ZTO Reports Third Quarter 2024 Unaudited Financial Results

Robust Profitability amidst Consumption Mix-shift

Adjusted Net Income Grew 2.0% toRMB2.4 Billion

Parcel Volume Increased 15.9% to 8.7 Billion

SHANGHAI,Nov. 20, 2024/PRNewswire/ --ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057), a leading and fast-growing express delivery company inChina("ZTO"or the"Company"), today announced its unaudited financial results for the third quarter endedSeptember 30, 2024[1]. The Company grew parcel volume by 15.9% year over year while maintaining high quality of service and customer satisfaction. Adjusted net income increased 2.0%[2]to reachRMB2,387.3 million. Cash generated from operating activities wasRMB3,112.0 million.

Third Quarter 2024 Financial Highlights

  • Revenues wereRMB10,675.0 million(US$1,521.2 million), an increase of 17.6% fromRMB9,075.9 millionin the same period of 2023.
  • Gross profit wasRMB3,334.8 million(US$475.2 million), an increase of 23.2% fromRMB2,706.4 millionin the same period of 2023.
  • Net income wasRMB2,379.0 million(US$339.0 million), an increase of 1.3% fromRMB2,349.6 millionin the same period of 2023.
  • Adjusted EBITDA[3]wasRMB3,739.5 million(US$532.9 million), an increase of 8.7% fromRMB3,438.6 millionin the same period of 2023.
  • Adjusted net income wasRMB2,387.3 million(US$340.2 million), an increase of 2.0% fromRMB2,340.7 millionin the same period of 2023.
  • Basic and diluted net earnings per American depositary share ("ADS"[4]) wereRMB2.98(US$0.42)andRMB2.90(US$0.41), an increase of 2.4% and 2.1% fromRMB2.91andRMB2.84in the same period of 2023, respectively.
  • Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders[5]wereRMB2.99(US$0.43)andRMB2.91(US$0.41), an increase of 3.5% and 2.8% fromRMB2.89andRMB2.83in the same period of 2023, respectively.
  • Net cash provided by operating activities wasRMB3,112.0 million(US$443.5 million), compared withRMB2,938.1 millionin the same period of 2023.

Operational Highlights for Third Quarter 2024

  • Parcel volume was 8,723 million, an increase of 15.9% from 7,523 million in the same period of 2023.
  • Number of pickup/delivery outlets was over 31,000 as ofSeptember 30, 2024.
  • Number of direct network partners was over 6,000 as ofSeptember 30, 2024.
  • Number of self-owned line-haul vehicles was over 10,000 as ofSeptember 30, 2024.
  • Out of the over 10,000 self-owned trucks, over 9,700 were high capacity 15 to 17-meter-long models as ofSeptember 30, 2024, compared to over 9,300 as ofSeptember 30, 2023.
  • Number of line-haul routes between sorting hubs was over 3,900 as ofSeptember 30, 2024, compared to over 3,800 as ofSeptember 30, 2023.
  • Number of sorting hubs was 95 as ofSeptember 30, 2024, among which 91 are operated by the Company and 4 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 impairment of investments in equity investees, gain/(loss) on disposal of equity investment and subsidiary 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 impairment of investments in equity investees, gain/(loss) on disposal of equity investment and subsidiary 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.Meisong Lai, Founder, Chairman and Chief Executive Officer of ZTO, commented,"During the third quarter, ZTO maintained high quality of services and customer satisfaction, and achieved 8.72 billion of parcel volume and 2.39 billion of adjusted net income. Our retail volume increased by over 40% year over year for the quarter as we systematically improved cooperations with various ecommerce platforms for reverse logistics, remote area delivery and premium services. Our strategy to improve volume mix has generated very positive contributions to both revenue and operating margin."

