Financial Performance - Revenue increased by 8.6% to RMB 38,418.9 million in 2023 compared to RMB 35,377.0 million in 2022[12] - Gross profit rose by 29.0% to RMB 11,662.5 million in 2023 from RMB 9,039.3 million in 2022[12] - Net profit grew by 31.5% to RMB 8,754.5 million in 2023 compared to RMB 6,659.0 million in 2022[12] - Adjusted EBITDA increased by 25.0% to RMB 14,107.3 million in 2023 from RMB 11,289.1 million in 2022[12] - Adjusted net profit rose by 32.3% to RMB 9,005.9 million in 2023 compared to RMB 6,806.0 million in 2022[12] - Basic adjusted earnings per ADS increased by 29.7% to RMB 11.14 in 2023 from RMB 8.59 in 2022[12] - Diluted adjusted earnings per ADS grew by 27.6% to RMB 10.90 in 2023 compared to RMB 8.54 in 2022[12] - Revenue increased by 8.6% from RMB 35,377.0 million in 2022 to RMB 38,418.9 million in 2023 due to post-pandemic recovery in express delivery demand[17] - Net profit for 2023 was RMB 8,754,457 thousand, compared to RMB 6,658,966 thousand in 2022[15] - Adjusted net profit for 2023 was RMB 9,005,920 thousand, up from RMB 6,805,999 thousand in 2022[15] - EBITDA for 2023 was RMB 13,857,799 thousand, compared to RMB 11,153,363 thousand in 2022[15] - Adjusted EBITDA for 2023 was RMB 14,107,290 thousand, up from RMB 11,289,073 thousand in 2022[15] - Net profit attributable to ordinary shareholders for 2023 was RMB 8,749,004 thousand, compared to RMB 6,809,056 thousand in 2022[16] - Adjusted net profit attributable to ordinary shareholders for 2023 was RMB 9,000,467 thousand, up from RMB 6,956,089 thousand in 2022[16] - Basic earnings per share for 2023 were RMB 10.83, compared to RMB 8.41 in 2022[16] - Diluted earnings per share for 2023 were RMB 10.60, compared to RMB 8.36 in 2022[16] - The core express business revenue increased by 9.8% from RMB 34,164.3 million in 2022 to RMB 37,512.1 million in 2023, driven by a 23.8% increase in parcel volume and an 11.3% decrease in parcel unit price[31] - The freight forwarding service revenue decreased by 25.2% in 2023 compared to 2022, primarily due to post-pandemic e-commerce price declines[32] - The total operating costs increased by 1.6% from RMB 26,337.7 million in 2022 to RMB 26,756.4 million in 2023[33] - The gross profit increased by 29.0% from RMB 9,039.3 million in 2022 to RMB 11,662.5 million in 2023, with the gross margin rising from 25.6% to 30.4%[35] - The total operating expenses increased by 27.0% from RMB 1,302.8 million in 2022 to RMB 1,654.6 million in 2023[36] - The interest income increased by 40.3% from RMB 503.7 million in 2022 to RMB 706.8 million in 2023[37] - The interest expense increased by 52.0% from RMB 190.5 million in 2022 to RMB 289.5 million in 2023[37] - The financial instruments fair value change income increased by 255.7% from RMB 46.2 million in 2022 to RMB 164.5 million in 2023[37] - The foreign exchange gain decreased by 36.5% from RMB 147.3 million in 2022 to RMB 93.5 million in 2023[37] - Income tax expense increased by 18.7% from RMB 1,633.3 million in 2022 to RMB 1,938.6 million in 2023, with the overall tax rate decreasing by 1.6% due to a tax refund of RMB 207.1 million received in the third quarter[38] - Net profit increased by 31.5% from RMB 6,659.0 million in 2022 to RMB 8,754.5 million in 2023[39] - The asset-liability ratio increased from 30.6% in 2022 to 31.9% in 2023[40] - Cash and cash equivalents, restricted cash, and short-term investments totaled RMB 12,333.9 million, RMB 686.6 million, and RMB 7,454.6 million respectively as of December 31, 2023, with 91.8% held by subsidiaries in China and 85.4% denominated in RMB[41] - Outstanding bank loan principal increased from RMB 5,394.4 million in 2022 to RMB 7,766.0 million in 2023, with a weighted average interest rate of 1.6% for short-term bank loans[41] - Capital expenditures totaled approximately RMB 6.7 billion in 2023, down from RMB 7.4 billion in 2022, with future capital expenditures to be funded by existing cash balances and other financing methods[46] - Capital commitments amounted to RMB 4.6 billion as of December 31, 2023, primarily related to the construction of office buildings, sorting centers, and warehouse facilities[46] - The company declared a final dividend of $0.62 per ADS and ordinary share for 2023, representing a 68% increase from 2022, with a payout ratio of 40%[26] - A semi-annual cash dividend policy was adopted starting in 2024, with total semi-annual dividends not less than 40% of the distributable profit for the fiscal year[27] - The share repurchase program was expanded by $500 million to a total of $2 billion, with the effective period extended to June 30, 2025[28] - The company expects the total parcel volume for 2024 to be in the range of 34.73 billion to 35.64 billion, representing a year-over-year growth of 15% to 18%[29] - The company's distributable reserves amounted to RMB 26.9 billion as of December 31, 2023[111] - The company approved a special dividend of $0.37 per ADS for 2022, payable to shareholders on record by April 6, 2023[109] - The company declared a final dividend of $0.62 per ADS and ordinary share for the fiscal year ending December 31, 2023, payable by April 10, 2024[109] - The company issued $1 billion in convertible senior notes in August 2022, with a 1.50% annual interest rate, maturing on September 1, 2027[108] - As of December 31, 2023, the $1 billion in convertible senior notes remain unexercised[108] - Less than 30% of the company's total revenue for the fiscal year ending December 31, 2023, came from its top five customers, and less than 30% of total procurement came from its top five suppliers[103] - The company made charitable donations totaling RMB 8.2 million during the reporting period[107] - The company maintains the required public float percentage as per listing rules[107] - No bonds were issued by the company during the reporting period[107] Operational Infrastructure - The company operates a network covering 99% of cities and counties in China, with approximately 6,000 direct network partners, over 31,000 pickup and delivery points, and more than 110,000 end stations as of December 31, 2023[20] - The logistics infrastructure includes 99 sorting centers, 464 automated sorting lines, and over 3,900 trunk lines served by more than 10,000 self-owned trucks, including over 9,200 high-capacity vehicles[21] - The company’s proprietary Zhongtian system supports daily high-throughput processing of over 100 million orders, utilizing real-time monitoring, order scheduling, and predictive algorithms[22] - The comprehensive unit cost for sorting and transportation decreased in 2023 compared to 2022 due to ongoing digitalization and intelligent upgrades[23] - The company operates under a network partner model, providing express delivery services in China[50] Corporate Governance and Leadership - The company has not separated the roles of Chairman and CEO, currently held by Mr. Lai Meisong, to ensure consistent internal leadership and more effective strategic planning[137] - The Board of Directors includes 3 executive directors, 2 non-executive directors, and 5 independent non-exec directors, maintaining a balance of power and efficient decision-making[137] - The company has established formal and informal channels to ensure the Board receives independent views and opinions, with half of the Board members being independent non-exec directors[142] - Independent non-exec directors' independence is assessed annually, and they can seek independent professional advice at the company's expense if needed[142] - Directors are required to retire by rotation at least once every three years, with Mr. Huang Qin, Mr. Herman Yu, and Mr. Gao Zunming set to retire at the 2024 AGM[143] - Mr. Chen Xudong, appointed as a non-exec director on June 15, 2023, will retire at the AGM but is eligible for re-election[143] - The company has adopted a code of conduct for securities transactions that is no less stringent than the Model Code for Securities Transactions by Directors of Listed Issuers[138] - The company received an exemption from strict compliance with certain provisions of the Model Code for a trading plan by Mr. Wang Jilei[139] - All