ZTO Reports Second Quarter 2017 Unaudited Financial Results

ZTO Reports Second Quarter 2017 Unaudited Financial Results

SHANGHAI, Aug. 22, 2017 /PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO) ("ZTO" or the "Company"), a leading and fast-growing express delivery company in China, today announced its unaudited financial results for the second quarter ended June 30, 20171.

Second Quarter 2017 Financial Highlights

  • Revenues were RMB2,971.4 million (US$438.3 million), an increase of 29.9% from the same period of 2016.
  • Gross profit was RMB1,123.9 million (US$165.8 million), an increase of 35.8% from RMB827.8 million in the same period of 2016.
  • Net income was RMB716.9 million (US$105.8 million), an increase of 68.4% from RMB425.8 million in the same period of 2016.
  • Adjusted EBITDA2 was RMB1,104.6 million (US$162.9 million), an increase of 46.6% from RMB753.7 million in the same period of 2016.
  • Adjusted net income3 was RMB730.4 million (US$107.7 million), an increase of 43.5% from RMB509.2 million in the same period of 2016.
  • Basic and diluted earnings per American depositary share ("ADS"4) were RMB1.00 (US$0.15), an increase of 66.7% from RMB0.60 in the same period of 2016.
  • Net cash provided by operating activities was RMB903.2 million (US$133.2 million), compared with RMB278.5 million in the same period of 2016.

1   An investor relations presentation accompanies this earnings release and can be found at ir.zto.com

2   Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses, and further adjusted to exclude (i) shared-based compensation expense; and (ii) gain on deemed disposal of equity method investments.

3   Adjusted net income is a non-GAAP financial measure, which is defined as net income before (i) share-based compensation expense and (ii) gain on deemed disposal of equity method investments.

4   One ADS represents one Class A ordinary share.

Second Quarter 2017 Operational Highlights

  • Parcel volume in the second quarter of 2017 was 1,493 million, an increase of 37.6% from 1,085 million in the same period of 2016.
  • Number of pickup/delivery outlets was approximately 28,000 as of June 30, 2017.
  • Number of network partners was over 9,300, which included over 3,700 direct network partners and over 5,600 indirect network partners as of June 30, 2017.
  • Number of line-haul vehicles was over 4,380 as of June 30, 2017, which included around 3,190 self-owned vehicles and around 1,190 vehicles owned and operated by Tonglu Tongze Logistics Ltd., a transportation operator that works exclusively for ZTO.
  • Number of self-owned trucks increased to around 3,190 as of June 30, 2017 from 3,000 as of March 31, 2017. Among the self-owned trucks, over 1,260 were high capacity 15-17 meter long models as of June 30, 2017, compared to over 1,200 as of March 31, 2017.
  • Number of line-haul routes between sorting hubs was over 1,780 as of June 30, 2017.
  • Number of sorting hubs was 77 as of June 30, 2017, among which 71 are operated by the Company and 6 by the Company's network partners.

"Our business continued to gain growth momentum with parcel volume growth again exceeding the industry average," commented Mr. Meisong Lai, founder and Chief Executive Officer. "Our parcel volume grew by 37.6% year-over-year during the quarter, well above the increase of 30.7% for the industry overall during the same period. Our market share continued to expand as well, underlining just how effective our strategy of balancing growth with service quality and profitability is in strengthening our industry-leading position and aligning the interest of our network partners with ZTO. We continued to optimize parcel mix during the quarter by focusing more on more profitable parcels to improve efficiency and lower unit cost. This resulted in lower average revenue per parcel as parcel weight fell, but our margins continued to expand thanks to our economies of scale and the various cost cutting measures we have been implementing, all without affecting the high quality service we are known for. According to data published by the PRC State Post Bureau, ZTO once again received one of the highest scores for customer satisfaction among the major express delivery companies in China during the quarter. We are increasingly benefiting from our economies of scale and lower unit operating costs. We continue to strengthen our cost leadership position by improving operational efficiency with more automated sorting equipment, putting more of our self-owned fleet on the road instead of outsourced transportation, and increasing the use of digital waybills. These measures contributed to a decrease in cost of revenue per parcel to RMB1.24 during the quarter from RMB1.34 in the same period last year."   

