1. ZTO's parcel volume increased 19.1% to 8.5 billion year-over-year. 2. Adjusted net income rose 1.6% to RMB2.3 billion for Q1 2025. 3. Company reiterates its parcel volume guidance of 40.8-42.2 billion for 2025. 4. Gross profit decreased by 10.4%, indicating potential cost challenges ahead. 5. Share repurchase program extended to enhance shareholder value and confidence.
Despite the gross profit decline, strong parcel volume growth and increasing adjusted net income show financial health. Historical performance, like previous positive earnings reports, supports potential price appreciation.
Positive earnings growth and strategic initiatives signal potential for short-term and long-term price appreciation. The ongoing share repurchase program indicates management's confidence in the company's value.
The company's strong operational growth and strategic focus on e-commerce partnerships signal stable future performance. Long-term guidance of parcel volume growth suggests sustained demand.
SHANGHAI, May 20, 2025 /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 first quarter ended March 31, 2025. The Company grew parcel volume by 19.1% year over year while maintaining high quality of service and customer satisfaction. Adjusted net income increased 1.6% to reach RMB2.3 billion. Net cash generated from operating activities was RMB2.4 billion.
(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 first quarter, ZTO maintained leading service quality and achieved 8.5 billion of parcel volume and 2.3 billion of adjusted net income. Retail volume increased by 46% year over year for the quarter as we penetrated deeper into reverse logistics, and we continued to work closely with various e-commerce platform and enterprise customers to develop differentiated products and services which include time-definite delivery and customized KA consumer services."
Mr. Lai added, "We believe competition in China's express delivery industry has reached the 'white-hot' stage, and it is further exacerbated by a greater portion of volume being either low value or loss-making for the logistic service providers. Our approach to network policies has been on maintaining consistency and cultivating long-term stability. At times of fierce competition, we are learning to better leverage our existing competitive advantage and at the same time, stay focused on initiatives that can bring about long-term prospects of profitable growth."
Ms. Huiping Yan, Chief Financial Officer of ZTO, commented, "ZTO's core express ASP decreased by 11 cents largely driven by 16 cents in higher volume incentives and 6 cents lower weight average per parcel partially offset by 12 cents increase in KA unit price. Combined unit sorting and transportation costs decreased 9 cents thanks to cost productivity gain initiatives. SG&A as a percentage of revenue was 4.7%. Cash flow from operating activities was 2.4 billion, and capital spending was 2 billion."
Ms. Yan added, "Volume, backed by high quality of services, remains our top priority. Healthier profitability by the ZTO brand and its network partners relative to our peers are built upon decades of interdependent and cooperative relationship founded on our 'shared success' philosophy."
| Item | Q1 2024 (RMB) | Q1 2025 (RMB) | Q1 2025 (US$) |
|---|---|---|---|
| Total revenues | 9,960,006 | 10,891,465 | 1,500,884 |
Based on current market and operating conditions, the Company reiterates its 2025 parcel volume guidance of 40.8 billion to 42.2 billion, reflecting a 20% to 24% year over year growth.
The Board of Directors of the Company has announced changes, effective April 25, 2025. Ms. Di Xu has been appointed as a director, and Mr. Xudong Chen has resigned from his position.
ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK:2057) 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.
For investor and media inquiries, please contact:
ZTO Express (Cayman) Inc.
Investor Relations
E-mail: ir@zto.com
Phone: +86 21 5980 4508