omniture

Market Share Expanded to 21.5% Volume Grew 47.9% to 4.6 Billion Parcels

2020-08-13 09:09 5965

Adjusted Net Income Reached RMB 1.45 Billion

ZTO Reports Second Quarter 2020 Unaudited Financial Results

SHANGHAI, Aug. 13, 2020 /PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO), 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, 20201. The Company maintained high quality of service and customer satisfaction, and expanded parcel volume market share by 1.6 percentage points to 21.5%. Adjusted net income increased 5.6% to reach RMB1,453.6 million.

Second Quarter 2020 Financial Highlights

  • Revenues were RMB6,402.4 million (US$906.2 million), an increase of 18.0% from RMB5,423.6 million in the same period of 2019.
  • Gross profit was RMB1,769.2 million (US$250.4 million), relatively flat compared to RMB1,768.6 million in the same period of 2019.
  • Net income was RMB1,453.6 million (US$205.7 million), an increase of 6.5% from RMB1,365.1 million in the same period of 2019.
  • Adjusted EBITDA²was RMB2,187.0 million (US$309.6 million), an increase of 11.4% from RMB1,962.8 million in the same period of 2019.
  • Adjusted net income³ was RMB1,453.6 million (US$205.7 million), an increase of 5.6% from RMB1,375.9 million in the same period of 2019.
  • Basic and diluted earnings per American depositary share ("ADS"⁴) were RMB1.85 (US$0.26), an increase of 6.9% from RMB1.73 in the same period of 2019.
  • Adjusted basic and diluted earnings per American depositary share⁵ attributable to ordinary shareholders were RMB1.85 (US$0.26), an increase of 6.3% from RMB1.74 in the same period of 2019.
  • Net cash provided by operating activities was RMB1,252.3 million (US$177.2 million), compared with RMB1,992.8 million in the same period of 2019.

Operational Highlights for Second Quarter 2020

  • Parcel volume was 4,595 million, an increase of 47.9% from 3,107 million in the second quarter of 2019.
  • Number of pickup/delivery outlets was approximately 30,000 as of June 30, 2020.
  • Number of direct network partners was over 5,000 as of June 30, 2020.
  • Number of line-haul vehicles was over 9,900 as of June 30, 2020, which included approximately 9,050 self-owned vehicles, increased from 6,800 as of March 31, 2020, and over 850 vehicles owned and operated by Tonglu Tongze Logistics Ltd., a transportation operator that works exclusively for ZTO.
  • Out of the self-owned trucks, over 7,100 were high capacity 15 to 17-meter-long models as of June 30, 2020, compared to over 5,000 as of March 31, 2020.
  • Number of line-haul routes between sorting hubs was over 3,400 as of June 30, 2020, compared to over 2,900 as of March 31, 2020.
  • Number of sorting hubs was 90 as of June 30, 2020, among which 81 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 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 investees 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 investees 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 divided by weighted average number of basic and diluted shares, respectively.


Mr. Meisong Lai, Founder, Chairman and Chief Executive Officer of ZTO, commented "Benefited from a strong e-commerce-driven consumption rebound subsequent to the COVID-19 containment in China, the Chinese express delivery industry generated more than 5.7 billion incremental parcels year over year during the second quarter. According to the State Post Bureau, the express industry grew 36.7%, a quarterly record high since the first quarter of 2017. ZTO grew volume 47.9% and expanded our volume market share by 1.6 points to reach 21.5%. During this record-breaking quarter, our industry also witnessed escalated price erosion and we observed insensibly low pricing in a number of key markets. As the Company prioritized quality of service and market share gains, we boosted support to our network partners who faced-off price erosions and maintained confidence in our unified goals and positive business outlook."

Mr. Lai added, "Despite an over 80% volume concentration by a handful scaled express delivery companies in China, the few leading ones are in relatively close range, and competition is to be expected. It is all the more compelling for us to focus on strengthening and leveraging our competitive advantages in scale, capacity and cost efficiency to expand our lead. Our track record has consistently demonstrated our strong determination, execution and stamina. We are confident in our ability to achieve preeminence in market share with high customer satisfaction and profit generation as we journey ahead towards our goal of becoming a world-leading comprehensive logistic services provider."

