Market Overview - US stock index futures are all down, with Dow futures down 0.75%, S&P 500 futures down 0.50%, and Nasdaq futures down 0.51% [1] - European indices also show declines, with Germany's DAX down 0.10%, UK's FTSE 100 down 0.01%, France's CAC40 down 0.54%, and the Euro Stoxx 50 down 0.37% [2] - WTI crude oil is up 0.74% at $62.49 per barrel, while Brent crude is up 0.67% at $65.82 per barrel [2] Currency and Economic Sentiment - There is a rising expectation of US dollar depreciation, with the Bloomberg dollar index's one-year risk reversal indicator showing a negative 27 basis points, indicating the lowest level on record [3] - Morgan Stanley suggests buying US assets excluding the dollar, predicting a series of interest rate cuts by the Federal Reserve that could support the bond market and boost corporate earnings [3] Inflation and Tariff Impact - Federal Reserve officials warn that the impact of tariffs will soon be fully realized, potentially leading to a new wave of price increases in the US economy [4] - Atlanta Fed President Bostic indicates that many companies' buffer strategies against high tariffs are running out, which could weaken overall economic activity [4] Investor Sentiment and Market Dynamics - JPMorgan's CEO warns of "extreme complacency" among investors, suggesting that the market may soon face turbulence [5] - Goldman Sachs reports that clients are increasingly seeking to withdraw funds from the US market, questioning whether the US stock market's rally has reached its peak [6] Company Performance Highlights - Lowe's reported same-store sales down 1.7% but expects this key sales metric to remain flat or grow up to 1% for the year [7] - ZTO Express achieved a 19.1% year-on-year increase in package volume, with net profit up 40.9% [7] - Baidu's Q1 net profit increased by 41.65% year-on-year, reaching 77.17 billion yuan [8] - XPeng Motors reported a net loss of 660 million yuan, a 51.5% decrease year-on-year, with total revenue up 141.5% [8] - Weibo's Q1 net profit grew by 116.36% year-on-year, reaching $107 million [9] - Target's Q1 performance fell short of expectations, leading to a downward revision of sales forecasts [10] - Full Truck Alliance reported a 19% year-on-year increase in revenue, with significant growth in operational metrics [11] - iQIYI's Q1 revenue reached 71.9 billion yuan, with a 9% quarter-on-quarter increase [12] - Xinyi Technology reported a Q1 revenue of 34.81 billion yuan, with a net profit of 7.38 billion yuan [12] - Tuya Smart's Q1 revenue grew by approximately 21.1%, exceeding expectations [12]

[ZTO Q1 2025 Earnings Report Overview](index=1&type=section&id=ZTO%20Reports%20First%20Quarter%202025%20Unaudited%20Financial%20Results) [Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) In the first quarter of 2025, ZTO's revenues increased by 9.4% year-over-year to Chinese Yuan 10.9 billion, driven by strong volume growth, while gross profit declined by 10.4% to Chinese Yuan 2.7 billion, and net income rose significantly by 40.9% to Chinese Yuan 2.0 billion Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 (CNY million) | Q1 2024 (CNY million) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenues** | 10,891.5 | 9,960.0 | +9.4% | | **Gross Profit** | 2,689.2 | 3,002.1 | -10.4% | | **Net Income** | 2,039.2 | 1,447.7 | +40.9% | | **Adjusted Net Income** | 2,259.3 | 2,224.0 | +1.6% | | **Adjusted EBITDA** | 3,686.7 | 3,660.4 | +0.7% | | **Net Cash from Operating Activities** | 2,363.0 | 2,031.0 | +16.3% | Q1 2025 Earnings Per ADS (vs. Q1 2024) | Metric | Q1 2025 (CNY) | Q1 2024 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | **Basic EPS** | 2.50 | 1.77 | +41.2% | | **Diluted EPS** | 2.44 | 1.75 | +39.4% | | **Adjusted Basic EPS** | 2.77 | 2.74 | +1.1% | | **Adjusted Diluted EPS** | 2.71 | 2.68 | +1.1% | [Operational Highlights](index=2&type=section&id=Operational%20Highlights%20for%20First%20Quarter%202025) Operationally, ZTO