SHANGHAI, Aug. 22, 2017 /PRNewswire/ -- ZTO Express
(Cayman) Inc. (NYSE: ZTO) ("ZTO" or the "Company"), a leading
and fast-growing express delivery company in China, today announced its unaudited financial
results for the second quarter ended June
30, 20171.
Second Quarter 2017 Financial Highlights
- Revenues were RMB2,971.4 million
(US$438.3 million), an increase of
29.9% from the same period of 2016.
- Gross profit was RMB1,123.9
million (US$165.8 million), an
increase of 35.8% from RMB827.8
million in the same period of 2016.
- Net income was RMB716.9 million
(US$105.8 million), an increase of
68.4% from RMB425.8 million in the
same period of 2016.
- Adjusted EBITDA2 was RMB1,104.6 million (US$162.9 million), an increase of 46.6% from
RMB753.7 million in the same period
of 2016.
- Adjusted net income3 was RMB730.4 million (US$107.7
million), an increase of 43.5% from RMB509.2 million in the same period of 2016.
- Basic and diluted earnings per American depositary share
("ADS"4) were RMB1.00
(US$0.15), an increase of 40% from
RMB0.60 in the same period of
2016.
- Net cash provided by operating activities was RMB903.2 million (US$133.2
million), compared with RMB278.5
million in the same period of 2016.
1 An investor
relations presentation accompanies this earnings release and can be
found at ir.zto.com
|
2 Adjusted
EBITDA is a non-GAAP financial measure, which is defined as net
income before depreciation, amortization, interest expenses and
income tax expenses, and further adjusted to exclude
(i) shared-based compensation expense; and (ii) gain on
deemed disposal of equity method investments.
|
3 Adjusted net
income is a non-GAAP financial measure, which is defined as net
income before (i) share-based compensation expense and
(ii) gain on deemed disposal of equity method
investments.
|
4 One ADS
represents one Class A ordinary share.
|
Second Quarter 2017 Operational Highlights
- Parcel volume in the second quarter of 2017 was 1,493 million,
an increase of 37.6% from 1,085 million in the same period of
2016.
- Number of pickup/delivery outlets was approximately 28,000 as
of June 30, 2017.
- Number of network partners was over 9,300, which included over
3,700 direct network partners and over 5,600 indirect network
partners as of June 30, 2017.
- Number of line-haul vehicles was over 4,380 as of June 30, 2017, which included around 3,190
self-owned vehicles and around 1,190 vehicles owned and operated by
Tonglu Tongze Logistics Ltd., a transportation operator that works
exclusively for ZTO.
- Number of self-owned trucks increased to around 3,190 as of
June 30, 2017 from 3,000 as of
March 31, 2017. Among the self-owned trucks, over 1,260 were
high capacity 15-17 meter long models as of June 30, 2017, compared to over 1,200 as of
March 31, 2017.
- Number of line-haul routes between sorting hubs was over 1,780
as of June 30, 2017.
- Number of sorting hubs was 77 as of June
30, 2017, among which 71 are operated by the Company and 6
by the Company's network partners.
"Our business continued to gain growth momentum with parcel
volume growth again exceeding the industry average," commented Mr.
Meisong Lai, founder and Chief
Executive Officer. "Our parcel volume grew by 37.6% year-over-year
during the quarter, well above the increase of 30.7% for the
industry overall during the same period. Our market share continued
to expand as well, underlining just how effective our strategy of
balancing growth with service quality and profitability is in
strengthening our industry-leading position and aligning the
interest of our network partners with ZTO. We continued to optimize
parcel mix during the quarter by focusing more on more profitable
parcels to improve efficiency and lower unit cost. This resulted in
lower average revenue per parcel as parcel weight fell, but our
margins continued to expand thanks to our economies of scale and
the various cost cutting measures we have been implementing, all
without affecting the high quality service we are known for.
