Expanded Market Share by 1.8pts to 23.4% with 6.3 Billion
Parcels
Grew Adjusted Net Income 82.1% to Reach
RMB1.9 Billion
Raise
Annual Volume Guidance to Grow 20%-24%
SHANGHAI, May 17, 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 first
quarter ended March 31,
2023[1]. The Company grew parcel volume by 20.5%
year over year and expanded market share by 1.8 percentage points
to 23.4% while maintaining high quality of service and customer
satisfaction. Adjusted net income [2] increased 82.1% to
reach RMB1,919.8 million. Cash
generated from operating activities was RMB2,738.0 million.
First Quarter 2023 Financial Highlights
- Revenues were RMB8,983.2 million
(US$1,308.1 million), an increase of
13.7% from RMB7,904.1 million in the
same period of 2022.
- Gross profit was RMB2,523.4
million (US$367.4 million), an
increase of 55.8% from RMB1,619.5
million in the same period of 2022.
- Net income was RMB1,664.8 million
(US$242.4 million), an increase of
90.2% from RMB875.5 million in the
same period of 2022.
- Adjusted EBITDA[3] was RMB3,133.0 million (US$456.2 million), an increase of 56.5% from
RMB2,002.1 million in the same period
of 2022.
- Adjusted net income[2] was RMB1,919.8 million (US$279.5 million), an increase of 82.1% from
RMB1,054.5 million in the same period
of 2022.
- Basic and diluted net earnings per American depositary share
("ADS" [4]) were RMB2.07
(US$0.30) and RMB2.03 (US$0.30),
an increase of 84.8% and 81.3% from RMB1.12 and RMB1.12
in the same period of 2022, respectively.
- Adjusted basic and diluted earnings per American depositary
share attributable to ordinary shareholders[5] were
RMB2.38 (US$0.35) and RMB2.33 (US$0.34),
an increase of 77.6% and 73.9% from RMB1.34 and RMB1.34
in the same period of 2022, respectively.
- Net cash provided by operating activities was RMB2,738.0 million (US$398.7 million), compared with RMB1,105.4 million in the same period of
2022.
Operational Highlights for First Quarter 2023
- Parcel volume was 6,297 million, an increase of 20.5% from
5,226 million in the same period of 2022.
- Number of pickup/delivery outlets was over 31,000 as of
March 31, 2023.
- Number of direct network partners was over 5,900 as of
March 31, 2023.
- Number of self-owned line-haul vehicles was approximately
11,000 as of March 31, 2023.
- Out of the approximately 11,000 self-owned trucks,
approximately 9,500 were high capacity 15 to 17-meter-long models
as of March 31, 2023, compared to
approximately 9,200 as of March 31,
2022.
- Number of line-haul routes between sorting hubs was
approximately 3,800 as of March 31,
2023, compared to approximately 3,650 as of March 31, 2022.
- Number of sorting hubs was 97 as of March 31, 2023, among which 88 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
net of corresponding tax impact, with which the 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, with
which the 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, "We were
well prepared when market opportunities rose in the first quarter
when consumer spending rebounded after the lift of COVID-driven
restrictions on activities such as travel, dining out and public
entertainment. We saw robust increases in express delivery demand
as merchants offered deep discounts to clear inventory buildup and
e-Commerce platforms offered attractive subsidies to entice on-line
spending albeit moderate per ticket size. Without
compromising quality of services, our volume market share rose 1.8
pts to 23.4%, and adjusted net income increased 82.1% to reach
RMB1.92 billion. Our three-prong
approach to corporate strategy has been consistent, and the
execution plans designed around the macro economy and industry
conditions were effective. Revised growth target parameters
helped alleviate hesitations on the sales front, volume mix shifts
meant better quality of earnings, and precision pricing based on
more granular costs breakdowns help ensuring market competitiveness
as well as profitability. With volume leverage achieved,
everything came together under the digitization cockpit, and our
combined per unit cost of sorting and transportation this quarter
decreased 10 cents over the first
quarter last year."
Mr. Lai added, "The recovery momentum seemed to have continued
into the second quarter. We anticipate that the express delivery
industry would expand steadily entering into the rest of the year,
and we raised our annual volume targets. There are
undoubtedly challenges and uncertainties ahead, however, we are in
control of our actions to focus on
further implementation of deep-dive initiatives to drive increases
in non-e-commerce package intake, to increase volume of premium
timeliness services, to enhance last mile presence and service
capabilities, and to support network partners' upgrade of their
throughput capacity. With enhanced linkage and cohesiveness across
the entire network, we aim to develop greater competitive advantage
to further our industry leadership with high quality of services,
leading market share and earnings."
