本網站使用瀏覽器紀錄 (Cookies) 來提供您最好的使用體驗，我們使用的 Cookie 也包括了第三方 Cookie。相關資訊請訪問我們的隱私權與 Cookie 政策。如果您選擇繼續瀏覽或關閉這個提示，便表示您已接受我們的網站使用條款。 關閉
HONG KONG, Nov. 20, 2024 /PRNewswire/ -- Kuaishou Technology ("Kuaishou" or the "Company"; HKD Counter Stock Code: 01024 / RMB Counter Stock Code: 81024), a leading content community and social platform, today announced its unaudited consolidated results for the three months and nine months ended September 30, 2024. Third Quarter 2024 Key Highlights Average DAUs on Kuaishou APP were 407.5 million, representing an increase of 5.4% from 386.6 million for the same period of 2023. Average MAUs on Kuaishou APP were 714.1 million, representing an increase of 4.3% from 684.7 million for the same period of 2023. Total e-commerce GMV(1) was RMB334.2 billion, representing an increase of 15.1% from RMB290.2 billion for the same period of 2023. Total revenue increased by 11.4% to RMB31.1 billion from RMB27.9 billion for the same period of 2023. Online marketing services and live streaming contributed 56.6% and 30.0%, respectively, to the total revenue. The other 13.4% came from other services. Gross profit increased by 17.0% to RMB16.9 billion from RMB14.5 billion for the same period of 2023. Gross profit margin in the third quarter of 2024 was 54.3%, improving from 51.7% for the same period of 2023. Profit for the period was RMB3.3 billion, compared to RMB2.2 billion for the same period of 2023. Adjusted net profit(2) increased to RMB3.9 billion from RMB3.2 billion for the same period of 2023. Operating profit from the domestic segment(3) increased to RMB3.5 billion from RMB3.2 billion for the same period of 2023. Operating loss from the overseas segment(3) decreased to RMB153 million by 75.9% year-over-year. Mr. Cheng Yixiao, Co-founder, Chairman, and Chief Executive Officer of Kuaishou, said, "In the third quarter of 2024, our commitment to developing breakthrough technology that creates more value for our users propelled our user base to record-breaking heights. The Kuaishou App achieved average DAUs of 407.5 million and MAUs of 714.1 million. Our globally leading large video generation model, Kling AI, is setting new industry standards, redefining how content is created, personalized and experienced. Increased engagement across our ecosystem has fueled steady commercial growth, with total revenue rising 11.4% year-over-year in the third quarter to RMB31.1 billion. Notably, revenue from our core businesses, including online marketing services and e-commerce, grew nearly 20.0% year-over-year. Our adjusted net profit rose 24.4% year-over-year to RMB3.9 billion, showing our ability to increase profitability. Looking ahead, our AI strategy aims to strengthen our current business lines and lay the foundation for sustainable growth across our dynamic user, content and commercial ecosystems." Third Quarter 2024 Financial Review Revenue from our online marketing services increased by 20.0% to RMB17.6 billion for the third quarter of 2024, from RMB14.7 billion for the same period of 2023, primarily attributable to the increased consumption from marketing clients driven by continuous optimization of smart placement capabilities and algorithms. Revenue from our live streaming business decreased by 3.9% to RMB9.3 billion for the third quarter of 2024 from RMB9.7 billion for the same period of 2023, as a result of our continuous efforts in building a healthy and sustainable live streaming ecosystem. Revenue from our other services increased by 17.5% to RMB4.2 billion for the third quarter of 2024, from RMB3.5 billion for the same period of 2023, primarily due to the growth of our e-commerce business, represented by the growth in our e-commerce GMV. The growth in e-commerce GMV was driven by increases in the number of e-commerce monthly active paying users and monthly active merchants as a result of our continuous refined omni-domain operations. Other Key Financial Information for the Third Quarter of 2024 Operating profit was RMB3.1 billion, increasing from RMB2.2 billion for the same period of 2023. Adjusted EBITDA(4) was RMB5.6 billion, increasing from RMB5.0 billion for the same period of 2023. Total available funds(5) reached RMB86.7 billion as of September 30, 2024. Notes: (1) Placed on or directed to our partners through our platform.(2) We define "adjusted net profit" as profit for the period adjusted by share-based compensation expenses and net fair value changes on investments.(3) Unallocated items, which consist of share-based compensation expenses, other income, and other gains, net, are not included.(4) We define "adjusted EBITDA" as adjusted net profit for the period adjusted by income tax (benefits)/expenses, depreciation of property and equipment, depreciation of right-of-use assets, amortization of intangible assets, and finance income, net.(5) Total available funds which we considered in cash management included but not limited to cash and cash equivalents, time deposits, financial assets and restricted cash. Financial assets mainly included wealth management products and others. Business Review We grew our user base and increased our revenues and profits in the third quarter of 2024 despite a challenging macro environment. We achieved a new milestone of over 400 million quarterly average DAUs and recorded strong financial performance, driven by our unwavering dedication to our technology-driven, user-centric business philosophy. Our total revenue grew by 11.4% year-over-year to RMB31.1 billion, and revenue from our core commercial business, including online marketing services and other services, primarily e-commerce, increased by nearly 20.0% year-over-year in the third quarter of 2024. Our adjusted net profit rose by 24.4% year-over-year to RMB3.9 billion, evidencing our sustained profitability improvements. We continued to advance the integration and application of large models for content creation, understanding and recommendation, empowering our content and commercial ecosystem. In the third quarter of 2024, average daily spending with AIGC marketing materials from marketing clients surpassed RMB20 million. In September 2024, we unveiled the latest version of our video generation model, Kling AI (可靈AI) 1.5, which sets new industry benchmarks for video quality with higher-quality resolution of 1080p, dynamic performance, semantic responsiveness and feature enhancements such as motion brush. User and content ecosystem In the third quarter of 2024, the average DAUs and MAUs on the Kuaishou App reached 408 million and 714 million, respectively, representing year-over-year increases of 5.4% and 4.3%, respectively, which further solidified our leading position as the third largest app in China in terms of quarterly average DAU. The average daily time spent per DAU on the Kuaishou App was 132.2 minutes. Total user time spent on the Kuaishou App increased by 7.3% year-over-year, with average daily live streaming and short video views reaching nearly 110 billion. In line with our strategy to promote high-quality user growth, we enhanced our capabilities in leveraging marketing channels for user acquisition and optimized product features, while integrating user acquisition initiatives with commercial scenarios such as e-commerce. These efforts enabled us to expand our user base and enabled more users to access our products more frequently. We also progressed our user retention initiatives by enriching the interactive community experience. For example, to drive user engagement and increase user stickiness, we refined private messaging features across various scenarios, introduced more innovative features and enhanced the comment ranking system. In terms of algorithm, we developed new approaches to improve user retention by modeling users' diverse interests, user-to-user follow relationships and drivers for opening the Kuaishou App. In terms of content operations, we have established a unique, multi-faceted ecosystem by developing specialized content verticals aligned with users' interests, supporting standout creators whose content represents Kuaishou's distinctive brand, and expanding our brand visibility and user reach with high-profile events. In the sports vertical, as a rights-holding broadcaster of the Olympic Games Paris 2024, we delivered a comprehensive content matrix that included panoramic on-demand event coverage, exclusive self-developed IP content, interactive features, and diverse user-generated content, creating an all-encompassing Olympic experience for users. During the Olympic Games Paris 2024, Olympic-related content on the Kuaishou App generated 310.6 billion impressions, with 640 million users watching the Olympic Games on our platform and generating 15.9 billion interactions. With respect to our search business, in the third quarter of 2024, we optimized the search results page to improve user experience, significantly increasing our search user penetration. In the third quarter of 2024, average MAUs for Kuaishou searches exceeded 500 million, and average daily searches increased by over 20.0% year-over-year to over 700 million with daily searches peaking at over 800 million. Moreover, user searches accelerated the growth of our revenue-generating businesses related to searches by enabling us to gain deeper insights into users' needs. Online marketing services In the third quarter of 2024, revenue from online marketing services grew by 20.0% year-over-year, reaching RMB17.6 billion, demonstrating the sustainable growth of our online marketing services business. By continuously improving our data infrastructure, smart placement products and algorithms, we achieved a higher placement ROI for our marketing clients, leading to increased bids. Additionally, our large AI models' semantic understanding of marketing content and merchandise characteristics enables us to match users and merchandise more accurately for our merchants, boosting marketing conversion efficiency. In the third quarter of 2024, revenue growth of our online marketing services was primarily driven by external marketing clients. Marketing spending in media information, e-commerce platforms and local services grew faster year-over-year. In the media information vertical, marketing spending from commercialized short plays grew significantly. We increased user payment conversion rate through high-quality content offerings and the implementation of smart dynamic subsidy strategies, improved placement outcomes for our marketing clients. In the third quarter of 2024, we accelerated the implementation of the In-Apps Ads (IAA, 應用內廣告) short play model, expanding our user base for free short plays. These efforts contributed to a more than three-fold year-over-year increase in short-play marketing spending during the same period. We also introduced differentiated Universal Auto X (UAX, 全自動投放解決方案) placement solutions for various industries and scenarios, enhancing the stability of clients' marketing placements and driving increased budget allocation. As a result, total marketing spending through UAX accounted for approximately 50.0% of overall marketing spending by external marketing clients in the third quarter of 2024. Revenue growth of our closed-loop marketing services remained robust in the third quarter of 2024. The number of monthly active merchants using marketing placements increased by over 50.0% year over year. We provided simplified, automated marketing placement services for small and medium-sized merchants, enabling them to increase their GMV through marketing placements and significantly improving the retention rate of these merchants. We focused on policy support, product iterations, and algorithm optimizations to improve the operating efficiency of converting short video traffic to live streaming, which increased marketing spending in this scenario by nearly 20.0% year-over-year in the third quarter of 2024. Smart marketing placement is now a critical element of merchants' sustainable operations on the Kuaishou App. In the third quarter of 2024, our omni-platform marketing solution and smart hosting products accounted for approximately 50.0% of total closed-loop marketing spending on the Kuaishou App. In terms of brand marketing services, we provide clients with integrated solutions that drive both brand awareness and sales conversion through marketing science, KOL recommendations, and customized strategies to attract marketing clients. In the third quarter of 2024, we also capitalized on the Olympic Games Paris 2024 by partnering with over 150 brands, including Yili, China Mobile and FAW-Volkswagen, to support these clients' rapid growth on Kuaishou with innovative marketing solutions empowered by our "sports+" strategy and content ecosystem. E-commerce Our e-commerce business in the third quarter of 2024 demonstrated its differentiation and resilience despite the third quarter being a traditionally slow season for e-commerce and ongoing challenges in consumer demand. We maintained strong market presence due to our solid