ZTO Express-W (02057.HK) announced on August 21 that in the second quarter of 2024, the revenue was 10.726 billion yuan (1.476 billion US dollars), a year-on-year increase of 10.1%; gross profit was 3.621 billion yuan (0.498 billion US dollars), a year-on-year increase of 9.6%; net income was 2.614 billion yuan (0.36 billion US dollars), a year-on-year increase of 3.3%; adjusted EBITDA was 4.34 billion yuan (0.597 billion US dollars), a year-on-year increase of 11.7%; adjusted net profit was 2.806 billion yuan (0.386 billion US dollars), a year-on-year increase of 10.9%; basic and diluted net income per American Depositary Share was 3.24 yuan (0.45 US dollars) and 3.16 yuan (0.43 US dollars). The Board of Directors has approved a mid-term cash dividend of $0.35 per American Depositary Share and common share, payable to common shareholders and American Depositary Shareholders registered before the close of business on September 10, 2024.
In the second quarter of 2024, the parcel volume was 8.452 billion pieces, an increase of 10.1% compared to the same period in 2023. As of June 30, 2024, there are over 31,000 pick-up/delivery points. As of June 30, 2024, the number of direct network partners is over 6,000.
Mr. Lai Meisong, founder, chairman, and CEO of ZTO Express, said: "In the second quarter of this year, we continued to focus on our balanced growth strategy, optimizing parcel volume structure, improving operational efficiency, helping to reduce delivery costs, and increasing the profitability of stations and couriers, promoting the transformation from high quantity to high quality. With a parcel volume of 8.45 billion pieces, our market share decreased by 2 percentage points year-on-year to 19.6%, while adjusted net income increased by 10.9% to 2.8 billion yuan. By the end of this year, ZTO's scattered parcel volume is expected to double. We hope to step out of the 'Tongda System' step by step in terms of brand awareness and customer satisfaction, and further expand our leading advantage in profit growth." Mr. Lai added: "Despite the fast growth in the express delivery industry volume, competition remains fierce, and the industry as a whole is under significant pressure. Ensuring fair and stable network operations is crucial for us. Our measures to increase the revenue-sharing ratio for parcel collection and delivery will provide opportunities for franchisees and couriers to increase income, ultimately providing significant long-term pricing advantages at the front end."