ZTO Express (Cayman) Inc. (NYSE:ZTO) Q4 2021 Earnings Conference Call March 16, 2022 8:30 PM ET Company Participants Huiping Yan - Chief Financial Officer Meisong Lai - Founder, Chairman and Chief Executive Officer Conference Call Participants Qianlei Fan - Morgan Stanley Tian Hou - TH Data Capital Gangxian Liu - CICC Fan Tso - Bank of America Merrill Lynch Operator Good day, and welcome to the ZTO Conference Call and Webcast to announce the Fourth Quarter and Full-Year 2021 Financial Results. All participa ...

Exhibit 99.1 ZTO Reports Fourth Quarter 2021 and Fiscal Year 2021 Unaudited Financial Results 22.3 Billion Annual Parcels Increased Market Share to 20.6% Adjusted Net Income Reached RMB4.9 Billion while Price Competition Cooled US$0.25 per Share Dividend Announced for 2021 SHANGHAI, March 16, 2022/PRNewswire/ — ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057), a leading and fastgrowing express delivery company in China ("ZTO" or the "Company"), today announced its unaudited financial results for the fou ...

Financial Data and Key Metrics Changes - In Q3 2021, ZTO achieved a parcel volume of 5.7 billion, representing a 23.3% year-over-year growth and securing a market share of 20.8% [6][12] - Total revenue increased by 11.3% to RMB 7.4 billion, while adjusted net income rose by 13.7% year-over-year to RMB 1.15 billion [12][13] - The average selling price (ASP) for the core express delivery business declined by 7.2%, attributed to normal parcel weight drop and volume incentives [13] Business Line Data and Key Metrics Changes - The cost of revenue increased by 10.9% to RMB 5.8 billion, but the overall unit cost of revenue decreased by 7.3% [13] - Gross profit increased by 12.7% to RMB 1.6 billion, with a gross profit margin of 21.2% [13][14] - SG&A expenses rose by 4.2% to RMB 389 million, but as a percentage of revenue, it dropped to 5.3% [14] Market Data and Key Metrics Changes - The express delivery industry is expected to stabilize pricing by 2022, with a shift towards profitability among top players [7][18] - The market dynamics indicate that second and third-tier express delivery companies have exited, leading to clearer distinctions among top players [7] Company Strategy and Development Direction - ZTO's strategy focuses on maintaining high-quality customer service while achieving targeted profits and expanding market share [8][10] - The company plans to invest in capacity expansion and improve operational efficiency through digitization and data analytics [9][10] - ZTO aims to develop a comprehensive logistics ecosystem, including LTL, cloud warehouse, and other services to enhance brand value [9][34] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects of the express delivery industry, despite a slowdown in e-commerce growth [10][37] - The company anticipates that earnings growth will exceed revenue growth, with adjusted net income expected to grow no less than 30% year-over-year for 2021 [15][20] Other Important Information - Capital expenditures for 2021 are projected to be around RMB 9 billion, with expectations for a decrease in 2022 [22] - The VAT super deduction policy is expected to expire by the end of 2021, which will remove its positive impact on earnings [22] Q&A Session Summary Question: Impact of J&T and Best M&A on competitive landscape - Management noted that the integration of J&T and Best may present challenges and does not guarantee a stronger competitive position, allowing ZTO to leverage its strengths [18] Question: Earnings growth faster than revenue growth - Management explained that ASP decline is due to market developments and incentives, but expects ASP to stabilize and increase as competition becomes more rational [19][20] Question: CapEx guidance for next year - Management indicated that capital spending will focus on land use rights and facility construction, with expectations for a decrease in total spending next year [22] Question: Industry pricing trends in 2022 - Management believes that ASP will increase in line with market trends, driven by a more sensible pricing environment [25] Question: Fourth quarter earnings guidance - Management confirmed that fourth quarter earnings growth is expected to be no less than 30% year-on-year [27] Question: Market share performance during Double 11 Shopping Festival - Management reported strong performance during the festival, achieving significant order and delivery volumes, and emphasized ZTO's competitive advantages [28][29] Question: New growth drivers beyond e-commerce - Management acknowledged the slowdown in e-commerce growth but highlighted opportunities in community grocery shopping and international expansion [37][39]

ZTO Express (Cayman) Inc. (NYSE:ZTO) Q2 2021 Earnings Conference Call August 18, 2021 8:30 PM ET Company Participants Sophie Li - Director of Investor Relations Meisong Lai - Founder, Chairman and Chief Executive Officer Huiping Yan - Chief Financial Officer Conference Call Participants Ronald Keung - Goldman Sachs Group, Inc. Ellie Jiang - Macquarie Group Lin Chen - JPMorgan Chase & Co. James Teo - Bloomberg Intelligence Parash Jain - HSBC Operator Welcome to the ZTO Reports Second Quarter 2021 Unaudited F ...