foundation in content-based e-commerce and our strategy to provide "exceptional content, superior product." By strategically refocusing on live streaming e-commerce, further unlocking the potential of short video e-commerce, and steadily expanding our pan shelf-based e-commerce, we are maximizing synergies across multiple e-commerce scenarios. These efforts to boost e-commerce supply, enrich our e-commerce ecosystem and increase user spending drove a 15.1% year-over-year increase in e-commerce GMV to RMB334.2 billion in the third quarter of 2024. On the supply side, the number of average monthly active merchants increased by over 40.0% year-over-year in the third quarter of 2024. Small and medium-sized merchants' performance on our platform exceeded expectations thanks to our strategic new merchant programs, including the Golden Bounty Initiative (斗金計劃), Set Sail Initiative (啟航計劃) and Uplift Initiative (扶搖計劃). These programs help early-stage merchants increase traffic and reduce uncertainties. In the third quarter of 2024, the number of new merchants joining Kuaishou increased by over 30.0% year-over-year. Meanwhile, for existing small and medium-sized merchants, we offered refined methodologies for content-based e-commerce to support various merchants' operating capabilities on Kuaishou, facilitating their long-term business growth. Our merchants' healthy growth enriched our platform's merchandise ecosystem by expanding the number of merchandise categories by over 20.0% year-over-year in the third quarter of 2024 and providing users with a wider selection of high-quality products. To enhance our content-based e-commerce, we customized operations for KOLs in different tiers. For top-tier KOLs, we introduced marketing features and tools, such as Exclusive Mega Group Buy (購物團) and Mega Crowd Deals (萬人團), to incentivize them to live stream and enhance the value of their content. To support small and medium-sized KOLs, we launched our Rising Star Initiative (新星計劃) in August 2024, which provides cash incentives and traffic support while collaborating with regional service providers for local operations. In the third quarter of 2024, these initiatives helped small and medium-sized KOLs achieve strong growth, increasing their average daily GMV by over 40.0% quarter-over-quarter and average daily number of merchandise sold by over 25.0% quarter-over-quarter. We also launched our Blockbusters Initiative (爆品計劃), offering subsidies for selected merchandise to provide users with more affordable, high-quality products. As a result of these efforts, our GMV achieved by KOLs increased by over 24.0% year-over-year during the 818 Shopping Festival. Short video e-commerce also maintained rapid growth, with its GMV increasing by over 40.0% year-over-year in the third quarter of 2024, driven by blockbuster products and live-streaming highlights. Through strategy optimization such as integrating e-commerce contents with marketing materials, and joint modeling of short video traffic and simple live streaming rooms, we achieved a nearly 40% quarter-over-quarter growth in GMV driven by short videos directing traffic to live streaming rooms in the third quarter of 2024. While stabilizing and growing our content-based e-commerce, our pan shelf-based e-commerce has become an increasingly effective complement. In the third quarter of 2024, pan shelf-based e-commerce GMV accounted for 27.0% of our total e-commerce GMV, and its growth continued to outperform our overall GMV growth, driven by both strong supply and demand. Average daily active merchants and average daily active paying users in our shopping mall grew by nearly 70.0% and over 60.0% year-over-year, respectively, in the third quarter of 2024. The continued enrichment of our e-commerce supply and ecosystem and increased synergies across e-commerce scenarios further stimulated user demand. In the third quarter of 2024, the number of e-commerce monthly active paying users grew by 12.2% year-over-year to 133 million, continuing the growth trend established in the second quarter which was the peak season. Our diverse marketing strategies, which include targeted approaches for new, growing and mature users, also supported this growth. Tools such as coupons for live streaming rooms and order incentives have been instrumental in expanding our user base and improving conversion rate and transaction efficiency. Going forward, we remain committed to our user-centric approach. By leveraging integrated live streaming and short video content, along with our pan shelf-based e-commerce strategy, we will continue to empower merchants and KOLs to grow holistically and provide a better shopping experience for our users. Live streaming In the third quarter of 2024, revenue from our live-streaming business was RMB9.3 billion, with the year-over-year decline continuing to narrow sequentially. As an instrumental component of our content ecosystem and ongoing driver of user engagement, we remain focused on fostering a healthy, sustainable live-streaming ecosystem. On the supply side, multi-host live streaming and other emerging product categories continued to grow. Increasing professionalism and institutionalization of streamers and our partner talent agencies' enhanced operational capabilities supported this growth, contributing to more refined and effective content delivery. By the end of the third quarter of 2024, the number of our partner talent agencies increased by more than 40.0%, and the number of talent agency-managed streamers increased by over 60.0%, both on a year-over-year basis. We continued to expand the variety of high-quality content on our platform, with rich entertainment and local cultural content as foundational pillars. We focused on different niche areas and launched multiple content IPs featuring talented streamers, such as the Grand Stage (直播大舞台) and the New Episodes of National Arts (國藝有新番) live-streaming programs. By integrating content IPs with local culture and tourism, we successfully promoted the development of local cultural and tourism industries. To further enhance our gaming live-streaming ecosystem, we implemented a comprehensive content marketing strategy that included incubation of new games, game distribution through live streaming, and cultivation of top-tier influencers, among other initiatives. We also developed gaming content with distinct Kuaishou characteristics. In the third quarter of 2024, the number of active gaming live-streaming creators exceeded 30 million, strengthening the appeal of our diverse top-notch content to live-streaming users. Our "live streaming+" services continued to empower traditional industries. For example, we continued to advance our services related to recruitment and real estate, leading to ongoing rapid growth in the number of customers served and transaction scale. In the third quarter of 2024, the average daily number of resume submissions on Kwai Hire (快聘) nearly doubled, and matching rate grew by over 20.0%, both on a year-over-year basis. For Ideal Housing (理想家), daily lead generation surged by over four-fold compared with the same period last year. Overseas We progressed our overseas business in Brazil, where Kwai is building strong local brands by deepening local content operations. In the third quarter of 2024, we maintained high-quality, robust user growth, achieving breakthroughs in innovative user acquisition channels and improving user retention. DAUs in Brazil grew by 9.7% year-over-year in the third quarter of 2024. As for content operations, we promoted greater visibility for premium content through algorithm optimizations across multiple verticals such as entertainment, news, everyday life, sports and others. Leveraging Kwai's strong user base and growing brand influence, we further optimized the monetization mechanism for creators and refined products flow to enhance their earning potential and motivation. Meanwhile, the efficiency of content subsidy programs improved steadily, supporting creators' sustainable operations. User activity grew consistently, with the average daily time spent per DAU in Brazil rising by 4.2% year-over-year in the third quarter of 2024. In terms of monetization, we continued to enhance marketing clients' experience with improved traffic mechanisms and efficiency while ensuring a healthy ecosystem. We also embedded new traffic scenarios to increase marketing revenue, resulting in a year-over-year increase in online marketing revenue that doubled in the third quarter of 2024, and our total overseas revenues reached RMB1.3 billion, growing by 104.1% year-over-year. Along with this rapid revenue growth, we maintained highly efficient operations under an ROI-driven approach. This led to the operating loss from our overseas business decreasing by 75.9% year-over-year to RMB153 million in the third quarter of 2024. In addition, after more than a year of exploring e-commerce business models in Brazil, we made initial progress with our e-commerce business in terms of products, content, services and transaction efficiency, providing overseas users with more functions and services. These initial strides lay a solid foundation for our future growth overseas. About Kuaishou Kuaishou is a leading content community and social platform in China and globally, committed to becoming the most customer-obsessed company in the world. Kuaishou uses its technological backbone, powered by cutting-edge AI technology, to continuously drive innovation and product enhancements that enrich its service offerings and application scenarios, creating exceptional customer value. Through short videos and live streams on Kuaishou's platform, users can share their lives, discover goods and services they need and showcase their talent. By partnering closely with content creators and businesses, Kuaishou provides technologies, products, and services that cater to diverse user needs across a broad spectrum of entertainment, online marketing services, e-commerce, local services, gaming, and much more. Forward-Looking Statements Certain statements included in this press release, other than statements of historical fact, are forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "might", "can", "could", "will", "would", "anticipate", "believe", "continue", "estimate", "expect", "forecast", "intend", "plan", "seek", or "timetable". These forward-looking statements, which are subject to risks, uncertainties, and assumptions, may include our business outlook, estimates of financial performance, forecast business plans, growth strategies and projections of anticipated trends in our industry. These forward-looking statements are based on information currently available to the Group and are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, many of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realized in the future. Underlying these forward-looking statements are a large number of risks and uncertainties. In light of the risks and uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as representations by the Board or the Company that the plans and objectives will be achieved, and investors should not place undue reliance on such statements. Except as required by law, we are not obligated, and we undertake no obligation, to release publicly any revisions to these forward-looking statements that might reflect events or circumstances occurring after the date of this press release or those that might reflect the occurrence of unanticipated events. For investor and media inquiries, please contact Kuaishou Technology Investor RelationsEmail: ir@kuaishou.com CONDENSED CONSOLIDATED INCOME STATEMENT Unaudited Unaudited Three Months Ended Nine Months Ended September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 RMB'Million RMB'Million RMB'Million RMB'Million RMB'Million Revenues 31,131 30,975 27,948 91,514 80,909 Cost of revenues (14,217) (13,840) (13,495) (41,345) (40,810) Gross profit 16,914 17,135 14,453 50,169 40,099 Selling and marketing expenses (10,364) (10,040) (8,939) (29,788) (26,298) Administrative expenses (796) (792) (898) (2,050) (2,762) Research and development expenses (3,100) (2,805) (2,967) (8,748) (9,042) Other income 194 34 434 346 599 Other gains, net 271 374 128 1,090 213 Operating profit 3,119 3,906 2,211 11,019 2,809 Finance income, net 37 66 135 217 404 Share of losses of investments accounted for using the equity method (6) (19) (26) (28) (58) Profit before income tax 3,150 3,953 2,320 11,208 3,155 Income tax benefits/(expenses) 120 27 (138) 162 (368) Profit for the period 3,270 3,980 2,182 11,370 2,787 Attributable to: — Equity holders of the Company 3,268 3,979 2,181 11,366 2,788 — Non-controlling interests 2 1 1 4 (1) 3,270 3,980 2,182 11,370 2,787 CONDENSED CONSOLIDATED BALANCE SHEET Unaudited Audited As of September 30, 2024 As of December 31, 2023 RMB'Million RMB'Million ASSETS Non-current assets Property and equipment 13,366 12,356 Right-of-use assets 9,759 10,399 Intangible assets 1,064 1,073 Investments