ZTO Express (Cayman) (ZTO) Q2 2024 earnings summary

Executive summary

• Achieved 10.1% year-over-year parcel volume growth to 8.45 billion in Q2 2024, with adjusted net income up 10.9% to RMB 2.8 billion, reflecting strong profitability despite macroeconomic softness and intensified price competition.

• Maintained industry-leading service quality, with end-to-end delivery time ranking top among peers and a continued decrease in customer complaint rates.

• Market share declined by 2.0 points to 19.6% amid intense competition, but profitability improved.

• Leveraged a distinct network partner model and continued investment in technology, automation, and ESG initiatives to support operational excellence and sustainable growth.

• Interim dividend of US$0.35 (RMB 0.35) per ADS/share declared, representing a 40% payout ratio.

Financial highlights

• Total revenue increased 10.1% year-over-year to RMB 10.73 billion in Q2 2024.

• Gross profit rose 9.6% to RMB 3.62 billion, with gross margin at 33.8%.

• Adjusted EBITDA increased 11.7% to RMB 4.34 billion; operating margin improved to 30.0%.

• Net cash from operating activities was RMB 3.48 billion, down from RMB 3.76 billion a year ago.

• Adjusted basic EPS was RMB 3.48, up 10.8% year-over-year.

Outlook and guidance

• 2024 parcel volume guidance maintained at 34.73–35.64 billion, representing 15–18% year-over-year growth.

• Management expressed high confidence in achieving at least 18% growth in the second half to meet annual guidance.

• Focus remains on profitable growth, service quality, and differentiated products.

• Company aims to expand its logistics ecosystem, including last-mile, LTL, cloud warehousing, international, and cold-chain segments.