According to data published by the PRC State Post Bureau, ZTO once
again received one of the highest scores for customer satisfaction
among the major express delivery companies in China during the quarter. We are increasingly
benefiting from our economies of scale and lower unit operating
costs. We continue to strengthen our cost leadership position by
improving operational efficiency with more automated sorting
equipment, putting more of our self-owned fleet on the road instead
of outsourced transportation, and increasing the use of digital
waybills. These measures contributed to a decrease in cost of
revenue per parcel to RMB1.24 during
the quarter from RMB1.34 in the same
period last year."
"Our financial performance during the quarter demonstrates how
we are benefiting from larger economies of scale and our cost
cutting measures," commented Mr. James
Guo, Chief Financial Officer of ZTO. "This is especially
evident with the expansion of our margins. Our gross margin,
operating margin, net margin and non-GAAP net margin expanded to
37.8%, 31.0%, 24.1% and 24.6%, respectively, compared to 36.2%,
26.3%, 18.6% and 22.3%, respectively, during the same period last
year."
Second Quarter 2017 Financial
Results
|
|
Three Months Ended June
30,
|
|
Six
Months Ended June 30,
|
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
RMB
|
|
%
|
|
RMB
|
|
US$
|
|
%
|
|
RMB
|
|
%
|
|
RMB
|
|
US$
|
|
%
|
|
|
|
(in thousands, except percentages)
|
|
Express delivery
services
|
|
2,188,817
|
|
95.7
|
|
2,837,699
|
|
418,583
|
|
95.5
|
|
4,083,407
|
|
96.2
|
|
5,348,367
|
|
788,926
|
|
95.7
|
|
Sale of
accessories
|
|
97,812
|
|
4.3
|
|
133,735
|
|
19,727
|
|
4.5
|
|
161,770
|
|
3.8
|
|
237,661
|
|
35,057
|
|
4.3
|
|
Total
revenues
|
|
2,286,629
|
|
100.0
|
|
2,971,434
|
|
438,310
|
|
100.0
|
|
4,245,177
|
|
100.0
|
|
5,586,028
|
|
823,983
|
|
100.0
|
|
Revenues were RMB2,971.4
million (US$438.3 million), an
increase of 29.9% from RMB2,286.6
million in the same period of 2016. The increase was mainly
driven by an increase in parcel volume as a result of overall
market growth and an increase in the Company's market share in
terms of parcel volume. The Company's parcel volume grew to 1,493
million during the second quarter of 2017, an increase of 37.6%
from 1,085 million in the same period of 2016.
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
RMB
|
|
% of
revenues
|
|
RMB
|
|
US$
|
|
% of
revenues
|
|
RMB
|
|
% of
revenues
|
|
RMB
|
|
US$
|
|
% of
revenues
|
|
|
|
(in thousands, except percentages)
|
|
Line-haul
transportation
cost
|
|
822,625
|
|
36.0
|
|
1,062,504
|
|
156,728
|
|
35.8
|
|
1,604,216
|
|
37.8
|
|
2,182,592
|
|
321,950
|
|
39.1
|
|
Sorting hub
cost
|
|
452,652
|
|
19.8
|
|
527,868
|
|
77,865
|
|
17.8
|
|
885,363
|
|
20.9
|
|
1,084,054
|
|
159,906
|
|
19.4
|
|
Cost of accessories
sold
|
|
72,149
|
|
3.1
|
|
83,685
|
|
12,344
|
|
2.8
|
|
118,540
|
|
2.8
|
|
146,134
|
|
21,556
|
|
2.6
|
|
Other costs
|
|
111,384
|
|
4.9
|
|
173,468
|
|
25,587
|
|
5.8
|
|
207,791
|
|
4.9
|
|
318,690
|
|
47,009
|
|
5.7
|
|
Total cost of
revenues
|
|
1,458,810
|
|
63.8
|
|
1,847,525
|
|
272,524
|
|
62.2
|
|
2,815,910
|
|
66.4
|
|
3,731,470
|
|
550,421
|
|
66.8
|
|
Total cost of revenues were RMB1,847.5 million (US$272.5 million), an increase of 26.6% from
RMB1,458.8 million in the same period
last year. The increase was primarily a result of increases in
line-haul transportation costs, sorting hub operating costs, cost
of accessories sold, and other costs, which were partially offset
by a decrease in waybill material cost due to the increased use of
digital waybills by the Company's end customers which bear lower
costs than paper waybills.