accounted for using the equity method 163 214 Financial assets at fair value through profit or loss 20,711 5,245 Other financial assets at amortized cost 74 283 Deferred tax assets 6,264 6,108 Long-term time deposits 18,332 9,765 Other non-current assets 732 492 70,465 45,935 Current assets Trade receivables 6,215 6,457 Prepayments, other receivables and other current assets 4,599 4,919 Financial assets at fair value through profit or loss 26,846 25,128 Other financial assets at amortized cost 518 950 Short-term time deposits 10,903 9,874 Restricted cash 83 128 Cash and cash equivalents 12,466 12,905 61,630 60,361 Total assets 132,095 106,296 CONDENSED CONSOLIDATED BALANCE SHEET Unaudited Audited As of September 30, 2024 As of December 31, 2023 RMB'Million RMB'Million EQUITY AND LIABILITIES Equity attributable to equity holders of the Company Share capital - - Share premium 269,745 273,459 Treasury shares - (88) Other reserves 34,718 33,183 Accumulated losses (246,125) (257,491) 58,338 49,063 Non-controlling interests 15 11 Total equity 58,353 49,074 LIABILITIES Non-current liabilities Borrowings 9,000 - Lease liabilities 7,592 8,405 Deferred tax liabilities 15 18 Other non-current liabilities 19 21 16,626 8,444 Current liabilities Accounts payables 26,084 23,601 Other payables and accruals 22,089 16,592 Advances from customers 4,648 4,036 Income tax liabilities 399 1,222 Lease liabilities 3,896 3,327 57,116 48,778 Total liabilities 73,742 57,222 Total equity and liabilities 132,095 106,296 Financial Information by Segment Unaudited Three Months Ended September 30, 2024 June 30, 2024 September 30, 2023 Domestic Overseas Unallocated items Total Domestic Overseas Unallocated items Total Domestic Overseas Unallocated items Total RMB'Million RMB'Million RMB'Million Revenues 29,800 1,331 - 31,131 29,896 1,079 - 30,975 27,296 652 - 27,948 Operating profit/(loss) 3,505 (153) (233) 3,119 4,498 (277) (315) 3,906 3,155 (635) (309) 2,211 Unaudited Nine Months Ended September 30, 2024 September 30, 2023 Domestic Overseas Unallocated items Total Domestic Overseas Unallocated items Total RMB'Million RMB'Million Revenues 88,113 3,401 - 91,514 79,472 1,437 - 80,909 Operating profit/(loss) 11,994 (698) (277) 11,019 7,152 (2,238) (2,105) 2,809 Reconciliation of Non-IFRS Accounting Standards Measures to the Nearest IFRS Accounting Standards Measures Unaudited Unaudited Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2024 2024 2023 2024 2023 RMB'Million RMB'Million RMB'Million RMB'Million RMB'Million Profit for the period 3,270 3,980 2,182 11,370 2,787 Adjusted for: Share-based compensation expenses 698 723 871 1,713 2,917 Net fair value changes on investments(1) (20) (24) 120 (68) 205 Adjusted net profit 3,948 4,679 3,173 13,015 5,909 Adjusted net profit 3,948 4,679 3,173 13,015 5,909 Adjusted for: Income tax (benefits)/expenses (120) (27) 138 (162) 368 Depreciation of property and equipment 997 997 1,029 2,971 2,971 Depreciation of right-of-use assets 765 735 737 2,216 2,333 Amortization of intangible assets 25 26 38 78 115 Finance income, net (37) (66) (135) (217) (404) Adjusted EBITDA 5,578 6,344 4,980 17,901 11,292 Note: (1) Net fair value changes on investments represents net fair value (gains)/losses on financial assets at fair value through profit or loss of our investments in listed and unlisted entities, net (gains)/losses on deemed disposals of investments and impairment provision for investments, which is unrelated to our core business and operating performance and subject to market fluctuations, and exclusion of which provides investors with more relevant and useful information to evaluate our performance.
SHANGHAI, Nov. 20, 2024 /PRNewswire/ -- ATRenew Inc. ("ATRenew" or the "Company") (NYSE: RERE), a leading technology-driven pre-owned consumer electronics transactions and services platform in China, today announced its unaudited financial results for the three months ended September 30, 2024. Third Quarter 2024 Highlights Total net revenues grew by 24.4% to RMB4,051.2 million (US$577.3 million) from RMB3,256.8 million in the third quarter of 2023. Income from operations was RMB24.9 million (US$3.5 million), compared to a loss from operations of RMB28.1 million in the third quarter of 2023. Adjusted income from operations (non-GAAP)[1] was RMB104.0 million (US$14.8 million), compared to RMB73.8 million in the third quarter of 2023. Number of consumer products transacted[2] was 9.1 million compared to 8.2 million in the third quarter of 2023. Mr. Kerry Xuefeng Chen, Founder, Chairman, and Chief Executive Officer of ATRenew, commented, "We are delighted to report that our total net revenues reached RMB4.05 billion in the third quarter of 2024, representing a robust year-over-year growth of 24.4%. We are particularly encouraged by the widespread adoption of our consumer electronics trade-in services, which provide consumers with a seamless experience and competitive pricing. Our AHS stores maintain their industry-leading position, serving as the preferred destination for users to recycle reusable consumer products and purchase quality-assured, value-for-money pre-owned electronic devices." Mr. Rex Chen, Chief Financial Officer of ATRenew, added, "The third quarter marked another milestone in our path to enhanced profitability, as we achieved positive GAAP income from operations and our non-GAAP income from operations exceeded RMB100 million for the first time. These results reflect our successful initiatives to optimize operating expenses and the diminishing impact of amortization expenses from historical acquisitions. We also demonstrated our commitment to shareholder returns by repurchasing over US$12 million of our shares during the quarter. Looking ahead, we remain focused on driving operational efficiency and delivering sustainable value to our users and shareholders." [1]. See "Reconciliations of GAAP and Non-GAAP Results" for more information. [2]. "Number of consumer products transacted" represents the number of consumer products distributed to merchants and consumers through transactions on the Company's PJT Marketplace, Paipai Marketplace and other channels the Company operates in a given period, prior to returns and cancellations, excluding the number of consumer products collected through AHS Recycle; a single consumer product may be counted more than once according to the number of times it is transacted on PJT Marketplace, Paipai Marketplace and other channels the Company operates through the distribution process to end consumer. Third Quarter 2024 Financial Results REVENUE Total net revenues increased by 24.4% to RMB4,051.2 million (US$577.3 million) from RMB3,256.8 million in the same period of 2023. Net product revenues increased by 25.6% to RMB3,672.2 million (US$523.3 million) from RMB2,924.0 million in the same period of 2023. The increase was primarily attributable to an increase in the sales of pre-owned consumer electronics both through the Company's online and offline channels. Net service revenues increased by 13.9% to RMB379.0 million (US$54.0 million), compared to RMB332.8 million in the same period of 2023. This increase was primarily due to an increase in the service revenue generated from PJT Marketplace and multi-category recycling business. OPERATING COSTS AND EXPENSES Operating costs and expenses were RMB4,028.1 million (US$574.0 million), compared to RMB3,307.5 million in the same period of 2023, representing an increase of 21.8%. Merchandise costs were RMB3,242.8 million (US$462.1 million), compared to RMB2,611.0 million in the same period of 2023, representing an increase of 24.2%. This was primarily due to the growth in product sales. Fulfillment expenses were RMB347.3 million (US$49.5 million), compared to RMB287.7 million in the same period of 2023, representing an increase of 20.7%. The increase was primarily due to (i) an increase in personnel costs and logistics expenses as the Company conducted more recycling and transaction activities compared with the same period of 2023, and (ii) an increase in operation center related expenses as the Company expanded its store networks in the third quarter of 2024. Selling and marketing expenses were RMB315.3 million (US$44.9 million), compared to RMB299.5 million in the same period of 2023, representing an increase of 5.3%. The increase was primarily due to (i) an increase in advertising expenses and promotional campaign related expenses, and (ii) an increase in share-based compensation expenses. The increase was partially offset by a decrease in amortization of intangible assets and deferred cost resulting from assets and business acquisitions as the maturity of some intangible assets and deferred cost in the third quarter of 2023. General and administrative expenses were RMB69.3 million (US$9.9 million), compared to RMB69.8 million in the same period of 2023, representing a decrease of 0.7%, primarily due to a decrease in share-based compensation expenses. The decrease was partially offset by an increase in other personnel cost. Technology and content expenses were RMB53.4 million (US$7.6 million), compared to RMB39.4 million in the same period of 2023, representing an increase of 35.5%. The increase was primarily due to an increase in personnel costs in connection with the ongoing maintenance of the Company's operation centers and system. INCOME (LOSS) FROM OPERATIONS Income from operations was RMB24.9 million (US$3.5 million), compared to a loss from operations of RMB28.1 million in the same period of 2023. Adjusted income from operations (non-GAAP) was RMB104.0 million (US$14.8 million), compared to RMB73.8 million in the same period of 2023. NET INCOME (LOSS) Net income was RMB17.9 million (US$2.6 million), compared to a net loss of RMB44.2 million in the same period of 2023. Adjusted net income (non-GAAP) was RMB90.1 million (US$12.8 million), compared to RMB47.6 million in the same period of 2023. BASIC AND DILUTED NET INCOME PER ORDINARY SHARE Basic and diluted net income per ordinary share were RMB0.11 (US$0.02), compared to basic and diluted net loss of RMB0.27 in the same period of 2023. Adjusted basic and diluted net income per ordinary share (non-GAAP) were RMB0.56 (US$0.08) and RMB0.55 (US$0.08), compared to RMB0.30 and RMB0.29 in the same period of 2023. CASH AND CASH EQUIVALENTS, RESTRICTED CASH, SHORT-TERM INVESTMENTS AND FUNDS RECEIVABLE FROM THIRD PARTY PAYMENT SERVICE PROVIDERS Cash and cash equivalents, restricted cash, short-term investments and funds receivable from third party payment service providers were RMB2,350.5 million (US$334.9 million) as of September 30, 2024, as compared to RMB2,854.4 million as of December 31, 2023. Business Outlook For the fourth quarter of 2024, the Company currently expects its total revenues to be between RMB4,740.0 million and RMB4,840.0 million, representing an increase of 22.4% to 24.9% year-over-year. This forecast only reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change. Recent Development On August 29, 2024, ATRenew announced an improvement in its Environmental, Social and Governance (ESG) score as assessed by S&P Global's Corporate Sustainability Assessment in 2024, placing it in the 93rd percentile among its global RTS retailing industry peers. This is primarily attributable to ATRenew's commitment to ESG, particularly greater transparency in its climate strategy, human capital management, and business ethics. During the third quarter of 2024, ATRenew repurchased a total of approximately 4.9 million ADSs for approximately US$12.1 million under its current share repurchase program which authorizes the Company to repurchase up to US$50 million worth of its shares (including ADSs) through June 27, 2025. As of September 30, 2024, the Company had repurchased a total of approximately 8.2 million ADSs for approximately US$20.1 million under this share repurchase program. Conference Call Information The Company's management will hold a conference call on Wednesday, November 20, 2024 at 07:00 A.M. Eastern Time (or 08:00 P.M. Beijing Time on the same day) to discuss the financial results. Listeners may access the call by dialing the following numbers: International: 1-412-317-6061 United States Toll Free: 1-888-317-6003 Mainland China Toll Free: 4001-206115 Hong Kong Toll Free: 800-963976 Access Code: 3668505 The replay will be accessible through November 27, 2024 by dialing the following numbers: International: 1-412-317-0088 United States Toll Free: 1-877-344-7529 Access Code: 3972162 A live and archived webcast of the conference call will also be available at the Company's investor relations website at ir.atrenew.com. About ATRenew Inc. Headquartered in Shanghai, ATRenew Inc. operates a leading technology-driven pre-owned consumer electronics transactions and services platform in China under the brand ATRenew. Since its inception in 2011, ATRenew has been on a mission to give a second life to all idle goods, addressing the environmental impact of pre-owned consumer electronics by facilitating recycling and trade-in services, and distributing the devices to prolong their lifecycle. ATRenew's open platform integrates C2B, B2B, and B2C capabilities to empower its online and offline services. Through its end-to-end coverage of the entire value chain and its proprietary inspection, grading, and pricing technologies, ATRenew sets the standard for China's pre-owned consumer electronics industry. ATRenew is a participant in the United Nations Global Compact, and adheres to its principles-based approach to responsible business. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.0176 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2024. Use of Non-GAAP Financial Measures The Company also uses certain non-GAAP financial measures in evaluating its business. For example, the Company uses adjusted income from operations, adjusted net income and adjusted net income per ordinary share as supplemental measures to review and assess its financial and operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. Adjusted income from operations is loss from operations excluding the share-based compensation expenses and amortization of intangible assets and deferred cost resulting from assets and business acquisitions. Adjusted net income is net loss excluding the share-based compensation expenses and amortization of intangible assets and deferred cost resulting from assets and business acquisitions and tax effects of amortization of intangible assets and deferred cost resulting from assets and business acquisitions. Adjusted net income per ordinary share is adjusted net income attributable to ordinary shareholders divided by weighted average number of shares used in calculating net loss per ordinary share. The Company presents non-GAAP financial measures because they are used by the Company's management to evaluate the Company's financial and operating performance and formulate business plans. The Company believes that adjusted income from operations and adjusted net income help identify underlying trends in the Company's business that could otherwise be distorted by the effect of certain expenses that are included in loss from operations and net loss. The Company also believes that the use of non-GAAP financial measures facilitates investors' assessment of the Company's operating performance. The Company believes that adjusted income from operations and adjusted net income provide useful information about the Company's operating results, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision making. The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP financial measures is that they do not reflect all items of income and expense that affect the Company's operations. The share-based compensation expenses, amortization of intangible assets and deferred cost resulting from assets and business acquisitions and tax effects of amortization of intangible assets and deferred cost resulting from assets and business acquisitions have been and may continue to be incurred in the Company's business and is not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP measures may differ from the non-GAAP measures used by other companies, including peer companies, potentially limiting the comparability of their financial results to the Company's. In light of the foregoing limitations, the non-GAAP financial measures for the period should not be considered in isolation from or as an alternative to income from operations, net income, and net income attributable to ordinary shareholders per share, or other financial measures prepared in accordance with U.S. GAAP. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, which should be considered when evaluating the Company's performance. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, "Reconciliations of GAAP and Non-GAAP Results." Safe Harbor Statement This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Among other things, quotations in this announcement, contain forward-looking statements. ATRenew may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about ATRenew's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: ATRenew's strategies; ATRenew's future business development, financial condition and results of operations; ATRenew's ability to maintain its relationship with major strategic investors; its ability to facilitate pre-owned consumer electronics transactions and provide relevant services; its ability to maintain and enhance the recognition and reputation of its brand; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in ATRenew's filings with the SEC. All information provided in this press release is as of the date of this press release, and ATRenew does not undertake any obligation to update any forward-looking statement, except as required under applicable law. Investor Relations Contact In China:ATRenew Inc.Investor RelationsEmail: ir@atrenew.com In the United States:ICR LLC.Email: atrenew@icrinc.com Tel: +1-212-537-0461 ATRENEW INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share and per share and otherwise noted) As of December 31, As of September 30, 2023 2024 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 1,978,696 1,347,338 191,994 Restricted cash 210,000 132,000 18,810 Short-term investments 410,547 630,123 89,792 Amount due from related parties, net 89,592 218,771 31,175 Inventories 1,017,155 678,026 96,618 Funds receivable from third party payment service providers 253,107 241,047 34,349 Prepayments and other receivables, net 567,622 754,617 107,532 Total current assets 4,526,719 4,001,922 570,270 Non-current assets: Long-term investments 467,095 558,221 79,546 Property and equipment, net 148,223 159,236 22,691 Intangible assets, net 270,631 100,496 14,321 Other non-current assets 80,411 149,115 21,249 Total non-current assets 966,360 967,068 137,807 TOTAL ASSETS 5,493,079 4,968,990 708,077 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term borrowings 349,931 307,291 43,789 Accounts payable 532,293 105,314 15,007 Contract liabilities 119,715 81,571 11,624 Accrued expenses and other current liabilities 465,123 478,145 68,135 Accrued payroll and welfare 146,371 148,945 21,224 Amount due to related parties 78,032 116,255 16,566 Total current liabilities 1,691,465 1,237,521 176,345 Non-current liabilities: Operating lease liabilities, non-current 22,495 80,366 11,452 Deferred tax liabilities 67,658 42,099 5,999 Total non-current liabilities 90,153 122,465 17,451 TOTAL LIABILITIES 1,781,618 1,359,986 193,796 TOTAL SHAREHOLDERS' EQUITY 3,711,461 3,609,004 514,281 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 5,493,079 4,968,990 708,077 ATRENEW INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ANDCOMPREHENSIVE INCOME (LOSS) (Amounts in thousands, except share and per share and otherwise noted) Three months ended September 30, Nine months ended September 30, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ Net revenues Net product revenues 2,923,970 3,672,239 523,290 8,135,824 10,383,813 1,479,682 Net service revenues 332,787 378,999 54,007 956,386 1,095,264 156,074 Operating (expenses) income (1)(2) Merchandise costs (2,611,018) (3,242,843) (462,101) (7,188,902) (9,181,300) (1,308,325) Fulfillment expenses (287,704) (347,270) (49,486) (822,913) (985,325) (140,408) Selling and marketing expenses (299,491) (315,293) (44,929) (933,835) (990,607) (141,160) General and administrative expenses (69,826) (69,302) (9,875) (203,794) (215,671) (30,733) Technology and content expenses (39,430) (53,396) (7,609) (131,905) (153,391) (21,858) Other operating income, net 22,640 1,751 250 32,512 23,082 3,289 Income (loss) from operations (28,072) 24,885 3,547 (156,627) (24,135) (3,439) Interest expense (2,186) (3,615) (515) (5,498) (12,332) (1,757) Interest income 11,083 8,686 1,238 24,658 20,611 2,937 Other (loss) income, net (4,428) 47 7 (6,719) (41,305) (5,886) Income (loss) before income taxes and share of loss in equity method investments (23,603) 30,003 4,277 (144,186) (57,161) (8,145) Income tax benefits 10,047 5,949 848 33,607 24,536 3,496 Share of loss in equity method investments (30,632) (18,069) (2,575) (48,449) (53,028) (7,556) Net income (loss) (44,188) 17,883 2,550 (159,028) (85,653) (12,205) Net income (loss) per ordinary share: Basic (0.27) 0.11 0.02 (0.99) (0.53) (0.08) Diluted (0.27) 0.11 0.02 (0.99) (0.53) (0.08) Weighted average number of shares used in calculating net income (loss) per ordinary share Basic 161,338,983 161,405,774 161,405,774 161,393,190 162,011,110 162,011,110 Diluted 161,338,983 164,258,720 164,258,720 161,393,190 162,011,110 162,011,110 Net income (loss) (44,188) 17,883 2,550 (159,028) (85,653) (12,205) Foreign currency translation adjustments (5,676) (7,093) (1,011) 15,897 (7,183) (1,024) Total comprehensive income (loss) (49,864) 10,790 1,539 (143,131) (92,836) (13,229) ATRENEW INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (CONTINUED) (Amounts in thousands, except share and per share and otherwise noted) Three months ended September 30, Nine months ended September 30, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ (1) Includes share-based compensation expenses as follows: Fulfillment expenses (5,362) (3,021) (430) (17,910) (15,992) (2,279) Selling and marketing expenses (5,165) (12,220) (1,741) (13,266) (56,792) (8,093) General and administrative expenses (19,239) (13,854) (1,974) (56,182) (45,924) (6,544) Technology and content expenses (5,218) (3,657) (521) (15,649) (13,611) (1,940) (2) Includes amortization of intangible assets and deferred cost resulting from assets and business acquisitions as follows: Selling and marketing expenses (66,412) (46,263) (6,592) (222,337) (169,154) (24,104) Technology and content expenses (482) (130) (19) (1,446) (981) (140) Reconciliations of GAAP and Non-GAAP Results (Amounts in thousands, except share and per share and otherwise noted) Three months ended September 30, Nine months ended September 30, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ Income (loss) from operations (28,072) 24,885 3,547 (156,627) (24,135) (3,439) Add: Share-based compensation expenses 34,984 32,752 4,666 103,007 132,319 18,856 Amortization of intangible assets and deferred cost resulting from assets and business acquisitions 66,894 46,393 6,611 223,783 170,135 24,244 Adjusted income from operations (non-GAAP) 73,806 104,030 14,824 170,163 278,319 39,661 Net income (loss) (44,188) 17,883 2,550 (159,028) (85,653) (12,205) Add: Share-based compensation expenses 34,984 32,752 4,666 103,007 132,319 18,856 Amortization of intangible assets and deferred cost resulting from assets and business acquisitions 66,894 46,393 6,611 223,783 170,135 24,244 Less: Tax effects of amortization of intangible assets and deferred cost resulting from assets and business acquisitions (10,047) (6,972) (994) (33,607) (25,559) (3,642) Adjusted net income (non-GAAP) 47,643 90,056 12,833 134,155 191,242 27,253 Adjusted net income per ordinary share (non-GAAP): Basic 0.30 0.56 0.08 0.83 1.18 0.17 Diluted 0.29 0.55 0.08 0.80 1.16 0.17 Weighted average number of shares used in calculating net income per ordinary share Basic 161,338,983 161,405,774 161,405,774 161,393,190 162,011,110 162,011,110 Diluted 166,112,358 164,258,720 164,258,720 167,609,332 165,040,389 165,040,389
NANJING, China, Nov. 20, 2024 /PRNewswire/ -- Tuniu Corporation (NASDAQ:TOUR) ("Tuniu" or the "Company"), a leading online leisure travel company in China, today announced that it plans to release its unaudited financial results for the third quarter ended September 30, 2024, before the market opens on December 5, 2024. Tuniu's management will hold an earnings conference call at 8:00 am U.S. Eastern Time on December 5, 2024 (9:00 pm Beijing/Hong Kong Time on December 5, 2024). Listeners may access the call by dialing the following numbers: US 1-888-346-8982 Hong Kong 852-301-84992 Mainland China 4001-201203 International 1-412-902-4272 Conference ID: Tuniu 3Q 2024 Earnings Conference Call A telephone replay will be available one hour after the end of the conference call through December 12, 2024. The dial-in details are as follows: US 1-877-344-7529 International 1-412-317-0088 Replay Access Code: 6264965 Additionally, a live and archived webcast of this conference call will be available at http://ir.tuniu.com/. About Tuniu Corporation Tuniu (Nasdaq:TOUR) is a leading online leisure travel company in China that offers integrated travel service with a large selection of packaged tours, including organized and self-guided tours, as well as travel-related services for leisure travelers through its website tuniu.com and mobile platform. Tuniu provides one-stop leisure travel solutions and a compelling customer experience through its online platform and offline service network, including a dedicated team of professional customer service representatives, 24/7 call centers, extensive networks of offline retail stores and self-operated local tour operators. For more information, please visit http://ir.tuniu.com.