directors and relevant employees confirmed compliance with the code of conduct and the Model Code during the reporting period[139] - The company has complied with all code provisions of the Corporate Governance Code except for the separation of Chairman and CEO roles[137] - The board of directors held 8 meetings during the reporting period[144] - The company held one annual general meeting, one extraordinary general meeting, and 11 committee meetings during the reporting period[144] - The next annual general meeting is scheduled for June 18, 2024[144] - The audit committee held 4 meetings during the reporting period[150] - The audit committee reviewed and approved the financial results for the fourth quarter and the consolidated financial statements for the fiscal years ending December 31, 2022, and December 31, 2023[150] - The audit committee met with the company's independent auditor, Deloitte Touche Tohmatsu[150] - The audit committee reviewed the effectiveness of the company's internal audit function and its responsibilities under the corporate governance code[150] - The audit committee discussed accounting policies, internal controls, and financial reporting matters with senior management[150] - The independent auditor audited the consolidated financial statements of the group[150] - The compensation committee held three meetings during the reporting period to review and propose executive and director compensation terms[152] - The compensation range for senior management in 2023 was between RMB 1 million and RMB 6 million, with 3 executives earning RMB 1-5 million and 1 executive earning RMB 5-6 million[153] - The nomination and corporate governance committee held two meetings to review board structure, diversity policy, and director succession planning[155] - The environmental, social, and governance (ESG) committee held two meetings to adopt ESG policies and review performance metrics[157] - The company has established a director nomination policy to ensure board diversity and alignment with business needs[158] - The company has adopted a Board Diversity Policy, with 10 directors including 9 male and 1 female (10% of the board)[159] - As of December 31, 2023, the company has 23,554 employees, with 15,072 male (64%) and 8,482 female (36%)[160] - The company approved a semi-annual cash dividend policy, with at least 40% of distributable profits to be paid as dividends starting from 2024[161] - No significant fraud or misconduct impacting financial statements or operations was found in 2023[162] - The company has adopted an Anti-Corruption Policy to ensure ethical business practices and compliance with anti-corruption laws[163] - All directors have met continuous professional development requirements through training and reading materials[164] - The board is responsible for preparing the financial statements for the year ended December 31, 2023, with no significant uncertainties affecting the company's ability to continue as a going concern[165] - The company's risk management and internal control systems are reviewed annually by the Board of Directors, ensuring they are effective and adequate[166] - The company paid RMB 18.64 million for audit services and RMB 920,000 for non-audit services (tax and other consulting services) in 2023[169] - Shareholders can request a special general meeting if they hold at least 10% of the voting rights, and the meeting must be held within 21 days of the request[171] - The company adopted a new set of articles of association on May 1, 2023, allowing for electronic or hybrid general meetings[175] - The Board of Directors adopted a shareholder communication policy on April 20, 2023, to enhance investor relations and ensure timely and accurate information disclosure[174] Shareholder Structure and Equity - Lai Meisong holds 206,100,000 Class B ordinary shares, representing 100% of the Class B shares[177] - Lai Meisong holds 4,989,947 Class A ordinary shares, representing 0.82% of the Class A shares[177] - Wang Jilei holds 42,181,499 Class A ordinary shares, representing 6.95% of the Class A shares[177] - Lai Meisong holds 195,000,000 shares in TuXi Tech (Cayman) Inc., representing 12.46% of the issued shares[181] - Lai Meisong holds 120,000,000 shares in Zhejiang Tongyu Smart Industry Development Co., Ltd., representing 75% of the issued shares[181] - Lai Meisong holds 206,100,000 shares in ZTO Express (Cayman) Inc., representing 34.35% of the issued shares[181] - Wang Jilei holds 45,000,000 shares in TuXi Tech (Cayman) Inc., representing 2.87% of the issued shares[181] - Wang Jilei holds 60,000,000 shares in ZTO Express (Cayman) Inc., representing 10% of the issued shares[181] - Hu Hongqun holds 2,500,000 shares in TuXi Tech (Cayman) Inc., representing 0.15% of the issued shares[181] - Hu Hongqun holds 120,000,000 shares in Zhejiang Tongyu Smart Industry Development Co., Ltd., representing 75% of the issued shares[181] - SCTS Capital Pte. Ltd. holds 118,585,225 A类普通股 (L) representing 19.55% of the total shares[184] - Alibaba Group Holding Limited holds 71,941,287 A类普通股 (L) representing 11.86% of the total shares[184] - Alibaba ZT Investment Limited holds 57,870,370 A类普通股 (L) representing 9.54% of the total shares[185] - Mr. Jianfa Lai holds 66,252,639 A类普通股 (L) representing 10.92% of the total shares[185] - Invesco Advisers, Inc. holds 42,154,941 A类普通股 (L) representing 6.95% of the total shares[185] - JPMorgan Chase & Co. holds 40,743,250 A类普通股 (L) representing 6.71% of the total shares[185] - Zto Lms Holding Limited holds 206,100,000 B类普通股 (L) representing 100.00% of the total shares[185] - Alibaba is considered the beneficial owner of 71,941,287 A类普通股 held by Ali ZT, Cainiao Smart, NRF, Taobao, and Cainiao Hong Kong[186] - Mr. Jianfa Lai has the right to direct the sale of 33,598 A类普通股 held by ZTO ES[187] - Mr. Jilei Wang has the right to direct the sale of 120,000 A类普通股 held by ZTO ES[188] - 3,616,200 Class A ordinary shares (long position) and 619,800 Class A ordinary shares (short position) are held through physically settled listed derivatives[189] - 3,741,666 Class A ordinary shares (short position) are held through physically settled unlisted derivatives[189] - 456,093 Class A ordinary shares (long position) and 674,302 Class A ordinary shares (short position) are held through cash-settled unlisted derivatives[189] - 3,304,415 Class A ordinary shares (long position) and 12,816 Class A ordinary shares (short position) are held through listed derivatives that are convertible instruments[189] - Lai Meisong holds an interest in 206,100,000 Class B ordinary shares through Zto Lms Holding Limited[189] - The 2016 Plan has a cap of 21,000,000 shares and no new shares will be issued for awards under the plan[192] - As of March 31, 2024, 5,592,500 Class A ordinary shares in the form of restricted share units have been granted under the 2016 Plan[192] - The 2016 Plan allows for the granting of stock options, restricted shares, or other types of awards approved by the plan administrator[194] - The 2016 Plan has a remaining term of approximately two years and can be amended or terminated by the board of directors[199] - Awards under the 2016 Plan are evidenced by award agreements that specify the terms, conditions, and restrictions of each award[195] - 361,035 restricted share units were vested during the reporting period[200] - 23,830 restricted share units were

