Investment Rating - The investment rating for ZTO Express is "Buy" [1] Core Views - ZTO Express reported a package volume of 8.723 billion in Q3 2024, representing a year-on-year growth of 15.9% [1] - The adjusted net profit for Q3 2024 was 2.387 billion, showing a year-on-year increase of 2.0% [1] - The company aims to maintain high-quality service and customer satisfaction while regaining market share and expanding its leading position in package volume [1] Summary by Relevant Sections Package Volume - In Q3 2024, ZTO Express achieved a package volume of 8.723 billion, with a year-on-year growth of 15.9% [1] - The company expects to guide its total package volume to 33.7 billion for the year, reflecting a year-on-year increase of 11.6% [1] Pricing and Revenue - The core revenue per package (excluding freight forwarding) was 1.20 yuan, with a year-on-year increase of 1.83% [1] - The single-package core cost decreased by 0.06 yuan year-on-year, benefiting from economies of scale and operational efficiencies [1] Profitability - The adjusted net profit per package was 0.28 yuan, showing a year-on-year decline, primarily due to a tax refund received in Q3 2023 [1] - The company maintained a healthy operating cash flow per package at 0.36 yuan, despite a year-on-year decrease of 8.7% [1] Financial Forecasts - The projected net profit for the years 2024 to 2026 is expected to be 10.204 billion, 10.971 billion, and 12.521 billion respectively, with year-on-year growth rates of 16.63%, 7.52%, and 14.13% [2] - The expected revenue for 2024 is 43.179 billion, with a year-on-year growth rate of 12.39% [2] Market Outlook - The express delivery industry continues to have growth potential, with ZTO Express expected to steadily increase its market share [1] - The expansion of e-commerce and the rise of live-streaming commerce are anticipated to drive further growth in package volumes [1]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 183.64 HKD for the Hong Kong stock and 23.59 USD for the US stock, based on a 15x PE valuation for 2024 [6][4]. Core Insights - The company reported a revenue of 31.36 billion RMB for the first three quarters of 2024, representing a year-over-year increase of 12.8%. The net profit attributable to shareholders was 6.43 billion RMB, down 1.9% year-over-year, while the adjusted net profit increased by 9.2% to 7.42 billion RMB [2][3]. - In Q3 2024, the company achieved a revenue of 10.68 billion RMB, up 17.6% year-over-year, with a net profit of 2.40 billion RMB, reflecting a 2.2% increase year-over-year [2][3]. - The total business volume for the first three quarters reached 24.346 billion packages, a 13.3% increase year-over-year, with Q3 alone accounting for 8.723 billion packages, up 16.0% year-over-year [2][3]. Financial Performance Summary - The company's gross profit maintained a robust growth of 23.2% year-over-year in Q3, driven by improved service quality and customer satisfaction. The core revenue per package increased by 1.8%, despite a decline of 11.8% in industry average package prices [3]. - The company has optimized its business structure, leading to improved revenue and operating profit margins. However, the ongoing trend of smaller package sizes poses challenges to balancing service quality, volume, and overall profitability [3]. - The company plans to rebalance resource allocation and pricing strategies to regain business volume growth and enhance market share [3]. Earnings Forecast - The expected EPS for 2024, 2025, and 2026 are 11.31 RMB, 13.06 RMB, and 14.66 RMB respectively, with projected revenue growth rates of 12%, 14%, and 10% for the same years [4][5].