PHOENIX, Nov. 20, 2024 /PRNewswire/ -- Moatable, Inc. (OTC: MTBLY) ("Moatable" or the "Company"), a leading US-based SaaS company, today reported its third quarter 2024 financial results. Third Quarter 2024 Financial Highlights Revenue increased 26% over Q3 2023 to $16.7 million in Q3 2024; Revenue for the nine months ended September 30, 2024 increased 20%, to $46.0 million, compared to the same period last year. Gross profit increased 21% over Q3 2023 to $12.6 million; Gross profit for the nine months ended September 30, 2024 increased 17% to $35.1 million, compared to the same period last year. Loss from operations improved 71% from a loss of $0.8 million in Q3 2023 to a loss of $0.2 million in Q3 2024; loss from operations for the nine months ended September 30, 2024 improved 74% to $1.9 million compared to $7.0 million in the same period last year. Adjusted EBITDA* increased 486% from a profit of $43 thousand in Q3 2023 to a profit of $252 thousand in Q3 2024; adjusted EBITDA for the nine months ended September 30, 2024 improved 134% to a profit of $1.4 million compared to a loss of $4.2 million in the same period last year. Total cash & cash equivalents and restricted cash were $38.4 million as of the end of Q3 2024 as compared to $39.0 million as of the end of 2023. "We are very pleased with the continued steady revenue growth over the past seven quarters and are particularly encouraged by our profitability, on an Adjusted EBITDA basis, in the first nine months of 2024, including the third quarter. Our Adjusted EBITDA of $1.4 million profit in the first nine months of 2024 shows significant improvement over the $4.2 million loss in the same period of 2023, as we continue to rationalize our cost structure and maintain our path to profitability. The Adjusted EBITDA of $252 thousand in Q3 2024 continues the profitability trend through the first nine months of 2024," said Scott Stone, the chief financial officer of Moatable. * Adjusted EBITDA is a non-GAAP measure. We define adjusted EBITDA as loss from operations excluding share-based compensation expenses, depreciation and amortization expenses, impairment of intangibles, and certain other non-recurring expenses. See the table "Reconciliation of Non-GAAP Financial Measure to the Comparable GAAP Financial Measure" below for details. About Moatable Inc. Moatable, Inc. (OTC Pink: MTBLY) operates two US-based SaaS businesses including Lofty and Trucker Path. Moatable's American depositary shares, each of which currently represents forty-five Class A ordinary shares, trade on OTC Pink open market under the symbol "MTBLY". For more news and information on Moatable, please visit Moatable.com. Forward-Looking Statements This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about Moatable's beliefs and expectations, including statements on making investments and operating businesses that generate long-term returns for investors, and expectations for future growth and innovation are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Moatable's goals and strategies; Moatable's future business development, financial condition and results of operations; Moatable's expectations regarding demand for and market acceptance of its services; Moatable's plans to enhance user experience, infrastructure and service offerings. Further information regarding these and other risks is included in our recent annual and quarterly reports on Form 10-K and Form 10-Q and other documents filed with the SEC. All information provided in this press release is as of the date of this press release, and Moatable does not undertake any obligation to update any forward-looking statement, except as required under applicable law. Non-GAAP Financial Information This press release includes certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles ("GAAP"), including Adjusted EBITDA. We define Adjusted EBITDA as loss from operations excluding equity-based compensation, depreciation and amortization, impairment of intangibles, and certain other non-recurring expenses. See "Reconciliation of Non-GAAP Financial Measure to the Comparable GAAP Financial Measure" below. We believe that these non-GAAP financial measures are provided to enhance the reader's understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing the Company's performance, as well as in planning and forecasting future periods. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. MOATABLE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBR 30, 2023 and 2024 (In thousands of US dollars) For the three months ended September 30, For the nine months ended September 30, 2023 2024 2023 2024 Revenues: SaaS revenue $ 13,257 $ 16,641 $ 38,188 $ 45,872 Other services 34 45 120 126 Total revenues 13,291 16,686 38,308 45,998 Cost of revenues: SaaS business 2,776 4,017 8,037 10,761 Other services 37 36 120 108 Total cost of revenues 2,813 4,053 8,157 10,869 Gross profit 10,478 12,633 30,151 35,129 Operating expenses Selling and marketing 4,382 4,628 13,917 12,991 Research and development 4,267 4,779 14,080 13,792 General and administrative 2,628 3,461 9,203 9,995 Impairment of intangible assets — — — 207 Total operating expenses 11,277 12,868 37,200 36,985 Loss from operations $ (799) $ (235) $ (7,049) $ (1,856) RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO THE COMPARABLE GAAP FINANCIAL MEASURE FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 and 2024 (In thousands of US dollars, except share data and per share data) For the three months ended September 30, For the nine months ended September 30, 2023 2024 2023 2024 Loss from operations $ (799) $ (235) $ (7,049) $ (1,856) Plus (minus) Share-based compensation expense 787 274 2,265 1,599 Depreciation and amortization expenses 55 213 573 638 Impairment of intangibles — — — 207 Arbitration fees 847 Adjusted EBITDA 43 252 (4,211) 1,435
Robust Profitability amidst Consumption Mix-shiftAdjusted Net Income Grew 2.0% to RMB2.4 BillionParcel Volume Increased 15.9% to 8.7 Billion SHANGHAI, Nov. 20, 2024 /PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057), a leading and fast-growing express delivery company in China ("ZTO" or the "Company"), today announced its unaudited financial results for the third quarter ended September 30, 2024[1]. The Company grew parcel volume by 15.9% year over year while maintaining high quality of service and customer satisfaction. Adjusted net income increased 2.0%[2] to reach RMB2,387.3 million. Cash generated from operating activities was RMB3,112.0 million. Third Quarter 2024 Financial Highlights Revenues were RMB10,675.0 million (US$1,521.2 million), an increase of 17.6% from RMB9,075.9 million in the same period of 2023. Gross profit was RMB3,334.8 million (US$475.2 million), an increase of 23.2% from RMB2,706.4 million in the same period of 2023. Net income was RMB2,379.0 million (US$339.0 million), an increase of 1.3% from RMB2,349.6 million in the same period of 2023. Adjusted EBITDA[3] was RMB3,739.5 million (US$532.9 million), an increase of 8.7% from RMB3,438.6 million in the same period of 2023. Adjusted net income was RMB2,387.3 million (US$340.2 million), an increase of 2.0% from RMB2,340.7 million in the same period of 2023. Basic and diluted net earnings per American depositary share ("ADS"[4]) were RMB2.98 (US$0.42) and RMB2.90 (US$0.41), an increase of 2.4% and 2.1% from RMB2.91 and RMB2.84 in the same period of 2023, respectively. Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders[5] were RMB2.99 (US$0.43) and RMB2.91 (US$0.41), an increase of 3.5% and 2.8% from RMB2.89 and RMB2.83 in the same period of 2023, respectively. Net cash provided by operating activities was RMB3,112.0 million (US$443.5 million), compared with RMB2,938.1 million in the same period of 2023. Operational Highlights for Third Quarter 2024 Parcel volume was 8,723 million, an increase of 15.9% from 7,523 million in the same period of 2023. Number of pickup/delivery outlets was over 31,000 as of September 30, 2024. Number of direct network partners was over 6,000 as of September 30, 2024. Number of self-owned line-haul vehicles was over 10,000 as of September 30, 2024. Out of the over 10,000 self-owned trucks, over 9,700 were high capacity 15 to 17-meter-long models as of September 30, 2024, compared to over 9,300 as of September 30, 2023. Number of line-haul routes between sorting hubs was over 3,900 as of September 30, 2024, compared to over 3,800 as of September 30, 2023. Number of sorting hubs was 95 as of September 30, 2024, among which 91 are operated by the Company and 4 by the Company's network partners. (1) An investor relations presentation accompanies this earnings release and can be found at http://zto.investorroom.com. (2) Adjusted net income is a non-GAAP financial measure, which is defined as net income before share-based compensation expense and non-recurring items such as impairment of investments in equity investees, gain/(loss) on disposal of equity investment and subsidiary and corresponding tax impact which management aims to better represent the underlying business operations. (3) 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 the shared-based compensation expense and non-recurring items such as impairment of investments in equity investees, gain/(loss) on disposal of equity investment and subsidiary which management aims to better represent the underlying business operations. (4) One ADS represents one Class A ordinary share. (5) Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders is a non-GAAP financial measure. It is defined as adjusted net income attributable to ordinary shareholders divided by weighted average number of basic and diluted American depositary shares, respectively. Mr. Meisong Lai, Founder, Chairman and Chief Executive Officer of ZTO, commented, "During the third quarter, ZTO maintained high quality of services and customer satisfaction, and achieved 8.72 billion of parcel volume and 2.39 billion of adjusted net income. Our retail volume increased by over 40% year over year for the quarter as we systematically improved cooperations with various ecommerce platforms for reverse logistics, remote area delivery and premium services. Our strategy to improve volume mix has generated very positive contributions to both revenue and operating margin." Mr. Lai added, "For nearly a decade since ZTO took the number one position in the industry, volume leadership has always been one of our key priorities. The recent stimulus policies by the central government sent a very strong signal for its commitment to support China's economic recovery and long-term growth. In the meantime, the downgrade of consumer spending may still be present for a while before an economic turnaround takes place. Volume leadership is the cornerstone of our business. We are setting plans in motion to maintain high quality of services and customer satisfaction, to regain market share and widen our leadership in parcel volume while achieving a reasonable level of earnings." Ms. Huiping Yan, Chief Financial Officer of ZTO, commented, "ZTO's core express ASP increased 1.8% for this quarter thanks to continued improvements in key accounts' mix offsetting negative impact from lower per parcel weight and volume incentive increases. Combined unit sorting and transportation costs decreased 8.4%, or 6 cents benefiting from sustained productivity gain initiatives. SG&A as a percentage of revenue remained stable at approximately 5%. Cash flow from operating activities was 3.1 billion, and capital spending was 1.8 billion." Ms. Yan added, "The express delivery industry experienced high growth contrary to the soft macroeconomic conditions. We have guided down our annual volume targets based on the visibility we have for the year. The