Revenue and Profit Growth - Revenue increased by 8.6% to RMB 38,418.9 million in 2023 compared to RMB 35,377.0 million in 2022[2] - Gross profit rose by 29.0% to RMB 11,662.5 million in 2023 from RMB 9,039.3 million in 2022[2] - Net income attributable to ordinary shareholders grew by 28.5% to RMB 8,749.0 million in 2023 from RMB 6,809.1 million in 2022[2] - Adjusted EBITDA increased by 25.0% to RMB 14,107.3 million in 2023 compared to RMB 11,289.1 million in 2022[2] - Adjusted net income rose by 32.3% to RMB 9,005.9 million in 2023 from RMB 6,806.0 million in 2022[2] - Basic adjusted earnings per ADS increased by 29.7% to RMB 11.14 in 2023 from RMB 8.59 in 2022[2] - Revenue increased by 8.6% from RMB 35,377.0 million in 2022 to RMB 38,418.9 million in 2023, driven by the recovery of express demand post-pandemic[7] - Net profit attributable to ordinary shareholders rose from RMB 6,809,056 thousand in 2022 to RMB 8,749,004 thousand in 2023[6] - Adjusted net profit attributable to ordinary shareholders increased from RMB 6,956,089 thousand in 2022 to RMB 9,000,467 thousand in 2023[6] - Basic earnings per share attributable to ordinary shareholders grew from RMB 8.41 in 2022 to RMB 10.83 in 2023[6] - Gross profit increased by 29.0% from RMB 9,039.3 million in 2022 to RMB 11,662.5 million in 2023, with gross margin rising from 25.6% to 30.4%[25] - Net profit increased by 31.5% from RMB 6,659.0 million in 2022 to RMB 8,754.5 million in 2023[29] - Total revenue for 2023 reached RMB 38,418.915 million (USD 5,411.191 million), a 8.6% increase from 2022[58] - Net profit attributable to non-controlling interests increased from RMB 6,658,966 thousand in 2022 to RMB 8,754,457 thousand in 2023, a growth of 31.5%[49] - Net profit attributable to ZTO Express (Cayman) Inc. rose from RMB 6,809,056 thousand in 2022 to RMB 8,749,004 thousand in 2023, an increase of 28.5%[49] - Basic earnings per share increased from RMB 8.41 in 2022 to RMB 10.83 in 2023, a growth of 28.8%[49] Operating Costs and Expenses - Operating costs increased by 1.6% to RMB 26,756.4 million in 2023 compared to RMB 26,337.7 million in 2022[2] - Depreciation expenses rose by 7.9% to RMB 2,740.8 million in 2023 from RMB 2,540.9 million in 2022[5] - Interest expenses increased by 52.0% to RMB 289.5 million in 2023 from RMB 190.5 million in 2022[5] - Income tax expenses grew by 18.7% to RMB 1,938.6 million in 2023 compared to RMB 1,633.3 million in 2022[5] - Total operating costs for 2023 were RMB 26,756.4 million, accounting for 69.6% of total revenue[23] - Total operating costs increased by 1.6% from RMB 26,337.7 million in 2022 to RMB 26,756.4 million in 2023[24] - Total operating expenses increased by 27.0% from RMB 1,302.8 million in 2022 to RMB 1,654.6 million in 2023[26] - Interest expenses increased by 52.0% from RMB 190.5 million in 2022 to RMB 289.5 million in 2023[27] - Current income tax expense rose to RMB 1,780.818 million in 2023, a 28.2% increase from 2022[66] - Deferred income tax expense decreased by 35.5% to RMB 157.782 million in 2023 from RMB 244.616 million in 2022[66] - The company's effective tax rate increased to 19.71% in 2023 from 18.14% in 2022[66] - Share-based compensation expenses increased to RMB 158.278 million in 2023 from RMB 109.614 million in 2022[67] Logistics and Infrastructure - The company operates a network covering 99% of cities and counties in China, with approximately 6,000 direct network partners and over 31,000 pickup and delivery points[10] - The logistics infrastructure includes 99 sorting centers, 464 automated sorting lines, and over 10,000 self-operated trucks serving more than 3,900 trunk lines[12] - The company's proprietary Zhongtian system supports daily high-throughput processing of over 100 million orders with real-time monitoring and intelligent routing algorithms[13] - The company continues to invest in logistics infrastructure to enhance sorting and transportation efficiency, reducing unit costs in 2023 compared to 2022[13] - The company aims to build an ecosystem of integrated logistics services, including express, LTL, cross-border, warehousing, aviation, cold chain, and commercial solutions[9] - The company supports network partners in expanding rural and urban end stations to improve market penetration and service capabilities[11] - The company's core express delivery business revenue increased by 9.8% to RMB 37,512.1 million in 2023, driven by a 23.8% increase in parcel volume and an 11.3% decrease in parcel unit price[21] - The company expects the total parcel volume for 2024 to be in the range of 34.73 billion to 35.64 billion, representing a year-on-year growth of 15% to 18%[19] - The company's total revenue for 2023 was RMB 38,418.9 million, with express delivery services accounting for 92.4% of the total revenue[20] - The company's freight forwarding service revenue decreased by 25.2% in 2023, primarily due to post-pandemic e-commerce price declines[22] - Express delivery services accounted for 92.4% of total revenue in 2023, generating RMB 35,488.060 million (USD 4,998.389 million)[58] - Freight forwarding services revenue decreased to RMB 906.802 million (USD 127.720 million) in 2023, down 25.2% from 2022[58] Financial Position and Cash Flow - The company has increased its share repurchase program by $500 million to a total of $2 billion, extending the program's validity to June 30, 2025[18] - The company has adopted a semi-annual cash dividend policy starting in 2024, with a minimum payout ratio of 40% of distributable profits[17] - The company declared a cash dividend of $0.62 per ADS and ordinary share for the 2023 fiscal year, representing a 68% increase compared to 2022[16] - The company voluntarily converted its secondary listing status on the Hong Kong Stock Exchange to a primary listing status, effective May 1, 2023[15] - The company has been actively contributing to sustainable development and has published ESG annual reports since 2019[14] - Interest income increased by 40.3% from RMB 503.7 million in 2022 to RMB 706.8 million in 2023[27] - The debt-to-asset ratio increased from 30.6% in 2022 to 31.9% in 2023[30] - Cash and cash equivalents, restricted cash, and short-term investments totaled RMB 12,333.9 million, RMB 686.6 million, and RMB 7,454.6 million, respectively, as of December 31, 2023[30] - Outstanding bank loan principal increased from RMB 5,394.4 million in 2022 to RMB 7,766.0 million in 2023[30] - The weighted average interest rate on drawn borrowings was 1.6% for the year ended December 31, 2023[30] - No significant investments were made or held by the company as of December 31, 2023[31] - The company had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[31] - The company's cash and cash equivalents, restricted cash, and short-term investments amounted to RMB 26,619 million as of December 31, 2023, with a potential decrease of RMB 2,420 million if the RMB appreciates by 10% against the USD[31] - The company incurred capital expenditures of approximately RMB 6.7 billion for the year ended December 31, 2023, compared to RMB 7.4 billion in the previous year[33] - The company's capital commitments as of December 31, 2023, were RMB 4.6 billion, primarily related to the construction of office buildings, sorting centers, and warehouse facilities[33] - Total assets increased from RMB 78.52 billion in 2022 to RMB 88.47 billion in 2023, a growth of 12.7%[46] - Cash and cash equivalents rose from RMB 11.69 billion in 2022 to RMB 12.33 billion in 2023, an increase of 5.5%[46] - Total liabilities grew from RMB 24.05 billion in 2022 to RMB 28.18 billion in 2023, up 17.2%[47] - Revenue increased from RMB 35.38 billion in 2022 to RMB 38.42 billion in 2023, a growth of 8.6%[48] - Gross profit rose from RMB 9.04 billion in 2022 to RMB 11.66 billion in 2023, an increase of 29.0%[48] - Operating profit grew from RMB 7.74 billion in 2022 to RMB 10.01 billion in 2023, up 29.3%[48] - Interest income increased from RMB 503.72 million in 2022 to RMB 706.77 million in 2023, a growth of 40.3%[48] - Total equity rose from RMB 54.47 billion in 2022 to RMB 60.28 billion in 2023, an increase of 10.7%[47] - Short-term investments grew from RMB 5.75 billion in 2022 to RMB 7.45 billion in 2023, up 29.6%[46] - Inventory decreased from RMB 40.54 million in 2022 to RMB 28.07 million in 2023, a decline of 30.8%[46] - Net cash generated from operating activities grew from RMB 11,479,308 thousand in 2022 to RMB 13,360,967 thousand in 2023, an increase of 16.4%[50] - Cash used in investing activities decreased from RMB 16,041,890 thousand in 2022 to RMB 12,252,751 thousand in 2023, a reduction of 23.6%[50] - Cash and cash equivalents increased from RMB 11,692,773 thousand in 2022 to RMB 12,333,884 thousand in 2023, a growth of 5.5%[51] - Restricted cash decreased from RMB 895,483 thousand in 2022 to RMB 686,568 thousand in 2023, a reduction of 23.3%[51] - Total cash, cash