ZTO Reports First Quarter 2024 Unaudited Financial Results
Emphasizing Profitable Growth amidst Consumption Mix-shift
Adjusted Net Income
Grew 15.8%
to RMB2.2 Billion
Parcel Volume Increased 13.9% to 7.2 Billion
First Quarter 2024 Financial Highlights
- Revenues were
RMB9,960.0 million (US$1,379.4 million ), an increase of 10.9% fromRMB8,983.2 million in the same period of 2023. - Gross profit was
RMB3,002.1million (US$415.8million ), an increase of 19.0% fromRMB2,523.4 million in the same period of 2023. - Net income was
RMB1,447.7 million (US$200.5 million ), a decrease of 13.0% fromRMB1,664.8 million in the same period of 2023. - Adjusted EBITDA[3] was
RMB3,660.4 million (US$507.0 million ), an increase of 16.8% fromRMB3,133.0 million in the same period of 2023. - Adjusted net income was
RMB2,224.0 million (US$308.0 million ), an increase of 15.8% fromRMB1,919.8 million in the same period of 2023. - Basic and diluted net earnings per American depositary share ("ADS"[4]) were
RMB1.77 (US$0.25 ) andRMB1.75 (US$0.24 ), a decrease of 14.5% and 13.8% fromRMB2.07 andRMB2.03 in the same period of 2023, respectively. - Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders[5] were
RMB2.74 (US$0.38 ) andRMB2.68 (US$0.37 ), an increase of 15.1% and 15.0% fromRMB2.38 andRMB2.33 in the same period of 2023, respectively. - Net cash provided by operating activities was
RMB2,031.0 million (US$281.3 million ), compared withRMB2,738.0 million in the same period of 2023.
Operational Highlights for First Quarter 2024
- Parcel volume was 7,171 million, an increase of 13.9% from 6,297 million in the same period of 2023.
- Number of pickup/delivery outlets was over 31,000 as of
March 31, 2024 . - Number of direct network partners was over 6,000 as of
March 31, 2024 . - Number of self-owned line-haul vehicles was approximately 10,000 as of
March 31, 2024 . - Out of the approximately 10,000 self-owned trucks, approximately 9,100 were high capacity 15 to 17-meter-long models as of
March 31, 2024 , compared to approximately 9,500 as ofMarch 31, 2023 . - Number of line-haul routes between sorting hubs was approximately 3,800 as of
March 31, 2024 , which is similar to the same period last year - Number of sorting hubs was 96 as of
March 31, 2024 , among which 88 are operated by the Company and 8 by the Company's network partners.
(1) An investor relations presentation accompanies this earnings release and can be found at http://zto.investorroom.com. |
(2) Adjusted net income is a non-GAAP financial measure, which is defined as net income before share-based compensation expense and non-recurring items such as gain or loss on disposal of equity investments and subsidiaries and corresponding tax impact which management aims to better represent the underlying business operations. |
(3) Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses, and further adjusted to exclude the shared-based compensation expense and non-recurring items such as the gain on disposal of equity investments and subsidiaries which management aims to better represent the underlying business operations. |
(4) One ADS represents one Class A ordinary share. |
(5) Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders is a non-GAAP financial measure. It is defined as adjusted net income attributable to ordinary shareholders divided by weighted average number of basic and diluted American depositary shares, respectively. |
Mr.
Ms.