increasing proportion of low-value ecommerce packages presented new challenges to the execution of our overall strategy to achieve continuous and simultaneous growth or improvements in quality of services, volume market share and profit. We are making modifications to rebalance our resource allocation as well as key network pricing approaches to regain volume growth momentum and expand our existing market share lead. Our quality of earnings will remain intact, and we are confident in maintaining our leadership in profitability in the industry." Third Quarter 2024 Unaudited Financial Results Three Months Ended September 30, Nine Months Ended September 30, 2023 2024 2023 2024 RMB % RMB US$ % RMB % RMB US$ % (in thousands, except percentages) Express delivery services 8,341,620 91.9 9,812,807 1,398,314 91.9 25,728,807 92.6 28,928,902 4,122,336 92.2 Freight forwarding services 238,565 2.6 240,491 34,270 2.3 670,162 2.4 676,480 96,398 2.2 Sale of accessories 460,870 5.1 588,233 83,823 5.5 1,297,486 4.7 1,653,717 235,653 5.3 Others 34,863 0.4 33,517 4,775 0.3 103,026 0.3 101,919 14,522 0.3 Total revenues 9,075,918 100.0 10,675,048 1,521,182 100.0 27,799,481 100.0 31,361,018 4,468,909 100.0 Total Revenues were RMB10,675.0 million (US$1,521.2 million), an increase of 17.6% from RMB9,075.9 million in the same period of 2023. Revenue from the core express delivery business increased by 18.1% compared to the same period of 2023 driven by a 15.9% growth in parcel volume and a 1.8% increase in unit price. KA revenue including delivery fees from direct sales organizations, established to serve core express KA customers, increased by 122.1% as the proportion of higher-valued parcels such as returned parcels from e-commerce platforms continued to increase. Revenue from freight forwarding services increased by 0.8% compared to the same period of 2023. Revenue from sales of accessories, largely consisted of sales of thermal paper used for digital waybills' printing, increased by 27.6%. Other revenues were derived mainly from financing services. Three Months Ended September 30, Nine Months Ended September 30, 2023 2024 2023 2024 RMB % of RMB US$ % of RMB % of RMB US$ % of revenues revenues revenues revenues (in thousands, except percentages) Line-haul transportation cost 3,245,767 35.8 3,398,007 484,212 31.8 9,627,419 34.6 10,052,623 1,432,487 32.1 Sorting hub operating cost 2,048,438 22.6 2,224,206 316,947 20.8 5,996,475 21.6 6,620,077 943,353 21.1 Freight forwarding cost 221,742 2.4 226,111 32,221 2.1 626,986 2.3 631,217 89,948 2.0 Cost of accessories sold 117,036 1.3 161,648 23,035 1.5 351,164 1.3 454,788 64,807 1.5 Other costs 736,491 8.1 1,330,265 189,560 12.6 2,663,160 9.5 3,644,940 519,400 11.5 Total cost of revenues 6,369,474 70.2 7,340,237 1,045,975 68.8 19,265,204 69.3 21,403,645 3,049,995 68.2 Total cost of revenues was RMB7,340.2 million (US$1,046.0 million), an increase of 15.2% from RMB6,369.5 million in the same period last year. Line-haul transportation cost was RMB3,398.0 million (US$484.2 million), an increase of 4.7% from RMB3,245.8 million in the same period last year. The unit transportation cost decreased 9.7% or 4 cents mainly attributable to better economies of scale and improved load rate through more effective route planning. Sorting hub operating cost was RMB2,224.2 million (US$316.9 million), an increase of 8.6% from RMB2,048.4 million in the same period last year. The increase primarily consisted of (i) RMB108.0 million (US$15.4 million) increase in labor-associated costs, a net result of wage increases partially offset by automation-driven efficiency improvements and (ii) RMB74.9 million (US$10.7 million) increase in depreciation and amortization costs associated with expansion of automation equipment and facility upgrades to further improve the transit efficiency. With standardization in operating procedures, effective performance evaluation system, sorting hub operating cost per unit decreased 6.4% or 2 cents. As of September 30, 2024, there were 535 sets of automated sorting equipment in service, compared to 482 sets as of September 30, 2023. Cost of accessories sold was RMB161.6 million (US$23.0 million), increased 38.1% compared with RMB117.0 million in the same period last year. Other costs were RMB1,330.3 million (US$189.6 million), increased 80.6% from RMB736.5 million in the same period last year, included costs for serving higher-valued enterprise customers which increased by RMB546.8 million (US$77.9 million). Gross Profit was RMB3,334.8 million (US$475.2 million), increased by 23.2% from RMB2,706.4 million in the same period last year. Gross margin rate improved to 31.2% from 29.8% in the same period last year. Total Operating Expenses were RMB493.0 million (US$70.3 million), compared to RMB282.8 million in the same period last year. Selling, general and administrative expenses were RMB544.6 million (US$77.6 million), increased by 25.6% from RMB433.7 million in the same period last year, mainly due to (i) RMB74.1 million (US$10.6 million) change in credit loss provision for financing services, and (ii) disposal losses of RMB41.1 million (US$5.9 million) on fixed assets. Other operating income, net was RMB51.6 million (US$7.3 million), compared to RMB150.9 million in the same period last year. Other operating income mainly consisted of (i) RMB43.4 million (US$6.2 million) of rental income, and (ii) RMB8.2 million (US$1.2 million) of government subsidies and tax rebates. Income from operations was RMB2,841.8 million (US$405.0 million), an increase of 17.3% from RMB2,423.6 million for the same period last year. Operating margin rate decreased to 26.6% from 26.7% in the same period last year. Interest income was RMB238.5 million (US$34.0 million), compared with RMB246.4 million in the same period last year. Interest expenses was RMB66.4 million (US$9.5 million), compared with RMB83.8 million in the same period last year. Loss from fair value changes of financial instruments was RMB62.7 million (US$8.9 million), compared with a gain of RMB8.6 million in the same period last year. The large swing in USD and RMB exchange rate near quarter end caused a RMB94.9 million (US$13.5 million) unrealized foreign exchange loss related to cash management products. Income tax expenses were RMB555.0 million (US$79.1 million) compared to RMB271.4 million in the same period last year. In the third quarter of 2023, Shanghai Zhongtongji Network Technology Co., Ltd.(上海中通吉網絡技術有限公司), a wholly-owned subsidiary of the Company, received an income tax refund of RMB207.1 million for being a "Key Software Enterprise" for the tax year 2022. Net income was RMB2,379.0 million (US$339.0 million), which increased by 1.3% from RMB2,349.6 million in the same period last year. Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB2.98 (US$0.42) and RMB2.90 (US$0.41), compared to basic and diluted earnings per ADS of RMB2.91 and RMB2.84 in the same period last year, respectively. Adjusted basic and diluted earnings per ADS attributable to ordinary shareholders were RMB2.99 (US$0.43) and RMB2.91 (US$0.41), compared with RMB2.89 and RMB2.83 in the same period last year, respectively. Adjusted net income was RMB2,387.3 million (US$340.2 million), compared with RMB2,340.7 million during the same period last year. EBITDA[1] was RMB3,731.3 million (US$531.7 million), compared with RMB3,449.5 million in the same period last year. Adjusted EBITDA was RMB3,729.5 million (US$532.8million), compared to RMB3,438.6 million in the same period last year. Net cash provided by operating activities was RMB3,112.0 million (US$443.5 million), compared with RMB2,938.1 million in the same period last year. (1) EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses which management aims to better represent the underlying business operations. Business Outlook Based on current market and operating conditions, the Company revises its previously stated annual guidance. Parcel volume for 2024 is expected to be in the range of 33.7 billion to 33.9 billion, representing a 11.6% to 12.3% increase year over year. Such estimates represent management's current and preliminary view, which are subject to change. 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 RMB7.0176 to US$1.00, the noon buying rate on September 30, 2024 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 EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders, and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders, 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 such Non-GAAP measures help identify underlying trends in ZTO's business that could otherwise be distorted by the effect of the related expenses and gains that the Company includes in income from operations and net income. The Company believes that EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders 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. EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders 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 compare the historical non-GAAP financial measures to the most directly comparable GAAP measures. EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders 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 7:30 PM U.S. Eastern Time on Tuesday, November 19, 2024 (8:30 AM Beijing Time on November 20, 2024). Dial-in details for the earnings conference call are as follows: United States: 1-888-317-6003 Hong Kong: 800-963-976 Mainland China: 4001-206-115 Singapore: 800-120-5863 International: 1-412-317-6061 Passcode: 0501133 Please dial in 15 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 November 26, 2024: United States: 1-877-344-7529 International: 1-412-317-0088 Passcode: 1609584 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 and SEHK:2057) ("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 announcement contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and other similar expressions. Among other things, the business outlook and quotations from management in this announcement contain forward-looking statements. ZTO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC") and The Stock Exchange of Hong Kong Limited (the "HKEX"), in its interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of the HKEX, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including but not limited to statements about ZTO's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: risks relating to the development of the e-commerce and express delivery industries in China; its significant reliance on certain third-party e-commerce platforms; 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; ZTO's ability to build its brand and withstand negative publicity, or other favorable government policies. Further information regarding these and other risks is included in ZTO's filings with the SEC and the HKEX. All information provided in this announcement is as of the date of this announcement, and ZTO does not undertake any obligation to update any forward-looking statement, except as required under applicable law. UNAUDITED CONSOLIDATED FINANCIAL DATA Summary of Unaudited Consolidated Comprehensive Income Data: Three Months Ended September 30, Nine Months Ended September 30, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ (in thousands, except for share and per share data) Revenues 9,075,918 10,675,048 1,521,182 27,799,481 31,361,018 4,468,909 Cost of revenues (6,369,474) (7,340,237) (1,045,975) (19,265,204) (21,403,645) (3,049,995) Gross profit 2,706,444 3,334,811 475,207 8,534,277 9,957,373 1,418,914 Operating (expenses)/income: Selling, general and administrative (433,682) (544,573) (77,601) (1,724,896) (2,034,192) (289,870) Other operating income, net 150,850 51,552 7,346 443,448 400,507 57,072 Total operating