equivalents, and restricted cash increased from RMB 12,603,087 thousand in 2022 to RMB 13,051,310 thousand in 2023, a growth of 3.6%[51] - Short-term investments matured increased from RMB 6,713,982 thousand in 2022 to RMB 9,798,273 thousand in 2023, a growth of 45.9%[50] - Long-term investments matured increased from RMB 284,000 thousand in 2022 to RMB 5,240,732 thousand in 2023, a significant growth of 1745.3%[50] - Accounts receivable decreased by 30.1% to RMB 613.541 million in 2023 from RMB 941.971 million in 2022[62] - Accounts payable increased by 6.4% to RMB 2,557.010 million in 2023 from RMB 2,402.692 million in 2022[64] - The company repurchased 42,501,325 American Depositary Shares (ADS) in 2023 at an average price of $25.01, fully paid by December 31, 2023[71] - Dividends per share for 2021 and 2022 were $0.25 and $0.37, with total payments of $202,433 (RMB 1,289,418) and $299,319 (RMB 2,055,723) respectively[72] - A special dividend of $0.62 per ADS and ordinary share for 2023 was approved on March 19, 2024, to be paid to shareholders on record as of April 10, 2024[72] Employee and Management - The total number of employees as of December 31, 2023, was 23,554, with an additional 63,000 outsourced employees[34] - Employee compensation costs for the year ended December 31, 2023, totaled RMB 3,226.5 million, up from RMB 2,967.5 million in the previous year[34] - The company has not experienced any significant labor disputes during the reporting period[35] - The company continues to invest in employee training and education programs, including comprehensive onboarding and ongoing training[36] - The company has adopted a management securities trading code to regulate securities transactions by directors and relevant employees[37] - The company's board of directors includes Chairman and Executive Director Lai Meisong, Executive Directors Wang Jilei and Hu Hongqun, Non-Executive Directors Liu Xing and Chen Xudong, and Independent Non-Executive Directors Wei Zhen, Huang Qin, Yu Zhengjun, Gao Zunming, and Xie Fang[78] Share Repurchase and Equity - The company repurchased a total of 5,941,076 American Depositary Shares (ADS) on the NYSE during the reporting period, with a total cost of $141,415,550 (before fees)[41] - The highest price paid per ADS during the repurchase was $25.00, and the lowest price was $21.85[42] - The company granted 4,386,320 share units in 2023, equivalent to 877,264 ordinary shares, with a market value of USD 26.27 per share[67] - The company's 2016 Equity Incentive Plan has a cap of 21,000,000 shares as of December 31, 2022, and no further increases will be made after May 1, 2023[68] - In 2022 and 2023, the company granted 497,956 and 535,955 restricted stock units respectively, with associated equity incentive expenses of RMB 69,366 (audited) and RMB 96,698 (unaudited)[69] - Basic and diluted earnings per share for 2022 were RMB 8.41 and RMB 8.36, while for 2023 they were RMB 10.83 and RMB 10.60[70] Legal and Regulatory Compliance - The company operates under the "Securities and Futures Ordinance" (Chapter 571 of the Hong Kong Law), which is subject to amendments, supplements, or other modifications[76] - The company's shares consist of Class A and Class B ordinary shares, as defined by the context[76] - The company adheres to U.S. Generally Accepted Accounting Principles (GAAP)[76] - ZTO ES Holding Limited is a company registered in the British Virgin Islands[76]

Financial Performance - Adjusted net profit for the fiscal year 2023 reached RMB 9 billion, an increase of 32.3%[3] - Revenue for Q4 2023 was RMB 10,619.4 million (USD 1,495.7 million), a growth of 7.6% compared to Q4 2022[5] - Gross profit for Q4 2023 was RMB 3,128.2 million (USD 440.6 million), up 12.8% year-over-year[5] - Net profit for Q4 2023 was RMB 2,209.8 million (USD 311.2 million), an increase of 3.8% from Q4 2022[5] - Total revenue amounted to RMB 10,619.4 million (USD 1,495.7 million), representing a growth of 7.6% from RMB 9,871.3 million in 2022[10] - Gross profit reached RMB 11,662.5 million ($1,642.6 million), a 29.0% increase from RMB 9,039.3 million last year, improving the gross margin from 25.6% to 30.4%[19] - Net profit amounted to RMB 8,754.5 million ($1,233.0 million), a 31.5% increase from RMB 6,659.0 million last year[20] - Adjusted net profit was RMB 9,005.9 million ($1,268.5 million), up from RMB 6,806.0 million last year[20] - Total revenue for the year ended December 31, 2023, reached RMB 8,749,004, an increase from RMB 6,809,056 in 2022, marking a growth of approximately 28.5%[41] Operational Metrics - Total package volume for the year reached 30.2 billion, expanding market share to 22.9%[3] - The company maintained high service quality and customer satisfaction while increasing its package volume by 5.8 billion, a year-over-year growth of 23.8%[4] - The total package volume reached 8.705 billion, an increase of 32.0% compared to 6.593 billion in the same period of 2022[7] - The company utilized 464 sets of automated sorting equipment as of December 31, 2023, compared to 458 sets a year earlier, enhancing overall sorting operational efficiency[12] - The company operates a highly scalable network partner model, which is deemed suitable for supporting the rapid growth of e-commerce in China[31] Cash Flow and Investments - Operating cash flow for the fiscal year 2023 was RMB 13,361.0 million (USD 1,881.9 million), compared to RMB 11,479.3 million in 2022[6] - Capital expenditures for 2023 were RMB 6.7 billion, with cash flow from operating activities increasing by 16.4% to RMB 13.4 billion[9] - The company reported a net cash outflow from investing activities of RMB 12.25 billion for the year 2023, compared to an outflow of RMB 16.04 billion in 2022, indicating improved cash management[36] - The net cash used in financing activities for the year 2023 was RMB 769 million, compared to an outflow of RMB 1.71 billion in 2022, indicating a reduction in financing costs[36] Shareholder Returns - The company plans to distribute a cash dividend of USD 0.62 per share for 2023, with a dividend payout ratio of no less than 40% for 2024[9] - The company declared a cash dividend of $0.62 per American Depositary Share, representing a 68% increase from the previous fiscal year, with a payout ratio of 40%[22] - The board approved a semi-annual cash dividend policy starting in 2024, with total annual dividends not less than 40% of distributable profits[23] - The company announced a $500 million expansion of its share repurchase program[4] - The share repurchase program was expanded to $2 billion, with a remaining available fund of $437.0 million as of December 31, 2023[24] Future Outlook - The company expects total package volume for 2024 to be between 34.73 billion and 35.64 billion pieces, representing a year-on-year growth of 15% to 18%[25] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[41] Risks and Management - The company faces inherent risks and uncertainties that could lead to significant differences between actual results and forward-looking statements, including reliance on third-party e-commerce platforms[32] - The company emphasizes that non-GAAP metrics should not be considered in isolation from GAAP metrics, and encourages investors to review comprehensive financial data[28] - The management believes that these non-GAAP metrics help identify fundamental business trends and provide useful insights into past performance and future prospects[28] - The management team will discuss performance summaries, user data, future outlook, and guidance during the earnings call[30] Earnings Call Information - The upcoming earnings conference call is scheduled for March 19, 2024, at 8:30 PM ET, with dial-in details provided for various regions[30]