- Line haul transportation cost was RMB1,062.5 million (US$156.7 million), an increase of 29.2% from
RMB822.6 million in the same period
last year. The increase was mainly due to an increase of
RMB206.8 million (US$30.5 million) in costs associated with the
Company's self-owned fleet which includes fuel, tolls, drivers'
compensation, depreciation and maintenance expenses, and an
increase of RMB62.6 million
(US$9.2 million) in outsourced
transportation costs. Line haul transportation cost increased at a
lower rate than parcel volume as the Company continues to optimize
parcel mix by focusing more on profitable parcels. As a percentage
of revenues, line haul transportation cost accounted for 35.8%, a
decrease from 36.0% in the same period last year, mainly due to
(i) economies of scale, (ii) increased use of self-owned,
more cost-efficient, higher capacity trailer trucks in place of
third-party trucks and outsourced transportation, and
(iii) increased truck utilization through optimized route
planning and increased back-haul transportation.
- Sorting hub operating cost was RMB527.9 million (US$77.9 million), an increase of 16.6% from
RMB452.7 million in the same
period last year. The increase was mainly due to (i) increased
labor costs of RMB22.7 million
(US$3.3 million) as a result of an
increase in headcount; (ii) an RMB30.7
million (US$4.5 million)
increase in depreciation and amortization costs, and (iii) an
increase of RMB11.4 million
(US$1.7 million) in rental and
related utilities costs. As a percentage of revenues, sorting hub
operating cost accounted for 17.8%, a decrease from 19.8% in the
same period last year, mainly due to economies of scale and
improved operating efficiency as a result of the increased use of
automation in the Company's sorting facilities.
- Cost of accessories was RMB83.7 million (US$12.3 million), an increase of 16.0% from
RMB72.1 million in the same
period last year. The increase was in line with growth in the
Company's revenue from the sale of accessories to its network
partners, which includes thermal paper for digital waybill
printing, portable bar code readers, and ZTO-branded packaging
materials and uniforms. As a percentage of revenues, cost of
accessories accounted for 2.8%, a decrease from 3.1% in the same
period last year.
- Other costs were RMB173.5 million (US$25.6 million), an increase of 55.7% from
RMB111.4 million in the same
period last year, primarily due to an increase in dispatching costs
associated with serving enterprise customers, which were partially
offset by a decrease in costs associated with the increased use of
digital waybills.
Gross Profit was RMB1,123.9 million (US$165.8 million), an increase of 35.8% from
RMB827.8 million in the same period
last year. Gross margin increased to 37.8% from 36.2% in the same
period last year, mainly attributable to the decrease in line-haul
transportation cost and sorting hub cost.
Total Operating Expenses were RMB202.6 million (US$29.9
million), a decrease of 10.2% from RMB225.7 million in the same period last
year.
- Selling, general and administrative expenses were
RMB202.7 million (US$29.9 million), a decrease of 7.1% from
RMB218.1 million in the same period
last year. The decrease was mainly due to a decrease in share-based
compensation expenses from RMB83.4
million in the second quarter of 2016 to RMB13.5 million in the second quarter of 2017.
The decrease in share-based compensation expenses was partially
offset by an increase in other employee compensation expenses
including accrual of cost saving incentives and bonuses of
RMB49.4 million, and a provision for
bad debt expense of RMB7.0 million in
the second quarter of 2017. As a percentage of revenue, selling,
general and administrative expenses accounted for 6.8%, compared to
9.5% during the same period last year, primarily due to reduced
share-based compensation expenses and higher operating
leverage.
Income from operations was RMB921.3 million (US$135.9
million), an increase of 53.0% from RMB602.1 million in the same period last year.
Operating margin increased to 31.0% from 26.3% in the same period
last year, primarily due to increases in economies of scale and
continuous improvement in operating efficiency.