Mr. Lai added,"For nearly a decade since ZTO took the number one position in the industry, volume leadership has always been one of our key priorities. The recent stimulus policies by the central government sent a very strong signal for its commitment to supportChina'seconomic recovery and long-term growth. In the meantime, the downgrade of consumer spending may still be present for a while before an economic turnaround takes place. Volume leadership is the cornerstone of our business. We are setting plans in motion to maintain high quality of services and customer satisfaction, to regain market share and widen our leadership in parcel volume while achieving a reasonable level of earnings."

Ms.Huiping Yan, Chief Financial Officer of ZTO, commented,"ZTO's core express ASP increased 1.8% for this quarter thanks to continued improvements in key accounts'mix offsetting negative impact from lower per parcel weight and volume incentive increases. Combined unit sorting and transportation costs decreased 8.4%, or6 centsbenefiting from sustained productivity gain initiatives. SG&A as a percentage of revenue remained stable at approximately 5%. Cash flow from operating activities was 3.1 billion, and capital spending was 1.8 billion."

Ms. Yan added,"The express delivery industry experienced high growth contrary to the soft macroeconomic conditions. We have guided down our annual volume targets based on the visibility we have for the year. The increasing proportion of low-value ecommerce packages presented new challenges to the execution of our overall strategy to achieve continuous and simultaneous growth or improvements in quality of services, volume market share and profit. We are making modifications to rebalance our resource allocation as well as key network pricing approaches to regain volume growth momentum and expand our existing market share lead. Our quality of earnings will remain intact, and we are confident in maintaining our leadership in profitability in the industry."

Third Quarter 2024 Unaudited Financial Results 



Three Months Ended September 30,



Nine Months Ended September 30,



2023



2024



2023



2024



RMB



%



RMB



US$



%



RMB



%



RMB



US$



%



(in thousands, except percentages)

Express delivery services

8,341,620



91.9



9,812,807



1,398,314



91.9



25,728,807



92.6



28,928,902



4,122,336



92.2

Freight forwarding services

238,565



2.6



240,491



34,270



2.3



670,162



2.4



676,480



96,398



2.2

Sale of accessories

460,870



5.1



588,233



83,823



5.5



1,297,486



4.7



1,653,717



235,653



5.3

Others

34,863



0.4



33,517



4,775



0.3



103,026



0.3



101,919



14,522



0.3

Total revenues

9,075,918



100.0



10,675,048



1,521,182



100.0



27,799,481



100.0



31,361,018



4,468,909



100.0

 

Total Revenues wereRMB10,675.0 million(US$1,521.2 million), an increase of 17.6% fromRMB9,075.9 millionin the same period of 2023. Revenue from the core express delivery business increased by 18.1% compared to the same period of 2023 driven by a 15.9% growth in parcel volume and a 1.8% increase in unit price. KA revenue including delivery fees from direct sales organizations, established to serve core express KA customers, increased by 122.1% as the proportion of higher-valued parcels such as returned parcels from e-commerce platforms continued to increase. Revenue from freight forwarding services increased by 0.8% compared to the same period of 2023. Revenue from sales of accessories, largely consisted of sales of thermal paper used for digital waybills'printing, increased by 27.6%. Other revenues were derived mainly from financing services.

 



Three Months Ended September 30,



Nine Months Ended September 30,



2023



2024



2023



2024



RMB



% of



RMB



US$



% of



RMB



% of



RMB



US$



% of



revenues

revenues

revenues

revenues



(in thousands, except percentages)

Line-haul transportation cost

3,245,767



35.8



3,398,007



484,212



31.8



9,627,419



34.6



10,052,623



1,432,487



32.1

Sorting hub operating cost

2,048,438



22.6



2,224,206



316,947



20.8



5,996,475



21.6



6,620,077



943,353



21.1

Freight forwarding cost

221,742



2.4



226,111



32,221



2.1



626,986



2.3



631,217



89,948



2.0

Cost of accessories sold

117,036



1.3



161,648



23,035



1.5



351,164



1.3



454,788



64,807



1.5

Other costs

736,491



8.1



1,330,265



189,560



12.6



2,663,160



9.5



3,644,940



519,400



11.5

Total cost of revenues

6,369,474



70.2



7,340,237



1,045,975



68.8



19,265,204



69.3



21,403,645



3,049,995



68.2

 

Total cost of revenueswasRMB7,340.2 million(US$1,046.0 million), an increase of 15.2% fromRMB6,369.5 millionin the same period last year.

