ZTO Reports Second Quarter 2021 Unaudited Financial Results

Adjusted Net Income Reached RMB1.27 Billion
5.8 Billion Parcels Attained 21.0% Market Share

SHANGHAI, Aug. 18, 2021 /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, 2021[1]. The Company delivered a parcel volume growth of 25.6% while maintaining high quality of service and customer satisfaction. Adjusted net income reached RMB1,272.2 million. Cash generated from operating activities was RMB1,932.4 million.

Second Quarter 2021 Financial Highlights

  • Revenues were RMB7,325.1 million (US$1,134.5 million), an increase of 14.4% from RMB6,402.4 million in the same period of 2020.
  • Gross profit was RMB1,673.6 million (US$259.2 million), a decrease of 5.4% from RMB1,769.2 million in the same period of 2020.
  • Net income was RMB1,272.2 million (US$197.0 million), a decrease of 12.5% from RMB1,453.6 million in the same period of 2020.
  • Adjusted EBITDA[2] was RMB2,125.7 million (US$329.2 million), a decrease of 2.8% from RMB2,187.0 million in the same period of 2020.
  • Adjusted net income[3] was RMB1,272.2 million (US$197.0 million), a decrease of 12.5% from RMB1,453.6 million in the same period of 2020.
  • Basic and diluted net earnings per American depositary share ("ADS"[4]) were RMB1.56 (US$0.24), a decrease of 15.7% from RMB1.85 in the same period of 2020.
  • Adjusted basic and diluted net earnings per American depositary share[5] attributable to ordinary shareholders were RMB1.56 (US$0.24), a decrease of 15.7% from RMB1.85 in the same period of 2020.
  • Net cash provided by operating activities was RMB1,932.4 million (US$299.3 million), compared with RMB1,252.3 million in the same period of 2020.

Operational Highlights for Second Quarter 2021

  • Parcel volume was 5,772 million, an increase of 25.6% from 4,595 million in the same period of 2020.
  • Number of pickup/delivery outlets was over 30,100 as of June 30, 2021.
  • Number of direct network partners was over 5,450 as of June 30, 2021.
  • Number of line-haul vehicles was approximately 10,300 as of June 30, 2021, which included approximately 10,100 self-owned vehicles and approximately 200 vehicles owned and operated by Tonglu Tongze Logistics Ltd., a transportation operator that works exclusively for ZTO.
  • Out of the approximately 10,100 self-owned trucks, approximately 8,150 were high capacity 15 to 17-meter-long models as of June 30, 2021, compared to over 8,100 as of March 31, 2021.
  • Number of line-haul routes between sorting hubs was approximately 3,600 as of June 30, 2021, compared to over 3,650 as of March 31, 2021.
  • Number of sorting hubs was 96 as of June 30, 2021, among which 85 are operated by the Company and 11 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 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.

(3)        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 in 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 shares, respectively.

 

Mr. Meisong Lai, Founder, Chairman and Chief Executive Officer of ZTO, commented "ZTO's consistent strategy to balance competing priorities of service quality, volume growth and earnings withstood the test of shifting policy environment and evolving market dynamics during the quarter. Our customer satisfaction scores ranked top of the peer group with a widening lead. The slight retreat in our market share for the quarter was a direct result of reemphasizing profitable volume when it was neither sensible nor sustainable to trade profits for short-term market share gain.  We achieved strong corporate earnings. Meanwhile, our network policies and protective initiatives enabled thousands of our entrepreneurial partners including couriers to feel safe and secured, and they maintained high quality operations amidst persisted competition and diminishing profits."

Mr. Lai added, "At the current rate of medium to high level of growth, China's express delivery industry will likely grow daily volume to surpass 400 million or more parcels in the next 2-3 years.  Capacity and operational efficiencies will set apart the winners and the rest.  ZTO has undoubtedly established infrastructure advantages with years of consistent investments and innovations.  Our network will further evolve with volume growth to become less layered and more streamlined generating greater cost efficiencies.  Furthermore, our distinct shared-success philosophy and long-term practice are consistent with recent regulatory interventions aimed to establish fairness and restore healthy competition. ZTO stands to benefit because we have been relying on our operational edge to profit while allowing our network partners their fair share so that they can flourish. That is why ZTO's network is more stable, and going forward, our network partners will be more resilient and will invest with greater confidence to develop their own capabilities that are in synch with our expanding transit and sorting operations, so together, we can continue to thrive."