Ms. Huiping Yan, Chief Financial Officer of ZTO, added, "In response to intense price competition during the quarter, our core express delivery price per parcel declined 20.9% year over year given more aggressive yet necessary subsidies to incentivize volume growth. The negative price impact was dampened by a corresponding 13.9% cost productivity gain, and together with healthy corporate cost leverage, adjusted net income increased 5.6% to reach 1.45 billion. Cash from operating activities was 1.25 billion."

Ms. Yan added, "Nearly halfway into the third quarter, we observed steady parcel volume growth yet persistent price competition. We remain steadfast on market share gain, and are raising our full year volume target to be between 16.2 to 17.0 billion parcels. We have adjusted down our earnings estimates to anchor our conviction to protect our market share gain and maintain network stability.  Looking beyond the next few quarters, China express delivery industry volume is likely to reach 300 million daily in the next 2-3 years, and we aim to capture a lion share of that volume and associated pricing power."


Second Quarter 2020 Financial Results



Three Months Ended June 30,


Six Months Ended June 30,


2019


2020


2019


2020


RMB


%


RMB


US$

%


RMB



%


RMB


US$


%








(in thousands, except percentages)








Express delivery services

4,763,902


87.8


5,540,664



784,230



86.5


8,823,274



88.3


8,947,074


1,266,376


86.7

Freight forwarding services

350,088


6.5


467,095



66,113



7.3


639,402



6.4


762,571


107,935


7.4

Sale of accessories

292,570


5.4


321,189



45,461



5.0


501,407



5.0


498,214


70,518


4.8

Others

17,080


0.3


73,473



10,400



1.2


33,588



0.3


110,451


15,633


1.1




















Total revenues

5,423,640


100.0


6,402,421


906,204


100.0


9,997,671



100.0


10,318,310


1,460,462


100.0

Revenues were RMB6,402.4 million (US$906.2 million), an increase of 18.0% from RMB5,423.6 million in the same period of 2019. Revenue from the core express delivery business increased by 17.0% compared to the same period of 2019, as a combined result of an increase of 47.9% in parcel volume and a decrease of 20.9% in parcel unit price in response to competition. Revenue from freight forwarding services increased 33.4% compared to the same period of 2019, driven by increased cross border e-commerce demand and improved pricing as a result of the COVID-19 outbreak globally. The increase in revenue from sales of accessories was in-line with the increase in the sale of thermal paper used for digital waybills, portable scanning devices and uniforms.  Other revenues were mainly derived from financing services and advertising services.

 





Three Months Ended June 30,






Six Months Ended June 30,






2019





2020




2019





2020







RMB

% of


RMB

US$

% of


RMB

% of


RMB

US$

% of




revenues

revenues

revenues

revenues












(in thousands, except percentages)











Line-haul transportation cost

1,695,866



31.3


1,996,562


282,595


31.2


3,289,873



32.9


3,293,979


466,232


31.9




Sorting hub cost

953,901



17.6


1,254,278


177,532


19.6


1,844,970



18.5


2,220,035


314,225


21.5




Freight forwarding cost

345,283



6.4


416,659


58,974


6.5


628,397



6.3


704,273


99,683


6.8




Cost of accessories sold

156,371



2.9


112,483


15,921


1.8


276,057



2.8


186,958


26,462


1.8




Other costs

503,651



9.2


853,276


120,773


13.3


930,214



9.2


1,325,242


187,577


12.9




Total cost of revenues

3,655,072



67.4


4,633,258


655,795


72.4


6,969,511



69.7


7,730,487


1,094,179


74.9





Total cost of revenues was RMB4,633.3 million (US$655.8 million), an increase of 26.8% from RMB3,655.1 million in the same period last year.

Line haul transportation cost was RMB1,996.6 million (US$282.6 million), an increase of 17.7% from RMB1,695.9 million in the same period last year. The line-haul transportation cost per parcel declined 20.4% to RMB0.43. The decrease resulted from (i) reduced toll road fee charges based on a federal waiver policy which took effect in mid-February and lasted through early May, and (ii) higher usage of self-owned vehicles with an increasing number of higher-capacity trailer trucks. As a percentage of total line haul transportation costs, the self-owned portion increased to 84.6% from 66.3% in the same period last year.