[Financial and Operational Highlights](index=2&type=section&id=Financial%20and%20Operational%20Highlights) ZTO Express reported a 25.6% increase in Q2 2021 parcel volume and 14.4% revenue growth to RMB 7.33 billion, yet adjusted net income declined 12.5% to RMB 1.27 billion, despite strong operating cash flow Key Financial Indicators for Q2 2021 | Metric | 2021 Q2 | 2020 Q2 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 7.325 billion | RMB 6.402 billion | +14.4% | | Gross Profit | RMB 1.674 billion | RMB 1.769 billion | -5.4% | | Net Income | RMB 1.272 billion | RMB 1.454 billion | -12.5% | | Adjusted Net Income | RMB 1.272 billion | RMB 1.454 billion | -12.5% | | Basic and Diluted EPS per ADS | RMB 1.56 | RMB 1.85 | -15.7% | | Net Cash Flow from Operating Activities | RMB 1.932 billion | RMB 1.252 billion | +54.3% | Key Operational Data for Q2 2021 | Metric | 2021 Q2 | 2020 Q2 | YoY Change | | :--- | :--- | :--- | :--- | | Parcel Volume | 5.772 billion parcels | 4.595 billion parcels | +25.6% | | Market Share | 21.0% | - | - | | Pickup/Delivery Outlets | >30,100 units | - | - | | Line-haul Vehicle Fleet | ≈10,300 units | - | - | | High-capacity Vehicles | ≈8,150 units | - | - | [Management Commentary and Strategy](index=3&type=section&id=Management%20Commentary%20and%20Strategy) Management highlighted a strategic focus on balancing service quality, volume, and profit, prioritizing profitable parcels which slightly impacted market share but ensured strong profitability and network stability, with future investments targeting capacity and operational efficiency - CEO Meisong Lai stated that the company's choice to prioritize profitable parcels over short-term market share gains was the main reason for the slight decline in market share this quarter, which ensured strong profitability and network partner stability[7](index=7&type=chunk) - Management anticipates China's express delivery industry will reach over **400 million parcels daily** in the next 2-3 years, with capacity and operational efficiency being key determinants of success, where ZTO has established an efficiency advantage[7](index=7&type=chunk) - CFO Huiping Yan stated that capital expenditure for the quarter was **RMB 2.2 billion**, with nearly 70% allocated to land acquisition and upgrading sorting centers, aiming to strengthen core express delivery infrastructure and develop integrated logistics service capabilities[7](index=7&type=chunk) [Detailed Financial Performance](index=4&type=section&id=Detailed%20Financial%20Performance) Total revenue grew 14.4% driven by core express services, but operating costs surged 22.0% due to policy changes and rising fuel prices, resulting in a gross margin decline from 27.6% to 22.8% and a 12.5% decrease in net income [Revenue Analysis](index=4&type=section&id=Revenue%20Analysis) Total revenue reached RMB 7.33 billion, up 14.4%, driven by core express services' 18.1% growth from increased parcel volume despite lower average prices, while freight forwarding revenue declined 32.9% Q2 2021 Revenue Breakdown (Millions of RMB) | Business Segment | 2021 Q2 | 2020 Q2 | YoY Change | | :--- | :--- | :--- | :--- | | Express Delivery Services | 6,652.9 | 5,540.7 | +20.1% | | Freight Forwarding Services | 313.6 | 467.1 | -32.9% | | Sale of Materials | 314.1 | 321.2 | -2.2% | | Others | 44.4 | 73.5 | -39.6% | | **Total Revenue** | **7,325.1** | **6,402.4** | **+14.4%** | - The growth in core express delivery service revenue was primarily driven by a **25.6% year-over-year increase in parcel volume**, partially offset by a **5.9% decrease in average selling price per parcel**[8](index=8&type=chunk) [Cost Analysis](index=4&type=section&id=Cost%20Analysis) Total operating costs increased 22.0% to RMB 5.65 billion, driven by a 38.4% surge in line-haul transportation costs due to policy changes and fuel prices, and a 28.6% rise in sorting center costs from wage increases and automation Q2 2021 Operating Cost Breakdown (Millions of RMB) | Cost Item | 2021 Q2 | 2020 Q2 | YoY Change | | :--- | :--- | :--- | :--- | | Line-haul Transportation Costs | 2,763.3 | 1,996.6 | +38.4% | | Sorting Center Operating Costs | 1,612.7 | 1,254.3 | +28.6% | | Freight Forwarding Costs | 266.2 | 416.7 | -36.1% | | Other Costs | 911.1 | 853.3 | +6.8% | | **Total Operating Costs** | **5,651.4** | **4,633.3** | **+22.0%** | - Per-parcel line-haul transportation cost increased by **10.2% to RMB 0.48**, primarily due to the combined impact of the expiration of toll exemption policies in the prior year period and rising fuel prices[10](index=10&type=chunk) - As of June 30, 2021, the number of automated sorting equipment in operation increased to **361 sets** from 282 sets in the prior year period, contributing to higher depreciation and amortization costs related to sorting