Line-haul transportation costwasRMB3,398.0 million(US$484.2 million), an increase of 4.7% fromRMB3,245.8 millionin the same period last year. The unit transportation cost decreased 9.7% or4 centsmainly attributable to better economies of scale and improved load rate through more effective route planning.

Sorting hub operating costwasRMB2,224.2 million(US$316.9 million), an increase of 8.6% fromRMB2,048.4 millionin the same period last year. The increase primarily consisted of (i)RMB108.0 million(US$15.4 million) increase in labor-associated costs, a net result of wage increases partially offset by automation-driven efficiency improvements and (ii)RMB74.9 million(US$10.7 million) increase in depreciation and amortization costs associated with expansion of automation equipment and facility upgrades to further improve the transit efficiency. With standardization in operating procedures, effective performance evaluation system, sorting hub operating cost per unit decreased 6.4% or2 cents. As ofSeptember 30, 2024, there were 535 sets of automated sorting equipment in service, compared to 482 sets as ofSeptember 30, 2023.

Cost of accessories soldwasRMB161.6 million(US$23.0 million), increased 38.1% compared withRMB117.0 millionin the same period last year.

Other costswereRMB1,330.3 million(US$189.6 million), increased 80.6% fromRMB736.5 millionin the same period last year, included costs for serving higher-valued enterprise customers which increased byRMB546.8 million(US$77.9 million).

Gross ProfitwasRMB3,334.8 million(US$475.2 million), increased by 23.2% fromRMB2,706.4 millionin the same period last year. Gross margin rate improved to 31.2% from 29.8% in the same period last year.

Total Operating ExpenseswereRMB493.0 million(US$70.3 million), compared toRMB282.8 millionin the same period last year.

Selling, general and administrative expenseswereRMB544.6 million(US$77.6 million), increased by 25.6% fromRMB433.7 millionin the same period last year, mainly due to (i)RMB74.1 million(US$10.6 million) change in credit loss provision for financing services, and (ii) disposal losses ofRMB41.1 million(US$5.9 million) on fixed assets.

Other operating income, netwasRMB51.6 million(US$7.3 million), compared toRMB150.9 millionin the same period last year. Other operating income mainly consisted of (i)RMB43.4 million(US$6.2 million) of rental income, and (ii)RMB8.2 million(US$1.2 million) of government subsidies and tax rebates.

Income from operationswasRMB2,841.8 million(US$405.0 million), an increase of 17.3% fromRMB2,423.6 millionfor the same period last year. Operating margin rate decreased to 26.6% from 26.7% in the same period last year.

Interest incomewasRMB238.5 million(US$34.0 million), compared withRMB246.4 millionin the same period last year.

Interest expenseswasRMB66.4 million(US$9.5 million), compared withRMB83.8 millionin the same period last year.

Loss from fair value changes of financial instrumentswasRMB62.7 million(US$8.9 million), compared with a gain ofRMB8.6 millionin the same period last year. The large swing in USD and RMB exchange rate near quarter end caused aRMB94.9 million(US$13.5 million) unrealized foreign exchange loss related to cash management products.

Income tax expenseswereRMB555.0 million(US$79.1 million) compared toRMB271.4 millionin the same period last year. In the third quarter of 2023, Shanghai Zhongtongji Network Technology Co., Ltd.(上海中通吉網絡技術有限公司), a wholly-owned subsidiary of the Company, received an income tax refund ofRMB207.1 millionfor being a"Key Software Enterprise"for the tax year 2022.

Net incomewasRMB2,379.0 million(US$339.0 million), which increased by 1.3% fromRMB2,349.6 millionin the same period last year.