achieved a 19.1% year-over-year increase in parcel volume, reaching 8.54 billion parcels in Q1 2025, while continuing to expand its infrastructure with over 9,400 high-capacity line-haul vehicles and a vast network of over 31,000 pickup/delivery outlets and 95 sorting hubs - Parcel volume grew **19.1%** YoY to **8.54 billion** from **7.17 billion** in Q1 2024[7](index=7&type=chunk) Key Operational Metrics as of March 31, 2025 | Metric | Value | Note | | :--- | :--- | :--- | | **Pickup/Delivery Outlets** | > 31,000 | - | | **Direct Network Partners** | ~ 6,000 | - | | **Self-owned Line-haul Vehicles** | > 10,000 | Over 9,400 are high-capacity models | | **Line-haul Routes** | > 3,900 | Between sorting hubs | | **Sorting Hubs** | 95 | 91 operated by ZTO | [Management Commentary](index=3&type=section&id=Management%20Commentary) Management acknowledged the 'white-hot' competition in the express delivery industry, emphasizing a strategy focused on long-term stability and profitable growth, with the CEO highlighting a 46% YoY increase in retail volume from reverse logistics and the CFO detailing a decrease in core express ASP due to higher volume incentives - CEO Meisong Lai stated that competition has reached a 'white-hot' stage, exacerbated by low-value or loss-making volume, with ZTO's strategy focused on maintaining network consistency and long-term profitable growth[8](index=8&type=chunk) - The company is developing differentiated products like time-definite delivery and customized KA services, with retail volume growing **46%** YoY, driven by deeper penetration into reverse logistics[8](index=8&type=chunk) - CFO Huiping Yan explained the core express ASP (Average Selling Price) decreased by **11 cents**, primarily due to a **16-cent** increase in volume incentives[8](index=8&type=chunk) - Cost efficiency improved, with combined unit sorting and transportation costs decreasing by **9 cents** YoY due to productivity initiatives[8](index=8&type=chunk) [Detailed Financial Results (Q1 2025)](index=4&type=section&id=First%20Quarter%202025%20Unaudited%20Financial%20Results) [Revenues](index=4&type=section&id=Revenues) Total revenues for Q1 2025 increased by 9.4% to Chinese Yuan 10.9 billion, driven by a 9.8% growth in core express delivery services revenue, offset by a decline in freight forwarding services, while sales of accessories grew by 15.5% Revenue Breakdown (in Chinese Yuan thousands) | Revenue Source | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Express delivery services** | 10,122,290 | 9,240,172 | +9.5% | | **Freight forwarding services** | 179,219 | 202,747 | -11.6% | | **Sale of accessories** | 560,297 | 485,062 | +15.5% | | **Others** | 29,659 | 32,025 | -7.4% | | **Total revenues** | **10,891,465** | **9,960,006** | **+9.4%** | - The **9.8%** growth in core express delivery revenue was a net result of a **19.1%** parcel volume growth and a **7.8%** decrease in parcel unit price[9](index=9&type=chunk) [Cost of Revenues](index=4&type=section&id=Cost%20of%20Revenues) Total cost of revenues rose 17.9% to Chinese Yuan 8.2 billion, representing 75.3% of total revenues, driven by higher costs across most segments, particularly a 91.3% surge in 'Other costs' related to serving higher-valued enterprise customers, despite unit cost decreases for transportation and sorting hubs Cost of Revenues Breakdown (in Chinese Yuan thousands) | Cost Component | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Line-haul transportation cost** | 3,483,065 | 3,371,493 | +3.3% | | **Sorting hub operating cost** | 2,314,595 | 2,168,201 | +6.8% | | **Other costs** | 2,098,534 | 1,096,798 | +91.3% | | **Total cost of revenues** | **8,202,245** | **6,957,921** | **+17.9%** | [Line-haul Transportation Cost](index=4&type=section&id=Line-haul%20transportation%20cost) Line-haul transportation costs increased by 3.3% to Chinese Yuan 3.5 billion, but the unit transportation cost decreased by 12.8% (6 cents) due