Prnewswireยท2025-08-19 22:00Core Viewpoint - ZTO Express reported a strong growth in parcel volume and adjusted net income for the second quarter of 2025, despite facing challenges in the industry, indicating resilience and a focus on quality service [1][7][8]. Financial Highlights - Total revenues increased by 10.3% to RMB 11,831.8 million (US$1,651.7 million) compared to RMB 10,726.0 million in the same period of 2024 [8][10]. - Adjusted net income reached RMB 2.1 billion, a decrease of 26.8% from RMB 2.8 billion in the same period of 2024 [1][23]. - Basic and diluted earnings per American depositary share (ADS) were RMB 2.42 (US$0.34) and RMB 2.37 (US$0.33), down 25.3% and 25.0% respectively from the previous year [22]. Operational Highlights - Parcel volume grew by 16.5% year-over-year to 9.8 billion parcels [1][8]. - The number of pickup/delivery outlets exceeded 31,000, and the number of sorting hubs was 94 as of June 30, 2025 [8][10]. - The company maintained a stable SG&A expense ratio at 5.2% of revenue [9]. Cost and Profitability - Gross profit decreased by 18.7% to RMB 2,944.4 million (US$411.0 million), with a gross margin of 24.9% compared to 33.8% in the same period last year [15]. - Total cost of revenues increased by 25.1% to RMB 8,887.4 million (US$1,240.6 million) [11]. - Line-haul transportation costs remained stable, with a slight increase of 0.2% [12]. Business Outlook - The company revised its annual parcel volume guidance to a range of 38.8 billion to 40.1 billion, representing a growth rate of 14.0% to 18.0% [26]. - ZTO aims to stay ahead of the industry average growth rate while focusing on quality and operational efficiency [9][26]. Dividend Declaration - An interim cash dividend of US$0.30 per ADS and ordinary share was announced, representing a 40% payout ratio [25].