Financial Performance - Full Year Adjusted Net Income reached RMB9.0 billion, growing 32.3% year over year[1] - Fourth Quarter Revenues were RMB10,619.4 million (US$1,495.7 million), a 7.6% increase from RMB9,871.3 million in Q4 2022[2] - Gross profit for Q4 was RMB3,128.2 million (US$440.6 million), up 12.8% from RMB2,772.6 million in the same period last year[2] - Net income for Q4 was RMB2,209.8 million (US$311.2 million), reflecting a 3.8% increase from RMB2,129.3 million in Q4 2022[2] - Adjusted EBITDA for the fiscal year was RMB14,107.3 million (US$1,987.0 million), a 25.0% increase from RMB11,289.1 million in 2022[3] - Total Revenues increased by 8.6% to RMB38,418.9 million (US$5,411.2 million) from RMB35,376.9 million last year, driven by a 9.8% increase in express delivery revenue[17] - Net income rose by 31.5% to RMB8,754.5 million (US$1,233.0 million) compared to RMB6,659.0 million in the previous year[24] - Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB10.83 (US$1.53), up from RMB8.41 last year, reflecting a significant increase[25] - Adjusted EBITDA reached RMB14,107.3 million (US$1,987.0 million), compared to RMB11,289.1 million last year, indicating strong operational performance[25] - Operating margin improved to 26.0%, up from 21.9% in the previous year, showcasing enhanced profitability[22] Expenses and Income - Total Operating Expenses were RMB1,654.6 million (US$233.0 million), an increase from RMB1,302.8 million last year, primarily due to higher compensation and benefit expenses[21] - Interest income increased to RMB706.8 million (US$99.5 million) from RMB503.7 million last year, reflecting improved financial management[22] - Gross Profit increased by 29.0% to RMB11,662.5 million (US$1,642.6 million), with a gross margin rate improvement to 30.4% from 25.6% last year[21] - Other operating income, net was RMB770.7 million (US$108.5 million), slightly down from RMB774.6 million last year, indicating stable supplementary income sources[22] - Interest expenses for Q4 2023 decreased to RMB61,804 from RMB76,147 in Q4 2022, a reduction of 18.7%[47] - Income tax expenses for the year ended December 31, 2023, were RMB1,938,600, up from RMB1,633,330 in 2022, reflecting an increase of 18.7%[47] Dividends and Shareholder Returns - The company approved a regular dividend policy starting with US$0.62 per share for 2023, with a minimum payout ratio of 40% for 2024[7] - The company declared a cash dividend of US$0.62 per ADS, representing a 68% increase compared to the previous fiscal year[26] - The Company has approved a semi-annual regular cash dividend policy starting from 2024, with a minimum of 40% of distributable profit to be distributed each year[27] - The share repurchase program has been increased to US$2.0 billion, with US$437.0 million remaining available for repurchase as of December 31, 2023[28] Operational Metrics - Annual parcel volume increased to 30.2 billion, expanding market share to 22.9%[1] - The number of parcel delivery outlets exceeded 31,000, with over 10,000 self-owned line-haul vehicles as of December 31, 2023[4] - The core express average selling price (ASP) declined by 11.3% in 2023, primarily due to intense price competition[7] - The parcel volume for 2024 is expected to be between 34.73 billion and 35.64 billion, reflecting a year-over-year increase of 15% to 18%[29] Cash Flow and Assets - Capital spending for 2023 was RMB6.7 billion, with operating cash flow growing 16.4% to RMB13.4 billion[7] - Total current assets increased to RMB 26,953,548 as of December 31, 2023, from RMB 24,475,027 as of December 31, 2022, representing an increase of 10.1%[43] - Cash and cash equivalents at the end of the period were RMB 12,333,884, up from RMB 11,692,773 at the end of 2022, indicating an increase of 5.5%[46] - Total liabilities increased to RMB 28,184,813 as of December 31, 2023, from RMB 24,051,116 as of December 31, 2022, marking an increase of 17.2%[43] - Net cash provided by operating activities for the year ended December 31, 2023, was RMB 13,360,967, an increase of 16.4% from RMB 11,479,308 in 2022[44] - Total equity increased to RMB 60,280,408 as of December 31, 2023, from RMB 54,472,470 as of December 31, 2022, reflecting an increase of 10.5%[43] - Short-term bank borrowing rose to RMB 7,765,990 as of December 31, 2023, compared to RMB 5,394,423 as of December 31, 2022, an increase of 43.9%[43] Earnings and Share Metrics - Basic earnings per share for the year ended December 31, 2023, was RMB 10.83, down from RMB 10.60 in 2022, reflecting a decrease of 1.9%[41] - Basic earnings per share for Q4 2023 was RMB 2.72, up from RMB 2.67 in Q4 2022, indicating a 1.9% increase[48] - Diluted earnings per share for the year ended December 31, 2023, was RMB 10.60, compared to RMB 8.36 in 2022, marking a 26.8% increase[48] - The weighted average shares used in calculating diluted earnings per share for Q4 2023 was 837,291,253, slightly down from 841,226,602 in Q4 2022[48] Other Financial Metrics - Adjusted net income for the year ended December 31, 2023, reached RMB 9,005,920, up 32.5% from RMB 6,805,999 in 2022[47] - EBITDA for Q4 2023 was RMB 3,647,210, a 7.1% increase compared to RMB 3,406,549 in Q4 2022[47] - Adjusted EBITDA for the year ended December 31, 2023, was RMB 14,107,290, reflecting a 25.5% growth from RMB 11,289,073 in 2022[47] - The Company reported an income from operations of RMB 10,007,924 for the year ended December 31, 2023, compared to RMB 7,736,481 in 2022, marking an increase of approximately 29.5%[40] - Interest income for the three months ended December 31, 2023, was RMB 201,383, compared to RMB 111,768 for the same period in 2022, reflecting an increase of approximately 80%[40] - The company reported a foreign currency translation adjustment of RMB 70,677 for the three months ended December 31, 2023, compared to RMB 35,752 for the same period in 2022, indicating a significant increase[41] - The effective exchange rate used for translating Renminbi amounts into U.S. dollars was RMB 7.0999 to US$1 as of December 29, 2023[30] - The Company emphasizes the importance of non-GAAP financial measures for understanding underlying business trends and operational performance[32]

Financial Performance - Adjusted net profit increased by 25.0% to RMB 2,340.7 million[3] - Total revenue for Q3 2023 was RMB 9,075.9 million, a 1.5% increase from RMB 8,944.9 million in Q3 2022[4] - Net profit for Q3 2023 was RMB 2,349.6 million, a 24.0% increase from RMB 1,895.5 million in Q3 2022[4] - Gross profit increased by 10.7% to RMB 2,706.4 million[4] - Adjusted EBITDA rose by 14.7% to RMB 3,438.6 million[4] - Operating profit reached RMB 2,423.6 million (USD 332.2 million), up 11.4% from RMB 2,174.8 million year-over-year, with an operating margin increase from 24.3% to 26.7%[11] - Basic and diluted earnings per American Depositary Share were RMB 2.91 (USD 0.40) and RMB 2.84 (USD 0.39), respectively, compared to RMB 2.39 and RMB 2.37 in the same period last year[12] - The company’s net profit for the nine months ended September 30, 2023, was RMB 6,544,644, up from RMB 4,529,681, indicating a year-over-year increase of about 44.5%[21] - Adjusted net profit for the nine months ended September 30, 2023, reached RMB 6,791,518, representing a 45% increase from RMB 4,685,797 in the same period of 2022[25] Operational Metrics - Package volume reached 7.523 billion, representing an 18.1% year-over-year growth[5] - The number of sorting centers reached 97, with 88 operated by the company[5] - The company had over 31,000 pickup/delivery points as of September 30, 2023[5] - The express delivery industry experienced a year-on-year growth of 16.7% in business volume, despite macroeconomic recovery being below expectations[7] - Core express service revenue decreased by 13.5% per ticket, influenced by a 18.1% increase in package volume and a 13.5% decline in unit price[8] Cost Management - Operating costs decreased by 2.0% year-on-year to RMB 6,369.5 million (USD 873.0 million)[9] - Line haul transportation costs increased by 4.6% to RMB 3,245.8 million (USD 444.9 million), with unit transportation costs down by 11.4%[10] - The sorting center operating costs rose by 5.9% to RMB 2,048.4 million (USD 280.8 million), driven by increased labor costs and depreciation of automation equipment[10] - The company has implemented digital management initiatives that led to an 11% reduction in sorting and transportation costs[7] Guidance and Future Outlook - The company maintains its full-year guidance for business volume to reach