Basic and diluted earnings per ADS attributable to ordinary shareholderswereRMB2.98(US$0.42)andRMB2.90(US$0.41), compared to basic and diluted earnings per ADS ofRMB2.91andRMB2.84in the same period last year, respectively.

Adjusted basic and diluted earnings per ADS attributable to ordinary shareholderswereRMB2.99(US$0.43)andRMB2.91(US$0.41), compared withRMB2.89andRMB2.83in the same period last year, respectively.

Adjusted net incomewasRMB2,387.3 million(US$340.2 million), compared withRMB2,340.7 millionduring the same period last year.

EBITDA[1] wasRMB3,731.3 million(US$531.7 million), compared withRMB3,449.5 millionin the same period last year.

Adjusted EBITDAwasRMB3,729.5 million(US$532.8million), compared toRMB3,438.6 millionin the same period last year.

Net cash provided by operating activitieswasRMB3,112.0 million(US$443.5 million), compared withRMB2,938.1 millionin the same period last year.

(1)   EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses which management aims to better represent the underlying business operations.

Business Outlook

Based on current market and operating conditions, the Company revises its previously stated annual guidance. Parcel volume for 2024 is expected to be in the range of 33.7 billion to 33.9 billion, representing a 11.6% to 12.3% increase year over year. Such estimates represent management's current and preliminary view, which are subject to change.

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 ofRMB7.0176toUS$1.00, the noon buying rate onSeptember 30, 2024as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve Systems.

Use of Non-GAAP Financial Measures

The Company uses EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders, and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders, each a non-GAAP financial measure, in evaluating ZTO's operating results and for financial and operational decision-making purposes.

Reconciliations of the Company's non-GAAP financial measures to its U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.

The Company believes that such Non-GAAP measures help identify underlying trends in ZTO's business that could otherwise be distorted by the effect of the related 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 at7:30 PMU.S. Eastern Time onTuesday, November 19, 2024(8:30 AMBeijing Time onNovember 20, 2024).

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

United States:

1-888-317-6003

Hong Kong:

800-963-976

Mainland China:

4001-206-115

Singapore:

800-120-5863

International:

1-412-317-6061

Passcode:

0501133

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 untilNovember 26, 2024:

United States:

1-877-344-7529

International:

1-412-317-0088

Passcode:

1609584

Additionally, a live and archived webcast of the conference call will be available athttp://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 inChina. ZTO provides express delivery service as well as other value-added logistics services through its extensive and reliable nationwide network coverage inChina.

ZTO operates a highly scalable network partner model, which the Company believes is best suited to support the significant growth of e-commerce inChina. 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 visithttp://zto.investorroom.com. 

Safe Harbor Statement

This announcement contains statements that may constitute"forward-looking"statements pursuant to the"safe harbor"provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as"will,""expects,""anticipates,""aims,""future,""intends,""plans,""believes,""estimates,""likely to,"and other similar expressions. Among other things, the business outlook and quotations from management in this announcement contain forward-looking statements. ZTO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the"SEC") and The Stock Exchange of Hong Kong Limited (the"HKEX"), in its interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of the HKEX, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including but not limited to statements about ZTO's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: risks relating to the development of the e-commerce and express delivery industries inChina; its significant reliance on certain third-party e-commerce platforms; risks associated with its network partners and their employees and personnel; intense competition which could adversely affect the Company's results of operations and market share; any service disruption of the Company's sorting hubs or the outlets operated by its network partners or its technology system; ZTO's ability to build its brand and withstand negative publicity, or other favorable government policies. Further information regarding these and other risks is included in ZTO's filings with the SEC and the HKEX. All information provided in this announcement is as of the date of this announcement, and ZTO does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

UNAUDITED CONSOLIDATED FINANCIAL DATA



Summary of Unaudited Consolidated Comprehensive Income Data:





Three Months Ended September 30,



Nine Months Ended September 30,



2023



2024



2023



2024



RMB



RMB



US$



RMB



RMB



US$



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

Revenues

9,075,918



10,675,048



1,521,182



27,799,481



31,361,018



4,468,909

Cost of revenues

(6,369,474)



(7,340,237)



(1,045,975)



(19,265,204)



(21,403,645)



(3,049,995)

Gross profit

2,706,444



3,334,811



475,207



8,534,277



9,957,373



1,418,914

Operating (expenses)/income:























Selling, general and administrative

(433,682)



(544,573)



(77,601)



(1,724,896)



(2,034,192)



(289,870)

Other operating income, net

150,850



51,552



7,346



443,448



400,507



57,072

Total operating expenses

(282,832)



(493,021)



(70,255)



(1,281,448)



(1,633,685)



(232,798)

Income from operations

2,423,612



2,841,790



404,952



7,252,829



8,323,688



1,186,116

Other income/(expenses):























Interest income

246,362



238,510



33,987



505,382



771,608



109,953

Interest expense

(83,801)



(66,364)



(9,457)



(227,729)



(266,135)



(37,924)

Gain/(loss) from fair value changes of























financial instruments

8,551



(62,699)



(8,935)



215,764



34,883



4,971

Gain/(loss) on disposal of equity investees,























subsidiary and others

10,838



(1,440)



(205)



10,074



10,694



1,524

Impairment of investments in equity investees

-



-



-



-



(672,816)



(95,876)

Foreign currency exchange gain before tax

4,650



(38,174)



(5,440)



75,571



(17,612)



(2,510)

Income before income tax, and share of























loss in equity method investments

2,610,212



2,911,623



414,902



7,831,891



8,184,310



1,166,254

Income tax expense

(271,387)



(554,959)



(79,081)



(1,301,979)



(1,786,275)



(254,542)

Share of gain in equity method investments

10,785



22,378



3,189



14,732



42,751



6,092

Net income

2,349,610



2,379,042



339,010



6,544,644



6,440,786



917,804

Net (income)/loss attributable to non-























controlling interests

(4,452)



17,255



2,459



12,054



(6,641)



(946)

Net income attributable to ZTO Express























(Cayman) Inc.

2,345,158



2,396,297



341,469



6,556,698



6,434,145



916,858

Net income attributable to ordinary























shareholders

2,345,158



2,396,297



341,469



6,556,698



6,434,145



916,858

Net earnings per share attributed to























ordinary shareholders























Basic

2.91



2.98



0.42



8.11



7.99



1.14

Diluted

2.84



2.90



0.41



7.94



7.80



1.11

Weighted average shares used in























calculating net earnings per ordinary























share/ADS























Basic

807,081,026



804,565,579



804,565,579



808,298,164



805,388,468



805,388,468

Diluted

838,290,093



838,131,679



838,131,679



839,507,232



838,954,568



838,954,568

Net income

2,349,610



2,379,042



339,010



6,544,644



6,440,786



917,804

Other comprehensive income/(loss),























net of tax of nil:























Foreign currency translation adjustment

(32,832)



137,698



19,622



(174,729)



20,138



2,870

Comprehensive income

2,316,778



2,516,740



358,632



6,369,915



6,460,924



920,674

Comprehensive (income)/loss attributable to























non-controlling interests

(4,452)



17,255



2,459



12,054



(6,641)



(946)

Comprehensive income attributable to ZTO























Express (Cayman) Inc.

