Parcel Volume 9.7 Billion, Growth Rate 7.4 Percentage Points Above Industry Average
Adjusted Net Income Increased 5.2% to RMB 2.4 Billion
ShanghaiMay 20, 2026 /PRNewswire/ — ZTO Express (Cayman) Inc. (NYSE: ZTO and HKEX: 2057) (“ZTO” or the “Company”), a leading and fast-growing express delivery company in China, today announced its unaudited financial results for the first quarter ended March 31, 2026[1]. The Company achieved a year-over-year parcel volume growth of 13.2%, while maintaining high-quality service and customer satisfaction. Adjusted net income increased 5.2%[2] to RMB 2.4 billion. Net cash provided by operating activities was RMB 2.8 billion.
First Quarter 2026 Financial Highlights
- Revenue was RMB 13,282.4 million (US$ 1,925.5 million), an increase of 22.0% from RMB 10,891.5 million in the same period of 2025.
- Gross profit was RMB 3,235.2 million (US$ 469.0 million), an increase of 20.3% from RMB 2,689.2 million in the same period of 2025.
- Net income was RMB 2,156.4 million (US$ 312.6 million), an increase of 5.7% from RMB 2,039.2 million in the same period of 2025.
- Adjusted EBITDA[3] was RMB 3,941.3 million (US$ 571.4 million), an increase of 6.9% from RMB 3,686.7 million in the same period of 2025.
- Adjusted net income was RMB 2,377.1 million (US$ 344.6 million), an increase of 5.2% from RMB 2,259.3 million in the same period of 2025.
- Basic and diluted net income per American Depositary Share (“ADS”[4]) were RMB 2.73 (US$ 0.40) and RMB 2.68 (US$ 0.39), representing increases of 9.2% and 9.8% from RMB 2.50 and RMB 2.44 in the same period of 2025, respectively.
- Adjusted basic and diluted earnings per ADS attributable to ordinary shareholders[5] were RMB 3.01 (US$ 0.44) and RMB 2.95 (US$ 0.43), representing increases of 8.7% and 8.9% from RMB 2.77 and RMB 2.71 in the same period of 2025, respectively.
- Net cash provided by operating activities was RMB 2,789.0 million (US$ 404.3 million), compared to RMB 2,363.0 million in the same period of 2025.
First Quarter 2026 Operating Highlights
- Parcel volume was 9.668 billion, an increase of 13.2% from 8.539 billion in the same period of 2025.
- As of March 31, 2026, the number of pickup/delivery outlets exceeded 31,000.
- As of March 31, 2026, the number of direct network partners was approximately 6,000.
- As of March 31, 2026, the number of self-owned line-haul vehicles exceeded 10,000.
- As of March 31, 2026, the number of line-haul routes between sorting hubs was approximately 3,800.
- As of March 31, 2026, the number of sorting hubs was 93, of which 88 were operated by the Company and 5 were operated by the Company’s network partners.
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(1) The investor relations presentation accompanying this earnings release is available at http://zto.investorroom.com. (2) Adjusted net income is a non-GAAP financial measure, defined as net income excluding share-based compensation expenses and non-recurring items (such as investment impairment of equity investments, gains/(losses) on disposal of equity investments and subsidiaries) and related tax effects. Management uses this measure to better reflect actual business operations. (3) Adjusted EBITDA is a non-GAAP financial measure, defined as net income excluding depreciation, amortization, interest expense and income tax expense, and further adjusted to exclude share-based compensation expenses and non-recurring items (such as investment impairment of equity investments, gains/(losses) on disposal of equity investments and subsidiaries). Management uses this measure to better reflect actual business operations. (4) Each ADS represents one Class A ordinary share. (5) Adjusted basic and diluted earnings per ADS attributable to ordinary shareholders are non-GAAP financial measures. They are defined as adjusted net income attributable to ordinary shareholders divided by the weighted average number of basic and diluted ADSs, respectively. |
Mr. Meisong Lai, Founder, Chairman and Chief Executive Officer of ZTO, commented: “In the first quarter of 2026, ZTO continued to focus on service quality and customer satisfaction, optimizing operational cost efficiency, and enhancing the fairness and transparency of network policies. Driven by strong volume growth from KA customers, ZTO’s parcel volume reached 9.7 billion in the first quarter, a year-over-year increase of 13.2%, outpacing the industry average growth rate by 7.4 percentage points. We achieved adjusted net income of RMB 2.4 billion. The growth rate of our individual parcel business continued to outpace that of traditional e-commerce business, which not only optimized our revenue structure but also made a positive contribution to overall profitability.”