Interest income was RMB39.6
million (US$5.8 million),
compared with RMB11.8 million in the
same period in 2016, primarily due to the increased amount of cash
and bank deposits available for investment since the Company's
initial public offering in October
2016.
Interest expense was RMB5.0
million (US$0.7 million),
compared with RMB4.7 million in the
same period in 2016.
Foreign currency exchange loss, before tax was
RMB2.9 million (US$0.4 million), which was mainly due to the
depreciation of the U.S. dollar against the Chinese Renminbi.
Net income was RMB716.9
million (US$105.8 million),
compared with RMB425.8 million in the
same period last year.
Basic and diluted earnings per ADS were RMB1.00 (US$0.15),
compared with basic and diluted earnings per ADS of RMB0.60 in the same period last year.
Adjusted net income was RMB730.4
million (US$107.7 million),
compared with adjusted net income of RMB509.2 million during the same quarter last
year.
EBITDA was RMB1,091.1million (US$160.9 million), compared with RMB670.3 million in the same period last
year.
Adjusted EBITDA was RMB1,104.6million (US$162.9 million), compared to RMB753.7 million in the same period last
year.
Net cash provided by operating activities was
RMB903.2million (US$133.2million), compared with 278.5 million in
the same period last year, mainly attributable to growth in net
income and increased deposits for last-mile delivery fees.
Business Outlook
Based on current market conditions and current operations,
revenues for the third quarter of 2017 is expected to be in the
range of RMB2.9 billion (US$427.8 million) to RMB3.0 billion
(US$442.5 million), representing a
23.2 % to 27.5% increase from the same period of 2016. This
represents management's current and preliminary view, which is
subject to change.
Company Share Purchase
On May 21, 2017, the Company
announced a new share repurchase program whereby ZTO is authorized
to repurchase its own Class A ordinary shares in the form of ADSs
with an aggregate value of up to US$300
million during the 12-month period thereafter. As of
June 30, 2017, the Company has
purchased an aggregate of 2,623,414 ADSs at an average purchase
price of US$14.33.
The Company believes that the share repurchase program
represents ZTO's confidence in its cash flow and the long-term
outlook for the express delivery industry in China. ZTO's fast-growing strategy,
asset-light business model and solid operations allow the Company
to generate strong cash flow. The Company believes that the share
repurchase program is consistent with the goal of increasing
shareholders' value.
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
RMB6.7793 to US$1.00, the noon buying rate on June 30, 2017 as set forth in the H.10
statistical release of the Board of Governors of the Federal
Reserve Systems.
Use of Non-GAAP Financial Measures
The Company uses adjusted EBITDA and adjusted net income, each a
non-GAAP financial measure, in evaluating ZTO's operating results
and for financial and operational decision-making purposes.
Reconciliations of the Company's non-GAAP financial measures to
its U.S. GAAP financial measures are shown in tables at the end of
this earnings release, which provide more details about the
non-GAAP financial measures.
The Company believes that adjusted EBITDA and adjusted net
income help identify underlying trends in ZTO's business that could
otherwise be distorted by the effect of the expenses and gains that
the Company includes in income from operations and net income. The
Company believes that adjusted EBITDA and adjusted net income
provide useful information about its operating results, enhance the
overall understanding of its past performance and future prospects
and allow for greater visibility with respect to key metrics used
by ZTO's management in its financial and operational
decision-making.
Adjusted EBITDA and adjusted net income should not be considered
in isolation or construed as an alternative to net income or any
other measure of performance or as an indicator of the Company's
operating performance. Investors are encouraged to review the
historical non-GAAP financial measures to the most directly
comparable GAAP measures. Adjusted EBITDA and adjusted net income
presented here may not be comparable to similarly titled measures
presented by other companies. Other companies may calculate
similarly titled measures differently, limiting their usefulness as
comparative measures to ZTO's data. ZTO encourages investors and
others to review the Company's financial information in its
entirety and not rely on a single financial measure.
Conference Call Information
ZTO's management team will host an earnings conference call at
9:00 PM U.S. Eastern Time on
Tuesday, August 22, 2017
(9:00 AM Beijing Time on August 23, 2017).