Ms. Huiping Yan, Chief Financial
Officer of ZTO, commented, "Our quarterly core express delivery ASP
decreased 3.7%, or 5 cents year over
year resulted mainly from lower average weight per parcel, decrease
in KA volume where associated revenue includes delivery fees, and
improved effectiveness of our network pricing policy. Unit cost
decreased 12.8% or 14 cents because,
aside from greater economies of scale, our process management
initiatives started in the second half of 2022 continued to pay
dividend. The standardization of operating procedures and
measurement metrics helped to identify performance anomalies and
address inefficiencies more timely and effectively. With a stable
corporate cost structure, we grew our adjusted net income over 82%
over last year, much faster than our top line increases."
Ms. Yan added, "Maintaining high quality of services amidst
volume surge is not an easy task. We did not let off guards and
implemented effective measures throughout key checkpoints from end
to end to ensure smooth flow of volume and control intake where
necessary. We also helped network partners to respond to any
bottlenecks and quickly address breakdown risks. We are
proactively making preparations towards busy seasons in the latter
part of the year where average daily volume would likely reach new
heights. Our goal remains to increase our market share by at
least 1.5 percentage points for 2023 while maintaining high quality
of services and customer satisfaction and achieving optimal
earnings growth for the year."
First Quarter 2023
Unaudited Financial Results
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2023
|
|
|
RMB
|
|
%
|
|
RMB
|
|
US$
|
|
%
|
|
|
(in thousands,
except percentages)
|
|
Express delivery
services
|
7,220,261
|
|
91.3
|
|
8,388,743
|
|
1,221,496
|
|
93.4
|
|
Freight forwarding
services
|
331,085
|
|
4.2
|
|
192,725
|
|
28,063
|
|
2.1
|
|
Sale of
accessories
|
282,071
|
|
3.6
|
|
368,838
|
|
53,707
|
|
4.1
|
|
Others
|
70,633
|
|
0.9
|
|
32,933
|
|
4,795
|
|
0.4
|
|
Total
revenues
|
7,904,050
|
|
100.0
|
|
8,983,239
|
|
1,308,061
|
|
100.0
|
|
Total Revenues were RMB8,983.2
million (US$1,308.1million),
an increase of 13.7% from RMB7,904.1
million in the same period of 2022. Revenue from the
core express delivery business increased by 16.1% compared to the
same period of 2022, as a combined result of a 20.5% increase in
parcel volume and a 3.7% decrease in parcel unit price. Revenue
from freight forwarding services decreased by 41.8% compared to the
same period of 2022 primarily due to declined cross border
e-commerce demand and pricing caused by weak global economy.
Revenue from sales of accessories, largely consisted of sales of
thermal paper used for digital waybills' printing, increased by
30.8% in line with parcel volume growth. Other revenues were
derived mainly from financing services.
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2023
|
|
|
|
|
% of
|
|
|
|
|
|
%
of
|
|
|
RMB
|
|
revenues
|
|
RMB
|
|
US$
|
|
revenues
|
|
|
(in thousands,
except percentages)
|
|
Line-haul
transportation cost
|
2,953,991
|
|
37.4
|
|
3,181,820
|
|
463,309
|
|
35.4
|
|
Sorting hub operating
cost
|
1,880,367
|
|
23.8
|
|
2,013,371
|
|
293,170
|
|
22.4
|
|
Freight forwarding
cost
|
307,901
|
|
3.9
|
|
182,972
|
|
26,643
|
|
2.0
|
|
Cost of accessories
sold
|
82,903
|
|
1.0
|
|
107,428
|
|
15,643
|
|
1.2
|
|
Other costs
|
1,059,409
|
|
13.4
|
|
974,240
|
|
141,859
|
|
10.9
|
|
Total cost of revenues
|
6,284,571
|
|
79.5
|
|
6,459,831
|
|
940,624
|
|
71.9
|
|
Total cost of revenues was RMB6,459.8 million (US$940.6 million), an increase of 2.8% from
RMB6,284.6 million in the same period
of last year.
Line haul transportation cost was RMB3,181.8 million (US$463.3 million), an increase of 7.7% from
RMB2,954.0 million in the same period
last year. The unit transportation cost decreased 10.6% or
6 cents attributable to better
economies of scale as well as real-time data monitoring and
analytics to optimize route planning and load rate. There were
approximately 300 more self-owned high-capacity vehicles in
operation compared to the same period last year.