Mr. Lai added: “China’s express delivery industry is benefiting from the ongoing impact of anti-involution policies. Industry-wide profits generally increased this quarter, with some companies even seeing profit growth outpacing volume growth, fully demonstrating the industry’s increasing emphasis on high-quality development. ZTO’s quality-first development strategy is highly aligned with regulatory guidance. While continuously maintaining industry-leading operational efficiency, we are constantly working towards fairness and transparency in network policies, which is of great significance for the long-term sustainable development of the network. ‘Co-building and sharing’ has never been just a slogan, especially against the backdrop of our network’s breadth and depth. Adhering to network fairness and empowering partner development is our long-term task. Relying on digital intelligence tools and solid execution, from headquarters to the smallest capillaries, we are consolidating the unified understanding of the network’s overall strategic objectives and the coordinated pace of execution.”
Ms. Huiping Yan, Chief Financial Officer of ZTO, stated: “In the first quarter, ZTO’s core express delivery service average selling price increased by 8.2% year-over-year, primarily benefiting from the increased proportion of KA business, especially reverse logistics, whose unit price impact fully offset the pressure on unit price from incremental incentives. Benefiting from economies of scale, the unit cost for line-haul transportation plus sorting hub operations decreased by RMB 0.06 year-over-year. This quarter, selling, general and administrative expenses excluding share-based compensation as a percentage of revenue decreased to approximately 4.5% from 4.7% in the same period last year. Cash flow from operating activities was RMB 2.8 billion, and capital expenditure was RMB 1.8 billion.”
Ms. Yan added: “Our long-term strategy focused on sustainable development, which we have pursued for many years, has also proven effective during the period of economic stabilization and recovery. Our unique partnership model requires periodic review of strategic priorities and corresponding adjustments to the allocation of costs and profits, enabling our franchisees and couriers to walk long distances with us. Against the backdrop of stable industry growth, our volume growth benefits from the continued promotion of anti-involution policies and also reflects our original intention of symbiosis and win-win, as well as the effectiveness of various network empowerment initiatives. We are committed to consolidating our leading position in scale. Here, we maintain our guidance for full-year parcel volume growth of 10%-13% year-over-year.”
Total revenue was RMB 13,282.4 million (US$ 1,925.5 million), an increase of 22.0% from RMB 10,891.5 million in the same period of 2025. Core express delivery service revenue increased by 22.5% year-over-year, driven by a 13.2% increase in parcel volume and an 8.2% increase in unit price. Direct customer service revenue generated by direct sales agencies increased by 92.2%, primarily due to an increase in e-commerce return parcel volume. Freight forwarding service revenue decreased by 13.0% year-over-year. Material sales revenue, primarily from the sale of thermal paper for electronic shipping labels, increased by 3.1%. Other revenue primarily came from financial loan business.
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Three Months Ended March 31, |
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2025 |
2026 |
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RMB |
% |
RMB |
US$ |
% |
|||||
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(In thousands, except percentages) |
|||||||||
|
Line-haul transportation costs |
3,483,065 |
32.0 |
3,530,168 |
511,767 |
26.6 |
||||
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Sorting hub operating costs |
2,314,595 |
21.3 |
2,454,271 |
355,795 |
18.5 |
||||
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Freight forwarding costs |
172,792 |
1.6 |
154,265 |
22,364 |
1.2 |
||||
|
Material sales costs |
133,259 |
1.2 |
127,589 |
18,497 |
1.0 |
||||
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Other costs |
2,098,534 |
19.2 |
3,780,850 |
548,107 |
28.3 |
||||
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Total operating costs |
8,202,245 |
75.3 |
10,047,143 |
1,456,530 |
75.6 |
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Total operating costs were RMB 10,047.1 million (US$ 1,456.5 million), an increase of 22.5% from RMB 8,202.2 million in the same period last year.