Investment Rating - The report maintains a "Buy" rating for ZTO Express (02057.HK) [1] Core Views - ZTO Express reported a revenue of 31.36 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 12.8%. The net profit for the same period was 6.44 billion yuan, a slight decline of 1.6% year-on-year. In Q3 2024, the company achieved a revenue of 10.68 billion yuan, with a year-on-year growth of 17.6%, and a net profit of 2.38 billion yuan, up 1.3% year-on-year [1] - The customer structure continues to optimize, leading to an increase in revenue per package. In Q3 2024, the revenue per package was 1.20 yuan, a year-on-year increase of 1.8%, driven by an increase in direct customer revenue [1] - The company has adjusted its full-year package volume growth forecast to between 11.6% and 12.3%, corresponding to 33.7 billion to 33.9 billion packages, due to current market conditions [1] Summary by Sections Performance Overview - For Q1-Q3 2024, ZTO Express achieved a revenue of 31.36 billion yuan, a 12.8% increase year-on-year, and a net profit of 6.44 billion yuan, down 1.6% year-on-year. Q3 2024 revenue was 10.68 billion yuan, up 17.6% year-on-year, with a net profit of 2.38 billion yuan, up 1.3% year-on-year [1] Operational Analysis - The company saw a 15.9% year-on-year increase in business volume in Q3 2024, reaching 8.72 billion packages. The market share decreased by 0.7 percentage points to 20% year-on-year but increased by 0.4 percentage points quarter-on-quarter [1] - The cost per package remained stable at 0.82 yuan, with transportation costs decreasing to 0.39 yuan and transfer costs to 0.25 yuan, contributing to a gross margin increase of 1.4 percentage points to 31.2% [1] Profit Forecast and Valuation - The net profit forecasts for 2024-2026 have been revised down to 9.5 billion yuan, 11.5 billion yuan, and 13.1 billion yuan, respectively, from previous estimates of 10.5 billion yuan, 12.1 billion yuan, and 13.6 billion yuan. The "Buy" rating is maintained despite these adjustments [1]

Investment Rating - The report maintains a "Buy" rating for ZTO Express (02057.HK) [1] Core Views - ZTO Express reported a revenue of 31.36 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 12.8%, while net profit decreased by 1.6% to 6.44 billion yuan. In Q3 2024, revenue reached 10.68 billion yuan, up 17.6% year-on-year, with net profit of 2.38 billion yuan, a 1.3% increase [1] - The company continues to optimize its customer structure, leading to an increase in average revenue per package. In Q3 2024, the average revenue per package was 1.20 yuan, up 1.8% year-on-year, driven by a higher proportion of direct customer revenue [1] - The company has adjusted its full-year package volume growth forecast to between 11.6% and 12.3%, corresponding to 33.7 billion to 33.9 billion packages, due to current market conditions [1] Summary by Sections Performance Overview - For Q1-Q3 2024, ZTO Express achieved a revenue of 31.36 billion yuan, a 12.8% increase year-on-year, and a net profit of 6.44 billion yuan, down 1.6%. Q3 alone saw revenue of 10.68 billion yuan, up 17.6%, and net profit of 2.38 billion yuan, up 1.3% [1] Operational Analysis - The company’s package volume reached 8.72 billion in Q3 2024, a 15.9% year-on-year increase, although market share slightly declined by 0.7 percentage points to 20% [1] - The cost per package remained stable at 0.82 yuan, with transportation costs decreasing to 0.39 yuan and transfer costs to 0.25 yuan, contributing to a gross margin increase of 1.4 percentage points to 31.2% [1] Profit Forecast and Valuation - The net profit forecasts for 2024-2026 have been revised down to 9.5 billion yuan, 11.5 billion yuan, and 13.1 billion yuan respectively, from previous estimates of 10.5 billion yuan, 12.1 billion yuan, and 13.6 billion yuan [1]

Company Performance - ZTO Express reported third-quarter 2024 earnings of 41 cents per share, showing improvement year over year [1] - Total revenues reached $1.52 billion, reflecting a year-over-year increase [3] - Gross profit improved by 23.2% compared to the same quarter last year, with gross margin rising to 31.2% from 29.8% [5] Operational Statistics - Revenues from the core express delivery business increased by 18.1% year over year, driven by a 15.9% growth in parcel volume and a 1.8% rise in unit price [4] - KA revenues surged by 122.1%, attributed to a higher proportion of valuable parcels, including returns from e-commerce platforms [4] - Revenues from freight forwarding services grew by 0.8%, while accessory sales, primarily thermal paper for digital waybills, climbed by 27.6% year over year [5] Expenses and Cash Position - Total operating expenses amounted to RMB493.0 million (approximately $70.3 million), up from RMB282.8 million in the previous year [6] - ZTO Express ended the third quarter of 2024 with cash and cash equivalents of RMB11.70 billion, an increase from RMB10.54 billion at the end of the prior quarter [6] Guidance - ZTO Express updated its 2024 parcel volume guidance to a range of 33.7 billion to 33.9 billion, representing an increase of 11.6% to 12.3% year over year [7] - The previous guidance anticipated parcel volumes between 34.73 billion and 35.64 billion, indicating a projected increase of 15% to 18% year over year [7] Market Position - ZTO Express currently holds a Zacks Rank of 4 (Sell) [8]