to economies of scale, improved load rates, and more effective route planning - Unit transportation cost decreased by **12.8%** or **6 cents**, attributed to better economies of scale and improved efficiency[11](index=11&type=chunk) [Sorting Hub Operating Cost](index=4&type=section&id=Sorting%20hub%20operating%20cost) Sorting hub operating costs grew 6.8% to Chinese Yuan 2.3 billion, mainly from increased labor and depreciation costs, with efficiency gains from automation leading to a 10.0% (3 cents) decrease in sorting hub cost per unit, and the number of automated sorting sets increasing to 631 - Sorting hub operating cost per unit decreased by **10.0%** or **3 cents**, driven by automation and standardization[12](index=12&type=chunk) - The company had **631** sets of automated sorting equipment in service as of March 31, 2025, up from **461** in the previous year[12](index=12&type=chunk) [Profitability Analysis](index=5&type=section&id=Profitability%20Analysis) Gross profit decreased by 10.4% to Chinese Yuan 2.7 billion, with the gross margin contracting to 24.7%, while income from operations grew 6.1% to Chinese Yuan 2.4 billion, supported by lower SG&A expenses and higher government subsidies, leading to a 40.9% surge in net income to Chinese Yuan 2.0 billion - Gross profit decreased **10.4%** to Chinese Yuan **2,689.2 million**, and the gross margin fell to **24.7%** from **30.1%** in Q1 2024[14](index=14&type=chunk) - Income from operations increased **6.1%** to Chinese Yuan **2,405.4 million**, with an operating margin of **22.1%**[18](index=18&type=chunk) - SG&A expenses decreased by **17.7%** to Chinese Yuan **737.5 million**, mainly due to lower compensation and benefit expenses[16](index=16&type=chunk) - Other operating income, net, increased significantly to Chinese Yuan **453.7 million**, primarily consisting of Chinese Yuan **407.6 million** in government subsidies and tax rebates[17](index=17&type=chunk) - Net income increased by **40.9%** to Chinese Yuan **2,039.2 million**, with the prior year's net income impacted by a Chinese Yuan **478.4 million** impairment loss on an investment in Cainiao[21](index=21&type=chunk) [Corporate Updates and Business Outlook](index=6&type=section&id=Corporate%20Updates%20and%20Business%20Outlook) [Recent Developments](index=6&type=section&id=Recent%20Developments) The company announced a change in its Board of Directors, with Ms. Di Xu appointed and Mr. Xudong Chen resigning, effective April 25, 2025, and extended its share repurchase program to June 30, 2026, with US$771.7 million remaining available - Effective April 25, 2025, Ms. Di Xu was appointed as a director, and Mr. Xudong Chen resigned from the Board[25](index=25&type=chunk) - The company extended its share repurchase program to June 30, 2026, with US$**1,228.3 million** used to repurchase **50.9 million** ADSs and US$**771.7 million** remaining as of March 31, 2025[26](index=26&type=chunk)[27](index=27&type=chunk) [Business Outlook](index=6&type=section&id=Business%20Outlook) ZTO has reiterated its full-year 2025 guidance, projecting parcel volume to be between 40.8 billion and 42.2 billion, representing an anticipated year-over-year growth of 20% to 24% - The company reiterates its 2025 parcel volume guidance of **40.8 billion** to **42.2 billion**, representing a **20%** to **24%** YoY growth[28](index=28&type=chunk) [Unaudited Consolidated Financial Statements](index=10&type=section&id=UNAUDITED%20CONSOLIDATED%20FINANCIAL%20DATA) [Consolidated Comprehensive Income Statement](index=10&type=section&id=Summary%20of%20Unaudited%20Consolidated%20Comprehensive%20Income%20Data) This section provides the detailed unaudited consolidated income statement for the three months ended March 31, 2025, compared to the same period in 2024, breaking down revenues, costs, operating and other expenses, and calculating net income and earnings per share - The full unaudited consolidated comprehensive