Ms. Huiping Yan, Chief Financial Officer of ZTO, commented, "We achieved RMB1.27billion net income in the second quarter by focusing on effectively priced volume that contributed profit instead of loss-making. Normalized for one-time benefits from pandemic fee waivers and low oil prices last year, our combined transportation and sorting costs per unit generated positive productivity gains despite operating below the optimal capacity level."

Ms. Yan added, "We generated RMB1.93 billion net operating cash flow which increased 54.3% from last year.  Capital expenditures totaled RMB 2.2 billion for the quarter with nearly 70% used for acquisition of land use rights and sorting hub construction and upgrades. We are strengthening infrastructure for the core express delivery and developing comprehensive logistic service capabilities to form competitive edge for the long run."

Second Quarter 2021 Financial Results





Three Months Ended June 30,








Six Months Ended June 30,





2020





2021




2020






2021




RMB

%


RMB

US$


%


RMB

%


RMB

US$


%





(in thousands, except percentages)




Express delivery services

5,540,664



86.5


6,652,936



1,030,409


90.8


8,947,074



86.7


12,325,745



1,909,015


89.3

Freight forwarding services

467,095



7.3


313,553



48,563


4.3


762,571



7.4


806,540



124,917


5.8

Sale of accessories

321,189



5.0


314,131



48,653


4.3


498,214



4.8


574,311



88,949


4.2

Others

73,473



1.2


44,440



6,882


0.6


110,451



1.1


91,001



14,095


0.7

Total revenues

6,402,421



100.0


7,325,060



1,134,507


100.0


10,318,310



100.0


13,797,597



2,136,976


100.0

Total Revenues were RMB7,325.1 million (US$1,134.5 million), an increase of 14.4% from RMB6,402.4 million in the same period of 2020. Revenue from the core express delivery business increased by 18.1% compared to the same period of 2020, as a combined result of a 25.6% increase in parcel volume and a 5.9% decrease in parcel unit price mainly driven by per parcel weight decline. Revenue from freight forwarding services decreased by 32.9% compared to the same period of 2020 as cross border e-commerce demand and pricing gradually returned to normal post COVID-19 recovery. Revenue from sales of accessories, largely consisted of sales of thermal paper used for digital waybills' printing, decreased by 2.2%. Other revenues were mainly derived from financing services and advertising services.





Three Months Ended June 30,








Six Months Ended June 30,





2020





2021




2020






2021




RMB

% of
revenues


RMB

US$


% of
revenues


RMB

% of
revenues


RMB

US$


% of
revenues


(in thousands, except percentages)

Line-haul transportation cost

1,996,562



31.2


2,763,264



427,975


37.7


3,293,979



31.9


5,297,177



820,428


38.4

Sorting hub operating cost

1,254,278



19.6


1,612,704



249,776


22.0


2,220,035



21.5


3,124,074



483,857


22.6

Freight forwarding cost

416,659



6.5


266,229



41,234


3.6


704,273



6.8


702,621



108,822


5.1

Cost of accessories sold

112,483



1.8


98,141



15,200


1.3


186,958



1.8


172,716



26,750


1.3

Other costs

853,276



13.3


911,080



141,108


12.6


1,325,242



12.9


1,730,834



268,073


12.5

Total cost of revenues

4,633,258



72.4


5,651,418



875,293


77.2


7,730,487



74.9


11,027,422



1,707,930


79.9

Total cost of revenues was RMB5,651.4 million (US$875.3 million), an increase of 22.0% from RMB4,633.3 million in the same period last year.