Financial Performance - Total revenues for Q3 2024 were RMB10,675.0 million (US$1,521.2 million), an increase of 17.6% from RMB9,075.9 million in Q3 2023[3] - Adjusted net income grew 2.0% to RMB2,387.3 million (US$340.2 million) compared to RMB2,340.7 million in the same period last year[3] - Gross profit rose 23.2% to RMB3,334.8 million (US$475.2 million), with a gross margin improvement to 31.2% from 29.8%[12] - Net income for the period was RMB2,379.0 million (US$339.0 million), reflecting a year-over-year increase of 1.3% from RMB2,349.6 million[18] - Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB2.98 (US$0.42) and RMB2.90 (US$0.41), compared to RMB2.91 and RMB2.84 in the same period last year, representing increases of 2.4% and 2.1% respectively[19] - EBITDA increased to RMB3,731.3 million (US$531.7 million), compared to RMB3,449.5 million in the same period last year, marking an increase of approximately 8.2%[21] - Adjusted net income rose to RMB2,387.3 million (US$340.2 million), up from RMB2,340.7 million during the same period last year[20] - Adjusted EBITDA was RMB3,729.5 million (US$532.8 million), compared to RMB3,438.6 million in the same period last year, reflecting an increase of approximately 8.5%[22] Operational Metrics - Parcel volume increased by 15.9% year over year to 8.72 billion parcels[4] - The number of pickup/delivery outlets exceeded 31,000 as of September 30, 2024[4] - The express delivery industry experienced high growth despite soft macroeconomic conditions, prompting the company to adjust annual volume targets[6] - The core express average selling price (ASP) increased by 1.8% due to improved key account mix[6] Cash Flow and Liquidity - Cash generated from operating activities was RMB3,112.0 million (US$443.5 million), up from RMB2,938.1 million in Q3 2023[3] - Net cash provided by operating activities was RMB3,112.0 million (US$443.5 million), an increase from RMB2,938.1 million in the same period last year[22] - Cash and cash equivalents decreased to RMB11,703,151 as of September 30, 2024, from RMB12,333,884 as of December 31, 2023, a decline of 5.1%[37] - The total cash, cash equivalents, and restricted cash as of September 30, 2024, amounted to RMB11,747,744, compared to RMB10,108,507 in the previous year, indicating a strong liquidity position[39] - The company’s net cash provided by financing activities significantly decreased from RMB2,529,988 in the three months ended September 30, 2023, to RMB10,183 in 2024, a decline of 99.6%[38] Assets and Liabilities - Total current assets increased to RMB30,156,630 as of September 30, 2024, compared to RMB26,953,548 as of December 31, 2023, reflecting a growth of 8.1%[37] - Total assets reached RMB93,320,033 as of September 30, 2024, up from RMB88,465,221 as of December 31, 2023, indicating a growth of 5.5%[37] - Total liabilities increased to RMB32,197,962 as of September 30, 2024, compared to RMB28,184,813 as of December 31, 2023, representing a rise of 14.3%[37] - The company’s total equity increased to RMB61,122,071 as of September 30, 2024, from RMB60,280,408 as of December 31, 2023, indicating a growth of 1.4%[37] Tax and Other Income - The company received an income tax refund of RMB207.1 million for being a "Key Software Enterprise" for the tax year 2022[18] Year-over-Year Comparisons - Revenues for the three months ended September 30, 2023, were RMB9,075,918, representing a year-over-year increase of 17.6% compared to RMB10,675,048 for the same period in 2024[36] - Gross profit for the nine months ended September 30, 2023, was RMB8,534,277, up 16.7% from RMB9,957,373 in 2024[36] - Net income attributable to ZTO Express (Cayman) Inc. for the three months ended September 30, 2023, was RMB2,345,158, a slight increase from RMB2,396,297 in 2024[36] - Net cash used in investing activities decreased significantly from RMB4,025,760 in the three months ended September 30, 2023, to RMB1,910,131 in 2024, indicating a reduction of 52.6%[38] - Net income for the three months ended September 30, 2023, was RMB2,349,610, slightly increasing to RMB2,379,042 in 2024, representing a growth of 1.3%[40] - Adjusted net income attributable to ordinary shareholders for the three months ended September 30, 2023, was RMB2,336,292, rising to RMB2,404,506 in 2024, an increase of 2.9%[41] - EBITDA for the three months ended September 30, 2023, was RMB3,449,483, increasing to RMB3,731,315 in 2024, which is a growth of 8.2%[40] - The company reported a diluted net earnings per share of RMB2.84 for the three months ended September 30, 2024, compared to RMB2.90 in the previous year, reflecting a decrease of 2.1%[43] - Net earnings per share (diluted) for the nine months ended September 30, 2023, was RMB7.94, compared to RMB7.80 in 2024, showing a slight increase[36] - Weighted average shares used in calculating net earnings per share for the three months ended September 30, 2024, were 838,131,679, compared to 838,290,093 in the previous year, showing a slight decrease[41]

