ZTO Express (Cayman) (ZTO) Q4 2024 earnings summary

Executive summary

• Parcel volume reached 34.0 billion in 2024, up 12.6% year-over-year, with 9.7 billion in Q4 and continued #1 market share in China's express delivery since 2016.

• Adjusted net income rose 12.7% to RMB 10.2 billion for 2024, with Q4 adjusted net income up 23.4% to RMB 2.7 billion, maintaining high profitability.

• Market share reached 19.4% in 2024, with over 99% county-level city coverage and top consumer satisfaction.

• Announced a US$0.35 per share semi-annual dividend and extended share repurchase program to June 2025.

• Focused on high-quality growth, service quality, and expanding market share, with strong performance in retail and reverse parcels.

Financial highlights

• Total revenue was RMB 44.28 billion in 2024, up 15.3% year-over-year; Q4 revenue was RMB 12.92 billion, up 21.7%.

• Adjusted net income for 2024 was RMB 10.2 billion, with a margin of 25.8%; Q4 adjusted net income was RMB 2.73 billion.

• Gross margin was 29.1% in Q4 (down 0.4 pts) and 31% for the year (up 0.6 pts).

• Adjusted EBITDA was RMB 16.35 billion for 2024 and RMB 4.62 billion for Q4.

• Operating cash flow for 2024 was RMB 11.4 billion, down due to one-time franchise deposit refunds and other factors.

Outlook and guidance

• 2025 parcel volume expected to reach 40.8–42.2 billion, a 20–24% year-over-year increase, with industry growth estimated at 15%.

• CapEx for 2025 projected at RMB 5–5.5 billion, focused on facility upgrades and land acquisition.

• Continued focus on service quality, market share, and cost efficiency to drive above-industry growth.

• Plans to expand logistics segments (LTL, cloud warehousing, international, cold-chain) and invest in green initiatives.