Dial-in details for the earnings conference call are as
follows:
United
States:
|
1-888-317-6003
|
Hong Kong:
|
852-5808-1995
|
China:
|
4001-206115
|
International:
|
1-412-317-6061
|
Passcode:
|
6665002
|
Please dial in ten 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 August 29,
2017:
United
States:
|
1-877-344-7529
|
|
|
International:
|
1-412-317-0088
|
|
|
Passcode:
|
10111460
|
Additionally, a live and archived webcast of the conference call
will be available at http://zto.investorroom.com.
About ZTO Express (Cayman) Inc.
ZTO Express (Cayman) Inc. (NYSE: ZTO) ("ZTO" or the "Company")
is a leading and fast-growing express delivery company in
China. ZTO provides express
delivery service as well as other value-added logistics services
through its extensive and reliable nationwide network coverage in
China.
ZTO operates a highly scalable network partner model, which the
Company believes is best suited to support the significant growth
of e-commerce in China. The
Company leverages its network partners to provide pickup and
last-mile delivery services, while controlling the mission-critical
line-haul transportation and sorting network within the express
delivery service value chain.
For more information, please visit
http://zto.investorroom.com.
Safe Harbor Statement
This news release contains "forward-looking" statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended, and as defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
include but are not limited to ZTO management quotes and the
Company's financial outlook.
These forward-looking statements are not historical facts but
instead represent only the Company's belief regarding expected
results and events, many of which, by their nature, are inherently
uncertain and outside of its control. The Company's actual results
and other circumstances may differ, possibly materially, from the
anticipated results and events indicated in these forward-looking
statements. Announced results for the second quarter of 2017 are
preliminary, unaudited and subject to audit adjustment. In
addition, the Company may not meet its financial outlook included
in this news release and may be unable to grow its business in the
manner planned. The Company may also modify its strategy for
growth. In addition, there are other risks and uncertainties that
could cause the Company's actual results to differ from what it
currently anticipates, including those relating to the development
of the e-commerce industry in China, its significant reliance on the Alibaba
ecosystem, risks associated with its network partners and their
employees and personnel, intense competition which could
adversely affect the Company's results of operations and
market share, any service disruption of the Company's sorting
hubs or the outlets operated by its network partners or its
technology system. For additional information on these and other
important factors that could adversely affect the Company's
business, financial condition, results of operations, and
prospects, please see its filings with the U.S. Securities and
Exchange Commission.
All information provided in this press release and in the
attachments is as of the date of the press release. The Company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events or otherwise,
after the date of this release, except as required by law. Such