Sorting hub operating cost was RMB2,013.4 million (US$293.2 million), an increase of 7.1% from
RMB1,880.4 million in the same period
of last year. The increase was primarily consisted of (i)
RMB76.4 million (US$11.1 million) increase in labor-associated
costs, a net result of wage increases partially offset by
automation-driven efficiency gains, and (ii) RMB46.0 million (US$6.7
million) increase in depreciation and amortization costs for
automation equipment and facility. With standardization in
sorting operating procedures and improved productivity rate, and
optimized resource deployment either labor or machinery, the unit
soring hub operating cost decreased 11.1% or 4 cents. As of March
31, 2023, 454 sets of automated sorting equipment were in
service, compared to 422 sets as of March
31, 2022.
Cost of accessories sold was RMB107.4 million (US$15.6
million), increased 29.6% compared with RMB82.9 million in the same period last year in
accordance with volume increases.
Other costs were RMB974.2
million (US$141.9 million), a
decrease of 8.0% from RMB1,059.4
million in the same period of last year. The decrease was
mainly consisted of (i) RMB60.1
million (US$8.8 million)
decrease in dispatching costs serving enterprise customers, (ii)
RMB29.3 million (US$4.3 million) decrease in equipment
manufacturing cost, and (iii) increase of RMB15.8 million (US$2.3
million) in costs for growing last mile operations.
Gross Profit was RMB2,523.4
million (US$367.4 million),
increased 55.8% from RMB1,619.5
million in the same period of last year as a combined result
of increased revenues and cost productivity gain. Gross margin rate
improved to 28.1% from 20.5% for the same period last year.
Total Operating Expenses were RMB573.0 million (US$83.4
million), compared to RMB503.2
million in the same period of last year.
Selling, general and administrative expenses were
RMB786.6 million (US$114.5 million), increased by 27.2% from
RMB618.2 million in the
same period of last year, mainly driven by increases of
employees' compensation and benefits.
Other operating income, net was RMB213.6 million (US$31.1
million), compared to RMB115.0
million in the same period of last year.
Other operating income mainly consisted of (i) RMB99.4 million (US$14.5
million) of government subsidies and tax rebates, (ii)
RMB69.5 million (US$10.1 million) of VAT super deduction, and
(iii) RMB44.7 million (US$6.5 million) of rental income.
Income from operations was RMB1,950.4 million (US$284.0 million), an increase of 74.7% from
RMB1,116.3 million for the same
period last year. Operating margin rate increased to 21.7%
from 14.1% in the same period of last year.
Interest income was RMB91.9
million (US$13.4 million),
compared with RMB111.1 million in the
same period of last year.
Interest expenses was RMB71.7
million (US$10.4 million),
compared with RMB59.6 million in the
same period of last year.
Gain from fair value changes of financial instruments was
RMB155.6 million (US$22.7 million), compared with loss of
RMB0.9 million in the
same period of last year. Such gain or loss from fair value
changes of the financial instruments is determined by selling banks
according to market-based estimation of future redemption
prices.
Income tax expenses were RMB455.0
million (US$66.3 million)
compared to RMB255.2 million in the
same period of last year. Overall income tax rate decreased by
0.6 percentage points compared to the same period last year.
Net income was RMB1,664.8
million (US$242.4 million),
which increased by 90.2% from RMB875.5
million in the same period of last year.
Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB2.07
(US$0.30) and RMB2.03 (US$0.30),
compared to basic and diluted earnings per ADS of RMB1.12 and RMB1.12
in the same period of last year.
Adjusted basic and diluted earnings per ADS attributable to
ordinary shareholders were RMB2.38 (US$0.35)
and RMB2.33 (US$0.34), compared with RMB1.34 and RMB1.34
in the same period of last year.
Adjusted net income was RMB1,919.8
million (US$279.5 million),
compared with RMB1,054.5 million
during the same period last year.
EBITDA[1] was RMB2,878.0 million (US$419.1 million), compared with RMB1,823.1 million in the same period of last
year.
Adjusted EBITDA was RMB3,133.0
million (US$456.2 million),
compared to RMB2,002.1 million in the
same period of last year.