"Our financial performance during the quarter demonstrates how we are benefiting from larger economies of scale and our cost cutting measures," commented Mr. James Guo, Chief Financial Officer of ZTO. "This is especially evident with the expansion of our margins. Our gross margin, operating margin, net margin and non-GAAP net margin expanded to 37.8%, 31.0%, 24.1% and 24.6%, respectively, compared to 36.2%, 26.3%, 18.6% and 22.3%, respectively, during the same period last year."  

Second Quarter 2017 Financial Results



Three Months Ended June 30,


Six Months Ended June 30,




2016


2017


2016


2017




RMB


%


RMB


US$


%


RMB


%


RMB


US$


%




(in thousands, except percentages)


Express delivery services


2,188,817


95.7


2,837,699


418,583


95.5


4,083,407


96.2


5,348,367


788,926


95.7


Sale of accessories


97,812


4.3


133,735


19,727


4.5


161,770


3.8


237,661


35,057


4.3


Total revenues


2,286,629


100.0


2,971,434


438,310


100.0


4,245,177


100.0


5,586,028


823,983


100.0


Revenues were RMB2,971.4 million (US$438.3 million), an increase of 29.9% from RMB2,286.6 million in the same period of 2016. The increase was mainly driven by an increase in parcel volume as a result of overall market growth and an increase in the Company's market share in terms of parcel volume. The Company's parcel volume grew to 1,493 million during the second quarter of 2017, an increase of 37.6% from 1,085 million in the same period of 2016.



Three Months Ended June 30,


Six Months Ended June 30,




2016


2017


2016


2017




RMB


% of
revenues


RMB


US$


% of
revenues


RMB


% of
revenues


RMB


US$


% of
revenues




(in thousands, except percentages)


Line-haul transportation
   
cost


822,625


36.0


1,062,504


156,728


35.8


1,604,216


37.8


2,182,592


321,950


39.1


Sorting hub cost


452,652


19.8


527,868


77,865


17.8


885,363


20.9


1,084,054


159,906


19.4


Cost of accessories sold


72,149


3.1


83,685


12,344


2.8


118,540


2.8


146,134


21,556


2.6


Other costs


111,384


4.9


173,468


25,587


5.8


207,791


4.9


318,690


47,009


5.7


Total cost of revenues


1,458,810


63.8


1,847,525


272,524


62.2


2,815,910


66.4


3,731,470


550,421


66.8


Total cost of revenues were RMB1,847.5 million (US$272.5 million), an increase of 26.6% from RMB1,458.8 million in the same period last year. The increase was primarily a result of increases in line-haul transportation costs, sorting hub operating costs, cost of accessories sold, and other costs, which were partially offset by a decrease in waybill material cost due to the increased use of digital waybills by the Company's end customers which bear lower costs than paper waybills.

  • Line haul transportation cost was RMB1,062.5 million (US$156.7 million), an increase of 29.2% from RMB822.6 million in the same period last year. The increase was mainly due to an increase of RMB206.8 million (US$30.5 million) in costs associated with the Company's self-owned fleet which includes fuel, tolls, drivers' compensation, depreciation and maintenance expenses, and an increase of RMB62.6 million (US$9.2 million) in outsourced transportation costs. Line haul transportation cost increased at a lower rate than parcel volume as the Company continues to optimize parcel mix by focusing more on profitable parcels. As a percentage of revenues, line haul transportation cost accounted for 35.8%, a decrease from 36.0% in the same period last year, mainly due to (i) economies of scale, (ii) increased use of self-owned, more cost-efficient, higher capacity trailer trucks in place of third-party trucks and outsourced transportation, and (iii) increased truck utilization through optimized route planning and increased back-haul transportation.
                                                                                      
  • Sorting hub operating cost was RMB527.9 million (US$77.9 million), an increase of 16.6% from RMB452.7 million in the same period last year. The increase was mainly due to (i) increased labor costs of RMB22.7 million (US$3.3 million) as a result of an increase in headcount; (ii) an RMB30.7 million (US$4.5 million) increase in depreciation and amortization costs, and (iii) an increase of RMB11.4 million (US$1.7 million) in rental and related utilities costs. As a percentage of revenues, sorting hub operating cost accounted for 17.8%, a decrease from 19.8% in the same period last year, mainly due to economies of scale and improved operating efficiency as a result of the increased use of automation in the Company's sorting facilities.
                                                                                 