First Quarter 2024 Unaudited Financial Results |
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|
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Three Months Ended |
||||||||
|
2023 |
|
2024 |
||||||
|
RMB |
|
% |
|
RMB |
|
US$ |
|
% |
|
(in thousands, except percentages) |
||||||||
Express delivery services |
8,388,743 |
|
93.4 |
|
9,240,172 |
|
1,279,749 |
|
92.8 |
Freight forwarding services |
192,725 |
|
2.1 |
|
202,747 |
|
28,080 |
|
2.0 |
Sale of accessories |
368,838 |
|
4.1 |
|
485,062 |
|
67,180 |
|
4.9 |
Others |
32,933 |
|
0.4 |
|
32,025 |
|
4,436 |
|
0.3 |
Total revenues |
8,983,239 |
|
100.0 |
|
9,960,006 |
|
1,379,445 |
|
100.0 |
Total Revenues were
|
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|
Three Months Ended |
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|||||
|
2023 |
|
2024 |
||||||
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% of |
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|
|
|
|
% of |
|
RMB |
|
revenues |
|
RMB |
|
US$ |
|
revenues |
|
|
|
(in thousands, except percentages) |
|
|
||||
Line-haul transportation cost |
3,181,820 |
|
35.4 |
|
3,371,493 |
|
466,946 |
|
33.9 |
Sorting hub operating cost |
2,013,371 |
|
22.4 |
|
2,168,201 |
|
300,292 |
|
21.8 |
Freight forwarding cost |
182,972 |
|
2.0 |
|
188,382 |
|
26,091 |
|
1.9 |
Cost of accessories sold |
107,428 |
|
1.2 |
|
133,047 |
|
18,427 |
|
1.3 |
Other costs |
974,240 |
|
10.9 |
|
1,096,798 |
|
151,905 |
|
11.0 |
Total cost of revenues |
6,459,831 |
|
71.9 |
|
6,957,921 |
|
963,661 |
|
69.9 |
Total cost of revenues was
Line haul transportation cost was
Sorting hub operating cost was
Cost of accessories sold was
Other costs were
Gross Profit was
Total Operating Expenses were
Selling, general and administrative expenses were
Other operating income was
Income from operations was
Interest income was
Interest expenses was
Gain
from fair value changes of financial instruments was
Impairment of investment in equity investee was
Income tax expenses were
Net income was
Basic and diluted earnings per ADS attributable to ordinary shareholders were
Adjusted basic and diluted earnings per ADS attributable to ordinary shareholders were
Adjusted net income was
EBITDA
[1] was
Adjusted EBITDA was
Net cash provided by operating activities was
(1) EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses which management aims to better represent the underlying business operations. |
Business Outlook
Based on current market conditions and current operations, the Company reiterates that its parcel volume for 2024 is expected to be in the range of 34.73 billion to 35.64 billion, representing a 15% to 18% increase year over year. Such estimates represent management's current and preliminary view, which are subject to change.
Sale of Equity Investment In Cainiao
On
Appointment of President
Mr.
Exchange Rate
This announcement contains translation of certain Renminbi amounts into
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
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
Dial-in details for the earnings conference call are as follows:
United States: |
1-888-317-6003 |
|
800-963-976 |
Mainland |
4001-206-115 |
|
800-120-5863 |
International: |
1-412-317-6061 |
Passcode: |
1526153 |
Please dial in 15 minutes before the call is scheduled to begin and provide the passcode to join the call.
A replay of the conference call may be accessed by phone at the following numbers until
United States: |
1-877-344-7529 |
International: |
1-412-317-0088 |
Passcode: |
5307524 |