Line haul transportation cost was RMB2,763.3 million (US$428.0 million), an increase of 38.4% from RMB1,996.6 million in the same period last year. Other than incremental volume driven, the increase reflected (i) expiration of federal toll road fee waiver policy from mid-February to early May 2020 during the pandemic, and (ii) lower domestic diesel price during the pandemic outbreak last year. Line-haul transportation cost per parcel increased by 10.2% to RMB0.48 due to the combined effect of absence of one-time benefits existed last year and efficiency gains from increased usage of more self-owned high-capacity vehicles. There were approximately 1,050 more high-capacity vehicles in our fleet compared to the same period last year. 

Sorting hub operating cost was RMB1,612.7 million (US$249.8 million), an increase of 28.6% from RMB1,254.3 million in the same period last year. The increase was primarily consisted of (i) RMB251.3 million (US$38.9 million) increase in labor-associated costs resulted from wage increases offset by automation-driven headcount productivity gain, and (ii) RMB68.5 million (US$10.6 million) increase in depreciation and amortization costs from increased number of installed automated sorting equipment and facilities. Sorting hub operating cost per unit increased 2.4%. As of June 30, 2021, 361 sets of automated sorting equipment were in service, compared to 282 sets as of June 30, 2020.

Cost of accessories sold was RMB98.1 million (US$15.2 million), decreased 12.8% compared with RMB112.5 million in the same period last year.

Other costs were RMB911.1 million (US$141.1 million), an increase of RMB57.8 million (US$9.0 million) compared to the same period last year. The increase was mainly consisted of (i) an increase of RMB36.4 million (US$5.6 million) in expenses related to the development of technology platform, (ii) an increase of RMB35.8 million (US$5.5 million) in tax surcharge, and (iii) a decrease of RMB29.4 million (US$4.6 million) in the costs of the advertising services.

Gross Profit was RMB1,673.6 million (US$259.2 million), decreased 5.4% from RMB1,769.2 million in the same period last year as a combined result of increased volume at a lower price and increased costs absent one-time benefits during COVID-19 outbreak. Gross margin rate was 22.8% compared to 27.6% in the same period last year. Average selling price declined 5.9% for the core express delivery business and unit cost increased 1.7%.

Total Operating Expenses were RMB218.0 million (US$33.8 million), compared to RMB122.6 million in the same period last year.

Selling, general and administrative expenses were RMB394.0 million (US$61.0 million), increased by 26.1% from RMB312.4 million in the same period last year, mainly from increases of compensation and benefits, office expenditures, depreciation and write-off of obsolete assets.

Other operating income, net was RMB176.0 million (US$27.3 million), compared to RMB189.9 million in the same period last year. Other operating income mainly consisted of (i) RMB95.8 million (US$14.8 million) of VAT super deduction, and (ii) government subsidies and tax rebates of RMB38.5 million (US$6.0 million).

Income from operations was RMB1,455.7 million (US$225.5 million), a decrease of 11.6% from RMB1,646.6 million for the same period last year. Operating margin rate decreased to 19.9% from 25.7% in the same period last year, mainly driven by a 4.8 percentage points decrease in gross margin.

Interest income was RMB102.4 million (US$15.9 million), compared with RMB114.3 million in the same period last year.

Interest expenses was RMB33.8 million (US$5.2 million), compared with RMB9.1 million in the same period last year.

Gain from fair value changes of financial instruments was RMB32.3 million (US$5.0 million), which reflected fair value changes, assessed using market based redemption prices estimated by selling banks, on dual currency deposits, foreign currency options and forward contracts. There were no similar financial instruments in the same period last year.

Income tax expenses were RMB254.9 million (US$39.5 million) compared to RMB298.3 million in the same period last year.

Net income was RMB1,272.2 million (US$197.0 million), which decreased by 12.5% from RMB1,453.6 million in the same period.

Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB1.56 (US$0.24), compared to basic and diluted earnings per ADS of RMB1.85 in the same period last year.

Adjusted basic and diluted earnings per ADS attributable to ordinary shareholders were RMB1.56 (US$0.24), compared with RMB1.85 in the same period last year.