income data is available on page **10** of the report[43](index=43&type=chunk) [Consolidated Balance Sheet](index=11&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets%20Data) This section presents the company's unaudited consolidated balance sheet as of March 31, 2025, compared to December 31, 2024, detailing the company's assets, liabilities, and shareholders' equity - The full unaudited consolidated balance sheet data is available on page **11** of the report[44](index=44&type=chunk) [Consolidated Cash Flow Statement](index=13&type=section&id=Summary%20of%20Unaudited%20Consolidated%20Cash%20Flow%20Data) This section contains the unaudited consolidated cash flow statement for the three months ended March 31, 2025, outlining cash flows from operating, investing, and financing activities - The full unaudited consolidated cash flow data is available on page **13** of the report[46](index=46&type=chunk) [Reconciliation of GAAP and Non-GAAP Results](index=14&type=section&id=Reconciliations%20of%20GAAP%20and%20Non-GAAP%20Results) This section provides detailed tables reconciling the company's GAAP financial measures to its non-GAAP measures, adjusting for items like share-based compensation and impairment of investments to calculate Adjusted Net Income, Adjusted EBITDA, and Adjusted EPS - The report provides reconciliations of Net Income to Adjusted Net Income, and Net Income to EBITDA and Adjusted EBITDA[47](index=47&type=chunk) - A reconciliation of Net Income Attributable to Ordinary Shareholders to Adjusted Net Income Attributable to Ordinary Shareholders is also provided to calculate adjusted EPS[48](index=48&type=chunk)

香港恒生指数收涨0.62% 恒生科技指数涨0.51% 智通财经5月21日电，香港恒生指数收涨0.62%，恒生科技指数涨0.51%。美图公司涨超18%，赤峰黄金 涨超13%，宁德时代、万国数据涨超10%；毛戈平、中通快递跌超5%。 ...

Group 1: Aviation Industry - The aviation industry in China is expected to benefit from the easing of US-China trade tensions and improving supply-demand dynamics, leading to enhanced pricing power [2][1] - Recommended stocks include China National Aviation (00753), Eastern Airlines (00670), Southern Airlines (01055), and Spring Airlines (601021.SH) [2] - Guangzhou Baiyun Airport (600004.SH) is favored as a defensive choice due to its lower exposure to duty-free business and high dividend yield amid consumer pressure [2][1] Group 2: Shipping Industry - Geopolitical factors are impacting freight rates, but oversupply of capacity remains a primary concern for the next 12 to 24 months [3] - The oil tanker segment is expected to benefit from OPEC+ production increases and tighter regulations on "shadow fleets," with recommendations to increase holdings in China Merchants Energy (601872.SH) and COSCO Shipping Energy (01138) [3] - For dry bulk shipping, Pacific Basin Shipping (02343) is recommended for its stable shareholder returns, while container shipping stocks like COSCO Shipping Holdings (01919) and Orient Overseas International (00316) are advised to be reduced [3] Group 3: Express Delivery Industry - The express delivery sector is anticipated to face intensified price competition and ongoing industry consolidation from 2025 onwards [4] - ZTO Express (ZTO.US) is viewed as the most promising stock in the next 12 to 24 months, while SF Express (002352.SZ) shows strong profit growth potential [4] - Companies leveraging artificial intelligence, such as ZTO, SF Express, and YTO Express (600233.SH), are also highlighted for their growth prospects [4]

| 阿里巴巴 | 2986.04 | | --- | --- | | 11 小米焦团_W | 1805 85 | | | No. 1.0 | | | | --- | --- | --- | --- | | 5 | | 拼多多 | 1666.38 | | 6 | 美材 | 美团-W | 1069.68 | | 7 | 網易 | 网易 | 766.11 | 金十图示：2025年05月21日（周三）中国科技互联网公司市值排名TOP 50一览 | 8 | | 京东 | 489.39 | | | --- | --- | --- | --- | --- | | 9 | | 东方财富 | 470.85 | | | 10 | | 中芯国际 | 440.55 | | | II | Bal Char | 百度 | 307.12 | | | 12 | P | 理想汽车 | 302.4 | | | 13 | 85 | 快手-W O | 276.74 | | | 14 | | 腾讯音乐 | 263.47 | -1 + | | 15 | | 贝壳 | 223.45 | -1 3 | | 16 | 80 | 同花顺 | 191.78 | ...

