ZTO Express (Cayman) Inc.

2Q21 Financial Details for Earnings Call

August 19, 2021

Financial Performance

2Q21

2Q20

V%

Comments

Parcel package volume （in Billion）

5.77

4.60

25.6%

3.1pts below industry avg.; attained 21.0% market share (21.5% @2Q20)

(￥RMB in Million)

￥7.01bn from core express delivery business, increased 18.1%

Revenues

7,325

6,402

14.4%

￥1.09bn from KA customers, increased 12.9% on ~28% KA volume growth

COGS

-5,651

-4,633

22.0%

￥5.39bn from core express delivery business, increased 27.7%

1) Line haul transportation costs increased 38.4% to ￥2.76bn

2) Sorting hub operation costs increased 28.6% to ￥1.61bn

3) ￥610mn KA costs increased 2.6%

Gross profit

1,674

1,769

-5.4%

￥1.63bn from core business, decreased 5.4%

Gross profit %

22.8%

27.6%

-4.8pts

23.2% for core express delivery business (29.0% @2Q20)

SG&A

-394

-312

26.1%

SG&A was 5.4% of revenues (4.9% @2Q20)

Other operating income/(loss), net

176

190

￥38.5mn gov't subsidies and tax rebates (￥95.4mn @2Q20), ￥95.8mn VAT super

deduction (￥60mn @2Q20)

Income from operations

1,456

1,647

-11.6%

Operating profit %

19.9%

25.7%

-5.8pts

Income from operations excluding SBC (Non GAAP)

1,456

1,647

-11.6%

Operating profit % excluding SBC（Non GAAP）

19.9%

25.7%

-5.8pts

Interest income (net)

69

105

-34.7%

Fair value change at financial instruments

32

-

Foreign currency exchange gain/(loss)

-26

3

Income before income tax and equity pickup

1,531

1,754

Income tax expenses

-255

-298

Equity pickup

-4

-2

Net income

1,272

1,454

-12.5%

Net income%

17.4%

22.7%

-5.3pts

Adjusted net income (Non GAAP)

1,272

1,454

-12.5%

Adjusted net income (Non GAAP)%

17.4%

22.7%

-5.3pts

EBITDA

2,126

2,187

-2.8%

Adjusted EBITDA (Non GAAP)

2,126

2,187

-2.8%

Adjusted Basic EPS (Non GAAP) (￥RMB in Yuan)

1.56

1.85

-15.7%

* may contain rounding differences

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Unit Economics (RMB per parcel)

GAAP

ASP (excluding COE)

Cost of Revenue (excluding COE)

  • transportation cost per parcel
  • sorting hub cost per parcel

Gross profit (excluding COE)

SG&A excluding SBC (Non GAAP)

Adjusted income from operations (Non GAAP)

Cash and Capex (RMB in Million)

Operating cash flow

CapEx

Cash and Cash Equivalents

ZTO Express (Cayman) Inc.

2Q21 Financial Details for Earnings Call

August 19, 2021

2Q21

2Q20

Impact (+/-) Comments (+positive/-negative impact)

1.21

1.29

-8 cents

Core ASP declined 5.9%: avg. parcel weight declined ~4 cent(-), volume incentives

increased ~4 cents(-)

0.93

0.92

-1 cents

Core express delivery unit cost increased 1.7%

0.48

0.43

-5 cents

Main drivers:

1)

National toll road fee waiver policy from Feb to May 2020 during COVID-19(-)

2)

Lower domestic diesel price during the pandemic outbreak last year (-)

3)

~92% of parcel volume transported by self-owned trucks (~91% @2Q20)(+)

4)

~81% of self-owned trucks were high-capacity trucks (~78% @2Q20) (+)

0.28

0.27

-1 cents

Main drivers:

1)

361 sets of automated sorting equipment in use (282 sets @ 2Q20) (+)

2)

~80% of volume processed by automation (~75% @2Q20) (+)

0.28

0.37

-9 cents

Combined effect of ASP decline and cost increase

0.07

0.07

+0 cents

Stable corporate cost structure

0.25 0.36 -11 cents

2Q21

2Q20

Diff

Comments

1,932

1,252

680

2,225

2,250

-26

Approx.￥1500mn land use rights acquisition and sorting hub construction

￥ 300mn self-owned trucks

￥ 400mn automation equipment

15,289

13,701

1588

Excluding ￥2.14bn cash on deposits maturing in one year or longer

* may contain rounding differences

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ZTO Express (Cayman) Inc. published this content on 16 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2021 07:43:01 UTC.