Day: November 19, 2024

• Improved operating performance by reducing net loss by $52.5 million; reported net loss of $4.3 million and $56.8 million for the nine months ended September 30, for 2024 and 2023, respectively.
• Significantly improved financial position by eliminating nearly all of its liabilities; reported $10.5 million as of September 30, 2024, and $99.9 million as of December 31, 2023.
• $10 billion+, representing Tevogen’s IP and product assets based on internal discounted cash flow models, is not reflected on the company balance sheet. Similarly, Tevogen’s AI assets, a critical component of its innovation platform, remain unreported on company balance sheet.
• Sufficient available capital to fund operations for the next 33 months, supported by a loan agreement.
• Approximately 78% of equity retained by Tevogen officers.

WARREN, N.J., Nov. 19, 2024 (GLOBE NEWSWIRE) — Tevogen Bio (“Tevogen” or “Tevogen Bio Holdings Inc.”) TVGN, a clinical-stage specialty immunotherapy biotech developing off-the-shelf, genetically unmodified T cell therapeutics to treat infectious disease and cancers, has announced financial results for the fiscal quarter ending September 30, 2024, and filed its quarterly report on Form 10-Q with the Securities and Exchange Commission.

Tevogen’s internally developed intellectual property and product assets, valued internally at $10 billion+ using discounted cash flow models, are not reflected on the balance sheet. Due to US GAAP accounting rules, the company was unable to report the fair market value of its assets, including proprietary immunotherapy technologies and cutting-edge artificial intelligence platforms. The company believes that the inclusion of Tevogen’s IP assets on its balance sheet would significantly enhance its enterprise value.

Tevogen reiterated its confidence in its financial stability, confirming sufficient available capital to fund operations for at least the next 33 months, supported by a loan agreement, which Tevogen entered into in June. Additionally, Tevogen eliminated almost all of its liabilities which were $99.9 million as reported at December 31, 2023 and now are $10.5 million as reported at September 30, 2024.

Kirti Desai, CPA, Tevogen’s CFO, commented, “The company is in a unique position as it relates to reporting intangible assets on our balance sheet. Tevogen has multiple granted patents, which were developed internally, and as per US GAAP rules, these internally developed intangible assets are not reported on the balance sheet as they do not have an acquisition price. This is significantly different than IP obtained through acquisition which can be capitalized as a noncurrent asset on the balance sheet and subsequently amortized like an intangible asset.”

Dr. Ryan Saadi, Founder and CEO of Tevogen Bio added, “The lack of an established market price to assign fair value of our highly appraised internally developed assets on our balance sheet, marks a distinct difference from similar cell therapy companies, such as Gilead and Bristol-Myers Squibb, which are able to capitalize similar assets acquired through multibillion-dollar acquisitions.”

Commenting on the company’s performance and unique ownership structure, Dr. Saadi concluded, “Tevogen’s leadership stands apart in the biotech sector, with approximately 78% of equity retained by our officers, an extraordinary figure compared to the industry average of just 4%. In addition to our officers, our key employees have also been granted substantial restricted stock units in the company, reflecting our belief that our employees should also be owners of our success.”

About Tevogen Bio

Tevogen is a clinical-stage specialty immunotherapy company harnessing one of nature’s most powerful immunological weapons, CD8+ cytotoxic T lymphocytes, to develop off-the-shelf, genetically unmodified precision T cell therapies for the treatment of infectious diseases, cancers, and neurological disorders, aiming to address the significant unmet needs of large patient populations. Tevogen Leadership believes that sustainability and commercial success in the current era of healthcare rely on ensuring patient accessibility through advanced science and innovative business models. Tevogen has reported positive safety data from its proof-of-concept clinical trial, and its key intellectual property assets are wholly owned by the company, not subject to any third-party licensing agreements. These assets include three granted patents, nine pending US and twelve ex-US pending patents, two of which are related to artificial intelligence.

Tevogen is driven by a team of highly experienced industry leaders and distinguished scientists with drug development and global product launch experience. Tevogen’s leadership believes that accessible personalized therapeutics are the next frontier of medicine, and that disruptive business models are required to sustain medical innovation.

Forward Looking Statements

This press release contains certain forward-looking statements, including without limitation statements relating to: expectations regarding the healthcare and biopharmaceutical industries; Tevogen’s development of, the potential benefits of, and patient access to its product candidates for the treatment of infectious diseases, cancer and neurological disorders, including TVGN 489 for the treatment of COVID-19 and Long COVID; Tevogen’s ability to develop additional product candidates, including through use of Tevogen’s ExacTcell platform; the anticipated benefits of ExacTcell; expectations regarding Tevogen’s future clinical trials; and Tevogen’s ability to generate revenue in the future. Forward-looking statements can sometimes be identified by words such as “may,” “could,” “would,” “expect,” “anticipate,” “possible,” “potential,” “goal,” “opportunity,” “project,” “believe,” “future,” and similar words and expressions or their opposites. These statements are based on management’s expectations, assumptions, estimates, projections and beliefs as of the date of this press release and are subject to a number of factors that involve known and unknown risks, delays, uncertainties and other factors not under the company’s control that may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations expressed or implied by these forward-looking statements.

