2Q 2024 INVESTOR PRESENTATION August 2024 1 Safe Harbor Statement and Disclaimer This presentation contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and other similar expressions. Among other things, the bu ...

Parcel Volume and Market Share - ZTO achieved a parcel volume of 5.8 billion in 2Q 2024, reflecting a market share increase to 20.4%[13] - The company reported a net profit share of approximately 63% among Tongdas, with a parcel volume share of around 34% in 2023[64] - ZTO plans to capture an incremental parcel volume of over 40 billion from 2021 to 2025, driven by stable economic growth and increased e-commerce penetration[35] - The parcel package volume decreased to 7.68 billion in Q2 2024, down 10.1% from 8.45 billion in Q2 2023, reflecting a 19.6% market share[161] - Parcel package volume decreased to 13.97 billion, a decline of 11.3% compared to 1H23, with a market share of 19.5%[166] Operational Efficiency and Technology - ZTO's operational efficiency is highlighted by a continuous decrease in cost per parcel, supported by a self-owned line-haul fleet of approximately 10,000 vehicles[57] - The company operates 90 self-operated sorting hubs and 6 partner-operated sorting hubs, enhancing its logistics capabilities[48] - ZTO's technological advancements include 515 automated sorting lines and ongoing collaborations with the Chinese Academy of Sciences for sorting technology development[59] - The company is testing next-generation automation technologies, including unmanned vehicles and hybrid drones, to optimize delivery efficiency[65] - The company operates 515 sets of automated sorting equipment, up from 460 sets in Q2 2023, enhancing operational efficiency[154] - Core express delivery unit cost decreased by 2.2%, benefiting from better economies of scale and improved load rates[169] Financial Performance - ZTO Express reported a net income of RMB 2,614 million for Q2 2024, representing a 3.3% increase compared to RMB 2,530 million in Q2 2023[161] - Adjusted EBITDA for Q2 2024 was RMB 4,340 million, up 11.7% from RMB 3,884 million in Q2 2023[161] - Total revenues reached RMB 10,726 million in Q2 2024, a 10.1% increase from RMB 9,740 million in Q2 2023, driven by a 10.4% rise in core express delivery business revenues[161] - Gross profit from core express delivery business increased by 13.6% to ¥6.59 billion, with a gross profit margin of 32.6%[166] - Net income for 1H24 was ¥4.195 billion, a decrease of 3.2% from 1H23, resulting in a net income margin of 19.6%[166] - Adjusted net income (Non GAAP) rose by 24.3% to ¥5.030 billion, with an adjusted net income margin of 23.8%[166] - The adjusted net income for Q2 2024 is projected to be 0.51, maintaining a consistent performance trend[136] - The adjusted net income margin for Q2 2024 was 26.2%, compared to 25.8% in Q2 2023[161] Customer Satisfaction and Employee Development - The company has achieved a 94% overall customer satisfaction rate, an increase of 3 percentage points year-over-year[111] - The company has implemented a comprehensive employee development program, including mentorship and on-the-job training[76] Environmental Goals - The company aims for a 20% reduction in GHG emissions intensity per parcel produced by 2028[105] Capital Expenditures and Cash Flow - Capital expenditures (CapEx) for Q2 2024 were RMB 1,277 million, significantly lower than RMB 2,201 million in Q2 2023[164] - Operating cash flow for Q2 2024 was RMB 3,480 million, a decrease of RMB 282 million compared to RMB 3,762 million in Q2 2023[164] - Cash and cash equivalents stood at ¥16.59 billion, excluding ¥14.03 billion in cash on deposits maturing in one year or longer[169] Strategic Initiatives - The company has established around 110,000 last-mile posts as of 2Q 2024, covering all provinces and approximately 300 cities in China[52] - The company has diversified its product offerings, including freight forwarding and international express delivery, enhancing its market presence[86] - The company has achieved a top 3 ranking in cargo volume among network partner model competitors in the Less-than-Truckload segment[87] - The company has established a strategic foothold in the cold chain market, with existing network coverage across approximately 300 cities[94] - ZTO's "shared-success" philosophy has led to the conversion of major network partners into shareholders, fostering loyalty and network stability[42] - The company maintains a stable partner network with a low churn rate of 5%, ensuring consistent service quality[48] Expenses - SG&A expenses increased by 17.5% to RMB 593 million, with SG&A excluding share-based compensation at 5.5% of revenues[161] - SG&A expenses, excluding stock-based compensation, accounted for 5.7% of revenues, slightly up from 5.5% in 1H23[166] - Gross profit margin for core express delivery business was 34.3% in Q2 2024, slightly down from 34.6% in Q2 2023[161] - Core express delivery average selling price (ASP) decreased by 1.0% to ¥1.30 per parcel[169] - ZTO Express maintained a stable average selling price (ASP) of RMB 1.24 per parcel in Q2 2024, unchanged from Q2 2023[164]

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SHANGHAI, Aug. 2, 2024 /PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057) ("ZTO" or the "Company"), a leading and fast-growing express delivery company in China, today announced that it will release its unaudited financial results for the second quarter ended June 30, 2024 and its unaudited interim financial results for the half year ended June 30, 2024, after the U.S. market closes on August 20, 2024. ZTO's management team will host an earnings conference call at 8:30 P.M. U.S. Eastern Ti ...

