ZTO Express (Cayman) (ZTO) investor relations material

Executive summary

• Parcel volume grew 9.8% year-over-year to 9.6 billion in Q3 2025, maintaining industry-leading service quality and operational efficiency, with retail parcel volume surging nearly 50%.

• Achieved #1 market share in China's express delivery industry at 19.4%, with consistent leadership in profitability and customer satisfaction since 2014.

• Adjusted net income increased 5% to RMB 2.5 billion, with total revenue up 11.1% to RMB 11.9 billion.

• Strong focus on operational efficiency, technology-driven cost reductions, and ESG initiatives.

• The company is prioritizing high-quality growth, digitalization, and last-mile capability, responding to regulatory focus on orderly competition and service quality.

Financial highlights

• Adjusted net income rose 5% year-over-year to RMB 2.5 billion, with total revenue up 11.1% to RMB 11.9 billion.

• Gross profit decreased 11.4% to RMB 3 billion, with gross margin dropping to 24.9%.

• Operating cash flow was RMB 3.2 billion, up 3.2% year-over-year.

• Adjusted EBITDA decreased 4.2% to RMB 3.6 billion.

• Basic and diluted EPS were RMB 3.16 and RMB 3.10, up 6.0% and 6.9% year-over-year, respectively.

Outlook and guidance

• Annual parcel volume guidance for 2025 adjusted to 38.2–38.7 billion, representing 12.3%–13.8% year-over-year growth.

• Industry volume growth expected to stabilize around 10% in 2026, with a shift from volume to quality-focused competition.

• Company will continue investing in automation, digitalization, and last-mile capabilities.

• Management remains confident in executing strategy amid evolving macro and industry conditions.

• Plans to expand last-mile presence, invest in logistics ecosystem, and further green initiatives.