  • Cost of accessories was RMB83.7 million (US$12.3 million), an increase of 16.0% from RMB72.1 million in the same period last year. The increase was in line with growth in the Company's revenue from the sale of accessories to its network partners, which includes thermal paper for digital waybill printing, portable bar code readers, and ZTO-branded packaging materials and uniforms. As a percentage of revenues, cost of accessories accounted for 2.8%, a decrease from 3.1% in the same period last year.
                                                                                                    
  • Other costs were RMB173.5 million (US$25.6 million), an increase of 55.7% from RMB111.4 million in the same period last year, primarily due to an increase in dispatching costs associated with serving enterprise customers, which were partially offset by a decrease in costs associated with the increased use of digital waybills.

Gross Profit was RMB1,123.9 million (US$165.8 million), an increase of 35.8% from RMB827.8 million in the same period last year. Gross margin increased to 37.8% from 36.2% in the same period last year, mainly attributable to the decrease in line-haul transportation cost and sorting hub cost.

Total Operating Expenses were RMB202.6 million (US$29.9 million), a decrease of 10.2% from RMB225.7 million in the same period last year.

  • Selling, general and administrative expenses were RMB202.7 million (US$29.9 million), a decrease of 7.1% from RMB218.1 million in the same period last year. The decrease was mainly due to a decrease in share-based compensation expenses from RMB83.4 million in the second quarter of 2016 to RMB13.5 million in the second quarter of 2017. The decrease in share-based compensation expenses was partially offset by an increase in other employee compensation expenses including accrual of cost saving incentives and bonuses of RMB49.4 million, and a provision for bad debt expense of RMB7.0 million in the second quarter of 2017. As a percentage of revenue, selling, general and administrative expenses accounted for 6.8%, compared to 9.5% during the same period last year, primarily due to reduced share-based compensation expenses and higher operating leverage.

Income from operations was RMB921.3 million (US$135.9 million), an increase of 53.0% from RMB602.1 million in the same period last year. Operating margin increased to 31.0% from 26.3% in the same period last year, primarily due to increases in economies of scale and continuous improvement in operating efficiency.

Interest income was RMB39.6 million (US$5.8 million), compared with RMB11.8 million in the same period in 2016, primarily due to the increased amount of cash and bank deposits available for investment since the Company's initial public offering in October 2016.

Interest expense was RMB5.0 million (US$0.7 million), compared with RMB4.7 million in the same period in 2016.

Foreign currency exchange loss, before tax was RMB2.9 million (US$0.4 million), which was mainly due to the depreciation of the U.S. dollar against the Chinese Renminbi.

Net income was RMB716.9 million (US$105.8 million), compared with RMB425.8 million in the same period last year.

Basic and diluted earnings per ADS were RMB1.00 (US$0.15), compared with basic and diluted earnings per ADS of RMB0.60 in the same period last year.

Adjusted net income was RMB730.4 million (US$107.7 million), compared with adjusted net income of RMB509.2 million during the same quarter last year.

EBITDA was RMB1,091.1million (US$160.9 million), compared with RMB670.3 million in the same period last year.

Adjusted EBITDA was RMB1,104.6million (US$162.9 million), compared to RMB753.7 million in the same period last year.

Net cash provided by operating activities was RMB903.2million (US$133.2million), compared with 278.5 million in the same period last year, mainly attributable to growth in net income and increased deposits for last-mile delivery fees.

Business Outlook

Based on current market conditions and current operations, revenues for the third quarter of 2017 is expected to be in the range of RMB2.9 billion (US$427.8 million) to RMB3.0 billion (US$442.5 million), representing a 23.2 % to 27.5% increase from the same period of 2016. This represents management's current and preliminary view, which is subject to change.

Company Share Purchase

On May 21, 2017, the Company announced a new share repurchase program whereby ZTO is authorized to repurchase its own Class A ordinary shares in the form of ADSs with an aggregate value of up to US$300 million during the 12-month period thereafter. As of June 30, 2017, the Company has purchased an aggregate of 2,623,414 ADSs at an average purchase price of US$14.33.

The Company believes that the share repurchase program represents ZTO's confidence in its cash flow and the long-term outlook for the express delivery industry in China. ZTO's fast-growing strategy, asset-light business model and solid operations allow the Company to generate strong cash flow. The Company believes that the share repurchase program is consistent with the goal of increasing shareholders' value.