2,312,326



2,533,995



361,091



6,381,969



6,454,283



919,728

 

Unaudited Consolidated Balance Sheets Data:



As of



December 31,



September30,



2023



2024



RMB



RMB



US$



(in thousands, except for share data)

ASSETS











Current assets:











Cash and cash equivalents

12,333,884



11,703,151



1,667,686

Restricted cash

686,568



32,350



4,610

Accounts receivable, net

572,558



782,772



111,544

Financing receivables

1,135,445



1,272,992



181,400

Short-term investment

7,454,633



11,213,470



1,597,907

Inventories

28,074



27,651



3,940

Advances to suppliers

821,942



862,789



122,946

Prepayments and other current assets

3,772,377



4,162,249



593,116

Amounts due from related parties

148,067



99,206



14,137

Total current assets

26,953,548



30,156,630



4,297,286

Investments in equity investees

3,455,119



2,092,880



298,233

Property and equipment, net

32,181,025



33,591,675



4,786,775

Land use rights, net

5,637,101



6,097,476



868,883

Intangible assets, net

23,240



18,592



2,649

Operating lease right-of-use assets

672,193



573,209



81,682

Goodwill

4,241,541



4,241,541



604,415

Deferred tax assets

879,772



711,368



101,369

Long-term investment

12,170,881



13,511,938



1,925,436

Long-term financing receivables

964,780



850,440



121,187

Other non-current assets

701,758



953,451



135,866

Amounts due from related parties-non current

584,263



520,833



74,218

TOTAL ASSETS

88,465,221



93,320,033



13,297,999

LIABILITIES AND EQUITY











Current liabilities











Short-term bank borrowing

7,765,990



10,770,422



1,534,773

Accounts payable

2,557,010



2,112,632



301,048

Advances from customers

1,745,727



1,662,922



236,964

Income tax payable

333,257



316,260



45,067

Amounts due to related parties

234,683



154,447



22,009

Operating lease liabilities

186,253



166,392



23,711

Dividends payable

1,548



1,993,865



284,123

Convertible bond

-



6,979,057



994,508

Other current liabilities

7,236,716



7,126,793



1,015,558

Total current liabilities

20,061,184



31,282,790



4,457,761

Non-current operating lease liabilities

455,879



374,057



53,303

Deferred tax liabilities

638,200



541,115



77,108

Convertible bond

7,029,550



-



-

TOTAL LIABILITIES

28,184,813



32,197,962



4,588,172

Shareholders'equity











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

    812,866,663 shares issued and 804,719,252 shares outstanding as of











December 31, 2023; 810,339,182 shares issued and 804,140,620 shares











outstanding as of September 30, 2024)

525



523



75

Additional paid-in capital

24,201,745



24,383,137



3,474,569

Treasury shares, at cost

(510,986)



(337,541)



(48,099)

Retained earnings

36,301,185



36,715,863



5,231,969

Accumulated other comprehensive loss

(190,724)



(170,586)



(24,308)

ZTO Express (Cayman) Inc. shareholders'equity

59,801,745



60,591,396



8,634,206

Noncontrolling interests

478,663



530,675



75,621

Total Equity

60,280,408



61,122,071



8,709,827

TOTAL LIABILITIES AND EQUITY

88,465,221



93,320,033



13,297,999

 

Summary of Unaudited Consolidated Cash Flow Data:





Three Months Ended September 30,



Nine Months Ended September 30,



2023



2024



2023



2024



RMB



RMB



US$



RMB



RMB



US$



(in thousands)

Net cash provided by operating activities

2,938,104



3,111,972



443,452



9,437,682



8,623,087



1,228,780

Net cash used in investing activities

(4,025,760)



(1,910,131)



(272,191)



(13,433,920)



(8,955,072)



(1,276,088)

Net cash provided by/(used in) financing activities

2,529,988



10,183



1,451



1,396,265



(963,309)



(137,270)

Effect of exchange rate changes on cash, cash























equivalents and restricted cash

9,459



(43,349)



(6,176)



105,393



(8,272)



(1,178)

Net increase/(decrease) in cash, cash equivalents























and restricted cash

1,451,791



1,168,675



166,536



(2,494,580)



(1,303,566)



(185,756)

Cash, cash equivalents and restricted cash at























beginning of period

8,656,716



10,579,069



1,507,505



12,603,087



13,051,310



1,859,797

Cash, cash equivalents and restricted cash at end of   























period

10,108,507



11,747,744



1,674,041



10,108,507



11,747,744



1,674,041

 

