ZTO EXPRESS(US:ZTO) Nan Fang Du Shi Bao·2025-06-24 11:05Core Viewpoint - Zhongtong Airlines has officially registered in Changsha, marking the establishment of Hunan's first local cargo airline, which aims to enhance regional economic development and fill a gap in the cargo aviation sector [2][4]. Group 1: Company Developments - Zhongtong Airlines has a registered capital of 600 million yuan and is wholly owned by Zhongtong Express [2]. - The company plans to invest 11 billion yuan in a project that will cover approximately 750 acres, creating an integrated ecosystem for logistics, e-commerce, and financial services [4]. - The establishment of Zhongtong Airlines is a key part of Zhongtong's full industry chain layout, aimed at improving operational efficiency and service stability [2][3]. Group 2: Market Context - The express delivery market is becoming increasingly competitive, with Zhongtong's market share expected to decline in 2024, and its net profit being surpassed by SF Express [2][5]. - In 2024, the global air cargo demand is projected to grow by approximately 11.3%, with the Asia-Pacific region leading at a growth rate of 14.5% [5]. - Other logistics companies, including SF Express and JD Logistics, have already established their own airlines, intensifying competition in the sector [6]. Group 3: Financial Performance - In 2024, Zhongtong's package volume growth slowed to 12.6%, the lowest among major express companies, reflecting a broader trend of deceleration in the industry [5][6]. - The company recorded a net profit of 8.888 billion yuan in 2024, marking a decline in profitability compared to previous years [5][6]. - In the first quarter of 2025, Zhongtong achieved a package volume of 8.5 billion, a year-on-year increase of 19.1%, indicating a potential recovery in growth [7].