information speaks only as of the date of this release.
UNAUDITED
CONSOLIDATED FINANCIAL DATA
|
|
Summary of
Unaudited Consolidated Comprehensive
Income Data:
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
2,286,629
|
|
2,971,434
|
|
438,310
|
|
4,245,177
|
|
5,586,028
|
|
823,983
|
|
Cost of
revenues
|
|
(1,458,810)
|
|
(1,847,525)
|
|
(272,524)
|
|
(2,815,910)
|
|
(3,731,470)
|
|
(550,421)
|
|
Gross profit
|
|
827,819
|
|
1,123,909
|
|
165,786
|
|
1,429,267
|
|
1,854,558
|
|
273,562
|
|
Operating income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
(218,097)
|
|
(202,664)
|
|
(29,895)
|
|
(380,728)
|
|
(364,638)
|
|
(53,787)
|
|
Other operating
income, net
|
|
(7,617)
|
|
18
|
|
3
|
|
8,023
|
|
88,057
|
|
12,989
|
|
Total operating
expenses
|
|
(225,714)
|
|
(202,646)
|
|
(29,892)
|
|
(372,705)
|
|
(276,581)
|
|
(40,798)
|
|
Income from
operations
|
|
602,105
|
|
921,263
|
|
135,894
|
|
1,056,562
|
|
1,577,977
|
|
232,764
|
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
11,754
|
|
39,573
|
|
5,837
|
|
20,811
|
|
68,197
|
|
10,060
|
|
Interest
expense
|
|
(4,742)
|
|
(5,029)
|
|
(742)
|
|
(8,386)
|
|
(10,737)
|
|
(1,584)
|
|
Gain on deemed
disposal of equity method
investments
|
|
—
|
|
—
|
|
—
|
|
9,551
|
|
—
|
|
—
|
|
Foreign currency
exchange loss, before tax
|
|
—
|
|
(2,872)
|
|
(424)
|
|
—
|
|
(5,844)
|
|
(862)
|
|
Income before income
tax, and share of loss in
equity method investments
|
|
609,117
|
|
952,935
|
|
140,565
|
|
1,078,538
|
|
1,629,593
|
|
240,378
|
|
Income tax
expense
|
|
(171,954)
|
|
(233,323)
|
|
(34,417)
|
|
(293,972)
|
|
(399,932)
|
|
(58,993)
|
|
Share of loss in
equity method investments
|
|
(11,361)
|
|
(2,689)
|
|
(397)
|
|
(19,950)
|
|
(9,868)
|
|
(1,456)
|
|
Net income
|
|
425,802
|
|
716,923
|
|
105,751
|
|
764,616
|
|
1,219,793
|
|
179,929
|
|
Net loss (income)
attributable to
noncontrolling interests
|
|
2,017
|
|
(88)
|
|
(13)
|
|
1,978
|
|
593
|
|
87
|
|
Net income attributable
to ZTO Express
(Cayman) Inc.
|
|
427,819
|
|
716,835
|
|
105,738
|
|
766,594
|
|
1,220,386
|
|
180,016
|
|
Change in redemption
value of convertible
redeemable preferred shares
|
|
(41,048)
|
|
—
|
|
—
|
|
(79,723)
|
|
—
|
|
—
|
|
Net income attributable
to ordinary
shareholders
|
|
386,771
|
|
716,835
|
|
105,738
|
|
686,871
|
|
1,220,386
|
|
180,016
|
|
Net earnings per
share/ADS attributable to
ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.60
|
|
1.00
|
|
0.15
|
|
1.07
|
|
1.69
|
|
0.25
|
|
Diluted
|
|
0.60
|
|
1.00
|
|
0.15
|
|
1.07
|
|
1.69
|
|
0.25
|
|
Weighted average shares
used in calculating
net earnings per ordinary
share/ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
613,976,791
|
|
719,716,569
|
|
719,716,569
|
|
613,901,657
|
|
720,138,244
|
|
720,138,244
|
|
Diluted
|
|
613,976,791
|
|
719,908,261
|
|
719,908,261
|
|
613,901,657
|
|
720,614,499
|
|
720,614,499
|
|
Other comprehensive
income, net of tax of nil:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
32,911
|
|
(144,409)
|
|
(21,301)
|
|
25,829
|
|
(233,422)
|
|
(34,432)
|
|
Comprehensive
income
|
|
458,713
|
|
572,514
|
|
84,450
|
|
790,445
|
|
986,371
|
|
145,497
|
|
Comprehensive loss
(income) attributable to
noncontrolling interests
|
|
2,017
|
|
(88)
|
|
(13)
|
|
1,978
|
|
593
|
|
87
|
|
Comprehensive income
attributable to ZTO
Express (Cayman) Inc.