Net cash provided by operating activities was
RMB2,738.0 million (US$398.7 million), compared with RMB1,105.4 million in the same period of
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, with which the management aims to better represent the
underlying business operations.
|
Business Outlook
Considering the current market conditions and operations, the
Company raises its annual parcel volume projection to be in the
range of 29.27 billion to 30.24 billion, representing a 20% to 24%
increase year over year. Relative to the entire industry
performance, the Company is confident to achieve at least 1.5
percentage point increase in volume market share for the entire
year. All aforementioned estimates represent management's current
and preliminary view, which are subject to change.
Primary Listing on the Main Board of the Stock Exchange of
Hong Kong Limited Became Effective
The Company's voluntary conversion of its secondary listing
status to primary listing on the Main Board of The Stock Exchange
of Hong Kong Limited (the "Hong Kong Stock Exchange") became
effective on May 1, 2023. ZTO is now
a dual primary listed company on the Hong Kong Stock Exchange in
Hong Kong and the New York Stock
Exchange in the United States.
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 March 31,
2023, the Company has purchased an aggregate of 38,250,449
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
RMB6.8676 to US$1.00, the noon buying rate on March 31,2023 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,
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 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
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 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 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 17, 2023 (8:30 AM Beijing Time on Thursday, May 18, 2023).
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
|
Singapore:
|
800-120-5863
|
International:
|
1-412-317-6061
|
Passcode:
|
4410731
|
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 24,
2023:
United
States:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Passcode:
|
8325254
|
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
March 31,
|
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands,
except for share and per share data)
|
Revenues
|
7,904,050
|
|
8,983,239
|
|
1,308,061
|
|
Cost of
revenues
|
(6,284,571)
|
|
(6,459,831)
|
|
(940,624)
|
|
Gross profit
|
1,619,479
|
|
2,523,408
|
|
367,437
|
|
Operating
(expenses)/income:
|
|
|
|
|
|
|
Selling, general and
administrative
|
(618,199)
|
|
(786,607)
|
|
(114,539)
|
|
Other operating income,
net
|
114,978
|
|
213,641
|
|
31,109
|
|
Total operating
expenses
|
(503,221)
|
|
(572,966)
|
|
(83,430)
|
|
Income from
operations
|
1,116,258
|
|
1,950,442
|
|
284,007
|
|
Other income
(expenses):
|
|
|
|
|
|
|
Interest
income
|
111,098
|
|
91,912
|
|
13,383
|
|
Interest
expense
|
(59,635)
|
|
(71,710)
|
|
(10,442)
|
|
(Loss)/gain from fair
value changes of
financial instruments
|
(881)
|
|
155,573
|
|
22,653
|
|
Foreign currency
exchange (loss) / gain before tax
|
(12,865)
|
|
(10,213)
|
|
(1,487)
|
|
Income before income
tax, and share of
loss in equity method
|
1,153,975
|
|
2,116,004
|
|
308,114
|
|
Income tax
expense
|
(255,219)
|
|
(455,007)
|
|
(66,254)
|
|
Share of loss in equity
method investments
|
(23,232)
|
|
3,824
|
|
557
|
|
Net income
|
875,524
|
|
1,664,821
|
|
242,417
|
|
Net loss attributable
to non-controlling
interests
|
30,746
|
|
5,515
|
|
803
|
|
Net income attributable
to ZTO Express
(Cayman) Inc.
|
906,270
|
|
1,670,336
|
|
243,220
|
|
Net income attributable
to ordinary
shareholders
|
906,270
|
|
1,670,336
|
|
243,220
|
|
Net earnings per share
attributed to
ordinary shareholders
|
|
|
|
|
|
|
Basic
|
1.12
|
|
2.07
|
|
0.30
|
|
Diluted
|
1.12
|
|
2.03
|
|
0.30
|
|
Weighted average shares
used in
calculating net earnings per ordinary
share/ADS
|
|
|
|
|
|
|
Basic
|
808,690,979
|
|
808,865,862
|
|
808,865,862
|
|
Diluted
|
808,690,979
|
|
840,491,415
|
|
840,491,415
|
|
Net income
|
875,524
|
|
1,664,821
|
|
242,417
|
|
Other comprehensive
(expenses) / income,
net of tax of nil:
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
(12,185)
|
|
19,271
|
|
2,806
|
|
Comprehensive
income
|
863,339
|
|
1,684,092
|
|
245,223
|
|
Comprehensive loss
attributable to non-
controlling interests
|
30,746
|
|
5,515
|
|
803
|
|
Comprehensive income
attributable to ZTO
Express (Cayman) Inc.