Financial Data and Key Metrics Changes - In Q1 2025, the company achieved a total parcel volume of 8.5 billion, representing a year-over-year increase of 19.1% [6] - Adjusted net income reached $2.3 billion, an increase of 1.6% year-over-year [6] - Total revenue increased by 9.4% to $10.9 billion [16] - Average Selling Price (ASP) for core express delivery services decreased by 7.8% due to competition [16] - Gross profit decreased by 10.4% to RMB2.7 billion, with a gross profit margin decline of 5.4 points to 24.7% [17] - Operating cash flow increased by 16.3% to $2.4 billion [18] Business Line Data and Key Metrics Changes - Retail parcel volume increased by 46% year-over-year, while reverse logistics volume surged over 150% [9] - Daily parcel volume averaged around 6 million, with a year-over-year increase of 45% [25] - Reverse logistics exceeded a daily volume of 3.5 million, with a year-over-year growth of over 150% [25] Market Data and Key Metrics Changes - The express delivery industry grew its parcel volume by 21.6% in the first quarter [6] - The company noted intensified price competition and an increase in the proportion of lower-value parcels [7] Company Strategy and Development Direction - The company aims to solidify its leadership in service quality and scale while achieving a reasonable level of profit [13] - Strategic initiatives include enhancing network policy effectiveness, strengthening last-mile capabilities, optimizing revenue mix, and maximizing resource utilization [11][12] - The company is focused on building long-term competitive advantages through improved service quality and collaboration with e-commerce platforms [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by intensified competition and the need to balance volume growth with service quality [7][13] - The company remains committed to its strategic goals of high-quality service and outpacing industry average volume growth [10] - Future parcel volume guidance for 2025 is set between 40.8 billion to 42.2 billion, indicating a 20% to 24% increase year-over-year [18] Other Important Information - Capital expenditure for Q1 totaled $2 billion, with an anticipated annual CapEx in 2025 between $5.5 billion to $6 billion [18] - The company is actively exploring AI applications in operations, including sorting and route planning, to enhance efficiency [41] Q&A Session Summary Question: Insights on competition and volume growth targets - Management reiterated its commitment to achieving volume growth while ensuring service quality and maintaining reasonable profit levels [23] - Retail parcel and reverse logistics have shown significant growth, with daily volumes expected to increase further [25][26] Question: Unit revenue and cost forecasts - The decline in unit revenue is attributed to intense competition and an increase in lower-weight parcels [37] - Cost efficiency initiatives have led to significant reductions in transportation and sorting costs [40] Question: Progress on direct linkage and cost optimization - Direct linkage efforts aim to reduce last-mile delivery costs and improve outlet earnings, with potential cost savings of around $4 billion [48][49] - The company is focused on maintaining network stability amid competitive pressures [49]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported a total parcel volume of 8.5 billion, representing a year-over-year increase of 19.1% [6] - Adjusted net income reached RMB 2.3 billion, up 1.6% year-over-year [6][15] - Total revenue increased by 9.4% to RMB 10.9 billion [15] - Average selling price (ASP) for core express delivery services decreased by 7.8% due to competitive pressures [16] - Gross profit decreased by 10.4% to RMB 2.7 billion, with a gross profit margin of 24.7%, down 5.4 percentage points [18] - Operating cash flow increased by 16.3% to RMB 2.4 billion [19] Business Line Data and Key Metrics Changes - Retail parcel volume increased by 46% year-over-year, with reverse logistics volume surging over 150% [8] - The company achieved a daily average parcel volume of around 6 million, with a year-over-year increase of 45% [27] - Reverse logistics exceeded a daily volume of 3.5 million, reflecting significant growth [27] Market Data and Key Metrics Changes - The express delivery industry grew its parcel volume by 21.6% in the first quarter [6] - The company noted intensified price competition and an increase in the proportion of lower-value parcels [7] Company Strategy and Development