|
|
460,730
|
|
572,426
|
|
84,437
|
|
792,423
|
|
986,964
|
|
145,584
|
|
Unaudited
Consolidated Balance Sheets Data:
|
|
|
|
As of
|
|
|
|
December 31,
2016
|
|
June
30, 2017
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
11,287,789
|
|
5,714,086
|
|
842,873
|
|
Restricted
cash
|
|
635,366
|
|
350,004
|
|
51,628
|
|
Accounts receivable,
net of allowance for doubtful accounts of
RMB5,124 and RMB13,726 at December 31, 2016 and
June 30,
2017, respectively
|
|
197,803
|
|
184,466
|
|
27,210
|
|
Short-term
investment
|
|
—
|
|
5,186,165
|
|
765,000
|
|
Inventories
|
|
33,959
|
|
28,677
|
|
4,230
|
|
Advances to
suppliers
|
|
646,666
|
|
229,909
|
|
33,913
|
|
Prepayments and other
current assets
|
|
379,055
|
|
552,394
|
|
81,482
|
|
Amounts due from
related parties
|
|
5,400
|
|
9,900
|
|
1,460
|
|
Total current
assets
|
|
13,186,038
|
|
12,255,601
|
|
1,807,796
|
|
Investments in equity
investees
|
|
537,175
|
|
526,987
|
|
77,735
|
|
Property and
equipment, net
|
|
4,065,562
|
|
5,155,793
|
|
760,520
|
|
Land use rights,
net
|
|
1,302,869
|
|
1,468,888
|
|
216,673
|
|
Goodwill
|
|
4,157,111
|
|
4,157,111
|
|
613,207
|
|
Deferred tax
assets
|
|
109,030
|
|
190,296
|
|
28,070
|
|
Other non-current
assets
|
|
45,953
|
|
42,953
|
|
6,336
|
|
TOTAL
ASSETS
|
|
23,403,738
|
|
23,797,629
|
|
3,510,337
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Short-term bank
borrowing
|
|
450,000
|
|
250,000
|
|
36,877
|
|
Accounts
payable
|
|
636,422
|
|
491,921
|
|
72,562
|
|
Advances from
customers
|
|
229,724
|
|
187,842
|
|
27,708
|
|
Income tax
payable
|
|
418,310
|
|
329,352
|
|
48,582
|
|
Amounts due to
related parties
|
|
131,425
|
|
151,951
|
|
22,414
|
|
Other current
liabilities
|
|
1,656,590
|
|
1,687,661
|
|
248,944
|
|
Total current
liabilities
|
|
3,522,471
|
|
3,098,727
|
|
457,087
|
|
Deferred tax
liabilities
|
|
130,520
|
|
129,050
|
|
19,036
|
|
Other non-current
liabilities
|
|
—
|
|
75,381
|
|
11,119
|
|
TOTAL
LIABILITIES
|
|
3,652,991
|
|
3,303,158
|
|
487,242
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Ordinary shares
(US$0.0001 par value; 10,000,000,000 shares authorized,
731,406,440 shares issued and 720,564,604 shares
outstanding as of
December 31, 2016, and 717,941,190 shares
outstanding as of June 30,
2017)
|
|
471
|
|
471
|
|
69
|
|
Additional paid-in
capital
|
|
15,940,206
|
|
15,953,949
|
|
2,353,333
|
|
Treasury shares, at
cost
|
|
—
|
|
(256,390)
|
|
(37,820)
|
|
Retained
earnings
|
|
3,509,707
|
|
4,730,093
|
|
697,726
|
|
Accumulated other
comprehensive (loss) income
|
|
294,649
|
|
61,227
|
|
9,031
|
|
ZTO Express
(Cayman) Inc. shareholders' equity
|
|
19,745,033
|
|
20,489,350
|
|
3,022,339
|
|
Noncontrolling
interests
|
|
5,714
|
|
5,121
|
|
756
|
|
Total
Equity
|
|
19,750,747
|
|
20,494,471
|
|
3,023,095
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
23,403,738
|
|
23,797,629
|
|
3,510,337
|
|
Summary of
Unaudited Consolidated Cash Flow Data:
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating
activities
|
|
278,480
|
|
903,248
|
|
133,237
|
|
542,060
|
|
1,234,756
|
|
182,138
|
|
Net cash used in
investing
activities5
|
|
(462,792)
|
|
(1,137,348)
|
|
(167,767)
|
|
(1,108,727)
|
|
(6,443,242)
|
|
(950,429)
|
|
Net cash provided by
financing activities
|
|
—
|
|
(706,390)
|
|
(104,199)
|
|
98,000
|
|
(456,390)
|
|
(67,322)
|
|
Effect of exchange rate
changes
on cash and cash equivalents
|
|
25,556
|
|
(70,009)
|
|
(10,327)
|
|
19,685
|
|
(194,189)
|
|
(28,644)
|
|
Net decrease in cash
and cash
equivalents
|
|
(158,756)
|
|
(1,010,499)
|
|
(149,056)
|
|
(448,982)
|
|
(5,859,065)
|
|
(864,257)
|
|
Cash and cash
equivalents at
beginning of period6
|
|
2,428,536
|
|
7,074,589
|
|
1,043,557
|
|
2,718,762
|
|
11,923,155
|
|
1,758,758
|
|
Cash and cash
equivalents at end
of period6
|
|
2,269,780
|
|
6,064,090
|
|
894,501
|
|
2,269,780
|
|
6,064,090
|
|
894,501
|
|
|
|
5 The amount of cash
used in investing activities mainly includes purchases of the fixed
term bank deposits with an original maturity of six to nine months.