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



September 30,



September 30,



2023



2024



RMB



RMB



US$







(in thousands)





Cash and cash equivalents

9,284,625



11,703,151



1,667,686

Restricted cash, current

793,037



32,350



4,610

Restricted cash, non-current

30,845



12,243



1,745

Total cash, cash equivalents and restricted cash

10,108,507



11,747,744



1,674,041

 

Reconciliations of GAAP and Non-GAAP Results





Three Months Ended September 30,



Nine Months Ended September 30,



2023



2024



2023



2024



RMB



RMB



US$



RMB



RMB



US$



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

Net income

2,349,610



2,379,042



339,010



6,544,644



6,440,786



917,804

Add:























Share-based compensation expense(1)

-



6,769



965



254,976



311,924



44,449

Impairment of investments in equity investees(1)

-



-



-



-



672,816



95,876

(Gain)/loss on disposal of equity investees























and subsidiary, net of income taxes

(8,866)



1,440



205



(8,102)



(8,507)



(1,212)

Adjusted net income

2,340,744



2,387,251



340,180



6,791,518



7,417,019



1,056,917

























Net income

2,349,610



2,379,042



339,010



6,544,644



6,440,786



917,804

Add:























Depreciation

712,734



695,241



99,071



2,035,702



2,168,290



308,979

Amortization

31,951



35,709



5,088



100,535



104,034



14,825

Interest expenses

83,801



66,364



9,457



227,729



266,135



37,924

Income tax expenses

271,387



554,959



79,081



1,301,979



1,786,275



254,542

EBITDA

3,449,483



3,731,315



531,707



10,210,589



10,765,520



1,534,074

























Add:























Share-based compensation expense

-



6,769



965



254,976



311,924



44,449

Impairment of investments in equity investees

-



-



-



-



672,816



95,876

(Gain)/loss on disposal of equity investees























and subsidiary

(10,838)



1,440



205



(10,074)



(10,694)



(1,524)

Adjusted EBITDA

3,438,645



3,739,524



532,877



10,455,491



11,739,566



1,672,875



(1) Net of income taxes of nil

 

Reconciliations of GAAP and Non-GAAP Results





Three Months Ended September 30,



NineMonths Ended September 30,



2023



2024



2023



2024



RMB



RMB



US$



RMB



RMB



US$



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

Net income attributable to ordinary























shareholders

2,345,158



2,396,297



341,469



6,556,698



6,434,145



916,858

Add:























Share-based compensation expense(1)

-



6,769



965



254,976



311,924



44,449

Impairment of investments in equity























investees(1)

-



-



-



-



672,816



95,876

(Gain)/loss on disposal of equity investees























and subsidiary, net of income taxes

(8,866)



1,440



205



(8,102)



(8,507)



(1,212)

Adjusted Net income attributable to























ordinary shareholders

2,336,292



2,404,506



342,639



6,803,572



7,410,378



1,055,971

























Weighted average shares used in























calculating net earnings per ordinary























share/ADS























Basic

807,081,026



804,565,579



804,565,579



808,298,164



805,388,468



805,388,468

Diluted

838,290,093



838,131,679



838,131,679



839,507,232



838,954,568



838,954,568

























Net earnings per share/ADS attributable to























ordinary shareholders























Basic

2.91



2.98



0.42



8.11



7.99



1.14

Diluted

2.84



2.90



0.41



7.94



7.80



1.11

























Adjusted net earnings per share/ADS























attributable to ordinary shareholders























Basic

2.89



2.99



0.43



8.42



9.20



1.31

Diluted

2.83



2.91



0.41



8.24



8.96



1.28



 (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

CisionView original content:https://www.prnewswire.com/apac/news-releases/zto-reports-third-quarter-2024-unaudited-financial-results-302310245.html

SOURCE ZTO Express (Cayman) Inc.