Sorting hub operating cost was RMB1,254.3 million (US$177.5 million), an increase of 31.5% from RMB953.9 million in the same period last year. The increase was primarily due to (i) an RMB207.5 million (US$29.4 million) increase in labor associated costs, and (ii) an RMB65.5 million (US$9.3 million) increase in depreciation and amortization costs associated with the increased number of installed automated sorting equipment. As of June 30, 2020, 282 sets of automated sorting equipment have been placed into service, compared to 155 sets as of June 30, 2019. The sorting hub operating cost per parcel decreased 11.1% to RMB0.27 as the result of increased level of automation and less labor dependencies.

Cost of accessories was RMB112.5 million (US$15.9 million), a decrease of 28.1% from RMB156.4 million in the same period last year. The decrease was mainly driven by the increased use of lower-cost single-sheet digital waybills since the second half of 2019.

Other costs were RMB853.3 million (US$120.8 million), an increase of RMB349.6 million (US$49.5 million) compared to the same period last year. The increase was mainly consisted of (i) an increase of RMB255.5 million (US$36.2 million) in dispatching costs serving enterprise customers with an associated volume increase of 80.4%, and (ii) an increase of RMB75.1million (US$10.6 million) in technology related expenses.

Gross Profit was RMB1,769.2 million (US$250.4million), which remained flat compared to RMB1,768.6 million in the same period last year. Gross margin rate decreased to 27.6% from 32.6% in the same period last year as net effects of 47.9% volume growth, competition-led ASP decline of 20.2% and unit cost productivity gain of 14.3%.

Total Operating Expenses were RMB122.6 million (US$17.3 million), compared to RMB275.8 million in the same period last year.

Selling, general and administrative expenses were RMB312.4 million (US$44.2 million), increased 2.3% from RMB305.4 million in the same period last year.  SG&A as a percentage of total revenue decreased to 4.9% from 5.6% from second quarter 2019 demonstrating healthy corporate structure and positive scale leverage.

Other operating income, net was RMB189.9 million (US$26.9 million) for the second quarter, compared to RMB29.5 million in the same period last year. Other operating income mainly consisted of (i) government subsidies and tax rebates of RMB95.4 million (US$13.5 million) received, (ii) RMB60.0 million (US$8.5 million) of VAT super deduction recognized, and (iii) RMB23.6 million (US$3.3 million) ADR fee rebate.

Income from operations was RMB1,646.6 million (US$233.1 million), an increase of 10.3% from RMB1,492.7 million for the same period last year. Operating margin rate decreased to 25.7% from 27.5% in the same period last year, as a net result of decrease in gross margin and increase in other operating income.

Interest income was RMB114.3 million (US$16.2 million), compared with RMB144.5 million in the same period last year.

Foreign currency exchange gain, before tax was RMB2.6million (US$0.4 million) in the second quarter of 2020.

Income tax expenses were RMB298.3 million (US$42.2 million) compared to RMB288.8 million in the same period last year. The effective income tax rate was 17.0%, compared with 17.4% in the same period last year.

Net income was RMB1,453.6 million (US$205.7 million), an increase of 6.5% from RMB1,365.1 million in the same period last year.

Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB1.85 (US$0.26), compared with basic and diluted earnings per ADS of RMB1.73 in the same period last year.

Adjusted basic and diluted earnings per ADS attributable to ordinary shareholders were RMB1.85 (US$0.26), compared with RMB1.74 in the same period last year.

Adjusted net income was RMB1,453.6 million (US$205.7 million), compared with RMB1,375.9 million during the same period last year.

EBITDA was RMB2,187.0 million (US$309.6 million), compared with RMB1,952.0 million in the same period last year.

Adjusted EBITDA was RMB2,187.0 million (US$309.6 million), compared to RMB1,962.8 million in the same period last year.