Adjusted net income was RMB1,272.2 million (US$197.0 million), compared with RMB1,453.6 million during the same period last year.

EBITDA was RMB2,125.7 million (US$329.2 million), compared with RMB2,187.0 million in the same period last year.

Adjusted EBITDA was RMB2,125.7 million (US$329.2 million), compared to RMB2,187.0 million in the same period last year.

Net cash provided by operating activities was RMB1,932.4 million (US$299.3 million), compared with RMB1,252.3 million in the same period last year.

Business Outlook

Based on current market and operating conditions, the Company maintains its previously stated annual guidance. Parcel volume for 2021 is expected to be in the range of 22.95 billion to 23.80 billion, representing a 35% to 40% increase year over year. Such estimates represent management's current and preliminary view, which are subject to change.

Company Share Purchase

On November 15, 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, 2020, 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. The Company expects to fund the repurchases out of its existing cash balance. As of June 30, 2021, the Company has purchased an aggregate of 17,519,583 ADSs at an average purchase price of US$23.17, 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 RMB6.4566 to US$1.00, the noon buying rate on June 30, 2021 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, adjusted net income, adjusted net income attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share, 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, 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 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.

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. 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, August 18, 2021 (8:30 AM Beijing Time on August 19, 2021).

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:

4725527

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 August 25, 2021:

United States:

1-877-344-7529

International:

1-412-317-0088

Passcode:

10158503

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 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 the Company's unaudited results for the second quarter of 2021, 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 2021 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 31,



2020


2021


2020


2021



RMB


RMB


US$


RMB


RMB


US$



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














Revenues


6,402,421


7,325,060


1,134,507


10,318,310


13,797,597


2,136,976

Cost of revenues


(4,633,258)


(5,651,418)


(875,293)


(7,730,487)


(11,027,422)


(1,707,930)

Gross profit


1,769,163


1,673,642


259,214


2,587,823


2,770,175


429,046

Operating income (expenses):












Selling, general and administrative

(312,421)


(394,006)


(61,024)


(872,472)


(1,014,230)


(157,084)

Other operating income, net

189,867


176,019


27,262


303,270


332,590


51,512

Total operating expenses

(122,554)


(217,987)


(33,762)


(569,202)


(681,640)


(105,572)

Income from operations

1,646,609


1,455,655


225,452


2,018,621


2,088,535


323,474

Other income (expenses):












Interest income


114,258


102,400


15,860


240,485


177,882


27,550

Interest expense


(9,135)


(33,798)


(5,235)


(9,426)


(49,380)


(7,648)

Gain from fair value changes of financial
   instruments

-


32,331


5,007


-


48,130


7,454

Foreign currency exchange gain/(loss),
   before tax

2,594


(25,751)


(3,988)


19,047


(26,084)


(4,040)

Income before income tax, and share of
   loss in equity method

1,754,326


1,530,837


237,096


2,268,727


2,239,083


346,790

Income tax expense

(298,302)


(254,859)


(39,473)


(428,074)


(404,497)


(62,649)

Share of loss in equity method investments

(2,453)


(3,753)


(581)


(16,109)


(28,835)


(4,466)

Net income


1,453,571


1,272,225


197,042


1,824,544


1,805,751


279,675

Net (income)/loss attributable to
   noncontrolling interests

(5,217)


19,947


3,089


(1,490)


20,046


3,105

Net income attributable to ZTO Express 
(Cayman) Inc.

1,448,354


1,292,172


200,131


1,823,054


1,825,797


282,780

Net income attributable to ordinary 
 shareholders


1,448,354


1,292,172


200,131


1,823,054


1,825,797


282,780

Net earnings per share attributed to ordinary shareholders












Basic


1.85


1.56


0.24


2.33


2.21


0.34

Diluted


1.85


1.56


0.24


2.33


2.21


0.34

Weighted average shares used in
   calculating net earnings per ordinary
   share/ADS










Basic


783,894,733


827,015,267


827,015,267


783,124,385


827,755,090


827,755,090

Diluted


783,894,733


827,015,267


827,015,267


783,224,329


827,755,090


827,755,090

Other comprehensive (expenses)/ income,
   net of tax of nil:












Foreign currency translation adjustment

(23,558)


(102,171)


(15,824)


153,368


(84,260)


(13,050)

Comprehensive income

1,430,013


1,170,054


181,218


1,977,912


1,721,491


266,625

Comprehensive income attributable to
   noncontrolling interests

(5,217)


19,947


3,089


(1,490)


20,046


3,105

Comprehensive income attributable to
   ZTO Express (Cayman) Inc.

