ZTO Express (Cayman) Inc.

1Q24 Financial Details for Earnings Call

May 16, 2024

Financial Performance

1Q24

1Q23

V% Comments

Parcel package volume （in Billion）

(￥RMB in Million)

Revenues

COGS

Gross profit

Gross profit %

SG&A

Other operating income/(loss), net

7.17

6.30

13.9%

11.3 pts below industry avg.; 19.3% market share (21.2% @1Q23 restated by SPB)

9,960

8,983

10.9%

¥9.76bn from core express delivery business, increased 11.0%

1)¥971.3mn from KA customers, decreased 7.1% on 30.4% KA volume decrease

¥202.7mn freight forwarding revenues, increased 5.2%

-6,958

-6,460

7.7%

¥6.77bn from core express delivery business, increased 7.8%

1)

¥3.37bn line haul transportation costs, increased 6.0%

2)

¥2.17bn sorting hub operation costs, increased 7.7%

3)

¥657.9mn KA costs, increased 23.3%

¥188.4mn freight forwarding costs, increased 3.0%

3,002

2,523

19.0%

¥2.99bn from core express delivery business, increased 18.9%

30.1%

28.1%

2pts

30.6% for core express delivery business (28.6% @1Q23)

-897

-787

14.0%

Included ¥37.3mn provisional loss related to a collection against certain supplier

SG&A excl. SBC & such provision was 5.6% of revenues (5.9% @1Q23)

161

214

1)

¥118.9mn of government subsidies and tax rebates ( ¥99.4mn @1Q23)

2)

¥40.2mn of rental and other income ( ¥44.7mn @1Q23)

3)

VAT super deduction policy expired by 2023 ( ¥69.5mn@1Q23)

Income from operations

2,267

1,950

16.2%

Operating profit %

22.8%

21.7%

1.1pts

Income from operations excluding SBC (Non GAAP)

2,565

2,205

16.3%

Operating profit % excluding SBC（Non GAAP）

25.8%

24.6%

1.2pts

Interest income (net)

161

20

Fair value changes of financial instruments

43

156

Currency exchange gain/(loss)

5

-10

Impairment on equity investment (Non GAAP excluded)

-478

-

Impairment losses on investment in "Cainiao"

Income before income tax and equity pickup

1,998

2,116

-5.6%

Income tax expenses

-566

-455

Included approx. ¥44.0mn accrual of withholding tax on distributable earnings planned for

dividend payment for 1Q24

Equity pickup

16

4

Net income

1,448

1,665

-13.0%

Net income%

14.5%

18.5%

-4.0pts

Adjusted net income (Non GAAP)

2,224

1,920

15.8%

Adjusted net income (Non GAAP)%

22.3%

21.4%

0.9pts

EBITDA

2,884

2,878

0.2%

Adjusted EBITDA (Non GAAP)

3,660

3,133

16.8%

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

2.74

2.38

15.1%

* may contain rounding differences

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Unit Economics (RMB per parcel)

ASP (excluding COE)

Cost of Revenue (excluding COE)

  • transportation cost per parcel
  • sorting hub cost per parcel

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.

1Q24 Financial Details for Earnings Call

May 16, 2024

1Q24

1Q23

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

1.36

1.40

-4 cents

Core express delivery ASP decreased 2.5% (volume incentives -4cents)

0.94

1.00

+6 cents

Core express delivery unit cost decreased 5.3%

0.47

0.51

+4 cents

1)

Better economies of scale (+)

2)

Improved load rate (+)

3)

Real-time data monitoring and analytics to optimize route planning (+)

0.30

0.32

+2 cents

1)

Better economies of scale (+)

2)

Improved standardization in operating procedures with improved labor productivity (+)

3)

Increased automation, 461 sets of auto. sorting equipment in use (454 sets @1Q23) (+)

0.08

0.08

Flat

Stable corporate cost structure & leverage

0.36

0.35

+1 cents

1Q24

1Q23

Diff

Comments

2,031

2,738

-707

1,692

2,302

-609

Approx. ¥1,420mn land use rights and sorting hub construction

¥240mn automation equipment

19,895

19,163

731

Excluding ¥13.45bn cash on deposits maturing in one year or longer

* may contain rounding differences

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Disclaimer

ZTO Express (Cayman) Inc. published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 22:26:12 UTC.