Financial Data and Key Metrics Changes - In Q3 2024, the total parcel volume reached $8.72 billion, representing a 15.9% year-over-year growth [5] - Adjusted net profit increased by 2% to $2.39 billion, maintaining profitability ahead of peers [5][9] - Total revenue rose by 17.6% to $10.7 billion, while total cost of revenue increased by 15.2% to $7.3 billion [9] - Gross profit increased by 23.2% to $3.3 billion, with a gross profit margin of 31.2% [9] - Operating cash flow was $3.1 billion, an increase of 5.9% [9] Business Line Data and Key Metrics Changes - Retail parcels grew over 40% year-over-year, driven by enhanced partnerships with e-commerce platforms [5] - The average selling price (ASP) for the core express delivery business increased by 1.8% [9] - Unit cost for line haul transportation decreased by 9.7% to $0.39, while unit sorting costs decreased by 6.4% to $0.25 [9] Market Data and Key Metrics Changes - The express delivery industry in China experienced a 28.1% year-over-year increase in Q3 2024 [5] - The proportion of low-cost e-commerce products has expanded, influenced by consumer price sensitivity [5] Company Strategy and Development Direction - The company is focused on high-quality development, aiming to differentiate products and services while enhancing brand awareness [5] - Strategic initiatives include optimizing revenue structure, improving service quality, and maintaining scale leadership [5][6] - The company plans to balance service quality, scale, operating profit, and partner interests to achieve sustainable growth [6][7] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of macroeconomic recovery for the express delivery industry's growth [5][6] - The company is recalibrating its focus on quality of services, volume, market share, and profit in response to changing market dynamics [10] - Future strategies include enhancing last-mile operations and leveraging financial technology to improve service efficiency [7][8] Other Important Information - Capital expenditure for the year is anticipated to be around $6 billion, with a focus on maximizing resource utilization [9] - The company is on track to achieve another year of free cash flow [9] Q&A Session Summary Question: What is the capacity growth plan for next year? - Management indicated that they will maintain a balanced approach focusing on quality and profitability while also considering volume growth [11][12] Question: What updates are there on the share buyback plan? - The company aims to complete its share buyback plan as a primary method of returning value to shareholders, with adjustments based on market conditions [15] Question: How will the cooperation between Taobao and JDL impact the company? - Management believes that the open and cooperative market environment will not significantly impact the company, as it remains an open platform catering to various e-commerce needs [20] Question: What is the outlook for other operating income items in the next quarter? - The company expects minimal fluctuations in operating income, with stability anticipated despite the expiration of certain tax deductions [21] Question: What is driving the rapid growth in direct customer income? - The significant growth in direct customer income is attributed to an increase in high-end platform business clients, with a gross profit margin expected to improve [22][24]

Financial Data and Key Metrics Changes - In Q3 2024, the total parcel volume reached $8.72 billion, representing a 15.9% year-over-year growth [5] - Adjusted net profit increased to $2.39 billion, maintaining profitability ahead of peers [5] - Total revenue rose by 17.6% to $10.7 billion, while total cost of revenue increased by 15.2% to $7.3 billion [9] - Gross profit increased by 23.2% to $3.3 billion, with a gross profit margin of 31.2% [9] - Operating cash flow was $3.1 billion, an increase of 5.9% [9] Business Line Data and Key Metrics Changes - Retail parcels grew over 40% year-over-year, driven by enhanced partnerships with e-commerce platforms [5] - The average selling price (ASP) for the core express delivery business increased by 1.8% [9] - Unit cost of line haul transportation decreased by 9.7% to $0.39, while unit sorting costs decreased by 6.4% to $0.25 [9] Market Data and Key Metrics Changes - The express delivery industry in China experienced a 28.1% year-over-year increase in Q3 2024 [5] - The