Additionally, a live and archived webcast of the conference call will be available at http://zto.investorroom.com.
About
ZTO operates a highly scalable network partner model, which the Company believes is best suited to support the significant growth of e-commerce in
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
UNAUDITED CONSOLIDATED FINANCIAL DATA |
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Summary of Unaudited Consolidated Comprehensive Income Data: |
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Three Months Ended |
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|
2023 |
|
2024 |
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|
RMB |
|
RMB |
|
|
US$ |
|
||
|
(in thousands, except for share and per share data) |
|
|||||||
Revenues |
8,983,239 |
|
9,960,006 |
|
|
1,379,445 |
|
||
Cost of revenues |
(6,459,831) |
|
(6,957,921) |
|
|
(963,661) |
|
||
Gross profit |
2,523,408 |
|
3,002,085 |
|
|
415,784 |
|
||
Operating (expenses)/income: |
|
|
|
|
|
|
|
||
Selling, general and administrative |
(786,607) |
|
(896,641) |
|
|
(124,183) |
|
||
Other operating income, net |
213,641 |
|
161,257 |
|
|
22,334 |
|
||
Total operating expenses |
(572,966) |
|
(735,384) |
|
|
(101,849) |
|
||
Income from operations |
1,950,442 |
|
2,266,701 |
|
|
313,935 |
|
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Other income / (expenses): |
|
|
|
|
|
|
|
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Interest income |
91,912 |
|
245,021 |
|
|
33,935 |
|
||
Interest expense |
(71,710) |
|
(83,916) |
|
|
(11,622) |
|
||
G ain from fair value changes of financial instruments |
155,573 |
|
42,720 |
|
|
5,917 |
|
||
Gain on disposal of equity investees and subsidiaries and others |
- |
|
451 |
|
|
62 |
|
||
Impairment of investment in equity investee |
- |
|
(478,364) |
|
|
(66,253) |
|
||
Foreign currency exchange ( loss )/gain before tax |
(10,213) |
|
5,384 |
|
|
746 |
|
||
Income before income tax, and share of gain in equity method investments |
2,116,004 |
|
1,997,997 |
|
|
276,720 |
|
||
Income tax expense |
(455,007) |
|
(566,305) |
|
|
(78,432) |
|
||
Share of gain in equity method investments |
3,824 |
|
16,055 |
|
|
2,224 |
|
||
Net income |
1,664,821 |
|
1,447,747 |
|
|
200,512 |
|
||
Net loss/(income) attributable to non-controlling interests |
5,515 |
|
(21,701) |
|
|
(3,006) |
|
||
Net income attributable to |
1,670,336 |
|
1,426,046 |
|
|
197,506 |
|
||
Net income attributable to ordinary shareholders |
1,670,336 |
|
1,426,046 |
|
|
197,506 |
|
||
Net earnings per share attributed to ordinary shareholders |
|
|
|
|
|
|
|
||
Basic |
2.07 |
|
1.77 |
|
|
0.25 |
|
||
Diluted |
2.03 |
|
1.75 |
|
|
0.24 |
|
||
Weighted average shares used in calculating net earnings per ordinary share/ADS |
|
|
|
|
|
|
|
||
Basic |
808,865,862 |
|
804,935,791 |
|
|
804,935,791 |
|
||
Diluted |
840,491,415 |
|
836,144,858 |
|
|
836,144,858 |
|
||
Net income |
1,664,821 |
|
1,447,747 |
|
|
200,512 |
|
||
Other comprehensive income/(expenses), net of tax of nil: |
|
|
|
|
|
|
|
||
Foreign currency translation adjustment |
19,271 |
|
(82,330) |
|
|
(11,403) |
|
||
Comprehensive income |
1,684,092 |
|
1,365,417 |
|
|
189,109 |
|
||
Comprehensive loss/ ( income ) attributable to non-controlling interests |
5,515 |
|
(21,701) |
|
|
(3,006) |
|
||
Comprehensive income attributable to |
1,689,607 |
|
1,343,716 |
|
|
186,103 |
|
Unaudited Consolidated Balance Sheets Data: |
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|
As of |
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|
|
|
||
|
2023 |
|
2024 |
||
|
RMB |
|
RMB |
|
US$ |
|
(in thousands, except for share data) |