Exchange Rate

This announcement contains translation of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at the exchange rate of RMB6.7793 to US$1.00, the noon buying rate on June 30, 2017 as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve Systems.

Use of Non-GAAP Financial Measures

The Company uses adjusted EBITDA and adjusted net income, each a non-GAAP financial measure, in evaluating ZTO's operating results and for financial and operational decision-making purposes.

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

The Company believes that adjusted EBITDA and adjusted net income help identify underlying trends in ZTO's business that could otherwise be distorted by the effect of the expenses and gains that the Company includes in income from operations and net income. The Company believes that adjusted EBITDA and adjusted net income provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by ZTO's management in its financial and operational decision-making.

Adjusted EBITDA and adjusted net income should not be considered in isolation or construed as an alternative to net income or any other measure of performance or as an indicator of the Company's operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted EBITDA and adjusted net income presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to ZTO's data. ZTO encourages investors and others to review the Company's financial information in its entirety and not rely on a single financial measure.

Conference Call Information

ZTO's management team will host an earnings conference call at 9:00 PM U.S. Eastern Time on Tuesday, August 22, 2017 (9:00 AM Beijing Time on August 23, 2017).

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

United States:

1-888-317-6003

Hong Kong:

852-5808-1995

China:

4001-206115

International:

1-412-317-6061

Passcode:

6665002

Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call.

A replay of the conference call may be accessed by phone at the following numbers until August 29, 2017:

United States:

1-877-344-7529



International:

1-412-317-0088



Passcode:

10111460

Additionally, a live and archived webcast of the conference call will be available at http://zto.investorroom.com.

About ZTO Express (Cayman) Inc.

ZTO Express (Cayman) Inc. (NYSE: ZTO) ("ZTO" or the "Company") is a leading and fast-growing express delivery company in China. ZTO provides express delivery service as well as other value-added logistics services through its extensive and reliable nationwide network coverage in China.

ZTO operates a highly scalable network partner model, which the Company believes is best suited to support the significant growth of e-commerce in China. The Company leverages its network partners to provide pickup and last-mile delivery services, while controlling the mission-critical line-haul transportation and sorting network within the express delivery service value chain.

For more information, please visit http://zto.investorroom.com.

Safe Harbor Statement

This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to ZTO management quotes and the Company's financial outlook.

These forward-looking statements are not historical facts but instead represent only the Company's belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of its control. The Company's actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the second quarter of 2017 are preliminary, unaudited and subject to audit adjustment. In addition, the Company may not meet its financial outlook included in this news release and may be unable to grow its business in the manner planned. The Company may also modify its strategy for growth. In addition, there are other risks and uncertainties that could cause the Company's actual results to differ from what it currently anticipates, including those relating to the development of the e-commerce industry in China, its significant reliance on the Alibaba ecosystem, risks associated with its network partners and their employees and personnel, intense competition which could adversely affect the Company's results of operations and market share, any service disruption of the Company's sorting hubs or the outlets operated by its network partners or its technology system. For additional information on these and other important factors that could adversely affect the Company's business, financial condition, results of operations, and prospects, please see its filings with the U.S. Securities and Exchange Commission.

All information provided in this press release and in the attachments is as of the date of the press release. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Such information speaks only as of the date of this release.

 

 

UNAUDITED CONSOLIDATED FINANCIAL DATA


Summary of Unaudited Consolidated Comprehensive Income Data:




Three Months Ended June 30,


Six Months Ended June 30,




2016


2017


2016


2017




RMB


RMB


US$


RMB


RMB


US$




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
















Revenues


2,286,629


2,971,434


438,310


4,245,177


5,586,028


823,983


Cost of revenues


(1,458,810)


(1,847,525)


(272,524)


(2,815,910)


(3,731,470)


(550,421)


Gross profit


827,819


1,123,909


165,786


1,429,267


1,854,558


273,562


Operating income (expenses):














Selling, general and administrative


(218,097)


(202,664)


(29,895)


(380,728)


(364,638)


(53,787)


Other operating income, net


(7,617)


18


3


8,023


88,057


12,989


Total operating expenses


(225,714)


(202,646)


(29,892)


(372,705)