expenses (282,832) (493,021) (70,255) (1,281,448) (1,633,685) (232,798) Income from operations 2,423,612 2,841,790 404,952 7,252,829 8,323,688 1,186,116 Other income/(expenses): Interest income 246,362 238,510 33,987 505,382 771,608 109,953 Interest expense (83,801) (66,364) (9,457) (227,729) (266,135) (37,924) Gain/(loss) from fair value changes of financial instruments 8,551 (62,699) (8,935) 215,764 34,883 4,971 Gain/(loss) on disposal of equity investees, subsidiary and others 10,838 (1,440) (205) 10,074 10,694 1,524 Impairment of investments in equity investees - - - - (672,816) (95,876) Foreign currency exchange gain before tax 4,650 (38,174) (5,440) 75,571 (17,612) (2,510) Income before income tax, and share of loss in equity method investments 2,610,212 2,911,623 414,902 7,831,891 8,184,310 1,166,254 Income tax expense (271,387) (554,959) (79,081) (1,301,979) (1,786,275) (254,542) Share of gain in equity method investments 10,785 22,378 3,189 14,732 42,751 6,092 Net income 2,349,610 2,379,042 339,010 6,544,644 6,440,786 917,804 Net (income)/loss attributable to non- controlling interests (4,452) 17,255 2,459 12,054 (6,641) (946) Net income attributable to ZTO Express (Cayman) Inc. 2,345,158 2,396,297 341,469 6,556,698 6,434,145 916,858 Net income attributable to ordinary shareholders 2,345,158 2,396,297 341,469 6,556,698 6,434,145 916,858 Net earnings per share attributed to ordinary shareholders Basic 2.91 2.98 0.42 8.11 7.99 1.14 Diluted 2.84 2.90 0.41 7.94 7.80 1.11 Weighted average shares used in calculating net earnings per ordinary share/ADS Basic 807,081,026 804,565,579 804,565,579 808,298,164 805,388,468 805,388,468 Diluted 838,290,093 838,131,679 838,131,679 839,507,232 838,954,568 838,954,568 Net income 2,349,610 2,379,042 339,010 6,544,644 6,440,786 917,804 Other comprehensive income/(loss), net of tax of nil: Foreign currency translation adjustment (32,832) 137,698 19,622 (174,729) 20,138 2,870 Comprehensive income 2,316,778 2,516,740 358,632 6,369,915 6,460,924 920,674 Comprehensive (income)/loss attributable to non-controlling interests (4,452) 17,255 2,459 12,054 (6,641) (946) Comprehensive income attributable to ZTO Express (Cayman) Inc. 2,312,326 2,533,995 361,091 6,381,969 6,454,283 919,728 Unaudited Consolidated Balance Sheets Data: As of December 31, September 30, 2023 2024 RMB RMB US$ (in thousands, except for share data) ASSETS Current assets: Cash and cash equivalents 12,333,884 11,703,151 1,667,686 Restricted cash 686,568 32,350 4,610 Accounts receivable, net 572,558 782,772 111,544 Financing receivables 1,135,445 1,272,992 181,400 Short-term investment 7,454,633 11,213,470 1,597,907 Inventories 28,074 27,651 3,940 Advances to suppliers 821,942 862,789 122,946 Prepayments and other current assets 3,772,377 4,162,249 593,116 Amounts due from related parties 148,067 99,206 14,137 Total current assets 26,953,548 30,156,630 4,297,286 Investments in equity investees 3,455,119 2,092,880 298,233 Property and equipment, net 32,181,025 33,591,675 4,786,775 Land use rights, net 5,637,101 6,097,476 868,883 Intangible assets, net 23,240 18,592 2,649 Operating lease right-of-use assets 672,193 573,209 81,682 Goodwill 4,241,541 4,241,541 604,415 Deferred tax assets 879,772 711,368 101,369 Long-term investment 12,170,881 13,511,938 1,925,436 Long-term financing receivables 964,780 850,440 121,187 Other non-current assets 701,758 953,451 135,866 Amounts due from related parties-non current 584,263 520,833 74,218 TOTAL ASSETS 88,465,221 93,320,033 13,297,999 LIABILITIES AND EQUITY Current liabilities Short-term bank borrowing 7,765,990 10,770,422 1,534,773 Accounts payable 2,557,010 2,112,632 301,048 Advances from customers 1,745,727 1,662,922 236,964 Income tax payable 333,257 316,260 45,067 Amounts due to related parties 234,683 154,447 22,009 Operating lease liabilities 186,253 166,392 23,711 Dividends payable 1,548 1,993,865 284,123 Convertible bond - 6,979,057 994,508 Other current liabilities 7,236,716 7,126,793 1,015,558 Total current liabilities 20,061,184 31,282,790 4,457,761 Non-current operating lease liabilities 455,879 374,057 53,303 Deferred tax liabilities 638,200 541,115 77,108 Convertible bond 7,029,550 - - TOTAL LIABILITIES 28,184,813 32,197,962 4,588,172 Shareholders' equity Ordinary shares (US$0.0001 par value; 10,000,000,000 shares authorized; 812,866,663 shares issued and 804,719,252 shares outstanding as of December 31, 2023; 810,339,182 shares issued and 804,140,620 shares outstanding as of September 30, 2024) 525 523 75 Additional paid-in capital 24,201,745 24,383,137 3,474,569 Treasury shares, at cost (510,986) (337,541) (48,099) Retained earnings 36,301,185 36,715,863 5,231,969 Accumulated other comprehensive loss (190,724) (170,586) (24,308) ZTO Express (Cayman) Inc. shareholders' equity 59,801,745 60,591,396 8,634,206 Noncontrolling interests 478,663 530,675 75,621 Total Equity 60,280,408 61,122,071 8,709,827 TOTAL LIABILITIES AND EQUITY 88,465,221 93,320,033 13,297,999 Summary of Unaudited Consolidated Cash Flow Data: Three Months Ended September 30, Nine Months Ended September 30, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ (in thousands) Net cash provided by operating activities 2,938,104 3,111,972 443,452 9,437,682 8,623,087 1,228,780 Net cash used in investing activities (4,025,760) (1,910,131) (272,191) (13,433,920) (8,955,072) (1,276,088) Net cash provided by/(used in) financing activities 2,529,988 10,183 1,451 1,396,265 (963,309) (137,270) Effect of exchange rate changes on cash, cash equivalents and restricted cash 9,459 (43,349) (6,176) 105,393 (8,272) (1,178) Net increase/(decrease) in cash, cash equivalents and restricted cash 1,451,791 1,168,675 166,536 (2,494,580) (1,303,566) (185,756) Cash, cash equivalents and restricted cash at beginning of period 8,656,716 10,579,069 1,507,505 12,603,087 13,051,310 1,859,797 Cash, cash equivalents and restricted cash at end of period 10,108,507 11,747,744 1,674,041 10,108,507 11,747,744 1,674,041 The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: As of September 30, September 30, 2023 2024 RMB RMB US$ (in thousands) Cash and cash equivalents 9,284,625 11,703,151 1,667,686 Restricted cash, current 793,037 32,350 4,610 Restricted cash, non-current 30,845 12,243 1,745 Total cash, cash equivalents and restricted cash 10,108,507 11,747,744 1,674,041 Reconciliations of GAAP and Non-GAAP Results Three Months Ended September 30, Nine Months Ended September 30, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ (in thousands, except for share and per share data) Net income 2,349,610 2,379,042 339,010 6,544,644 6,440,786 917,804 Add: Share-based compensation expense (1) - 6,769 965 254,976 311,924 44,449 Impairment of investments in equity investees (1) - - - - 672,816 95,876 (Gain)/loss on disposal of equity investees and subsidiary, net of income taxes (8,866) 1,440 205 (8,102) (8,507) (1,212) Adjusted net income 2,340,744 2,387,251 340,180 6,791,518 7,417,019 1,056,917 Net income 2,349,610 2,379,042 339,010 6,544,644 6,440,786 917,804 Add: Depreciation 712,734 695,241 99,071 2,035,702 2,168,290 308,979 Amortization 31,951 35,709 5,088 100,535 104,034 14,825 Interest expenses 83,801 66,364 9,457 227,729 266,135 37,924 Income tax expenses 271,387 554,959 79,081 1,301,979 1,786,275 254,542 EBITDA 3,449,483 3,731,315 531,707 10,210,589 10,765,520 1,534,074 Add: Share-based compensation expense - 6,769 965 254,976 311,924 44,449 Impairment of investments in equity investees - - - - 672,816 95,876 (Gain)/loss on disposal of equity investees and subsidiary (10,838) 1,440 205 (10,074) (10,694) (1,524) Adjusted EBITDA 3,438,645 3,739,524 532,877 10,455,491 11,739,566 1,672,875 (1) Net of income taxes of nil Reconciliations of GAAP and Non-GAAP Results Three Months Ended September 30, Nine Months Ended September 30, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ (in thousands, except for share and per share data) Net income attributable to ordinary shareholders 2,345,158 2,396,297 341,469 6,556,698 6,434,145 916,858 Add: Share-based compensation expense (1) - 6,769 965 254,976 311,924 44,449 Impairment of investments in equity investees (1) - - - - 672,816 95,876 (Gain)/loss on disposal of equity investees and subsidiary, net of income taxes (8,866) 1,440 205 (8,102) (8,507) (1,212) Adjusted Net income attributable to ordinary shareholders 2,336,292 2,404,506 342,639 6,803,572 7,410,378 1,055,971 Weighted average shares used in calculating net earnings per ordinary share/ADS Basic 807,081,026 804,565,579 804,565,579 808,298,164 805,388,468 805,388,468 Diluted 838,290,093 838,131,679 838,131,679 839,507,232 838,954,568 838,954,568 Net earnings per share/ADS attributable to ordinary shareholders Basic 2.91 2.98 0.42 8.11 7.99 1.14 Diluted 2.84 2.90 0.41 7.94 7.80 1.11 Adjusted net earnings per share/ADS attributable to ordinary shareholders Basic 2.89 2.99 0.43 8.42 9.20 1.31 Diluted 2.83 2.91 0.41 8.24 8.96 1.28 (1) Net of income taxes of nil For investor and media inquiries, please contact: ZTO Express (Cayman) Inc. Investor Relations E-mail: ir@zto.com Phone: +86 21 5980 4508
Foreword Not long ago, Guru Club released the first Alibaba F2Q25 earnings update report, focusing on tracking the company's outstanding shareholder return rate.After the release of Alibaba's F2Q25 results, the market generally focused more on accelerating the recovery of core businesses such as e-commerce and cloud computing, as well as the high quality of its performance growth. Alibaba led the industry competition to provide greater value to customers, and Ali's management fulfilled its growth commitments.We believe that the progress of Alibaba's "AI-driven" strategy is also worth paying attention to.Although China's listed leading Internet and technology companies have actively deployed in the AI field, they do not fully reflect their AI capabilities in the financial results, unlike the well-known "Magnificent Seven" stocks in the US stock market. However, the current business performance can explain at least one thing - breakthroughs and changes are happening. Based on current trends, we believe that it is only a matter of time before the final AI valuation is reflected in the financial report data.Therefore, we are proactively tracking Alibaba's AI strategic layout and progress. We have found that Quark, known as one of the "Four Little Dragons of Alibaba," has made unexpected progress in the past two quarters.We believe that this change will play an important driving role in the timing of Alibaba's AI potential release and the reassessment of investment value. It can be further inferred that Ali's AI strategy has taken the lead in making breakthroughs among China's listed Internet and technology companies. Ⅰ Alibaba's "AI-driven" Strategy and Quark's Unique PositionIn today's global technology field, artificial intelligence (AI) technology has become the core of a new round of business competition. This business battle, known as the “AI battle”, constantly affects the nerves of global tech firms. They are using AI technology and products as weapons to engage in fierce market competition and internal renovation. Alibaba is also actively planning its AI layout to follow the trend of the times.In fact, AI technology has long been regarded as one of the key factors driving Alibaba's future business growth. Ali launched its basic large language model Tongyi Qwen in April 2023 and identified "AI-driven" as one of its strategic priorities in September 2023.In May 2024, Alibaba explained in its "2024 Fiscal Year Letter to Shareholders" the direction of its AI-driven strategy: first, basic large language model (LLM), second, cloud computing business, and third, application scenarios.Corresponding to specific businesses, the first refers to Ali's Qwen LLM,; The second refers to Alibaba Cloud's computing business, and the third is the representative AI applications extended from Alibaba's various C-end businesses.2024 is widely recognized as the Year of AI Implementation. China’s domestic Internet companies have launched in succession AI products representing their own C-end layout, such as ByteDance Doubao, Baidu Wenxiaoyan, etc.In contrast, we believe that Quark, which is presented in other businesses of Alibaba's financial report, can represent Ali's C-end AI products for three following reasons: 1. Quark is an intelligent product independently operated by Alibaba and has been laying out in the AI field for a long time. Quark's positioning in 2018 was an intelligent search engine with AI technology at its core. It places AI technology at the core of its product strategy from the beginning. After years of investment and efforts, Quark has gained a first mover advantage in both AI products and technology. 