

(86,672)


(228,569)



(31,521)



ZTO Express (Cayman) Inc. shareholders' equity

54,028,551


55,904,504



7,709,585



Noncontrolling interests

443,919


429,249



59,196



Total Equity

54,472,470


56,333,753



7,768,781



TOTAL LIABILITIES AND EQUITY

78,523,586


82,054,548



11,315,838



 



 

Summary of Unaudited Consolidated Cash Flow Data:

















Three Months Ended June 30,


Six Months Ended June 30


2022


2023


2022


2023



RMB


RMB



US$


RMB


RMB



US$



(in thousands)


Net cash provided by operating activities

3,780,752


3,761,604



518,750


4,886,147


6,499,578



896,334


Net cash used in investing activities

(3,609,618)


(3,541,559)



(488,403)


(6,924,369)


(9,408,160)



(1,297,445)


Net cash (used in) / provided by financing activities

(157,132)


(1,974,295)



(272,268)


2,423,513


(1,133,723)



(156,348)


Effect of exchange rate changes on cash, cash
















equivalents and restricted cash

193,657


104,871



14,462


172,835


95,934



13,230


Net increase / (decrease) in cash, cash equivalents
















and restricted cash

207,659


(1,649,379)



(227,459)


558,126


(3,946,371)



(544,229)


Cash, cash equivalents and restricted cash at
















beginning of period

10,119,828


10,306,095



1,421,275


9,769,361


12,603,087



1,738,045


Cash, cash equivalents and restricted cash at end of
















period

10,327,487


8,656,716



1,193,816


10,327,487


8,656,716



1,193,816

















 

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



June 30,




June 30,



2022




2023



RMB




RMB




US$



(in thousands)

Cash and cash equivalents


9,927,765




7,781,443




1,073,110

Restricted cash, current


384,912




851,899




117,482

Restricted cash, non-current


14,810




23,374




3,224

Total cash, cash equivalents and restricted cash                                                         


10,327,487




8,656,716




1,193,816












 

 

 

Reconciliations of GAAP and Non-GAAP Results

















Three Months Ended June 30,


Six Months Ended June 30




2022


2023


2022


2023




RMB


RMB


US$


RMB


RMB


US$



(in thousands, except for share and per share data)



Net income

1,758,702


2,530,213



348,933


2,634,226


4,195,034



578,520


Add:
















Share-based compensation expense (1)




178,980


254,976



35,163


Loss on disposal of equity investees














and subsidiaries, net of income taxes


764


105



764



105


Adjusted net income

1,758,702


2,530,977



349,038


2,813,206


4,450,774



613,788



















Net income

1,758,702


2,530,213



348,933


2,634,226


4,195,034



578,520


Add:
















Depreciation

640,577


671,283



92,574


1,242,220


1,322,968



182,446


Amortization

31,392


33,791



4,660


62,446


68,584



9,458


Interest expenses

23,102


72,218



9,959


82,737


143,928



19,849


Income tax expenses

438,205


575,585



79,377


693,424


1,030,592



142,125


EBITDA

2,891,978


3,883,090



535,503


4,715,053


6,761,106



932,398



Add:
















Share-based compensation expense (1)




178,980


254,976



35,163


Loss on disposal of equity investees














and subsidiary, net of income taxes


764


105



764



105


Adjusted EBITDA

2,891,978


3,883,854



535,608


4,894,033


7,016,846



967,666



(1) Net of income taxes of nil

 

 

Reconciliations of GAAP and Non-GAAP Results













Three Months Ended June 30,


Six Months Ended June 30


2022


2023


2022


2023


RMB


RMB


US$


RMB


RMB


US$


(in thousands, except for share and per share data)

Net income attributable to ordinary












     shareholders

1,805,181


2,541,204


350,449


2,711,451


4,211,540


580,796

Add:












     Share-based compensation expense (1)




178,980


254,976


35,163

     Loss on disposal of equity investees












     and subsidiaries , net of income taxes


764


105



764


105

Adjusted Net income attributable to












     ordinary shareholders

1,805,181


2,541,968


350,554


2,890,431


4,467,280


616,064













Weighted average shares used in












     calculating net earnings per ordinary












     share/ADS












        Basic

809,733,116


808,967,248


808,967,248


809,214,926


808,916,820


808,916,820

        Diluted

809,733,116


840,176,316


840,176,316


809,214,926


840,125,888


840,125,888













Net earnings per share/ADS attributable to












     ordinary shareholders












       Basic

2.23


3.14


0.43


3.35


5.21


0.72

       Diluted

2.23


3.07


0.42


3.35


5.10


0.70













Adjusted net earnings per share/ADS












     attributable to ordinary shareholders












        Basic

2.23


3.14


0.43


3.57


5.52


0.76

        Diluted

2.23


3.07


0.42


3.57


5.40


0.74


(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

 

Source: ZTO Express (Cayman) Inc.
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