centers[10](index=10&type=chunk) [Profit and Profitability](index=5&type=section&id=Profit%20and%20Profitability) Gross profit declined 5.4% to RMB 1.67 billion and gross margin fell to 22.8% due to faster cost growth, leading to an 11.6% decrease in operating profit and a 12.5% decline in net income to RMB 1.27 billion - Gross margin decreased from **27.6%** in the prior year period to **22.8%**, primarily due to the combined impact of a **5.9% decrease in average selling price per parcel** and a **1.7% increase in per-parcel cost** for core express delivery services[12](index=12&type=chunk) - Operating profit was **RMB 1.46 billion**, a **11.6% year-over-year decrease**; operating margin declined from **25.7% to 19.9%**[12](index=12&type=chunk) - Net income was **RMB 1.27 billion**, a **12.5% decrease** from RMB 1.45 billion in the prior year period[13](index=13&type=chunk) [Earnings Per Share (EPS)](index=5&type=section&id=Earnings%20Per%20Share%20(EPS)) Basic and diluted earnings per American Depositary Share (ADS) attributable to ordinary shareholders were RMB 1.56 this quarter, a decrease from RMB 1.85 in the prior year period Earnings Per American Depositary Share (RMB) | Metric | 2021 Q2 | 2020 Q2 | | :--- | :--- | :--- | | Basic and Diluted EPS per ADS | 1.56 | 1.85 | | Adjusted Basic and Diluted EPS per ADS | 1.56 | 1.85 | [Business Outlook](index=5&type=section&id=Business%20Outlook) The company maintained its full-year 2021 parcel volume guidance of 22.95 billion to 23.80 billion parcels, representing a 35% to 40% year-over-year growth - The company maintained its full-year 2021 parcel volume guidance unchanged, expecting a range of **22.95 billion to 23.80 billion parcels**, representing a **35%-40% year-over-year increase**[13](index=13&type=chunk) [Capital Management: Share Repurchase Program](index=6&type=section&id=Share%20Repurchase%20Program) The board approved increasing the share repurchase program to $1 billion and extending it to June 30, 2023, with approximately 17.52 million ADSs repurchased at an average price of $23.17 as of June 30, 2021 - The share repurchase program size was increased from **$500 million to $1 billion**, with its validity extended to **June 30, 2023**[15](index=15&type=chunk) - As of June 30, 2021, the company had cumulatively repurchased **17,519,583 ADSs** at an average purchase price of **$23.17**[15](index=15&type=chunk) [Appendix: Financial Statements](index=9&type=section&id=Appendix%3A%20Financial%20Statements) This section provides detailed unaudited financial statements, including consolidated comprehensive income, balance sheets, cash flows, and reconciliations of GAAP to Non-GAAP results [Unaudited Consolidated Statement of Comprehensive Income](index=9&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Comprehensive%20Income) This statement presents detailed revenue, cost, expense, and profit data for the three and six months ended June 30, 2021 - For detailed unaudited consolidated statement of comprehensive income data, please refer to the original document[27](index=27&type=chunk) [Unaudited Consolidated Balance Sheets](index=10&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets) This statement lists the company's assets, liabilities, and shareholders' equity as of June 30, 2021, and December 31, 2020 - For detailed unaudited consolidated balance sheet data, please refer to the original document[28](index=28&type=chunk) [Unaudited Consolidated Statements of Cash Flows](index=11&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) This statement illustrates the company's cash flows from operating, investing, and financing activities for the three and six months ended June 30, 2021 - For detailed unaudited consolidated statements of cash flows data, please refer to the original document[29](index=29&type=chunk) [Reconciliation of GAAP and Non-GAAP Results](index=12&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Results) This section provides detailed reconciliations of Non-GAAP financial metrics, including adjusted net income and EBITDA, to their most comparable GAAP measures - Provides detailed calculations for reconciling GAAP net income to Non-GAAP adjusted net income, adjusted EBITDA, and adjusted earnings per share[31](index=31&type=chunk)[33](index=33&type=chunk)

ZTO Express (Cayman) Inc. (NYSE:ZTO) Q1 2021 Earnings Conference Call May 19, 2021 8:30 PM ET Company Participants Sophie Li - Investor Relations Meisong Lai - Chairman and Chief Executive Officer Huiping Yan - Chief Financial Officer Conference Call Participants Thomas Chong - Jefferies Ronald Keung - Goldman Sachs Tianxiao Hou - TH Capital Operator Good day and welcome to the ZTO Express, Inc. First Quarter 2021 Conference Call. [Operator Instructions] Please note that today’s event is being recorded. I w ...