2. Quark's comprehensive product strength has entered the forefront of domestic and even global AI products. According to the latest data from the AI product list produced by a well-known domestic third-party data service agency, Quark ranks fourth globally and first in China. The "Q2 2024 iOS AI Products Strength Ranking" released by QiMai also shows that Quark won the industry championship with the highest rating. 3. Quark features a leading word of mouth among young people. Capturing young users means seizing the future of technology and business. Young people have a higher acceptance of new products with a larger user base. QuestMobile data shows that the general student population under the age of 24 in China has reached 261 million. It is reported that the proportion of young people under the age of 25 among Quark users has reached half, and that of young people on Quark PC even exceeds half. We believe that Quark, which has already entered the top tier of global C-end AI applications, is becoming the vanguard of Alibaba's AI strategy in the field of C-end applications, bringing more room for imagination to the company’s AI-driven strategy. Through Quark, we can also gain a deeper understanding of the value of Ali's AI strategy. Ⅱ Full Manifestation of AI Strength: Quark PC Leads Far AheadFirstly, let's briefly review the development trajectory of Quark and see how it gradually rose to become the "ace" of Alibaba's C-end AI applications.Since its establishment, Quark has defined search business as intelligent search and has been deeply involved in the application of AI technology in products.In November 2023, Quark released the Quark LLM, marking its further advancement in the field of AI. At that time, the Quark LLM successively topped the two authoritative evaluation lists of C-Eval and CMMLU, with multiple performances superior to GPT-4, reflecting the advantage of Quark in the LLM capabilities.In July 2024, Quark upgraded its "Super Search Box" and launched a one-stop AI service centered around AI search; In August 2024, it released a new PC terminal. Quark has rapidly upgraded its multi terminal products to products that fully utilize AI capabilities.According to public information, Quark PC has upgraded a series of functions such as AI search, AI writing, AI PPT, and AI file summary. And it can provide users with one-stop information retrieval, creation, and summary through "system-level all-scene AI".Taking Quark PC as an example to analyze its AI capabilities. Since the release of the all-new Quark PC, its traffic and user base have grown rapidly, while the categories of vertical AI applications continue to increase with the expansion of application scenarios. The launch of new products will further attract new users and downloads, forming a positive feedback loop, which is a typical "flywheel effect".According to the latest data from PConline, Quark PC ranks first in the download volume of AI applications on domestic computers in 2024, becoming the top-pick AI PC product among young people. The download volume of Quark PC is significantly higher than that of the second-ranked Doubao. Analyzing the reasons for the success of Quark PC, we have the following conclusions:1. The comprehensive and deep integration of Quark AI functions is one of the core driver for its further growth in traffic this year. In the scenario of using productivity tools, a single AI plugin often can only meet scattered needs, while Quark seamlessly integrates these needs through its "system-level all-scene AI" capability, improving user experience and stickiness, making AI a versatile assistant for users' work and learning. For example, Quark PC products integrate comprehensive AI applications and rich information services, allowing users to upgrade their computers to AI style without upgrading their hardware.2. The product strength is excellent enough. Quark PC not only has superior performance, but also is convenient and easy to use. Its friendly interface design and convenient usage process provide a unique experience of information collection, processing, and summarization, especially in academic search, AI topic search, AI writing, and AI PPT functions.3. According to the life cycle theory of Internet products, the large-scale liquidation of Quark PC has not yet occurred. For one thing, many AI products or features in Quark's product matrix, including the PC terminal, are free; For another, Quark has been very restrained in commercialization and has always adhered to long-termism and craftsman spirit to polish products and accumulate users. Alibaba's "User First" principle is well reflected in Quark. Therefore, it can be concluded that Quark is currently in the mid-term stage of the fastest user growth, and its potential commercial value release in the future will be more eye-catching. From the perspectives of data and scenario verification, Quark has enormous potential for commercialization in the future. Quark is still in a period of rapid development without sacrificing user experience.According to the latest statistics from the QbitAI think tank, Quark not only leads in user scale among domestic AI products, but also ranks first in the industry in terms of growth rate and user stickiness. According to data from the QbitAI, the number of newly downloaded quarks from January to October 2024 is close to 270 million, way ahead of the second place Doubao's 140 million; In respect of user stickiness, the top-ranked Quark has a three-day retention rate of over 40% and a seven-day retention rate of nearly 30%, both far exceeding the industry's requirements for excellent product retention rates.Another point is the rich scenarios, which also determines the high conversion and growth potential of users. One of Quark's core advantages is its deep accumulation in vertical application fields. Taking "AI Search" for learning scenarios as an example, Quark has upgraded its "AI Search" product in an all-round way to further solve the problem of users being unable to find questions or understand difficult problems. This has made the process of searching and solving questions faster and more effective. Quark's "AI Search" is also the first search product to complete a comprehensive AI upgrade. Behind this is Quark's early layout and years of deep cultivation in the field of learning. Quark has long insisted on building high-quality learning content and has the largest learning database in China, which is applied to model training to ensure that the content explained by AI is accurate and evidence-based.Deep cultivation of vertical scenario applications will bring new growth and commercialization opportunities to Quark. According to the "Summer Development Report on AI Productivity Tools" released by Aurora Mobile's MoonFox Data, AI productivity tools are showing a high-speed growth trend on the user side, and the growth rate has significantly increased. Among them, Quark App leads the way in acquiring new users during the summer vacation. Ⅲ. When will Alibaba Begin to Deliver the Strategic Value of "AI-driven"?Firstly, our conclusion is that benefiting from the market's attention to AI applications and the long-term accumulation of advantages in Alibaba's AI applications such as Quark, it can help increase the proportion of overall AI related business valuation in Alibaba's market value. The main reasoning logic is concentrated in the following parts:(1) Market Focus on the Value of AI ApplicationsWe observe that the market focus has shifted from LLM capabilities to practical AI application scenarios, as well as real user usage and retention.For AI applications, the smooth transition from the concept and idea verification stage to the actual user scenario application stage has achieved substantial transformation of innovative ideas and technological achievements into large-scale user operations, and future new commercialization opportunities are gradually opening up imaginative space.We believe that the future commercial potential of AI applications such as Quark has begun to emerge through the release of user value. The reason is that Quark has identified PMF (Product Market Fit), which will drive Quark to open up new incremental markets and raise the overall user base and usage to a new level.(2) Exploration of Valuation Methods for AI ApplicationsFor valuation methods of unlisted companies, investment banks generally use market approach, income approach, cost approach, and integrated approach.We believe that at the current stage of development, it is relatively appropriate to use the market approach for valuing AI applications, which has certain rationality and fairness.Among them, market approach includes market multiples, latest financing price method, and industry indicator method. The key to market approach is to find comparable assets or benchmark companies, and these assets or companies have publicly available price information in the market. Taking the market approach as an example, we will attempt to make valuation predictions for AI applications represented by Quark.Comparative Valuation: Valuation can partially refer to the latest valuations of AI applications such as Perplexity. It is reported that Perplexity's latest fundraising valuation has reached $9 billion. We calculated its valuation and monthly active user (MAU) proportionally with Quark, and based on this path, we found that the estimated volume of Quark will be much higher than that of Perplexity.SOTP (sum-of-the-parts): The market divides Quark’s functions into large language models, search tools, and "AI+office" applications, which can be used to value some of the businesses of companies such as Kunlun Tech and Kingsoft Office. Due to the existence of products such as Quark Cloud that have a large user base, the corresponding valuation should be higher than the simple sum of some business valuations. (3) The Impact on Alibaba's Market ValueThe increase in AI application valuation will drive the overall valuation level of Alibaba's AI related business. We believe that once the market's valuation of Ali's AI applications exceeds a certain threshold, it will trigger a reassessment of Ali's "AI-driven" strategy.Driven by the growth momentum of AI applications, the market will continue to reflect on the necessity and weight of Alibaba's "AI-driven" strategy reassessment. In this process, quantitative changes will ultimately lead to qualitative changes. The sustained and rapid growth of Alibaba's AI product user base will undoubtedly bring about a significant transformation in Alibaba's positioning and value in the capital market. We look forward to the arrival of this day.
A12 藝術空間
Earnings
請先登入後才能發佈新聞。
還不是會員嗎？立即 加入台灣產經新聞網會員 ，使用免費新聞發佈服務。 （服務項目） （投稿規範）