Direction - The company aims to solidify its leadership in service quality and scale while achieving reasonable profit levels [13] - Strategic initiatives include enhancing network policy effectiveness, strengthening last-mile capabilities, optimizing revenue mix, and maximizing resource utilization [10][12] - The company is focusing on building long-term competitive advantages through improved service quality and collaboration with e-commerce platforms [8][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by intensified competition and the misalignment between volume growth and revenue expansion [7] - The company remains committed to its strategic goals of high-quality service and outpacing industry average volume growth [10] - Management expressed confidence in achieving full-year parcel volume guidance of RMB 40.8 to 42.2 billion, representing a 20% to 24% increase year-over-year [20] Other Important Information - The company has made significant progress in developing differentiated products and services, enhancing brand awareness and customer loyalty [8] - Capital expenditure for Q1 totaled RMB 2 billion, with an annual CapEx forecast of RMB 5.5 to 6 billion for 2025 [19] Q&A Session Summary Question: Competition and Volume Growth - Management emphasized the goal of achieving volume growth while ensuring service quality and maintaining reasonable profit levels, with a focus on narrowing the gap between their growth and industry averages [26] - Retail parcel and reverse logistics have shown significant growth, with daily parcel volume expected to increase further [27][28] Question: Unit Revenue and Cost Forecast - Management noted that unit revenue decline is driven by competition and an increase in lower-weight parcels, while cost efficiency initiatives have led to significant reductions in unit costs [38][40] - Future cost reductions will be supported by technology upgrades and improved operational processes [41] Question: AI Application in Operations - The company is actively exploring AI applications in sorting operations and route planning, which have already shown improvements in efficiency [42] - Future plans include further integration of AI in last-mile delivery and autonomous vehicles to enhance operational capabilities [42]

Market Overview - On May 20, U.S. stock indices experienced slight declines, with the S&P 500 ending a six-day winning streak [1][3] - The Dow Jones Industrial Average fell by 0.27% to 42,677.24 points, the S&P 500 decreased by 0.39% to 5,940.46 points, and the Nasdaq Composite dropped by 0.38% to 19,142.71 points [3][4] Sector Performance - Major technology stocks mostly declined, with Google and Amazon both down over 1%, Apple nearly 1%, Nvidia down 0.88%, Meta down 0.52%, and Microsoft down 0.15%. Tesla was an exception, rising by 0.51% [4] - Bank stocks also saw declines, with Morgan Stanley down over 1%, Goldman Sachs nearly 1%, Citigroup down 0.3%, Bank of America down 0.18%, and Wells Fargo down 0.72%. JPMorgan Chase was the only bank stock to rise, increasing by 0.32% [4] - Energy stocks generally fell, with ExxonMobil and Schlumberger both down over 1%, Occidental Petroleum nearly 1%, Chevron down 0.88%, and ConocoPhillips down 0.75% [4] - The biopharmaceutical sector showed mixed results, with Moderna up over 6%, BioNTech up over 4%, Gilead Sciences up over 2%, AstraZeneca up 0.33%, and Novavax down 0.78% [4] Chinese Concept Stocks - Chinese concept stocks overall declined, with the Nasdaq Golden Dragon China Index down 0.65% [6] - ZTO Express led the decline among Chinese stocks, falling over 8%. The company reported a 19.1% year-on-year increase in package volume for Q1 2025, with adjusted net profit rising 1.6% to RMB 2.3 billion. Revenue reached RMB 10.89 billion, a 9.4% year-on-year increase, while gross profit decreased by 10.4% to RMB 2.689 billion [7] - Other notable declines included Vipshop down over 7% and Trip.com down over 5% [8] Commodity Prices - International gold prices rebounded, with London gold reaching over $3,300 per ounce, closing with a nearly 2% increase [9] - International oil prices also saw a rebound, with NYMEX WTI crude oil prices surpassing $64 per barrel [10]