proportion of low-cost single-seller e-commerce products has expanded, reflecting a shift in consumer price sensitivity [5] Company Strategy and Development Direction - The company aims to accelerate the establishment of differentiated products and services while enhancing brand awareness [5] - Focus on maintaining and expanding competitive advantages in scale and service quality [6] - Strategic adjustments are being made to pricing practices to stimulate high-volume customer engagement [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of balancing service quality, scale, and profitability amidst macroeconomic uncertainties [5] - The company anticipates challenges due to an increasing proportion of low-value e-commerce packages [10] - Future strategies will focus on improving service quality and operational efficiency to regain volume growth momentum [10] Other Important Information - Capital expenditure for the year is projected to be around $6 billion, with a focus on maximizing resource utilization [9] - The company is on track to achieve another year of free cash flow [9] Q&A Session Summary Question: What is the capacity growth plan for next year? - Management indicated that they will maintain a balanced approach focusing on quality of services, volume market share, and profit, with a goal to increase capacity by 30% to 40% [12][13] Question: What updates are there on the share buyback plan? - The company aims to complete its buyback plan as a primary method of returning value to shareholders, with a systematic approach to increase buyback frequency [15] Question: How will the cooperation between Taobao and JDL impact the company? - Management believes that the open and cooperative market environment will not significantly impact the company, as it remains an open platform addressing diverse service needs [20] Question: What is the outlook for other operating income items in the next quarter? - Management expects minimal fluctuations in operating income, with stability anticipated despite the expiration of certain tax deductions [21] Question: What is the reason behind the rapid growth in KA customer revenue? - The company reported a significant increase in KA customer revenue due to a higher proportion of high-end platform business clients, with a gross profit margin expected to contribute positively to net profit [22][24]

Financial Performance - Adjusted net profit increased by 2.0% to RMB 2,387.3 million, compared to RMB 2,340.7 million in the same period last year[9] - Revenue reached RMB 10,675.0 million (USD 1,521.2 million), a 17.6% increase from RMB 9,075.9 million in the same quarter of 2023[10] - Gross profit rose by 23.2% to RMB 3,334.8 million (USD 475.2 million), compared to RMB 2,706.4 million in the previous year[10] - Adjusted EBITDA increased by 8.7% to RMB 3,739.5 million (USD 532.9 million), compared to RMB 3,438.6 million in the same period last year[10] - Basic and diluted earnings per American Depositary Share (ADS) were RMB 2.98 (USD 0.42) and RMB 2.90 (USD 0.41), reflecting increases of 2.4% and 2.1% respectively[10] - Operating profit was RMB 2,841.8 million (USD 405.0 million), a 17.3% increase from RMB 2,423.6 million in the same period last year, with an operating profit margin slightly decreasing from 26.7% to 26.6%[23] - Net profit was RMB 2,379.0 million (USD 339.0 million), a 1.3% increase from RMB 2,349.6 million year-over-year, with diluted earnings per ADS of RMB 2.98 (USD 0.42) compared to RMB 2.91 in the same period last year[26] - Adjusted net profit was RMB 2,387.3 million (USD 340.2 million), up from RMB 2,340.7 million in the same period last year[27] Operational Metrics - Package volume grew by 15.9% to 8.723 billion parcels, up from 7.523 billion parcels year-over-year[12] - In Q3 2024, the company achieved a total package volume of 8.72 billion and an adjusted net profit of RMB 2.39 billion, reflecting a strong operational performance[15] - The core express service revenue grew by 18.1% year-over-year, driven by a 15.9% increase in package volume and a 1.8% rise in unit price[17] - Operating cash flow amounted to RMB 3,112.0 million (USD 443.5 million), up from RMB 2,938.1 million in the same quarter of 2023[11] - Operating cash flow for the quarter was RMB 3.1 billion, while capital expenditures amounted to RMB 1.8 billion[15] - The number of automated sorting equipment in operation increased to 535 units as of September 30, 2024, up from 482 units a year earlier, contributing to operational efficiency[19] Cost and Expenses - Operating costs increased by 15.2% year-over-year to RMB 7.34 billion (USD 1.05 billion), with the main cost drivers being line haul transportation and sorting center operations[18] - The company reported a 4.7% increase in line haul transportation costs to RMB 3.40 billion (USD 484.2 million), with a 9.7% reduction in unit transportation costs[19] - Total operating expenses were