Net cash provided by operating activities was RMB1,252.3 million (US$177.2 million), compared with RMB1,992.8 million in the same period last year. The decrease in net cash provided by operating activities resulted mainly from (i) RMB270.2 million (US$38.2 million) increase in loans to qualified network partners, and (ii) RMB245.2 million (US$34.7 million) increase in prepaid fuel and toll cost driven by increased self-owned vehicles.


Business Outlook

The Company raises its 2020 annual parcel volume projection to be in the range of 16.2 billion to 17.0 billion, representing a 33.7% to 40.3% increase year over year, and lowers the adjusted net income for 2020 to be in the range of RMB4.8 billion to RMB5.2 billion, representing a 1.7% to 9.3% decrease year over year. These estimates represent management's current and preliminary view, which takes into consideration the current market condition, the negative impact from COVID-19, price competition and the Company's prioritized goal to achieve accelerated market share gains while maintaining a targeted level of earnings, and 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 current share repurchase program to June 30, 2021. The Company expects to fund the repurchases out of its existing cash balance. As of June 30, 2020, the Company has purchased an aggregate of 7,716,436 ADSs at an average purchase price of US$17.33, including repurchase commissions.

Exchange Rate

This announcement contains translation of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at the exchange rate of RMB7.0651 to US$1.00, the noon buying rate on June 30, 2020 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 Wednesday, August 12, 2020 (9:00 AM Beijing Time on August 13, 2020).

Dial-in details for the earnings conference call are as follows:

United States:

1-888-317-6003

Hong Kong:

852-5808-1995

China:

4001-206-115

Singapore:

800-120-5863

International:

1-412-317-6061

Passcode:

4219745

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 19, 2020:

United States:

1-877-344-7529

International:

1-412-317-0088

Passcode:

10146155

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 the Company's unaudited results for the second quarter of 2020, 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 2020 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,





2019


2020



2019



2020








RMB


RMB

US$


RMB



RMB

US$








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





























Revenues

5,423,640


6,402,421



906,204


9,997,671



10,318,310



1,460,462






Cost of revenues

(3,655,072)


(4,633,258)



(655,795)


(6,969,511)



(7,730,487)



(1,094,179)






Gross profit

1,768,568


1,769,163



250,409


3,028,160



2,587,823



366,283





Operating income (expenses):




















Selling, general and administrative

(305,350)


(312,421)



(44,220)


(863,128)



(872,472)



(123,490)






Other operating income, net

29,531


189,867



26,874


87,633



303,270



42,924






Total operating expenses

(275,819)


(122,554)



(17,346)


(775,495)



(569,202)



(80,566)





Income from operations

1,492,749


1,646,609



233,063


2,252,665



2,018,621



285,717






Other income (expenses):




















Interest income

144,470


114,258



16,172


290,941



240,485



34,038






Interest expense


(9,135)



(1,293)




(9,426)



(1,334)






Loss on disposal of equity investees and
subsidiary





(529)










Foreign currency exchange gain/(loss), before
tax

22,293


2,594



367


(3,662)



19,047



2,696






Income before income tax, and share of




















loss in equity method investments

1,659,512


1,754,326



248,309


2,539,415



2,268,727



321,117






Income tax expense

(288,803)


(298,302)



(42,222)


(480,661)



(428,074)



(60,590)






Share of loss in equity method




















investments

(5,614)


(2,453)



(347)


(12,013)



(16,109)



(2,280)






Net income

1,365,095


1,453,571



205,740


2,046,741



1,824,544



258,247





Net income attributable to noncontrolling
interests

(5,614)


(5,217)



(738)


(6,547)



(1,490)



(211)






Net income attributable to ZTO Express



















(Cayman) Inc.

1,359,481


1,448,354



205,002


2,040,194



1,823,054



258,036






Net earnings per share attributable to




















ordinary shareholders




















Basic

1.73


1.85



0.26


2.60



2.33



0.33






Diluted

1.73


1.85



0.26


2.59



2.33



0.33






Weighted average shares used in




















calculating net earnings per ordinary




















share




















Basic

786,106,219


783,894,733



783,894,733


786,069,533



783,124,385



783,124,385






Diluted

786,385,711


783,894,733



783,894,733


786,262,099



783,224,329



783,224,329






Other comprehensive income, net of tax of




















nil:




















Foreign currency translation adjustment

293,376


(23,558)



(3,334)


(50,852)



153,368



21,708






Comprehensive income

1,658,471


1,430,013



202,406


1,995,889



1,977,912



279,955






Comprehensive income attributable to
noncontrolling interests

(5,614)


(5,217)



(738)


(6,547)



(1,490)



(211)






Comprehensive income attributable to




















1,652,857


1,424,796



201,668


1,989,342



1,976,422



279,744






ZTO Express (Cayman) Inc.


