Factors that could cause actual results, performance, or achievements to differ from those expressed or implied by forward-looking statements include, but are not limited to: that Tevogen will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the effect of the recent business combination with Semper Paratus Acquisition Corporation (the “Business Combination”) on Tevogen’s business relationships, operating results, and business generally; the outcome of any legal proceedings that may be instituted against Tevogen; changes in the markets in which Tevogen competes, including with respect to its competitive landscape, technology evolution, or regulatory changes; changes in domestic and global general economic conditions; the risk that Tevogen may not be able to execute its growth strategies or may experience difficulties in managing its growth and expanding operations; the risk that Tevogen may not be able to develop and maintain effective internal controls; costs related to the Business Combination and the failure to realize anticipated benefits of the Business Combination; the failure to achieve Tevogen’s commercialization and development plans and identify and realize additional opportunities, which may be affected by, among other things, competition, the ability of Tevogen to grow and manage growth economically and hire and retain key employees; the risk that Tevogen may fail to keep pace with rapid technological developments to provide new and innovative products and services or make substantial investments in unsuccessful new products and services; the ability to develop, license or acquire new therapeutics; that Tevogen will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the risk of regulatory lawsuits or proceedings relating to Tevogen’s business; uncertainties inherent in the execution, cost, and completion of preclinical studies and clinical trials; risks related to regulatory review, approval and commercial development; risks associated with intellectual property protection; Tevogen’s limited operating history; and those factors discussed or incorporated by reference in Tevogen’s Annual Report on Form 10-K and subsequent filings with the SEC.

You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Tevogen undertakes no obligation to update any forward-looking statements, except as required by applicable law.

Contacts

Tevogen Bio Communications
T: 1 877 TEVOGEN, Ext 701
Communications@Tevogen.com

TORRANCE, Calif., Nov. 19, 2024 /PRNewswire/ — Emmaus Life Sciences, Inc. (OTCQB: EMMA), a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease, today reported on its financial condition and results of operations as of and for the three and nine months ended September 30, 2024.

Highlights

“We are pleased to report that we were able to resume inventory production and fulfill back orders in August which led to increases of $0.5 million, or 9%, and $0.8 million, or over 3000%, in net revenues and income from operations, respectively, as compared to the same period a year earlier and net income of $1.8 million, an increase of 2,626% as compared to Q3 2023,” commented Willis Lee, Chairman and Chief Executive Officer of Emmaus. “We expect net revenues and income from operations to stabilize in Q4.  Due to the inventory shortages we suffered earlier this year, net revenues for the nine months ended September 30 decreased 41% as compared to 2023 and we realized a loss from operations as compared to income from operations in the prior year. We expect results of operations for the full year to be materially lower than in 2023 for the same reason. Our Endari U.S. sales in Q3 may have been adversely affected by the launch in July of a competing generic L-Glutamine Oral Powder, and we are continuing to assess the possible effect on future Endari sales and net revenues and steps to bolster Endari sales,” he added.

Financial and Operating Results

Net Revenues. Net revenues for the three months ended September 30 were $5.5 million, compared to $5.0 million in the same period in 2023.  The increase was due to an increase in sales in the Middle East North Africa region, partially offset by a decrease in U.S. sales which management attributes to competition from a generic product.

Operating Expenses. Total operating expenses for the three months were $4.3 million compared to $4.8 million in the comparable period in 2023. The decrease was due primarily to a decrease in clinical research organization expenses. Total operating expenses for the nine months were $13.8 million compared to $19.2 million in the comparable period in 2023. The decrease was due primarily to a $2.3 million decrease in payroll expenses including share-based compensation.

Income (Loss) From Operations. We realized income from operations for the three months of $0.8 million compared to income from operations of $0.02 million in the same period in 2023.  The increase was due to the $0.5 million increase in net revenues and $0.5 million decrease in operating expenses. We recorded a $1.3 million loss from operations for the nine months ended September 30, 2024 compared to $2.2 million of income from operations for the same period last year. The decrease resulted from the $9.2 million decrease in net revenues, partially offset by the $5.4 million decrease in operating expenses.

Other Income (Expense). The company realized other income of $1.0 million for the three months compared to $0.08 million in the same period in 2023. The increase was due primarily to decreases of $0.7 million in foreign exchange loss, $0.6 million in interest expense and $0.6 million in loss on debt extinguishment, partially offset by a decrease of $0.4 million in change in fair value of conversion feature derivative liabilities. Other expense for the nine months ended September 30, 2024 decreased to $3.3 million from $7.1 million in the same period in 2023 due primarily to an increase of $1.0 million in gain on restructured debt and decreases of $3.2 million in foreign exchange loss and $1.0 million in interest expenses, partially offset by an increase of $2.2 million  in change in fair value of conversion feature derivative liabilities from a $2.1 million decrease in 2023 to a $0.1 million increase in 2024.