Company Overview - ZTO Express handled 85 billion parcels in 1Q25, holding an 189% market share[8] - The company has established a vast network, including 95 sorting hubs and over 31000 pickup/delivery outlets, covering over 99% of county-level cities[8] - ZTO's network partner model (NPM) has increased its market share from 66% in 2011 to 73% in 2024[14] Financial Performance - In Q1 2025, the average selling price (ASP) was RMB 125 per unit[108] - The unit cost of revenue was RMB 094 in Q1 2025[108] - Total revenue reached RMB 10891 million in Q1 2025, a 9% year-over-year increase[111] - Net income for Q1 2025 was RMB 2039 million[117] Strategies and ESG - The company aims to reduce GHG emissions intensity per parcel by 20% by 2028, using 2023 as the base year[91] - ZTO has approximately 110000 last-mile posts covering all provinces and around 300 cities in China[41, 86] - ZTO is expanding into adjacent sectors, including cold chain, air freight, and less-than-truckload (LTL) services[86]

Financial Performance - Parcel volume increased by 19.1% year over year to 8.5 billion[1] - Adjusted net income grew by 1.6% to RMB2.3 billion[1] - Total revenues reached RMB10,891.5 million (US$1,500.9 million), an increase of 9.4% from RMB9,960.0 million in the same period of 2024[4] - Net income increased by 40.9% to RMB2,039.2 million (US$281.0 million) compared to RMB1,447.7 million in the same period of 2024[21] - Adjusted EBITDA rose by 0.7% to RMB3,686.7 million (US$508.0 million) from RMB3,660.4 million in the same period of 2024[23] - Revenue from core express delivery services increased by 9.8%, driven by a 19.1% growth in parcel volume[9] - KA revenue surged by 129.3% due to an increase in e-commerce return parcels[9] - Basic and diluted earnings per ADS were RMB2.50 (US$0.34), an increase of 41.2% from RMB1.77 in the same period of 2024[22] Cost and Expenses - Total cost of revenues increased by 17.9% to RMB8,202.2 million (US$1,130.3 million) from RMB6,957.9 million in the same period last year[10] - Gross profit for the same period decreased to RMB 2,689,220 (US$370,584) from RMB 3,002,085[43] Guidance and Future Expectations - The company reiterated its annual volume guidance to grow by 20%-24%[1] - The company expects parcel volume in 2025 to be between 40.8 billion and 42.2 billion, reflecting a year-over-year growth of 20% to 24%[28] Shareholder Returns - The company has approved a share repurchase program with an aggregate value of US$2.0 billion, with US$771.7 million remaining as of March 31, 2025[26] - The share repurchase program extension to June 30, 2026, reflects the company's confidence in market opportunities and financial strength[27] Cash Flow and Assets - Net cash provided by operating activities rose from RMB 2,031,020 thousand in Q1 2024 to RMB 2,362,976 thousand in Q1 2025, an increase of 16.3%[46] - Cash, cash equivalents, and restricted cash decreased from RMB 13,530,947 thousand at the beginning of Q1 2025 to RMB 12,461,807 thousand at the end of the period, a decline of 7.9%[46] - The company reported a net decrease in cash, cash equivalents, and restricted cash of RMB 1,069,140 thousand during Q1 2025[46] - The company experienced a net cash used in investing activities of RMB 3,158,465 thousand in Q1 2025, compared to RMB 2,378,652 thousand in Q1 2024, reflecting a significant increase of 32.7%[46] Assets and Liabilities - Total current assets increased slightly from RMB 30,353,721 thousand as of December 31, 2024, to RMB 30,570,788 thousand as of March 31, 2025, representing a growth of 0.72%[44] - Total liabilities increased from RMB 29,665,497 thousand as of December 31, 2024, to RMB 30,283,714 thousand as of March 31, 2025, marking a rise of 2.1%[44] - Total assets grew from RMB 92,340,330 thousand as of December 31, 2024, to RMB 93,149,512 thousand as of March 31, 2025, an increase of 0.88%[44] Income Attribution - Net income attributable to ZTO Express (Cayman) Inc. for the three months ended March 31, 2025, was RMB 1,993,247 (US$274,675), up from RMB 1,426,046 in 2024[43] - Net income attributable to ordinary shareholders increased from RMB 1,426,046 thousand in Q1 2024 to RMB 1,993,247 thousand in Q1 2025, reflecting a growth of 39.7%[48] - Basic net earnings per share attributable to ordinary shareholders increased from RMB 1.77 in Q1 2024 to RMB 2.50 in Q1 2025, a growth of 41.2%[48] Non-GAAP Measures - The company utilizes non-GAAP financial measures such as EBITDA and adjusted net income for evaluating operating results[30] - Adjusted EBITDA for Q1 2025 was RMB 3,686,680 thousand, up from RMB 3,660,367 thousand in Q1 2024, indicating a marginal increase of 0.72%[48] Operational Model - The company operates a scalable network partner model to support e-commerce growth in China[39]