1,424,796


1,190,001


184,307


1,976,422


1,741,537


269,730

 

 

 

Unaudited Consolidated Balance Sheets Data:





















As of


December 31,
2020


June 30, 2021



RMB


RMB


US$





(in thousands, except for share data)










ASSETS







Current assets:







   Cash and cash equivalents


14,212,778


12,098,453


1,873,812

   Restricted cash


133,196


51,716


8,010

   Accounts receivable, net


746,013


767,851


118,925

   Financing receivables


492,159


984,796


152,525

   Short-term investment


3,690,402


3,138,782


486,135

   Inventories


53,070


39,589


6,132

   Advances to suppliers


589,042


695,319


107,691

   Prepayments and other current assets


2,334,688


2,746,873


425,436

   Amounts due from related parties


73,278


71,951


11,144

Total current assets


22,324,626


20,595,330


3,189,810

Investments in equity investee


3,224,463


3,293,405


510,083

Property and equipment, net


18,565,161


21,370,865


3,309,926

Land use rights, net


4,360,673


4,922,064


762,331

Intangible assets, net


41,832


38,733


5,999

Operating lease right-of-use assets


876,259


852,270


132,000

Goodwill


4,241,541


4,241,541


656,931

Deferred tax assets


720,561


929,866


144,018

Long-term investment


1,842,000


2,140,160


331,469

Long-term financing receivables


1,970,340


1,540,859


238,649

Other non-current assets


537,294


821,750


127,273

Amounts due from related parties-non current


500,000


521,000


80,693

TOTAL ASSETS


59,204,750


61,267,843


9,489,182

LIABILITIES AND EQUITY







  Current liabilities







    Short-term bank borrowing


1,432,929


3,391,472


525,272

    Accounts payable


1,635,888


1,596,483


247,264

    Notes payable


326,200


351,107


54,380

    Advances from customers


1,119,666


1,191,605


184,556

    Income tax payable


48,628


80,192


12,420

    Amounts due to related parties


16,655


21,495


3,329

    Operating lease liabilities


246,394


226,037


35,009

    Acquisition consideration payable


22,942


22,942


3,553

    Dividends payable


11,198


2,438


378

    Other current liabilities


4,487,084


4,409,817


682,994

  Total current liabilities


9,347,584


11,293,588


1,749,155

  Non-current operating lease liabilities


502,481


549,690


85,136

  Deferred tax liabilities


254,987


256,346


39,703

TOTAL LIABILITIES


10,105,052


12,099,624


1,873,994















Shareholders' equity














  Ordinary shares (US$0.0001 par value; 10,000,000,000 shares authorized, 855,301,115
     shares issued and 828,869,972 shares outstanding as of December 31, 2020; 845,497,968
     shares issued and 827,002,948 shares outstanding as of June 30, 2021)


553


546


85

  Additional paid-in capital


30,613,948


29,096,081


4,506,409

  Treasury shares, at cost


(2,578,870)


(2,018,504)


(312,626)

  Retained earnings


21,038,753


22,160,492


3,432,223

  Accumulated other comprehensive loss


(95,571)


(179,831)


(27,852)

ZTO Express (Cayman) Inc. shareholders' equity


48,978,813


49,058,784


7,598,239

    Noncontrolling interests


120,885


109,435


16,949

Total Equity


49,099,698


49,168,219


7,615,188

TOTAL LIABILITIES AND EQUITY


59,204,750


61,267,843


9,489,182

 

 

 

Summary of Unaudited Consolidated Cash Flow Data:















Three Months Ended June 30,


Six Months Ended June 30,




2020


2021


2020


2021




RMB


RMB


US$


RMB


RMB


US$




(in thousands)















Net cash provided by operating activities

1,252,270


1,932,405


299,291


1,430,061


2,409,357


373,162


Net cash used in investing activities

(1,097,851)


(184,468)


(28,570)


(1,812,554)


(4,556,458)


(705,705)


Net cash provided by / (used in) financing
   activities

65,298


(943,506)


(146,130)


362,952


50,462


7,816


Effect of exchange rate changes on cash,
   cash equivalents and restricted cash

2,145


(133,881)


(20,736)


19,460


(100,613)


(15,584)


Net increase/ (decrease) in cash, cash
   equivalents and restricted cash

221,862


670,550


103,855


(81)


(2,197,252)


(340,311)


Cash, cash equivalents and restricted cash
   at beginning of period

5,055,471


11,492,290


1,779,929


5,277,414


14,360,092


2,224,095


Cash, cash equivalents and restricted cash
   at end of period

5,277,333


12,162,840


1,883,784


5,277, 333


12,162,840


1,883,784






























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,
2020


June 30,
2021











RMB


RMB


US$












(in thousands)









Cash and cash equivalents



5,261,920


12,098,453


1,873,812







Restricted cash,current



1,300


51,716


8,010







Restricted cash,non-current



14,113


12,671


1,962







Total cash, cash equivalents and restricted cash


5,277,333


12,162,840


1,883,784







 

 

 

Reconciliations of GAAP and Non-GAAP Results















Three Months Ended June 30,


Six Months Ended June 30,



2020


2021


2020


2021



RMB


RMB


US$


RMB


RMB


US$



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




Net income


1,453,571


1,272,225


197,042


1,824,544


1,805,751


279,675

  Add:













  Share-based compensation expense (1)


-


-


-


264,154


248,027


38,414

Adjusted net income


1,453,571


1,272,225


197,042


2,088,698


2,053,778


318,089














Net income


1,453,571


1,272,225


197,042


1,824,544


1,805,751


279,675

  Add:













  Depreciation


408,426


530,874


82,222


801,006


1,026,582


158,997

  Amortization


17,602


33,928


5,255


33,250


59,579


9,228

  Interest expenses


9,135


33,798


5,235


9,426


49,380


7,648

  Income tax expenses


298,302


254,859


39,473


428,074


404,497


62,649

EBITDA


2,187,036


2,125,684


329,227


3,096,300


3,345,789


518,197














  Add:













  Share-based compensation expense


-


-


-


264,154


248,027


38,414

Adjusted EBITDA


2,187,036


2,125,684


329,227


3,360,454


3,593,816


556,611














(1) Net of income taxes of nil














 

 

 

Reconciliations of GAAP and Non-GAAP Results




























Three Months Ended June 30,


Six Months Ended June 30,



2020


2021


2020


2021



RMB


RMB


US$


RMB


RMB


US$



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




Net income attributable to ordinary
   shareholders


1,448,354


1,292,172


200,131


1,823,054


1,825,797


282,780

Add:













Share-based compensation expense (1)


-


-


-


264,154


248,027


38,414

Adjusted Net income attributable to
   ordinary shareholders


1,448,354


1,292,172


200,131


2,087,208


2,073,824


321,194














Weighted average shares used in
   calculating net earnings per ordinary
   share/ADS













  Basic


783,894,733


827,015,267


827,015,267


783,124,385


827,755,090


827,755,090

  Diluted


783,894,733


827,015,267


827,015,267


783,224,329


827,755,090


827,755,090














Net earnings per share/ADS attributable
   to ordinary shareholders













       Basic


1.85


1.56


0.24


2.33


2.21


0.34

      Diluted


1.85


1.56


0.24


2.33


2.21


0.34














Adjusted net earnings per share/ADS
   attributable to ordinary shareholders













Basic


1.85


1.56


0.24


2.67


2.51


0.39

Diluted


1.85


1.56


0.24


2.66


2.51


0.39














(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.