ZTO Express (Cayman) Inc.
3Q21 Financial Details for Earnings Call
November 18, 2021
Financial Performance
3Q21 | 3Q20 | V% | Comments | ||||
Parcel package volume (in Billion) | 5.70 | 4.62 | 23.3% | 0.3pts above industry avg.; secured 20.8% market share (20.8% @3Q20) | |||
(¥RMB in Million) | ¥7.05bn from core express delivery business, increased 14.4% | ||||||
Revenues | 7,391 | 6,639 | 11.3% | ||||
¥1.14bn from KA customers, increased 19.0% on 17.6% KA volume growth | |||||||
COGS | -5,822 | -5,248 | 10.9% | ¥5.52bn from core express delivery business, increased 15.0% | |||
1) | Line haul transportation costs increased 16.1% to ¥2.84bn | ||||||
2) | Sorting hub operation costs increased 20.8% to ¥1.64bn | ||||||
3) | ¥618mn KA costs increased 0.8% | ||||||
Gross profit | 1,568 | 1,391 | 12.7% | ¥1.52bn from core business, increased 12.4% | |||
Gross profit % | 21.2% | 21.0% | 0.2pts | 21.6% for core express delivery business (22.0% @3Q20) | |||
SG&A | -389 | -374 | 4.2% | 5.3% of revenues (5.6% @3Q20) | |||
Other operating income/(loss), net | 182 | 152 | ¥66.0mn gov't subsidies and tax rebates (¥24.5mn @3Q20), ¥139.3mn VAT super | ||||
deduction (¥43.5mn @3Q20) |
Income from operations | 1,360 | 1,169 | 16.4% | |
Operating profit % | 18.4% | 17.6% | 0.8pts | |
Income from operations excluding SBC (Non GAAP) | 1,360 | 1,169 | 16.4% | |
Operating profit % excluding SBC(Non GAAP) | 18.4% | 17.6% | 0.8pts | |
Interest income (net) | 40 | 83 | -52.3% | |
Fair value change at financial instruments | 5 | - | ||
Foreign currency exchange gain/(loss) | -8 | -64 | ||
Income before income tax and equity pickup | 1,397 | 1,188 | ||
Income tax expenses | -230 | 28 | ||
Equity pickup | -20 | -5 | ||
Net income | 1,148 | 1,210 | -5.2% | |
Net income% | 15.5% | 18.2% | -2.7pts | |
Adjusted net income (Non GAAP) | 1,148 | 1,210 | -5.2% | |
Adjusted net income (Non GAAP)% | 15.5% | 18.2% | -2.7pts | |
EBITDA | 1,968 | 1,675 | 17.4% | |
Adjusted EBITDA (Non GAAP) | 1,968 | 1,675 | 17.4% | |
Adjusted Basic EPS (Non GAAP) (¥RMB in Yuan) | 1.43 | 1.53 | -6.5% |
3Q20 received ¥200.7mn tax credit for being recognized as a "Key Software Enterprise" for tax year 2019
* may contain rounding differences | 1 of 2 |
ZTO Express (Cayman) Inc.
3Q21 Financial Details for Earnings Call
November 18, 2021
Unit Economics (RMB per parcel)
3Q21 | 3Q20 | Impact (+/-) Comments (+positive/-negative impact) | |||
ASP (excluding COE) | 1.24 | 1.33 | -9 cents | Core ASP declined 7.2%: avg. parcel weight declined ~5 cents(-), volume incentives | |
increased ~4 cents(-) | |||||
Cost of Revenue (excluding COE) | 0.97 | 1.04 | +7 cents | Core express delivery unit cost decreased 7.3% | |
- | transportation cost per parcel | 0.50 | 0.53 | +3 cents | Main drivers: |
1) ~81% of self-owned trucks were high-capacity trucks (~80% @3Q20) (+) | |||||
2) Diesel price returned to pre-pandemic level, increased ~4 cents (-) | |||||
- | sorting hub cost per parcel | 0.29 | 0.29 | 0 cents | Main drivers: |
1) 370 sets of automated sorting equipment in use (300 sets @ 3Q20) (+) | |||||
2) ~81% of volume processed by automation (~77% @3Q20) (+) | |||||
Gross profit (excluding COE) | 0.27 | 0.29 | -2 cents | ASP decline partially offset by scale leverage and cost productivities | |
SG&A excluding SBC (Non GAAP) | 0.07 | 0.08 | +1 cents | Highly efficient corporate cost structure | |
Adjusted income from operations (Non GAAP) | 0.24 | 0.25 | -1 cents | ||
Cash and Capex (RMB in Million) | |||||
3Q21 | 3Q20 | Diff | Comments | ||
Operating cash flow | 1,787 | 1,480 | 307 | ||
CapEx | 2,570 | 2,201 | 369 | Approx.¥2050mn land use rights acquisition and sorting hub construction | |
¥ 80mn self-owned trucks | |||||
¥ 400mn automation equipment | |||||
Cash and Cash Equivalents | 12,753 | 21,222 | -8469 | Excluding ¥1.51bn cash on deposits maturing in one year or longer |
* may contain rounding differences | 2 of 2 |
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ZTO Express (Cayman) Inc. published this content on 17 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 November 2021 08:51:07 UTC.