|
894,085
|
|
1,689,607
|
|
246,026
|
|
Unaudited
Consolidated Balance Sheets Data:
|
|
|
|
As of
|
|
December
31,
|
|
March
31,
|
|
2022
|
|
2023
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in thousands,
except for share data)
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
11,692,773
|
|
9,555,752
|
|
1,391,425
|
Restricted
cash
|
895,483
|
|
729,141
|
|
106,171
|
Accounts receivable,
net
|
818,968
|
|
576,358
|
|
83,924
|
Financing
receivables
|
951,349
|
|
1,089,741
|
|
158,679
|
Short-term
investment
|
5,753,483
|
|
8,878,424
|
|
1,292,799
|
Inventories
|
40,537
|
|
29,136
|
|
4,243
|
Advances to
suppliers
|
861,573
|
|
831,422
|
|
121,064
|
Prepayments and other
current assets
|
3,146,378
|
|
3,427,312
|
|
499,055
|
Amounts due from
related parties
|
314,483
|
|
166,592
|
|
24,258
|
Total current
assets
|
24,475,027
|
|
25,283,878
|
|
3,681,618
|
Investments in
equity investee
|
3,950,544
|
|
3,946,444
|
|
574,647
|
Property and
equipment, net
|
28,813,204
|
|
29,776,763
|
|
4,335,832
|
Land use rights,
net
|
5,442,951
|
|
5,665,064
|
|
824,897
|
Intangible
assets, net
|
29,437
|
|
27,888
|
|
4,061
|
Operating lease
right-of-use assets
|
808,506
|
|
816,655
|
|
118,914
|
Goodwill
|
4,241,541
|
|
4,241,541
|
|
617,616
|
Deferred tax
assets
|
750,097
|
|
796,444
|
|
115,971
|
Long-term
investment
|
7,322,545
|
|
8,141,361
|
|
1,185,474
|
Long-term
financing receivables
|
1,295,755
|
|
909,923
|
|
132,495
|
Other non-current
assets
|
816,839
|
|
512,268
|
|
74,592
|
Amounts due from
related parties-non current
|
577,140
|
|
578,400
|
|
84,222
|
TOTAL
ASSETS
|
78,523,586
|
|
80,696,629
|
|
11,750,339
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term bank
borrowing
|
5,394,423
|
|
6,598,943
|
|
960,881
|
Accounts
payable
|
2,202,692
|
|
2,058,253
|
|
299,705
|
Notes
payable
|
200,000
|
|
200,000
|
|
29,122
|
Advances from
customers
|
1,374,691
|
|
1,338,918
|
|
194,962
|
Income tax
payable
|
228,422
|
|
307,493
|
|
44,774
|
Amounts due to related
parties
|
49,138
|
|
117,375
|
|
17,091
|
Operating lease
liabilities
|
229,718
|
|
235,150
|
|
34,240
|
Dividends
payable
|
1,497
|
|
2,057,093
|
|
299,536
|
Other current
liabilities
|
6,724,743
|
|
6,188,620
|
|
901,131
|
Total current
liabilities
|
16,405,324
|
|
19,101,845
|
|
2,781,442
|
Non-current
operating lease liabilities
|
510,349
|
|
482,021
|
|
70,188
|
Deferred tax
liabilities
|
346,472
|
|
339,758
|
|
49,473
|
Convertible
senior bond
|
6,788,971
|
|
6,769,678
|
|
985,741
|
TOTAL
LIABILITIES
|
24,051,116
|
|
26,693,302
|
|
3,886,844
|
Shareholders'
equity
|
|
|
|
|
|
Ordinary shares
(US$0.0001 par value; 10,000,000,000 shares authorized;
826,943,309
shares issued and 809,247,109 shares outstanding as of
December 31, 2022; 824,767,102
shares issued and 808,964,493 shares outstanding as of
March 31, 2023)
|
535
|
|
533
|
|
78
|
Additional paid-in
capital
|
26,717,727
|
|
24,729,199
|
|
3,600,850
|
Treasury shares, at
cost
|
(2,062,530)
|
|
(1,862,363)
|
|
(271,181)
|
Retained
earnings
|
29,459,491
|
|
30,764,955
|
|
4,479,725
|
Accumulated other
comprehensive loss
|
(86,672)
|
|
(67,401)
|
|
(9,814)
|
ZTO Express (Cayman)
Inc. shareholders' equity
|
54,028,551
|
|
53,564,923
|
|
7,799,658
|
Noncontrolling
interests
|
443,919
|
|
438,404
|
|
63,837
|
Total
Equity
|
54,472,470
|
|
54,003,327
|
|
7,863,495
|
TOTAL LIABILITIES
AND EQUITY
|
78,523,586
|
|
80,696,629
|
|
11,750,339
|
Summary of Unaudited
