#China #Shanghai #Financial Growth #ZTO Express #Parcel Volume

ZTO Express Reports Second Quarter 2026 Financial Results

ZTO Express (Cayman) Inc., one of China's most prominent express delivery companies, has released its unaudited financial results for the second quarter ending June 30, 2026. During this period, ZTO experienced substantial growth, successfully increasing its parcel volume and overall financial performance.

According to its recent report, ZTO handled an impressive 10.5 billion parcels, marking a 6.5% year-over-year increase. This growth outpaced the industry average by 2.3 percentage points, demonstrating the company's commitment to enhancing service quality and operational efficiency. In addition, ZTO's adjusted net income surged by 50.3%, reaching RMB 3.1 billion (approximately US$453.6 million). Net cash generated from operating activities amounted to RMB 4.6 billion.

Financial Highlights

In the second quarter of 2026, ZTO Express achieved a total revenue of RMB 14.5 billion (US$2.14 billion), representing a 23.0% increase from RMB 11.8 billion during the same time last year. This growth was primarily driven by significant increases in the core express delivery business, which saw revenues rise due to an increase in parcel volume and a higher average selling price (ASP).

• - Gross profit increased by 26.8% to RMB 3.7 billion (US$550.2 million).
• - Net income saw an impressive 56.7% increase compared to the previous year, climbing to RMB 3.1 billion.
• - The company also reported an adjusted EBITDA of RMB 4.2 billion (US$625.1 million), a 20% rise from the previous year's quarterly figures.

Basic and diluted earnings per American depositary share were RMB 3.99 (US$0.59) and RMB 3.78 (US$0.56), respectively, reflecting increases of 64.9% and 59.5% year-over-year.

Operational Growth

Alongside financial successes, ZTO has broadened its operational network significantly. As of June 30, 2026, ZTO operated over 31,000 pickup and delivery outlets and collaborated with approximately 6,000 direct network partners, solidifying its logistics framework. With over 10,000 self-owned line-haul vehicles in operation, the company has enhanced its ability to handle increased parcel volumes efficiently.

ZTO has strategically expanded its sorting hubs to 92 facilities, of which 87 are operated directly by the company, while five are managed by network partners. This infrastructure is crucial for managing the growing parcel demands and ensuring timely deliveries.

Insights from Leadership

Mr. Meisong Lai, the Founder, Chairman, and CEO of ZTO, stated, "During the second quarter, our focus remained on enhancing service quality and operational efficiency. The significant growth in our parcel volume of 10.5 billion reflects our strategy to prioritize both volume growth and profitability. The improved daily average retail parcel volume is a testament to the shift towards value-driven strategies alongside traditional e-commerce parcels."

Ms. Huiping Yan, the Chief Financial Officer, noted that despite challenges like oil price fluctuations, ZTO managed to reduce combined unit sorting and transportation costs. This was achieved through digitization and efficiency measures, allowing operational costs to remain stable amid external pressures. Selling, general, and administrative (SGA) expenses were reduced to approximately 3.8% of revenue, presenting a notable improvement from last year.

Looking Ahead

ZTO Express prepares for continued growth, revising its annual parcel volume guidance to a 6-10% increase year-over-year, supporting its evolving market strategy. This focuses on enhancing service quality, expanding its delivery network, and leveraging its operational efficiencies to meet the rising demand of China's bustling e-commerce sector.

The company's commitment to its Quality-First philosophy and transparent network governance underpins its successes, positioning ZTO favorably amidst the rapidly changing express delivery landscape in China.

For more information about ZTO Express, please visit their investor relations page.