Unaudited Consolidated Balance Sheets Data:




As of




December 31,


June 30, 2020




2019




RMB


RMB



US$












ASSETS









Current assets:









Cash and cash equivalents

5,270,204


5,261,920



744,776



Restricted cash

7,210


1,300



184



Accounts receivable, net

675,567


628,466



88,954



Financing receivables, net

511,124


471,837



66,784



Short-term investment

11,113,217


8,437,887



1,194,305



Inventories

43,845


64,152



9,080



Advances to suppliers

438,272


631,220



89,343



Prepayments and other current assets

1,964,506


2,239,249



316,945



Amounts due from related parties

74,312


81,529



11,540



Total current assets

20,098,257


17,817,560



2,521,911



Investments in equity investees

3,109,494


3,319,697



469,873



Property and equipment, net

12,470,632


14,651,069



2,073,724



Land use rights, net

2,508,860


3,829,158



541,982



Intangible assets, net

48,029


44,930



6,359



Operating lease right-of-use assets

901,956


784,780



111,078



Goodwill

4,241,541


4,241,541



600,351



Deferred tax assets

403,587


552,671



78,226



Long-term investment

946,180


1,390,510



196,814



Long-term financing receivables, net

549,775


1,240,680



175,607



Other non-current assets

612,191


607,178



85,940



TOTAL ASSETS

45,890,502


48,479,774



6,861,865















LIABILITIES AND EQUITY









Current liabilities









Short-term bank borrowing


1,690,000



239,204



Accounts payable

1,475,258


1,105,673



156,498



Notes payable


496,200



70,232



Advances from customers

1,210,887


1,208,970



171,119



Income tax payable

80,272


166,035



23,501



Amounts due to related parties

38,943


23,101



3,270



Operating lease liabilities

298,728


240,240



34,004



Acquisition consideration payable

22,942


22,942



3,247



Dividends payable

1,629


334,313



47,319



Other current liabilities

3,552,288


3,490,285



494,015



Total current liabilities

6,680,947


8,777,759



1,242,409



Non-current operating lease liabilities

504,442


420,310



59,491



Deferred tax liabilities

207,896


215,617



30,519



Other non-current liabilities

93,820


71,409



10,107



TOTAL LIABILITIES

7,487,105


9,485,095



1,342,526












Shareholders' equity









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









803,551,115 shares issued and 781,947,464 shares outstanding as of









December 31, 2019; 803,551,115 shares issued and 783,894,733 shares









outstanding as of June 30, 2020)

517


517



73



Additional paid-in capital

22,336,594


20,852,513



2,951,482



Treasury shares, at cost

(1,436,767)


(1,350,529)



(191,155)



Retained earnings

16,726,540


18,549,594



2,625,525



Accumulated other comprehensive income

675,720


829,087



117,350



ZTO Express (Cayman) Inc. shareholders' equity

38,302,604


38,881,182



5,503,275



Noncontrolling interests

100,793


113,497



16,064



Total Equity

38,403,397


38,994,679



5,519,339



TOTAL LIABILITIES AND EQUITY

45,890,502


48,479,774



6,861,865






 

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), which requires all entities to disclose their current estimate of all expected credit losses. The Group adopted this ASU on January 1, 2020 using the modified retrospective transition method and no material adjustment to the opening balance of retained earnings of 2020 was necessary. The adoption of this new ASU has no material impact on its consolidated financial position, results of operations or cashflow.


