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ZTO Express Reports Second Quarter 2025 Financial Results

ZTO Express (Cayman) Inc. has published its unaudited financial results for the second quarter ended June 30, 2025, highlighting a robust growth trajectory in parcel volume. The company reported a 16.5% increase in parcel volume, amounting to 9.8 billion parcels delivered, showcasing its operational efficiency and service quality amidst evolving market demands.

Key Financial Metrics

In terms of revenue, ZTO achieved RMB 11,831.8 million (approximately US$1,651.7 million), marking a 10.3% rise compared to RMB 10,726.0 million in the same period last year. However, there was a notable decrease in gross profit, which fell to RMB 2,944.4 million (US$411 million), reflecting a 24.9% gross margin rate, down from 33.8% compared to Q2 of 2024.

Despite the growth in parcel volume, net income for the quarter decreased to RMB 1,964.6 million (US$274.2 million), a 24.8% drop from the prior year, attributed primarily to changes in market conditions and competitive pressures.

Adjusted net income reached RMB 2,052.7 million (US$286.5 million), revealing a 26.8% decline year-over-year. The company also reported adjusted EBITDA of RMB 3,534.9 million (US$493.5 million), which corresponds to an 18.5% decrease when compared with the same quarter of 2024.

Operational Achievements

• - The number of pickup and delivery outlets surpassed 31,000, showcasing the company’s extensive network capability.
• - A direct network of approximately 6,000 partners has been maintained, alongside an operational fleet of over 10,000 line-haul vehicles with significant high-capacity models contributing to the efficiency of deliveries.

CEO Meisong Lai expressed confidence in meeting the industry's growth expectations despite the ongoing shift towards lower unit economics in the express delivery sector. Lai emphasized the company's commitment to “Quality Is Number One”, aiming to provide superior product and service experiences while remaining adaptable in a dynamic market.

Dividend Announcement and Future Outlook

The Board of Directors has approved an interim cash dividend of US$0.30 per ADS for the first half of 2025, signaling shareholder value distribution amidst challenging earnings.

Looking forward, ZTO has revised its annual parcel volume guidance, now expecting to achieve between 38.8 billion to 40.1 billion parcels in 2025, equating to a 14.0% to 18.0% growth compared to the previous year. This strategic outlook underlines ZTO's resolve to align with and exceed the industry average growth rates while navigating economic and policy changes.

Conclusion

As ZTO Express moves into the latter half of 2025, its focus on increasing operational efficiency, enhancing quality, and broadening its service offerings will be pivotal. The continued rise in e-commerce and logistical demands positions ZTO to leverage its leading market stance in China’s express delivery sector.

For further updates and detailed financial insights, stakeholders can access ZTO’s investor relations presentations and additional information available on their official website.