中通快递(02057) - 2021 - 中期财报

Financial and Operational Highlights ZTO Express reported a 25.6% increase in Q2 2021 parcel volume and 14.4% revenue growth to RMB 7.33 billion, yet adjusted net income declined 12.5% to RMB 1.27 billion, despite strong operating cash flow Key Financial Indicators for Q2 2021 | Metric | 2021 Q2 | 2020 Q2 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 7.325 billion | RMB 6.402 billion | +14.4% | | Gross Profit | RMB 1.674 billion | RMB 1.769 billion | -5.4% | | Net Income | RMB 1.272 billion | RMB 1.454 billion | -12.5% | | Adjusted Net Income | RMB 1.272 billion | RMB 1.454 billion | -12.5% | | Basic and Diluted EPS per ADS | RMB 1.56 | RMB 1.85 | -15.7% | | Net Cash Flow from Operating Activities | RMB 1.932 billion | RMB 1.252 billion | +54.3% | Key Operational Data for Q2 2021 | Metric | 2021 Q2 | 2020 Q2 | YoY Change | | :--- | :--- | :--- | :--- | | Parcel Volume | 5.772 billion parcels | 4.595 billion parcels | +25.6% | | Market Share | 21.0% | - | - | | Pickup/Delivery Outlets | >30,100 units | - | - | | Line-haul Vehicle Fleet | ≈10,300 units | - | - | | High-capacity Vehicles | ≈8,150 units | - | - | Management Commentary and Strategy Management highlighted a strategic focus on balancing service quality, volume, and profit, prioritizing profitable parcels which slightly impacted market share but ensured strong profitability and network stability, with future investments targeting capacity and operational efficiency - CEO Meisong Lai stated that the company's choice to prioritize profitable parcels over short-term market share gains was the main reason for the slight decline in market share this quarter, which ensured strong profitability and network partner stability[7] - Management anticipates China's express delivery industry will reach over 400 million parcels daily in the next 2-3 years, with capacity and operational efficiency being key determinants of success, where ZTO has established an efficiency advantage[7] - CFO Huiping Yan stated that capital expenditure for the quarter was RMB 2.2 billion, with nearly 70% allocated to land acquisition and upgrading sorting centers, aiming to strengthen core express delivery infrastructure and develop integrated logistics service capabilities[7] Detailed Financial Performance Total revenue grew 14.4% driven by core express services, but operating costs surged 22.0% due to policy changes and rising fuel prices, resulting in a gross margin decline from 27.6% to 22.8% and a 12.5% decrease in net income Revenue Analysis Total revenue reached RMB 7.33 billion, up 14.4%, driven by core express services' 18.1% growth from increased parcel volume despite lower average prices, while freight forwarding revenue declined 32.9% Q2 2021 Revenue Breakdown (Millions of RMB) | Business Segment | 2021 Q2 | 2020 Q2 | YoY Change | | :--- | :--- | :--- | :--- | | Express Delivery Services | 6,652.9 | 5,540.7 | +20.1% | | Freight Forwarding Services | 313.6 | 467.1 | -32.9% | | Sale of Materials | 314.1 | 321.2 | -2.2% | | Others | 44.4 | 73.5 | -39.6% | | Total Revenue | 7,325.1 | 6,402.4 | +14.4% | - The growth in core express delivery service revenue was primarily driven by a 25.6% year-over-year increase in parcel volume, partially offset by a 5.9% decrease in average selling price per parcel[8] Cost Analysis Total operating costs increased 22.0% to RMB 5.65 billion, driven by a 38.4% surge in line-haul transportation costs due to policy changes and fuel prices, and a 28.6% rise in sorting center costs from wage increases and automation Q2 2021 Operating Cost Breakdown (Millions of RMB) | Cost Item | 2021 Q2 | 2020 Q2 | YoY Change | | :--- | :--- | :--- | :--- | | Line-haul Transportation Costs | 2,763.3 | 1,996.6 | +38.4% | | Sorting Center Operating Costs | 1,612.7 | 1,254.3 | +28.6% | | Freight Forwarding Costs | 266.2 | 416.7 | -36.1% | | Other Costs | 911.1 | 853.3 | +6.8% | | Total Operating Costs | 5,651.4 | 4,633.3 | +22.0% | - Per-parcel line-haul transportation cost increased by 10.2% to RMB 0.48, primarily due to the combined impact of the expiration of toll exemption policies in the prior year period and rising fuel prices[10] - As of June 30, 2021, the number of automated sorting equipment in operation increased to 361 sets from 282 sets in the prior year period, contributing to higher depreciation and amortization costs related to sorting centers[10] Profit and Profitability Gross profit declined 5.4% to RMB 1.67 billion and gross margin fell to 22.8% due to faster cost growth, leading to an 11.6% decrease in operating profit and a 12.5% decline in net income to RMB 1.27 billion - Gross margin decreased from 27.6% in the prior year period to 22.8%, primarily due to the combined impact of a 5.9% decrease in average selling price per parcel and a 1.7% increase in per-parcel cost for core express delivery services[12] - Operating profit was RMB 1.46 billion, a 11.6% year-over-year decrease; operating margin declined from 25.7% to 19.9%[12] - Net income was RMB 1.27 billion, a 12.5% decrease from RMB 1.45 billion in the prior year period[13] Earnings Per Share (EPS) Basic and diluted earnings per American Depositary Share (ADS) attributable to ordinary shareholders were RMB 1.56 this quarter, a decrease from RMB 1.85 in the prior year period Earnings Per American Depositary Share (RMB) | Metric | 2021 Q2 | 2020 Q2 | | :--- | :--- | :--- | | Basic and Diluted EPS per ADS | 1.56 | 1.85 | | Adjusted Basic and Diluted EPS per ADS | 1.56 | 1.85 | Business Outlook The company maintained its full-year 2021 parcel volume guidance of 22.95 billion to 23.80 billion parcels, representing a 35% to 40% year-over-year growth - The company maintained its full-year 2021 parcel volume guidance unchanged, expecting a range of 22.95 billion to 23.80 billion parcels, representing a 35%-40% year-over-year increase[13] Capital Management: Share Repurchase Program The board approved increasing the share repurchase program to $1 billion and extending it to June 30, 2023, with approximately 17.52 million ADSs repurchased at an average price of $23.17 as of June 30, 2021 - The share repurchase program size was increased from $500 million to $1 billion, with its validity extended to June 30, 2023[15] - As of June 30, 2021, the company had cumulatively repurchased 17,519,583 ADSs at an average purchase price of $23.17[15] Appendix: Financial Statements This section provides detailed unaudited financial statements, including consolidated comprehensive income, balance sheets, cash flows, and reconciliations of GAAP to Non-GAAP results Unaudited Consolidated Statement of Comprehensive Income This statement presents detailed revenue, cost, expense, and profit data for the three and six months ended June 30, 2021 - For detailed unaudited consolidated statement of comprehensive income data, please refer to the original document[27] Unaudited Consolidated Balance Sheets This statement lists the company's assets, liabilities, and shareholders' equity as of June 30, 2021, and December 31, 2020 - For detailed unaudited consolidated balance sheet data, please refer to the original document[28] Unaudited Consolidated Statements of Cash Flows This statement illustrates the company's cash flows from operating, investing, and financing activities for the three and six months ended June 30, 2021 - For detailed unaudited consolidated statements of cash flows data, please refer to the original document[29] Reconciliation of GAAP and Non-GAAP Results This section provides detailed reconciliations of Non-GAAP financial metrics, including adjusted net income and EBITDA, to their most comparable GAAP measures - Provides detailed calculations for reconciling GAAP net income to Non-GAAP adjusted net income, adjusted EBITDA, and adjusted earnings per share[31][33]