||||
ASSETS |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
12,333,884 |
|
12,583,834 |
|
1,742,841 |
Restricted cash |
686,568 |
|
272,266 |
|
37,708 |
Accounts receivable, net |
572,558 |
|
559,200 |
|
77,448 |
Financing receivables |
1,135,445 |
|
986,822 |
|
136,673 |
Short-term investment |
7,454,633 |
|
7,038,556 |
|
974,829 |
Inventories |
28,074 |
|
41,449 |
|
5,741 |
Advances to suppliers |
821,942 |
|
903,693 |
|
125,160 |
Prepayments and other current assets |
3,772,377 |
|
4,159,042 |
|
576,021 |
Amounts due from related parties |
148,067 |
|
194,523 |
|
26,941 |
Total current assets |
26,953,548 |
|
26,739,385 |
|
3,703,362 |
Investments in equity investee |
3,455,119 |
|
2,945,826 |
|
407,992 |
Property and equipment, net |
32,181,025 |
|
32,933,680 |
|
4,561,262 |
Land use rights, net |
5,637,101 |
|
5,675,825 |
|
786,093 |
Intangible assets, net |
23,240 |
|
21,691 |
|
3,004 |
Operating lease right-of-use assets |
672,193 |
|
609,448 |
|
84,408 |
|
4,241,541 |
|
4,241,541 |
|
587,447 |
Deferred tax assets |
879,772 |
|
950,530 |
|
131,647 |
Long-term investment |
12,170,881 |
|
13,450,088 |
|
1,862,816 |
Long-term financing receivables |
964,780 |
|
1,079,928 |
|
149,568 |
Other non-current assets |
701,758 |
|
719,082 |
|
99,592 |
Amounts due from related parties-non current |
584,263 |
|
508,333 |
|
70,403 |
TOTAL ASSETS |
88,465,221 |
|
89,875,357 |
|
12,447,594 |
LIABILITIES AND EQUITY |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Short-term bank borrowing |
7,765,990 |
|
8,040,790 |
|
1,113,637 |
Accounts payable |
2,557,010 |
|
2,334,476 |
|
323,321 |
Notes payable |
- |
|
- |
|
- |
Advances from customers |
1,745,727 |
|
1,672,339 |
|
231,616 |
Income tax payable |
333,257 |
|
343,697 |
|
47,601 |
Amounts due to related parties |
234,683 |
|
198,235 |
|
27,455 |
Operating lease liabilities |
186,253 |
|
182,195 |
|
25,234 |
Dividends payable |
1,548 |
|
3,612,693 |
|
500,352 |
Other current liabilities |
7,236,716 |
|
6,876,129 |
|
952,334 |
Total current liabilities |
20,061,184 |
|
23,260,554 |
|
3,221,550 |
Non-current operating lease liabilities |
455,879 |
|
404,073 |
|
55,963 |
Deferred tax liabilities |
638,200 |
|
661,049 |
|
91,554 |
Convertible senior bond |
7,029,550 |
|
7,159,324 |
|
991,555 |
TOTAL LIABILITIES |
28,184,813 |
|
31,485,000 |
|
4,360,622 |
Shareholders' equity |
|
|
|
|
|
Ordinary shares ( |
|
|
|
|
|
shares issued and 804,719,252 shares outstanding as of |
525 |
|
525 |
|
73 |
Additional paid-in capital |
24,201,745 |
|
24,470,474 |
|
3,389,122 |
|
(510,986) |
|
(377,156) |
|
(52,236) |
Retained earnings |
36,301,185 |
|
34,022,542 |
|
4,712,068 |
Accumulated other comprehensive loss |
(190,724) |
|
(273,054) |
|
(37,817) |
|
59,801,745 |
|
57,843,331 |
|
8,011,210 |
Noncontrolling interests |
478,663 |
|
547,026 |
|
75,762 |
Total Equity |
60,280,408 |
|
58,390,357 |
|
8,086,972 |
TOTAL LIABILITIES AND EQUITY |
88,465,221 |
|
89,875,357 |
|
12,447,594 |
Summary of Unaudited Consolidated Cash Flow Data: |
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|||||||
|
|
|
|||||||
|
Three Months Ended |
|
|||||||
|
2023 |
|
2024 |
|
|||||
|
RMB |
|
RMB |
|
|
US$ |
|
||
|
|
|
(in thousands) |
|
|
|
|
||
Net cash provided by operating activities |
2,737,974 |
|
2,031,020 |
|
|
281,293 |
|
||
N et cash used in investing activities |
(5,866,601) |
|
(2,378,652) |
|
|
(329,439) |
|
||
N et cash provided by financing activities |
840,572 |
|
130,130 |
|
|
18,023 |
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(8,937) |
|
38,603 |
|
|
5,346 |
|
||