Net Income (Loss). For the three months, the company realized net income of $1.8 million, or $0.03 per share based on approximately 63.9 million weighted average basic common shares, compared to net income of $0.07 million, or $0.00 per share based on approximately 53.6 million weighted average basic common shares in the comparable period in 2023. The increase in net income was primarily attributable to the increases in income from operations and other income. For the nine months ended September 30, 2024, the company reported a net loss of $4.7 million, or $0.07 per share, based on approximately 63.0 million weighted average basic common shares. This compares to a net loss of $4.9 million, or $0.09 per share, based on approximately 52.4 million weighted average basic common shares for the nine months ended September 30, 2023. The decrease was primarily due to the decreases of $5.4 million in operating expenses and $3.7 million in other expenses, partially offset by the decrease in net revenues of $9.2 million.

Liquidity and Capital Resources. At September 30, 2024, the company had cash and cash equivalents of $1.3 million, compared to $2.5 million at December 31, 2023. 

About Emmaus Life Sciences 
Emmaus Life Sciences, Inc. is a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease. Endari® (L-glutamine oral powder), indicated to reduce the acute complications of sickle cell disease in adults and children 5 years and older, is approved for marketing in the United States, Israel, Kuwait, Qatar, the United Arab Emirates, Bahrain and Oman and is available on a named patient or early access basis in France, the Netherlands, and the Kingdom of Saudi Arabia, where Emmaus’ application for marketing authorization is awaiting final action by the Saudi Food & Drug Authority. For more information, please visit www.emmausmedical.com.

About Endari® (prescription grade L-glutamine oral powder)
Endari®, Emmaus’ prescription grade L-glutamine oral powder, was approved by the U.S. Food and Drug Administration (FDA) in July 2017 for treating sickle cell disease in adult and pediatric patients five years of age and older.

Indication
Endari® is indicated to reduce the acute complications of sickle cell disease in adult and pediatric patients five years of age and older.

Important Safety Information
The most common adverse reactions (incidence >10 percent) in clinical studies were constipation, nausea, headache, abdominal pain, cough, pain in extremities, back pain, and chest pain.

Adverse reactions leading to treatment discontinuation included one case each of hypersplenism, abdominal pain, dyspepsia, burning sensation, and hot flash.

The safety and efficacy of Endari® in pediatric patients with sickle cell disease younger than five years of age has not been established.

For more information, please see full Prescribing Information of Endari® at: www.ENDARIrx.com/PI.

About Sickle Cell Disease
There are approximately 100,000 people living with sickle cell disease (SCD) in the United States and millions more globally. The sickle gene is found in every ethnic group, not just among those of African descent; and in the United States an estimated 1-in-365 African Americans and 1-in-16,300 Hispanic Americans are born with SCD.¹ The genetic mutation responsible for SCD causes an individual’s red blood cells to distort into a “C” or a sickle shape, reducing their ability to transport oxygen throughout the body. These sickled red blood cells break down rapidly, become very sticky, and develop a propensity to clump together, which causes them to become stuck and cause damage within blood vessels. The result is reduced blood flow to distal organs, which leads to physical symptoms of incapacitating pain, tissue and organ damage, and early death.²

¹Source: Data & Statistics on Sickle Cell Disease – National Center on Birth Defects and Developmental Disabilities, Centers for Disease Control and Prevention, December 2020.
²Source: Committee on Addressing Sickle Cell Disease – A Strategic Plan and Blueprint for Action — National Academy of Sciences Press, 2020.

Forward-looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding the expected net revenues for the full year 2024 and the possible effect on Endari sales and net revenues of the introduction of competing generic drugs. These forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time, including the company’s need to restructure or refinance its existing indebtedness and raise additional funds from related-party loans, third-party loans or other financing to meet its current liabilities and fund its business and operations and doubt about the company’s ability to continue as a going concern  and other factors disclosed in the company’s Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Reports on Form 10-Q for the quarter ended September 30, 2024, and actual results may differ materially. Such forward-looking statements speak only as of the date they are made, and Emmaus assumes no duty to update them, except as may be required by law. 

Company Contact:                                                   
Emmaus Life Sciences, Inc.                                       
Investor Relations                                                                                                 
(310) 214-0065                                               
IR@emmauslifesciences.com

 

(Financial Tables Follow)                 

 

 

 

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SOURCE Emmaus Life Sciences, Inc.

Robust Profitability amidst Consumption Mix-shift
Adjusted Net Income Grew 2.0% to RMB2.4 Billion
Parcel Volume Increased 15.9% to 8.7 Billion

SHANGHAI, Nov. 19, 2024 /PRNewswire/ — ZTO Express (Cayman) Inc. ZTO, 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.

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 

 

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.

 

 

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.

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:

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:

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. ZTO (“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.

 

 

 

 

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:

 

 

 

 

For investor and media inquiries, please contact:

ZTO Express (Cayman) Inc.

Investor Relations

E-mail: ir@zto.com 

Phone: +86 21 5980 4508

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SOURCE ZTO Express (Cayman) Inc.