Summary of Unaudited Consolidated Cash Flow Data:


Three Months Ended June 30,



Six Months Ended June 30,






2019


2020



2019


2020






RMB


RMB

US$


RMB


RMB

US$










(in thousands)

























Net cash provided by operating activities

1,992,804


1,252,270



177,247


2,626,074


1,430,061


202,415



Net cash provided by/(used in) investing
    activities

1,498,752


(1,097,851)



(155,390)


2,394,117


(1,812,554)


(256,552)



Net cash (used in)/ provided by financing

















activities

(2,493,043)


65,298



9,242


(2,507,052)


362,952


51,372



Effect of exchange rate changes on cash,

















cash equivalents and restricted cash

21,803


2,145



304


(23,430)


19,460


2,754



Net increase/(decrease) in cash, cash

















equivalents and restricted cash

1,020,316


221,862



31,403


2,489,709


(81)


(11)



Cash, cash equivalents and restricted cash

















at beginning of period

6,092,347


5,055,471



715,555


4,622,954


5,277,414


746,969



Cash, cash equivalents and restricted cash

















7,112,663


5,277,333



746,958


7,112,663


5,277, 333


746,958



at end of period










































 

 

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, 2019

June 30, 2020





RMB


RMB

US$






(in thousands)












Cash and cash equivalents

7,111,684


5,261,920



744,776


Restricted cash, current

979


1,300



184


Restricted cash, non-current



14,113



1,998


Total cash, cash equivalents and restricted cash


7,112,663


5,277,333



746,958











Reconciliations of GAAP and Non-GAAP Results


Three Months Ended June 30,


Six Months Ended June 30,



2019


2020


2019


2020



RMB


RMB



US$


RMB


RMB


US$



 

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





















Net income

1,365,095


1,453,571



205,740


2,046,741


1,824,544


258,247


Add:



















Share-based compensation expense

10,800





295,065


264,154


37,389


Loss on disposal of equity



















investees and subsidiary, net of



















income taxes





529




Adjusted net income

1,375,895


1,453,571



205,740


2,342,335


2,088,698


295,636





















Net income

1,365,095


1,453,571



205,740


2,046,741


1,824,544


258,247


Add:



















Depreciation

283,409


408,426



57,809


554,832


801,006


113,375


Amortization

14,676


17,602



2,491


25,969


33,250


4,706


Interest expenses


9,135



1,293



9,426


1,334


Income tax expenses

288,803


298,302



42,222


480,661


428,074


60,590


EBITDA

1,951,983


2,187,036



309,555


3,108,203


3,096,300


438,252





















Add:



















Share-based compensation expense

10,800





295,065


264,154


37,389


Loss on disposal of equity



















investees and subsidiary, before



















income taxes





529




Adjusted EBITDA

1,962,783


2,187,036



309,555


3,403,797


3,360,454


475,641




















Three Months Ended June 30,


Six Months Ended June 30,




2019



2020



2019



2020





RMB


RMB

US$


RMB



RMB

US$




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




















Net income attributable to ordinary



















shareholders

1,359,481


1,448,354



205,002


2,040,194


1,823,054


258,036


Add:



















Share-based compensation expense

10,800





295,065


264,154


37,389


Impairment of investment in equity



















Loss on disposal of equity



















investees and subsidiary, net of



















income taxes





529




Adjusted Net income attributable to



















1,370,281


1,448,354



205,002


2,335,788


2,087,208


295,425


ordinary shareholders


























Weighted average shares used in



















calculating net earnings per ordinary



















share/ADS



















Basic

786,106,219


783,894,733



783,894,733


786,069,533


783,124,385


783,124,385


Diluted

786,385,711


783,894,733



783,894,733


786,262,099


783,224,329


783,224,329





















Net earnings per share/ADS attributable to



















ordinary shareholders



















Basic

1.73


1.85



0.26


2.60


2.33


0.33


Diluted

1.73


1.85



0.26


2.59


2.33


0.33





















Adjusted net earnings per share/ADS



















attributable to ordinary shareholders



















Basic

1.74


1.85



0.26


2.97


2.67


0.38


Diluted

1.74


1.85



0.26


2.97


2.66


0.38





















 

Cision View original content:http://www.prnewswire.com/news-releases/market-share-expanded-to-21-5-volume-grew-47-9-to-4-6-billion-parcels-301111239.html

Source: ZTO Express (Cayman) Inc.
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