Line-haul transportation costs were RMB 3,530.2 million (US$ 511.8 million), an increase of 1.4% from RMB 3,483.1 million in the same period last year. Unit transportation cost decreased by 9.8% or RMB 0.04, primarily due to improved economies of scale and higher loading rates from more efficient route planning.
Sorting hub operating costs were RMB 2,454.3 million (US$ 355.8 million), an increase of 6.0% from RMB 2,314.6 million in the same period last year. The increase was primarily due to (i) an increase in labor-related costs of RMB 74.3 million (US$ 10.8 million), partially offset by automation efficiency gains, and (ii) an increase in depreciation and amortization costs related to automation facilities and equipment upgrades of RMB 43.1 million (US$ 6.3 million). As of March 31, 2026, 780 sets of automated sorting equipment were in use, compared to 631 sets as of March 31, 2025.
Material sales costs were RMB 127.6 million (US$ 18.5 million), a decrease of 4.3% from RMB 133.3 million in the same period last year.
Other costs were RMB 3,780.9 million (US$ 548.1 million), an increase of 80.2% from RMB 2,098.5 million in the same period last year, primarily due to an increase of RMB 1,711.3 million (US$ 248.1 million) in pickup and delivery fees paid to partner outlets for serving direct customers.
Gross profit was RMB 3,235.2 million (US$ 469.0 million), an increase of 20.3% from RMB 2,689.2 million in the same period last year. Gross margin was 24.4%, compared to 24.7% in the same period last year.
Total operating expenses were RMB 690.0 million (US$ 100.0 million), compared to RMB 283.8 million in the same period last year.
Selling, general and administrative expenses were RMB 815.7 million (US$ 118.2 million), an increase of 10.6% from RMB 737.5 million in the same period last year. The increase primarily included (i) an increase in compensation and benefit costs of RMB 64.0 million (US$ 9.3 million), and (ii) an increase in depreciation and amortization costs related to administrative facilities and equipment of RMB 11.4 million (US$ 1.6 million).
Net other operating income was RMB 125.7 million (US$ 18.2 million), compared to RMB 453.7 million in the same period last year. Other operating income primarily included (i) government subsidies and tax rebates of RMB 80.9 million (US$ 11.7 million), and (ii) rental income of RMB 51.4 million (US$ 7.5 million).
Income from operations was RMB 2,545.3 million (US$ 369.0 million), an increase of 5.8% from RMB 2,405.4 million in the same period last year. Operating margin was 19.2%, compared to 22.1% in the same period last year.
Interest income was RMB 165.9 million (US$ 24.1 million), compared to RMB 198.4 million in the same period last year.
Interest expense was RMB 50.3 million (US$ 7.3 million), compared to RMB 68.9 million in the same period last year.
Gain from changes in fair value of financial instruments was RMB 54.9 million (US$ 8.0 million), compared to a gain of RMB 36.6 million in the same period last year. The changes in fair value of these financial instruments are determined by commercial banks based on estimated future redemption prices quoted under market conditions.
Income tax expense was RMB 552.2 million (US$ 80.0 million), compared to RMB 531.6 million in the same period last year. The effective income tax rate was 20.5%, a decrease of 0.2 percentage points year-over-year.
Net income was RMB 2,156.4 million (US$ 312.6 million), an increase of 5.7% from RMB 2,039.2 million in the same period last year.
Basic and diluted net income per ADS attributable to ordinary shareholders were RMB 2.73 (US$ 0.40) and RMB 2.68 (US$ 0.39), respectively, compared to basic and diluted net income per ADS of RMB 2.50 and RMB 2.44 in the same period last year.