(276,581)


(40,798)


Income from operations


602,105


921,263


135,894


1,056,562


1,577,977


232,764


Other income (expenses):














Interest income


11,754


39,573


5,837


20,811


68,197


10,060


Interest expense


(4,742)


(5,029)


(742)


(8,386)


(10,737)


(1,584)


Gain on deemed disposal of equity method
     investments





9,551




Foreign currency exchange loss, before tax



(2,872)


(424)



(5,844)


(862)


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


609,117


952,935


140,565


1,078,538


1,629,593


240,378


Income tax expense


(171,954)


(233,323)


(34,417)


(293,972)


(399,932)


(58,993)


Share of loss in equity method investments


(11,361)


(2,689)


(397)


(19,950)


(9,868)


(1,456)


Net income


425,802


716,923


105,751


764,616


1,219,793


179,929


Net loss (income) attributable to 
    noncontrolling interests


2,017


(88)


(13)


1,978


593


87


Net income attributable to ZTO Express
     (Cayman) Inc.


427,819


716,835


105,738


766,594


1,220,386


180,016


Change in redemption value of convertible 
    redeemable preferred shares


(41,048)




(79,723)




Net income attributable to ordinary 
    shareholders


386,771


716,835


105,738


686,871


1,220,386


180,016


Net earnings per share/ADS attributable to 
    ordinary shareholders














Basic


0.60


1.00


0.15


1.07


1.69


0.25


Diluted


0.60


1.00


0.15


1.07


1.69


0.25


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














Basic


613,976,791


719,716,569


719,716,569


613,901,657


720,138,244


720,138,244


Diluted


613,976,791


719,908,261


719,908,261


613,901,657


720,614,499


720,614,499


Other comprehensive income, net of tax of nil:














Foreign currency translation adjustment


32,911


(144,409)


(21,301)


25,829


(233,422)


(34,432)


Comprehensive income


458,713


572,514


84,450


790,445


986,371


145,497


Comprehensive loss (income) attributable to
    noncontrolling interests


2,017


(88)


(13)


1,978


593


87


Comprehensive income attributable to ZTO
    Express (Cayman) Inc.


460,730


572,426


84,437


792,423


986,964


145,584


 

 

Unaudited Consolidated Balance Sheets Data:




As of




December 31, 2016


June 30, 2017




RMB


RMB


US$




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










ASSETS








Current assets:








Cash and cash equivalents


11,287,789


5,714,086


842,873


Restricted cash


635,366


350,004


51,628


Accounts receivable, net of allowance for doubtful accounts of
    RMB5,124 and RMB13,726 at December 31, 2016 and June 30,
    2017, respectively


197,803


184,466


27,210


Short-term investment



5,186,165


765,000


Inventories


33,959


28,677


4,230


Advances to suppliers


646,666


229,909


33,913


Prepayments and other current assets


379,055


552,394


81,482


Amounts due from related parties


5,400


9,900


1,460


Total current assets


13,186,038


12,255,601


1,807,796


Investments in equity investees


537,175


526,987


77,735


Property and equipment, net


4,065,562


5,155,793


760,520


Land use rights, net


1,302,869


1,468,888


216,673


Goodwill


4,157,111


4,157,111


613,207


Deferred tax assets


109,030


190,296


28,070


Other non-current assets


45,953


42,953


6,336


TOTAL ASSETS


23,403,738


23,797,629


3,510,337


LIABILITIES AND EQUITY








Current liabilities








Short-term bank borrowing


450,000


250,000


36,877


Accounts payable


636,422


491,921


72,562


Advances from customers


229,724


187,842


27,708


Income tax payable


418,310


329,352


48,582


Amounts due to related parties


131,425


151,951


22,414


Other current liabilities


1,656,590


1,687,661


248,944


Total current liabilities


3,522,471


3,098,727


457,087


Deferred tax liabilities


130,520


129,050


19,036


Other non-current liabilities



75,381


11,119


TOTAL LIABILITIES


3,652,991


3,303,158


487,242


Shareholders' equity








Ordinary shares (US$0.0001 par value; 10,000,000,000 shares authorized,
    731,406,440 shares issued and 720,564,604 shares outstanding as of
    December 31, 2016, and 717,941,190 shares outstanding as of June 30,
    2017)