between 29.27 billion and 30.24 billion packages, representing a year-on-year growth of 20% to 24%[7] - The company plans to continue expanding its logistics network to support the growth of e-commerce in China, leveraging its scalable partner model[19] - Future outlook includes a focus on enhancing technology and operational efficiency to maintain competitive advantage in the rapidly growing express delivery market[20] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[25] Cash Flow and Assets - Operating cash flow for Q3 2023 was RMB 2,938.1 million, compared to RMB 2,823.3 million in Q3 2022[4] - Cash and cash equivalents decreased to RMB 10,108,507 from RMB 14,980,394, a decline of about 32.4%[24] - Net cash generated from operating activities for the nine months ended September 30, 2023, was RMB 7,709,470, compared to RMB 402,701 for the same period in 2022[23] - Total assets increased to RMB 87,463,702, up from RMB 78,523,586 as of December 31, 2022, representing a growth of approximately 11.8%[22] - Total liabilities increased to RMB 29,133,787 from RMB 24,051,116, reflecting a rise of approximately 21.2%[22] - The total equity as of September 30, 2023, was RMB 58,329,915, up from RMB 54,472,470, indicating an increase of about 7.5%[22] Shareholder Returns - The company has authorized a share repurchase plan with a total value of up to USD 1.5 billion, effective until June 30, 2024, with 40,258,978 ADS repurchased at an average price of USD 25.16[14] - Interest income was RMB 246.4 million (USD 33.8 million), an increase from RMB 162.4 million year-over-year, while interest expenses rose to RMB 83.8 million (USD 11.5 million) from RMB 31.6 million[11] - The overall income tax expense decreased to RMB 271.4 million (USD 37.2 million) from RMB 439.4 million year-over-year, with a tax rate reduction of 8.3% due to a tax refund of RMB 207.1 million[11]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 18,723,563 thousand, representing a 13.1% increase compared to RMB 16,560,727 thousand in the same period of 2022[17] - Gross profit increased by 52.5% to RMB 5,827,833 thousand, up from RMB 3,822,301 thousand year-over-year[17] - Net profit for the period rose by 59.3% to RMB 4,195,034 thousand, compared to RMB 2,634,226 thousand in the prior year[17] - Adjusted net profit attributable to ordinary shareholders increased by 54.6% to RMB 4,467,280 thousand, up from RMB 2,890,431 thousand[17] - Basic and diluted earnings per American depositary share were RMB 5.52 and RMB 5.40, respectively, reflecting increases of 54.6% and 51.3% year-over-year[17] - The company reported an adjusted EBITDA of RMB 6,761,106 thousand, a 43.4% increase from RMB 4,715,053 thousand in the previous year[17] - The company's net profit for the six months ended June 30, 2023, was RMB 4,195,034, representing a 59.5% increase from RMB 2,634,226 for the same period in 2022[22] - Adjusted net profit for the same period was RMB 4,450,774, up 58.0% from RMB 2,813,206 in the previous year[22] - Basic earnings per share rose from RMB 3.35 in 2022 to RMB 5.21 in 2023, reflecting a 55.5% increase[24] - The adjusted EBITDA for the first half of 2023 was RMB 7,016,846, an increase of 43.3% from RMB 4,894,033 in the same period of 2022[22] Operational Efficiency - The operating cost for the six months ended June 30, 2023, was RMB 12,895,730 thousand, a slight increase of 1.2% from RMB 12,738,426 thousand[17] - The comprehensive unit cost for sorting and transportation decreased compared to the same period in 2022, reflecting ongoing improvements in operational efficiency[37] - Mainline transportation costs increased by 6.6% to RMB 6,381.7 million compared to RMB 5,983.9 million in the same period of 2022, while unit transportation costs decreased by 12.8% due to economies of scale, route optimization, and lower fuel prices[52] - Sorting center operating costs rose by 4.7% to RMB 3,948.0 million from RMB 3,771.8 million in the same period of 2022, with a net increase in labor-related costs of RMB 123.6 million offset by efficiency gains from automation[52] Market and Growth Strategy - Future outlook includes continued investment in new technologies and market expansion strategies to drive growth[19] - The company aims to enhance its operational performance by focusing on non-GAAP financial metrics to better reflect actual business operations[19] - The company aims to expand its service offerings to include a comprehensive ecosystem of logistics solutions, including express delivery, less-than-truckload (LTL) services, and cross-border logistics[30] - The company expects the total package volume for the full year 2023 to be between 29.27 billion and 30.24 billion, reflecting a year-on-year growth of 20% to 24%[43] - The company aims to achieve at least a 1.5 percentage point increase in market share for the full year 2023[43] Corporate Governance and Compliance - The company has complied with all provisions of the corporate governance code as of June 30, 2023, except for the separation of the roles of Chairman and CEO, which are currently held by the same individual[87] - The Audit Committee has reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2023, and has discussed accounting policies and internal control matters with the independent auditor[95] - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination and Corporate Governance Committee, and Environmental, Social and Governance Committee[92] - The company has adopted a management securities trading policy to regulate all securities transactions by directors and relevant employees[91] Shareholder Information - As of June 30, 2023, the company had a total of 4,025,182 Class A shares and 206,100,000 Class B shares, representing 77.3% of the voting rights for all shareholder voting matters[84] - Upon conversion of all issued and outstanding Class B shares to Class A shares, the company will issue 206,100,000 Class A shares, which will account for approximately 33.7% of the total issued and outstanding Class A shares as of June 30, 2023[84] - The company has a 34.35% beneficial ownership in ZTO Express, with 206,100,000 shares held[104] - The total number of shares held by major shareholders has been disclosed, ensuring compliance with securities regulations[110] Cash Flow and Investments - Cash generated from operating activities for the six months ended June 30, 2023, was RMB 6,499,578, up from RMB 4,886,147 in the same period of 2022[154] - The company reported a net cash outflow from investing activities of RMB 9,408,160 for the six months ended June 30, 2023, compared to RMB 6,924,369 in the same period of 2022[154] - The company has committed to ensuring that ZTO ES waives voting rights on all shares held in accordance with listing rules[126] - The company plans to fund future capital expenditures through existing cash balances and proceeds from convertible preferred notes maturing in 2027[71] Risk Management - The company has established several hedging transactions to mitigate foreign exchange risks, although it faces limited direct foreign exchange risk overall[66] - The company continues to focus on sustainable development and enhancing corporate governance capabilities, contributing positively to society and the environment[38] Employee and Labor Relations - Total employee count as of June 30, 2023, was 23,449, with over 59,000 outsourced employees[75] - Compensation costs for the six months ended June 30, 2023, totaled RMB 2,488.2 million, compared to RMB 2,452.6 million for the same period in 2022[75] - The company has not experienced any significant labor disputes during the reporting period[76]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不會就本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 根據不同投票權架構，我們的股本包括A類普通股及B類普通股。對於需要股東投票的所有事 項，A類普通股持有人每股可投1票，而B類普通股持有人則每股可投10票。股東及有意投資者 務請留意投資不同投票權架構公司的潛在風險。我們的美國存託股（每股美國存託股代表一股A 類普通股）於美國紐約證券交易所上市，代碼為ZTO。 ZTO Express (Cayman) Inc. 中通快遞（開曼）有限公司 （於開曼群島註冊成立以不同投票權控制的有限責任公司） （股份代號：2057） 截至2023年6月30日止六個月的 中期業績公告 中通快遞（開曼）有限公司董事會欣然公佈本集團截至2023年6月30日止六個月的 未經審計中期合併業績，連同2022年同期的比較數字，該等資料乃根據美國公認 會計準則編製。該等中期業績已由審計委員會審閱。本集團截至2023年6月30日 止六個月的簡明合併財務報表已由核數師按照香港會計師公會頒佈的香港審 ...