Adjusted basic and diluted net income per ADS attributable to ordinary shareholders were RMB 3.01 (US$ 0.44) and RMB 2.95 (US$ 0.43), respectively, compared to RMB 2.77 and RMB 2.71 in the same period last year.
Adjusted net income was RMB 2,377.1 million (US$ 344.6 million), compared to RMB 2,259.3 million in the same period last year.
EBITDA[1] was RMB 3,720.7 million (US$ 539.4 million), compared to RMB 3,466.6 million in the same period last year.
Adjusted EBITDA was RMB 3,941.3 million (US$ 571.4 million), compared to RMB 3,686.7 million in the same period last year.
Net cash provided by operating activities was RMB 2,789.0 million (US$ 404.3 million), compared to RMB 2,363.0 million in the same period last year.
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(1) EBITDA is a non-GAAP financial measure, defined as net income excluding depreciation, amortization, interest expense and income tax expense. Management uses this measure to better reflect actual business operations. |
Resignation of Non-executive Director and Termination of Investor Rights Agreement
The Board of Directors announced that, given the recent termination of the Investor Rights Agreement entered into among the Company, the Company’s founder and certain subsidiaries of Alibaba Group Holding Limited in June 2018, Ms. Di Xu has resigned as a non-executive director of the Company, effective May 20, 2026. Ms. Xu has confirmed that (i) there is no disagreement with the Board of Directors (the “Board”), and (ii) there are no matters relating to her resignation that need to be brought to the attention of the Company’s shareholders or The Stock Exchange of Hong Kong Limited. The Board would like to take this opportunity to express its gratitude to Ms. Xu for her valuable contributions to the Company during her tenure.
Share Repurchase Plan
In March 2026, the Board approved a new share repurchase plan authorizing the repurchase of up to US$1.5 billion of the Company’s shares over the next 24 months, effective from March 20, 2026, until March 20, 2028. The Company expects to fund these repurchases from its existing cash balance.
Outlook
Based on current market and operating conditions, the Company reiterates its expectation for parcel volume growth of 10% to 13% year-over-year in 2026, with parcel volume ranging between 42.37 billion and 43.52 billion. This forecast is based on management’s current preliminary judgment and is subject to change.
Exchange Rate
For the convenience of readers, certain RMB amounts in this announcement have been translated into U.S. dollars at a specified rate. Unless otherwise stated, all translations from RMB to U.S. dollars were made at the rate of RMB 6.898 to US$1.00 (the noon buying rate in the City of New York for cable transfers as certified for customs purposes by the Federal Reserve Bank of New York as of March 31, 2026).
Use of Non-GAAP Financial Measures
The Company uses EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders, and adjusted basic and diluted earnings per ADS attributable to ordinary shareholders, each a non-GAAP financial measure, to evaluate ZTO’s operating performance and for financial and operational decision-making.
Reconciliations of the Company’s non-GAAP financial measures to its U.S. GAAP financial measures are presented in the tables at the end of this earnings release, which provide more details on the non-GAAP financial measures.
The Company believes that these non-GAAP measures help identify underlying trends in its business, avoid distortions that would otherwise arise from including the related charges and gains in operating profit and net income, provide useful information about its operating performance, enhance an overall understanding of its past performance and future prospects, and allow for greater clarity in the core metrics used by the Company’s management in financial and operational decision-making.
EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders, and adjusted basic and diluted earnings per ADS attributable to ordinary shareholders should not be considered in isolation from, or as a substitute for, net income or other performance measures, or as an indicator of the Company’s operating performance. ZTO encourages investors to compare historical non-GAAP financial measures with the most directly comparable GAAP measures. The EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders, and adjusted basic and diluted earnings per ADS attributable to ordinary shareholders presented in this announcement may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures for ZTO’s data. ZTO encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure.
Conference Call Information
ZTO’s management will hold an earnings conference call at 8:30 P.M. Eastern Time on Tuesday, May 19, 2026 (8:30 A.M. Beijing Time on Wednesday, May 20, 2026).
Dial-in details for the earnings conference call are as follows:
Please dial in 15 minutes before the scheduled start time and provide the passcode to join the call.