471


471


69


Additional paid-in capital


15,940,206


15,953,949


2,353,333


Treasury shares, at cost



(256,390)


(37,820)


Retained earnings


3,509,707


4,730,093


697,726


Accumulated other comprehensive (loss) income


294,649


61,227


9,031


ZTO Express (Cayman) Inc. shareholders' equity


19,745,033


20,489,350


3,022,339


Noncontrolling interests


5,714


5,121


756


Total Equity


19,750,747


20,494,471


3,023,095


TOTAL LIABILITIES AND EQUITY


23,403,738


23,797,629


3,510,337


 

 

Summary of Unaudited Consolidated Cash Flow Data:




Three Months Ended June 30,


Six Months Ended June 30,




2016


2017


2016


2017




RMB


RMB


US$


RMB


RMB


US$




(in thousands)
















Net cash provided by operating
    activities


278,480


903,248


133,237


542,060


1,234,756


182,138


Net cash used in investing
    activities5


(462,792)


(1,137,348)


(167,767)


(1,108,727)


(6,443,242)


(950,429)


Net cash provided by financing activities



(706,390)


(104,199)


98,000


(456,390)


(67,322)


Effect of exchange rate changes
    on cash and cash equivalents


25,556


(70,009)


(10,327)


19,685


(194,189)


(28,644)


Net decrease in cash and cash
    equivalents


(158,756)


(1,010,499)


(149,056)


(448,982)


(5,859,065)


(864,257)


Cash and cash equivalents at
    beginning of period6


2,428,536


7,074,589


1,043,557


2,718,762


11,923,155


1,758,758


Cash and cash equivalents at end
    of period6


2,269,780


6,064,090


894,501


2,269,780


6,064,090


894,501




5 The amount of cash used in investing activities mainly includes purchases of the fixed term bank deposits with an original maturity of six to nine months. For the first and second quarter of 2017, the Company purchased approximately RMB4.8 billion (US$700.0 million) and RMB440.7 million (US$65.0 million) of such deposits.

6 In November 2016, the FASB issued ASU No. 2016-18 ("ASU 2016-18"), Statement of Cash Flows (Topic 230) - Restricted Cash. This ASU requires amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The provisions of ASU 2016-18 are effective for reporting periods beginning after December 15, 2017 and are to be applied retrospectively; early adoption is permitted. We elected, as permitted by the standards, to early adopt ASU 2016-18 in the first quarter of 2017. In connection with the adoption of this update, we have reclassified RMB85.4 million and RMB54.9 million of restricted cash from operating activities to the cash, cash equivalents, and restricted cash balance in the three-month and six-month periods ended June 30, 2016, respectively, to be consistent with the 2017 presentation.

 

 

Reconciliations of GAAP and Non-GAAP Results




Three Months Ended June 30,


Six Months Ended June 30,




2016


2017


2016


2017




RMB


RMB


US$


RMB


RMB


US$




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






Net income


425,802


716,923


105,751


764,616


1,219,793


179,929


Add:














Share-based compensation expense


83,366


13,492


1,990


122,000


13,743


2,027


Less:














Gain on deemed disposal of equity
     method investment





(9,551)




Adjusted net income


509,168


730,415


107,741


877,065


1,233,536


181,956
















Net income


425,802


716,923


105,751


764,616


1,219,793


179,929


Add:














Depreciation


62,453


127,083


18,746


113,461


249,094


36,743


Amortization


5,349


8,702


1,284


10,037


16,297


2,404


Interest expenses


4,742


5,029


742


8,386


10,737


1,584


Income tax expenses


171,954


233,323


34,417


293,972


399,932


58,993


EBITDA


670,300


1,091,060


160,940


1,190,472


1,895,853


279,653
















Add:














Share-based compensation expense


83,366


13,492


1,990


122,000


13,743


2,027


Less:














Gain on deemed disposal of equity
     method investments





(9,551)




Adjusted EBITDA


753,666


1,104,552


162,930


1,302,921


1,909,596


281,680


 

 

For investor and media inquiries, please contact:

ZTO

Ms. Sophie Li
Investor Relations Director
E-mail: ir@zto.com

Christensen

In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com

In US
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com

View original content:http://www.prnewswire.com/news-releases/zto-reports-second-quarter-2017-unaudited-financial-results-300508315.html

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