Financial Performance - For Q2 2023, the company reported a revenue of RMB 9,740.3 million (USD 1,343.3 million), representing a 12.5% increase from RMB 8,656.7 million in Q2 2022[5] - The adjusted net profit for Q2 2023 grew by 43.9% to RMB 2,531.0 million (USD 349.0 million), compared to RMB 1,758.7 million in the same period last year[5] - The gross profit for Q2 2023 was RMB 3,304.4 million (USD 455.7 million), which is a 50.0% increase from RMB 2,202.8 million in Q2 2022[5] - Basic and diluted earnings per American Depositary Share (ADS) were RMB 3.14 (USD 0.43) and RMB 3.07 (USD 0.42), representing increases of 40.8% and 37.7% respectively compared to Q2 2022[5] - Adjusted EBITDA for Q2 2023 was RMB 3,883.9 million (USD 535.6 million), a 34.3% increase from RMB 2,892.0 million in the same quarter last year[5] - Operating profit was RMB 2,878.8 million (USD 397.0 million), a 45.0% increase from RMB 1,985.5 million year-on-year, with operating profit margin improving from 22.9% to 29.6%[11] - Net profit was RMB 2,530.2 million (USD 348.9 million), a 43.9% increase from RMB 1,758.7 million in the same period last year[12] - Adjusted net profit for the first half of 2023 was RMB 4,450,774, up 58.5% from RMB 2,813,206 in the same period of 2022[29] - The company reported a total revenue of RMB 3,883,090 for Q2 2023, representing a year-over-year increase of 34.5%[29] - The adjusted EBITDA for the first half of 2023 was RMB 7,016,846, a 43.5% increase from RMB 4,894,033 in the first half of 2022[29] Operational Metrics - The company achieved a package volume of 7.7 billion, reflecting a year-on-year growth of 23.8%[4] - Package volume reached 7.677 billion, an increase of 23.8% compared to 6.203 billion in the same period of 2022[6] - Core express service revenue increased by 14.1%, driven by a 23.8% rise in package volume and a 7.8% decline in per-package pricing[8] - Operating cash flow for the quarter was RMB 3,761.6 million (USD 518.8 million), slightly down from RMB 3,780.8 million in Q2 2022[5] - Operating costs totaled RMB 6.436 billion (USD 887.6 million), a slight decrease of 0.3% from RMB 6.454 billion in the same period last year[9] - The company expects total package volume for the year to be between 29.27 billion and 30.24 billion pieces, representing a year-on-year growth of 20% to 24%[13] - The number of sorting centers increased to 96, with 87 operated by the company and 9 by network partners[6] - Direct network partners numbered approximately 6,000 as of June 30, 2023[6] - The company has over 10,000 owned vehicles, with 9,300 being high-capacity models between 15 to 17 meters in length[6] Financial Position - Revenue for the six months ended June 30, 2023, reached RMB 18,723,563, an increase from RMB 16,560,727 for the same period in 2022, representing a growth of approximately 13.1%[23] - Gross profit for the six months ended June 30, 2023, was RMB 5,827,833, up from RMB 3,822,301 in the same period of 2022, indicating a growth of about 52.5%[23] - Operating profit for the six months ended June 30, 2023, was RMB 4,829,217, compared to RMB 3,101,807 for the same period in 2022, reflecting an increase of approximately 55.7%[23] - Net profit attributable to ordinary shareholders for the six months ended June 30, 2023, was RMB 4,211,540, up from RMB 2,711,451 in the same period of 2022, marking a growth of around 55.1%[23] - As of June 30, 2023, total assets increased to RMB 82,054,548, up from RMB 78,523,586 as of December 31, 2022, representing a growth of approximately 2.0%[25] - Total liabilities rose to RMB 25,720,795, compared to RMB 24,051,116, indicating an increase of approximately 6.9%[25] - The total equity increased to RMB 56,333,753 as of June 30, 2023, from RMB 54,472,470 as of December 31, 2022, marking an increase of approximately 3.4%[25] Risks and Challenges - The company continues to face risks related to competition and reliance on third-party e-commerce platforms, which may impact operational performance[3] - The company is subject to various risks, including reliance on third-party e-commerce platforms and intense competition in the express delivery industry[21] Strategic Initiatives - The company maintains its full-year business volume growth guidance at 20%-24%[4] - The share repurchase plan allows the company to repurchase up to USD 1.5 billion worth of its Class A ordinary shares, with an average purchase price of USD 25.18 as of June 30, 2023[15] - The company operates a scalable network partner model to support the rapid growth of e-commerce in China[20] - The management team held an earnings conference call on August 29, 2023, to discuss performance and future outlook[19] Non-GAAP Metrics - The company uses non-GAAP financial metrics such as EBITDA, adjusted EBITDA, and adjusted net income to assess operational performance and inform financial decisions[17] - The company emphasizes the importance of non-GAAP metrics for understanding core business trends and future prospects[17] - The company encourages investors to review comprehensive financial data rather than relying solely on individual financial metrics[17] - The company’s performance metrics may not be directly comparable to those of other companies due to different calculation methods[17] - The company does not undertake any obligation to update forward-looking statements unless required by applicable law[21]

Financial Performance - Adjusted net profit for Q1 2023 was RMB 1,919.8 million, representing a year-on-year growth of 82.1%[4] - Revenue for Q1 2023 was RMB 8,983.2 million, up 13.7% from RMB 7,904.1 million in the same period last year[4] - Gross profit for Q1 2023 was RMB 2,523.4 million, a 55.8% increase compared to RMB 1,619.5 million in Q1 2022[4] - Net profit for Q1 2023 was RMB 1,664.8 million, reflecting a 90.2% increase from RMB 875.5 million in Q1 2022[4] - Adjusted EBITDA for Q1 2023 was RMB 3,133.0 million, up 56.5% from RMB 2,002.1 million in the same period last year[4] - Basic and diluted earnings per ADS for Q1 2023 were RMB 2.07 and RMB 2.03, respectively, representing growth of 84.8% and 81.3% year-on-year[4] - The gross profit was RMB 2,523.4 million (USD 367.4 million), a 55.8% increase from RMB 1,619.5 million year-on-year, with the gross margin improving from 20.5% to 28.1%[11] - Operating profit reached RMB 1,950.4 million (USD 284.0 million), up 74.7% from RMB 1,116.3 million in the same period last year, with the operating margin increasing from 14.1% to 21.7%[11] - Net profit attributable to ordinary shareholders for Q1 2023 was RMB 1,670,336, a 84.5% increase from RMB 906,270 in Q1 2022[24] Market Position and Growth - Total package volume reached 6.3 billion, with market share increasing by 1.8 percentage points to 23.4%[3] - The company raised its full-year business volume growth guidance to 20%-24%[3] - The company maintained a market share of 23.4%, an increase of 1.8 percentage points[7] - The company plans to increase its full-year business volume guidance due to sustained industry growth momentum[7] - The total package volume reached 6.297 billion, an increase of 20.5% compared to 5.226 billion in the same period of 2022[5] - Core express service revenue grew by 16.1%, driven by a 20.5% increase in package volume and a 3.7% decrease in average revenue per package[8] Operating Costs and Expenses - Operating costs totaled RMB 6.460 billion (USD 940.6 million), an increase of 2.8% from RMB 6.285 billion in the previous year[9] - The average cost per package decreased by 12.8%, contributing to improved profitability[7] - The cost of trunk transportation was RMB 3,181.8 million (USD 463.3 million), an increase of 7.7% compared to RMB 2,954.0 million in the same period last year[10] - The total operating expenses were RMB 573.0 million (USD 83.4 million), up from RMB 503.2 million in the same period last year[11] Cash Flow and Investments - Operating cash flow for Q1 2023 was RMB 2,738.0 million, compared to RMB 1,105.4 million in Q1 2022[4] - The net cash generated from operating activities was RMB 2,738.0 million (USD 398.7 million), compared to RMB 1,105.4 million in the same period last year[12] - The net cash used in investing activities for Q1 2023 was RMB (5,866,601) thousand, compared to RMB (3,314,751) thousand in Q1 2022, indicating an increase in investment outflows[26] - The net cash generated from financing activities decreased to RMB 840,572 thousand in Q1 2023 from RMB 2,580,645 thousand in Q1 2022, a decline of approximately 67%[26] - The total cash, cash equivalents, and restricted cash at the end of Q1 2023 was RMB 10,306,095 thousand, down from RMB 12,603,087 thousand at the end of 2022, a decrease of about 18%[27] Operational Metrics - The number of sorting centers reached 97, with 88 operated by the company and 9 by network partners[5] - The number of direct network partners was over 5,900 as of March 31, 2023[5] - The number of automated sorting equipment in operation increased to 454 sets as of March 31, 2023, compared to 422 sets a year earlier[10] Risks and Challenges - The company has a significant reliance on third-party e-commerce platforms, which poses inherent risks[23] - The company faces intense competition that may adversely affect its operational performance and market share[23] - The company’s financial data is subject to inherent risks and uncertainties that could lead to actual results differing significantly from forward-looking statements[23] - The company’s brand establishment and ability to withstand negative reporting are critical for its market position[23] Non-GAAP Metrics - The company utilizes non-GAAP financial metrics such as EBITDA, adjusted EBITDA, and adjusted net income to assess operational performance and inform financial decisions[17] - The management believes that these non-GAAP metrics help identify fundamental business trends and provide useful information regarding operational performance[17] - The company encourages investors to review its financial data comprehensively rather than relying on a single financial metric[17] - The company emphasizes that non-GAAP metrics should not be considered as alternatives to net income or other performance indicators[17] Future Plans - The company plans to continue expanding its market presence and investing in new technologies and products[24] - The earnings conference call is scheduled for May 17, 2023, at 8:30 PM Eastern Time[19] - The company has authorized a share repurchase plan with a total value of up to USD 1.5 billion, effective until June 30, 2024[15]