Net decrease in cash, cash equivalents and restricted cash |
(2,296,992) |
|
(178,899) |
|
|
(24,777) |
|
||
C ash, cash equivalents and restricted cash at beginning of period |
12,603,087 |
|
13,051,310 |
|
|
1,807,585 |
|
||
Ca sh, cash equivalents and restricted cash at end of period |
10,306,095 |
|
12,872,411 |
|
|
1,782,808 |
|
||
|
|
|
|
|
|
|
|
|
|
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows:
|
As of |
||||
|
|
|
|
||
|
2023 |
|
2024 |
||
|
RMB |
|
RMB |
|
US$ |
|
|
|
(in thousands) |
|
|
Cash and cash equivalents |
12,333,884 |
|
12,583,834 |
|
1,742,841 |
Restricted cash, current |
686,568 |
|
272,266 |
|
37,708 |
Restricted cash, non-current |
30,858 |
|
16,311 |
|
2,259 |
Total cash, cash equivalents and restricted cash |
13,051,310 |
|
12,872,411 |
|
1,782,808 |
Reconciliations of GAAP and Non-GAAP Results |
|
|
|
|
|
|
|
|
Three Months Ended |
|
|||||
|
2023 |
|
2024 |
|
|||
|
RMB |
|
RMB |
|
US$ |
|
|
|
(in thousands, except for share and per share data) |
|
|||||
Net income |
1,664,821 |
|
1,447,747 |
|
200,512 |
|
|
Add: |
|
|
|
|
|
|
|
Share-based compensation expense [1] |
254,976 |
|
298,387 |
|
41,326 |
|
|
Impairment of investment in equity investee[1] |
- |
|
478,364 |
|
66,253 |
|
|
Gain on disposal of equity investees and subsidiaries and others, net of income taxes |
- |
|
(451) |
|
(62) |
|
|
Adjusted net income |
1,919,797 |
|
2,224,047 |
|
308,029 |
|
|
Net income |
1,664,821 |
|
1,447,747 |
|
200,512 |
|
|
Add: |
|
|
|
|
|
|
|
Depreciation |
651,685 |
|
752,119 |
|
104,167 |
|
|
Amortization |
34,793 |
|
33,980 |
|
4,706 |
|
|
Interest expenses |
71,710 |
|
83,916 |
|
11,622 |
|
|
Income tax expenses |
455,007 |
|
566,305 |
|
78,432 |
|
|
EBITDA |
2,878,016 |
|
2,884,067 |
|
399,439 |
|
|
Add: |
|
|
|
|
|
|
|
Share-based compensation expense |
254,976 |
|
298,387 |
|
41,326 |
|
|
Impairment of investment in equity investee |
- |
|
478,364 |
|
66,253 |
|
|
Gain on disposal of equity investees and subsidiaries and others |
- |
|
(451) |
|
(62) |
|
|
Adjusted EBITDA |
3,132,992 |
|
3,660,367 |
|
506,956 |
|
|
|
|
|
|
|
|
|
|
(1) Net of income taxes of nil |
|
|
|
|
|
|
|
Reconciliations of GAAP and Non-GAAP Results |
|||||
|
Three Months Ended |
||||
|
2023 |
|
2024 |
||
|
RMB |
|
RMB |
|
US$ |
|
|
||||
Net income attributable to ordinary shareholders |
1,670,336 |
|
1,426,046 |
|
197,506 |
Add: |
|
|
|
|
|
Share-based compensation expense [1] |
254,976 |
|
298,387 |
|
41,326 |
Impairment of investment in equity investee[1] |
- |
|
478,364 |
|
66,253 |
Gain on disposal of equity investees and subsidiaries and others, net of income taxes |
- |
|
(451) |
|
(62) |
Adjusted Net income attributable to ordinary shareholders |
1,925,312 |
|
2,202,346 |
|
305,023 |
|
|
|
|
|
|
Weighted average shares used in calculating net earnings per ordinary share/ADS |
|
|
|
|
|
Basic |
808,865,862 |
|
804,935,791 |
|
804,935,791 |
Diluted |
840,491,415 |
|
836,144,858 |
|
836,144,858 |
|
|
|
|
|
|
Net earnings per share/ADS attributable to ordinary shareholders |
|
|
|
|
|
Basic |
2.07 |
|
1.77 |
|
0.25 |
Diluted |
2.03 |
|
1.75 |
|
0.24 |
|
|
|
|
|
|
Adjusted net earnings per share/ADS attributable to ordinary shareholders |
|
|
|
|
|
Basic |
2.38 |
|
2.74 |
|
0.38 |
Diluted |
2.33 |
|
2.68 |
|
0.37 |
|
|
|
|
|
|
(1) Net of income taxes of nil |
|
|
|
|
|
For investor and media inquiries, please contact:
Investor Relations
E-mail: ir@zto.com
Phone: +86 21 5980 4508
View original content:https://www.prnewswire.com/news-releases/zto-reports-first-quarter-2024-unaudited-financial-results-302146605.html
SOURCE