RMB 493.0 million (USD 70.3 million), up from RMB 282.8 million year-over-year, with selling, general and administrative expenses increasing by 25.6% to RMB 544.6 million (USD 77.6 million)[23] - Material sales cost was RMB 161.6 million (USD 23.0 million), an increase of 38.1% compared to RMB 117.0 million in the same period last year[20] Strategic Initiatives - The company plans to adjust its resource allocation and pricing strategies to regain growth momentum and expand its market share amid economic challenges[15] - The company is focusing on maintaining high service quality and customer satisfaction while regaining market share[15] - ZTO Express is focusing on enhancing its technology and operational efficiency to support future growth and market expansion[40] - ZTO Express is actively exploring potential mergers and acquisitions to strengthen its market position and expand its service offerings[40] Future Outlook - The company revised its annual guidance, expecting package volume for 2024 to be between 33.7 billion and 33.9 billion, representing a year-over-year growth of 11.6% to 12.3%[32] - The company expects continued growth in revenue driven by the expansion of its logistics network and increased demand in the e-commerce sector[43] Financial Position - As of December 31, 2023, total assets amounted to RMB 88,465,221, a decrease from RMB 93,320,033 as of September 30, 2024, representing a decline of approximately 5.5%[47] - Total current liabilities reached RMB 20,061,184 as of December 31, 2023, down from RMB 31,282,790, reflecting a significant reduction of approximately 36%[47] - The company’s total liabilities were RMB 28,184,813 as of December 31, 2023, compared to RMB 32,197,962, indicating a decrease of around 12.5%[47] - The company’s total equity stood at RMB 60,280,408 as of December 31, 2023, a slight decrease from RMB 61,122,071, reflecting a decline of about 1.4%[47] - Cash and cash equivalents, including restricted cash, increased to RMB 11,747,744 by September 30, 2024, up from RMB 10,108,507 as of September 30, 2023, marking a growth of approximately 16.2%[51] Earnings Projections - The net profit for 2023 was RMB 2,349,610, with a slight increase projected to RMB 2,379,042 for 2024, translating to USD 339,010 and USD 339,010 respectively[53] - Adjusted net profit for 2023 was RMB 2,340,744, expected to rise to RMB 2,387,251 in 2024, equivalent to USD 340,180[53] - Earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2023 was RMB 3,449,483, projected to increase to RMB 3,731,315 in 2024, which is USD 531,707[53] - The basic earnings per share (EPS) for 2023 was RMB 2.91, with a forecasted increase to RMB 2.98 for 2024, translating to USD 0.42[55] - The diluted EPS for 2023 was RMB 2.84, expected to rise to RMB 2.90 in 2024, equivalent to USD 0.41[55]

Core Viewpoint - ZTO Express reported robust financial performance in Q3 2024, with adjusted net income growing by 2.0% to RMB2.4 billion and parcel volume increasing by 15.9% to 8.7 billion, despite challenging macroeconomic conditions [1][2][5]. Financial Highlights - Total revenues reached RMB10,675.0 million (US$1,521.2 million), marking a 17.6% increase from RMB9,075.9 million in Q3 2023 [2]. - Gross profit was RMB3,334.8 million (US$475.2 million), up 23.2% from RMB2,706.4 million in the same period last year [11]. - Net income increased by 1.3% to RMB2,379.0 million (US$339.0 million) compared to RMB2,349.6 million in Q3 2023 [17]. - Adjusted EBITDA rose by 8.7% to RMB3,739.5 million (US$532.9 million) from RMB3,438.6 million in the previous year [2][21]. - Basic and diluted net earnings per American depositary share (ADS) were RMB2.98 (US$0.42) and RMB2.90 (US$0.41), reflecting increases of 2.4% and 2.1% respectively from the same period last year [18]. Operational Highlights - Parcel volume reached 8,723 million, a 15.9% increase from 7,523 million in Q3 2023 [3]. - The number of pickup/delivery outlets exceeded 31,000, and direct network partners surpassed 6,000 as of September 30, 2024 [3]. - The fleet included over 10,000 self-owned line-haul vehicles, with more than 9,700 being high-capacity models [3]. Cost and Efficiency - Total cost of revenues was RMB7,340.2 million (US$1,046.0 million), an increase of 15.2% from RMB6,369.5 million in the same period last year [7]. - Line-haul transportation costs increased by 4.7% to RMB3,398.0 million (US$484.2 million), while unit transportation costs decreased by 9.7% [8]. - Sorting hub operating costs rose by 8.6% to RMB2,224.2 million (US$316.9 million), with a decrease in cost per unit by 6.4% [9]. Strategic Outlook - The company anticipates parcel volume for 2024 to be between 33.7 billion and 33.9 billion, representing an 11.6% to 12.3% year-over-year increase [22]. - ZTO aims to maintain high service quality and customer satisfaction while regaining market share and expanding its leadership in parcel volume [5][6].