Share Structure and Governance - As of March 31, 2023, the total number of Class A ordinary shares outstanding is 609,171,784, which excludes 11,671,525 Class A ordinary shares repurchased in the form of American Depositary Shares[7]. - The number of Class B ordinary shares held by Mr. Lai Meisong and Zto Lms Holding Limited is 206,100,000, representing approximately 77.6% of the voting power for shareholder voting matters[3]. - If all Class B ordinary shares are converted into Class A ordinary shares, the company will issue 206,100,000 Class A ordinary shares, which would account for approximately 33.9% of the total outstanding Class A ordinary shares as of March 31, 2023[4]. - The company operates under a dual-class voting structure, where each Class A ordinary share has one vote and each Class B ordinary share has ten votes[2]. - The company emphasizes the potential risks associated with investing in companies with a dual-class voting structure, as the interests of different voting power beneficiaries may not always align with those of other shareholders[4]. - The company has a significant concentration of voting power, which may impact corporate governance and decision-making processes[4]. Financial Performance - In the fiscal years 2020, 2021, and 2022, revenue contributions from ZTO Express accounted for 94.1%, 97.7%, and 90.4% of the company's total revenue respectively[13]. - Total revenue for 2022 reached RMB 35,376,996, an increase of 16.5% compared to RMB 30,405,839 in 2021[62]. - Gross profit for 2022 was RMB 9,039,275, representing a gross margin of approximately 25.5%[62]. - Operating profit for 2022 was RMB 7,736,481, up 40.4% from RMB 5,503,011 in 2021[62]. - Net profit attributable to shareholders for 2022 was RMB 6,809,056, a growth of 43.5% compared to RMB 4,754,827 in 2021[62]. - The company reported a net income of RMB 2 billion for the last fiscal year, a 30% increase compared to the previous year[27]. Cash Flow and Investments - The company reported a cash transfer of RMB 2,580 million to its Cayman, British Virgin Islands, and Hong Kong subsidiaries in 2022, compared to RMB 1,250 million in 2021 and RMB 10,011 million in 2020[54]. - The total cash received by the company's subsidiaries from the company was RMB 20,739 million in 2022, an increase from RMB 15,974 million in 2021 and RMB 11,646 million in 2020[54]. - The company has established a cash transfer mechanism through loans and investments among its subsidiaries, ensuring liquidity within the group despite restrictions on direct capital contributions[50]. - The company reported a net cash inflow from operating activities of RMB 11,479,308 for 2022, compared to RMB 7,220,217 in 2021[64]. Regulatory and Legal Risks - The company faces various legal and operational risks related to conducting business in China, including regulatory approvals and potential changes in laws[16]. - The company is subject to the new regulations from the China Securities Regulatory Commission regarding overseas financing activities, which require filing procedures for future securities issuance outside of mainland China[47]. - The company may face penalties from the China Securities Regulatory Commission if it fails to comply with the new overseas listing regulations, potentially impacting its business and financial performance[47]. - The company faces regulatory risks related to providing loans and direct investments to its Chinese entities, which may significantly impact liquidity and the ability to expand operations[55]. - The company is subject to significant regulatory scrutiny from the Chinese government, which could limit its ability to issue securities and impact investor confidence[94]. Market and Operational Strategy - The company expects a continued growth trajectory in the Chinese express delivery market, projecting a market growth rate of 15% annually over the next five years[27]. - The company plans to expand its service network by adding 1,000 new delivery points in key urban areas by the end of the next fiscal year[27]. - The company is investing RMB 500 million in new technology to enhance package sorting and tracking capabilities, aiming to reduce delivery times by 25%[27]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its service offerings[27]. - The company plans to diversify its service offerings and expand its customer base, which may involve substantial financial and management resources[125]. Operational Efficiency and Challenges - The average cost per package decreased to RMB 5.00, down from RMB 6.00 in the previous year, indicating improved operational efficiency[29]. - The company relies heavily on sorting centers and network partners for operational efficiency, with potential service disruptions posing significant risks to business operations[112]. - The company faces risks related to network partners' performance, which could impact customer satisfaction and brand reputation[105]. - The company has significantly increased technology spending, but it may not fully meet the growing business demands, risking competitive disadvantage[113]. - The company’s operational performance relies on key metrics such as package volume and unit cost, which may differ from third-party estimates, potentially impacting its reputation and business[163]. Compliance and Cybersecurity - The company must comply with complex and evolving laws regarding cybersecurity and data protection, with potential breaches harming its reputation and operational performance[163]. - The company is subject to the Data Security Law, which mandates security review procedures for data activities that may affect national security, effective from September 1, 2021[166]. - The company must comply with the Cybersecurity Review Measures, which require critical information infrastructure operators to undergo cybersecurity reviews when procuring products and services that may impact national security[166]. - The company faces potential significant adverse impacts on future financing activities if it fails to comply with national security laws related to foreign investment and data security[172]. Human Resources and Labor Costs - As of December 31, 2022, the company employed 24,888 employees and over 59,000 outsourced personnel, indicating a labor-intensive operational model[115]. - The company anticipates continued increases in labor costs due to competition for workforce stability and rising wages, particularly during peak promotional periods[115]. - Attracting, training, and retaining qualified personnel is critical for the company's future success, particularly in the express delivery and e-commerce sectors[149]. Competitive Landscape - The competitive landscape includes major domestic express companies, with pricing pressures leading to potential declines in market share and profitability[108]. - Major e-commerce platforms like Alibaba and JD may develop their own delivery capabilities, posing a threat to the company's market share[108]. - The company may need to subsidize network partners to maintain competitiveness, which could negatively affect gross margins[108]. Strategic Partnerships and Acquisitions - The company has a strategic partnership with Alibaba and Cainiao Network, which involved an investment of $1.38 billion for approximately 10% equity, highlighting the importance of this relationship for future operations[102]. - The company made a strategic investment of approximately $168 million to acquire about 15% equity in Cainiao Station, enhancing its delivery capabilities[175]. Environmental and Geopolitical Factors - The ongoing geopolitical tensions, such as the conflict between Ukraine and Russia, have led to increased fuel prices, potentially adversely affecting the company's gross margin[155]. - The company is sensitive to the economic conditions in China and globally, with any severe or prolonged downturn potentially causing significant adverse effects on its business and financial condition[160].