2021-03-18 18:23Company Overview - ZTO Express is a leading express delivery company in China[6] - The company utilizes a distinct Network Partner Business Model (NPM)[6, 14] - ZTO completed a secondary listing on the HKEX in 2020[12] Market Position and Growth - ZTO's parcel volume market share in China reached 204% in 2020[12] - The company's NPM model has gained share in the express delivery market, reaching 76% in 2020 compared to 66% in 2011[15] - The company has a stable partner network with less than 5% churn[38] Operational Capabilities and Cost Efficiency - ZTO has a large self-owned line-haul fleet of approximately 9,700 vehicles[45] - The company is focused on decreasing cost per parcel through transportation and sorting technology improvements[47] - ZTO has over 300 automated sorting lines in service as of Q4 2020[47] Financial Performance - In 2020, ZTO's total revenue reached RMB 25214 million, a 14% year-over-year growth[91] - The company maintains strong unit economics, with Non-GAAP Adjusted Net Income per unit at RMB 024 in Q4 2020[84] - ZTO has abundant cash reserves, with cash and cash equivalents of RMB 19878 million in 2020[101] Sustainability and ESG Practices - ZTO promotes e-waybills, achieving a 9985% adoption rate by the end of 2019, saving approximately RMB 60 million in paper consumables[63] - The company is increasing the use of high-capacity trailer trucks, reducing fuel consumption per parcel by approximately 55% and pollutant emissions by approximately 70%[65]