Consolidated Cash Flow Data:
|
|
|
|
Three Months Ended
March 31,
|
|
2022
|
|
2023
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in
thousands)
|
|
|
Net cash provided by
operating activities
|
1,105,395
|
|
2,737,974
|
|
398,679
|
Net cash used in
investing activities
|
(3,314,751)
|
|
(5,866,601)
|
|
(854,243)
|
Net cash (used in) /
provided by financing activities
|
2,580,645
|
|
840,572
|
|
122,397
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(20,822)
|
|
(8,937)
|
|
(1,301)
|
Net increase /
(decrease) in cash, cash equivalents and restricted cash
|
350,467
|
|
(2,296,992)
|
|
(334,468)
|
Cash, cash equivalents
and restricted cash at beginning of period
|
9,769,361
|
|
12,603,087
|
|
1,835,152
|
Cash, cash equivalents
and restricted cash at end of period
|
10,119,828
|
|
10,306,095
|
|
1,500,684
|
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,
|
|
2022
|
|
2023
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in
thousands)
|
Cash and cash
equivalents
|
11,692,773
|
|
9,555,752
|
|
1,391,425
|
Restricted cash,
current
|
895,483
|
|
729,141
|
|
106,171
|
Restricted cash,
non-current
|
14,831
|
|
21,202
|
|
3,088
|
Total cash, cash equivalents and restricted
cash
|
12,603,087
|
|
10,306,095
|
|
1,500,684
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
|
|
Three Months Ended
March 31,
|
|
2022
|
|
2023
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in thousands, except
for share and per share data)
|
Net income
|
875,524
|
|
1,664,821
|
|
242,417
|
Add:
|
|
|
|
|
|
Share-based
compensation expense (1)
|
178,980
|
|
254,976
|
|
37,127
|
Adjusted net
income
|
1,054,504
|
|
1,919,797
|
|
279,544
|
Net income
|
875,524
|
|
1,664,821
|
|
242,417
|
Add:
|
|
|
|
|
|
Depreciation
|
601,643
|
|
651,685
|
|
94,893
|
Amortization
|
31,054
|
|
34,793
|
|
5,066
|
Interest
expenses
|
59,635
|
|
71,710
|
|
10,442
|
Income tax
expenses
|
255,219
|
|
455,007
|
|
66,254
|
EBITDA
|
1,823,075
|
|
2,878,016
|
|
419,072
|
Add:
|
|
|
|
|
|
Share-based
compensation expense
|
178,980
|
|
254,976
|
|
37,127
|
Adjusted EBITDA
|
2,002,055
|
|
3,132,992
|
|
456,199
|
________________________
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net of income taxes
of nil
|
|
|
|
|
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
|
|
Three Months Ended
March 31,
|
|
2022
|
|
2023
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in thousands, except
for share and per share data)
|
Net income attributable
to ordinary
shareholders
|
906,270
|
|
1,670,336
|
|
243,220
|
Add:
|
|
|
|
|
|
Share-based
compensation expense (1)
|
178,980
|
|
254,976
|
|
37,127
|
Adjusted Net income
attributable to ordinary shareholders
|
1,085,250
|
|
1,925,312
|
|
280,347
|
|
|
|
|
|
|
Weighted average shares
used in
share/ADS calculating net earnings per
ordinary
|
|
|
|
|
|
Basic
|
808,690,979
|
|
808,865,862
|
|
808,865,862
|
Diluted
|
808,690,979
|
|
840,491,415
|
|
840,491,415
|
|
|
|
|
|
|
Net earnings per
share/ADS attributable to
ordinary shareholders
|
|
|
|
|
|
Basic
|
1.12
|
|
2.07
|
|
0.3
|
Diluted
|
1.12
|
|
2.03
|
|
0.3
|
|
|
|
|
|
|
Adjusted net earnings
per share/ADS
attributable to ordinary
shareholders
|
|
|
|
|
|
Basic
|
1.34
|
|
2.38
|
|
0.35
|
Diluted
|
1.34
|
|
2.33
|
|
0.34
|
|
|
|
|
|
|
________________________
|
|
|
|
|
|
(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-2023-unaudited-financial-results-301827258.html
SOURCE ZTO Express (Cayman) Inc.