ZTO Yunpei Signs Purchase Agreement with Nisun International, Driving Significant Expansion in China's Egg MarketSHANGHAI, July 23, 2024 /PRNewswire/ -- Nisun International Enterprise Development Group Co., Ltd ("Nisun International" or the "Company") (Nasdaq: NISN), a technology and industry driven integrated supply chain solutions provider, is pleased to announce a significant milestone in its partnership with Zhejiang ZTO Yunpei Food Co., Ltd. ("ZTO Yunpei"), the supply chain company under ZTO Express, a ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.It also includes access to the Zacks Style Scores.What are the Zacks Style Scores?Developed alongside ...

Core Insights - ZTO Express is experiencing robust growth in parcel volume, which is positively impacting its revenue, but elevated operating expenses are significantly affecting its profitability [1][2] Factors Favoring ZTO - In Q1 2024, parcel volume increased by 13.9% year over year, while the parcel unit price decreased by 2.5%, leading to an 11% revenue increase from core express delivery services [2] - The company anticipates a parcel volume growth of 15%-18% year over year for 2024 [2] - Overall unit costs for the core express delivery business decreased by 5.3% year over year, driven by a 7% reduction in line-haul transportation costs and a 5.4% decrease in unit sorting costs [2] Shareholder Commitment - ZTO Express has repurchased 42,501,325 ADS for $1.06 billion by the end of Q4 2023, with $437 million remaining in its share repurchase program [3] - The company has increased its repurchase value from $1.5 billion to $2 billion and extended the program to June 30, 2025 [3] Key Risks - Total operating expenses rose by 28.3% year over year in Q1 2024, adversely impacting ZTO's bottom line [4] - Selling, general, and administrative expenses increased by 14% year over year, amounting to RMB896.6 million (US$124.2 million), primarily due to rising labor costs and a provisional loss related to a supplier [4] - ZTO's shares have declined by 16.9% over the past year, compared to a 9.4% decline in the industry [4]

Core Insights - ZTO Express (Cayman) Inc. is a leading express delivery company in China, founded in 2009 and publicly traded since 2016 [7] - The company currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a solid position in the market [7] - ZTO's Value Style Score is also B, supported by a forward P/E ratio of 12.56, making it attractive for value investors [7] - Recent analyst activity shows two analysts have revised their earnings estimates higher for fiscal 2024, with the Zacks Consensus Estimate increasing by $0.01 to $1.75 per share [7] - ZTO has an average earnings surprise of 8.2%, suggesting a positive trend in earnings performance [7]

Core Viewpoint - ZTO Express (Cayman) Inc. held its annual general meeting in Hong Kong, where several resolutions were approved by shareholders, including financial statements for 2023 and the re-election of directors [1]. Group 1: Shareholder Resolutions - The audited consolidated financial statements for the year ended December 31, 2023, were received and considered [1]. - Mr. Xudong CHEN was re-elected as a non-executive Director [1]. - Mr. Qin Charles HUANG, Mr. Herman YU, and Mr. Tsun-Ming (Daniel) KAO were re-elected as independent non-executive Directors [1]. - The Board was authorized to fix the remuneration of the Directors [1]. - Deloitte Touche Tohmatsu was re-appointed as the auditor of the Company until the next annual general meeting [1]. - A general mandate was granted to the directors to issue and allot additional Class A Ordinary Shares not exceeding 20% of the total issued shares [1]. - A general mandate was granted to repurchase Class A Ordinary Shares not exceeding 10% of the total issued shares [1]. - The general mandate to issue additional Class A Ordinary Shares was extended by the number of shares repurchased [1]. Group 2: Company Overview - ZTO Express is a leading and fast-growing express delivery company in China, providing express delivery and value-added logistics services [2]. - The company operates a scalable network partner model to support the growth of e-commerce in China, leveraging partners for pickup and last-mile delivery while controlling the line-haul transportation and sorting network [2].

Core Insights - ZTO Express (Cayman) Inc. has experienced a 4.7% decline in share price over the past month, underperforming the S&P 500 index [1] - The company reported a year-over-year increase in Q1 2024 earnings, with earnings per share at 37 cents and total revenues reaching $1.37 billion [2] Operational Performance - Revenue from the core express delivery business increased by 11% year over year, driven by a 13.9% rise in parcel volume, despite a 2.5% decrease in parcel unit price [3] - KA revenue, which includes delivery fees from direct sales organizations, decreased by 7.1% due to a shift towards higher-value customers [3] - Freight forwarding services revenue grew by 5.2% year over year [3] - Sales of accessories, primarily thermal paper for digital waybills, surged by 31.5% [3] - The gross profit improved by 19% year over year, with gross margin increasing to 30.1% from 28.1% [4] Financial Position - Total operating expenses for the first quarter were RMB735.4 million ($101.8 million), up from RMB573.0 million in the previous year [4] - ZTO Express ended Q1 2024 with cash and cash equivalents of RMB12.58 billion, slightly up from RMB12.33 billion at the end of December 2023 [4] Future Outlook - The company anticipates parcel volumes for 2024 to be between 34.73 billion and 35.64 billion, representing a year-over-year increase of 15-18% [5] - Analysts have not made any earnings estimate revisions in the past two months [5]