For the first and second quarter of 2017, the Company purchased
approximately RMB4.8 billion (US$700.0 million) and RMB440.7
million (US$65.0 million) of such deposits.
|
6 In November 2016,
the FASB issued ASU No. 2016-18 ("ASU 2016-18"), Statement of Cash
Flows (Topic 230) - Restricted Cash. This ASU requires amounts
generally described as restricted cash and restricted cash
equivalents to be included with cash and cash equivalents when
reconciling beginning-of-period and end-of-period total amounts
shown on the statement of cash flows. The provisions of ASU 2016-18
are effective for reporting periods beginning after December 15,
2017 and are to be applied retrospectively; early adoption is
permitted. We elected, as permitted by the standards, to early
adopt ASU 2016-18 in the first quarter of 2017. In connection with
the adoption of this update, we have reclassified RMB85.4 million
and RMB54.9 million of restricted cash from operating activities to
the cash, cash equivalents, and restricted cash balance in the
three-month and six-month periods ended June 30, 2016,
respectively, to be consistent with the 2017
presentation.
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
Net income
|
|
425,802
|
|
716,923
|
|
105,751
|
|
764,616
|
|
1,219,793
|
|
179,929
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
|
83,366
|
|
13,492
|
|
1,990
|
|
122,000
|
|
13,743
|
|
2,027
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on deemed
disposal of equity
method investment
|
|
—
|
|
—
|
|
—
|
|
(9,551)
|
|
—
|
|
—
|
|
Adjusted net
income
|
|
509,168
|
|
730,415
|
|
107,741
|
|
877,065
|
|
1,233,536
|
|
181,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
425,802
|
|
716,923
|
|
105,751
|
|
764,616
|
|
1,219,793
|
|
179,929
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
62,453
|
|
127,083
|
|
18,746
|
|
113,461
|
|
249,094
|
|
36,743
|
|
Amortization
|
|
5,349
|
|
8,702
|
|
1,284
|
|
10,037
|
|
16,297
|
|
2,404
|
|
Interest
expenses
|
|
4,742
|
|
5,029
|
|
742
|
|
8,386
|
|
10,737
|
|
1,584
|
|
Income tax
expenses
|
|
171,954
|
|
233,323
|
|
34,417
|
|
293,972
|
|
399,932
|
|
58,993
|
|
EBITDA
|
|
670,300
|
|
1,091,060
|
|
160,940
|
|
1,190,472
|
|
1,895,853
|
|
279,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
|
83,366
|
|
13,492
|
|
1,990
|
|
122,000
|
|
13,743
|
|
2,027
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on deemed
disposal of equity
method investments
|
|
—
|
|
—
|
|
—
|
|
(9,551)
|
|
—
|
|
—
|
|
Adjusted
EBITDA
|
|
753,666
|
|
1,104,552
|
|
162,930
|
|
1,302,921
|
|
1,909,596
|
|
281,680
|
|
For investor and media inquiries, please contact:
ZTO
Ms. Sophie Li
Investor Relations Director
E-mail: ir@zto.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In US
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com
View original
content:http://www.prnewswire.com/news-releases/zto-reports-second-quarter-2017-unaudited-financial-results-300507678.html
SOURCE ZTO Express (Cayman) Inc.