{"success":true,"data":{"pressRelease":{"id":"40012","rtpr_id":"nPNA3WC5Da","ticker":"2057","exchange":"HKEX","all_tickers":["2057"],"title":"ZTO Reports First Quarter 2026 Unaudited Financial Results","author":"PR Newswire","published_at":"2026-05-19T22:00:01.625Z","article_body":"ZTO Reports First Quarter 2026 Unaudited Financial Results\nPR Newswire\n\nSHANGHAI, May 20, 2026\n\n9.7 Billion Parcel Volume Grew 7.4 Points Faster than Industry Average\nAdjusted Net Income Increased 5.2% to RMB2.4 Billion\n\nSHANGHAI, May 20, 2026 /PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO\nand SEHK: 2057), a leading and fast-growing express delivery company in China\n(\"ZTO\" or the \"Company\"), today announced its unaudited financial results for\nthe first quarter ended March 31, 2026([1]). The Company grew parcel volume by\n13.2% year over year while maintaining high quality of service and customer\nsatisfaction. Adjusted net income increased 5.2%([2]) to RMB2.4 billion. Net\ncash generated from operating activities was RMB2.8 billion.\n\nFirst Quarter 2026 Financial Highlights\n* Revenues were RMB13,282.4 million (US$1,925.5 million), an increase of 22.0%\nfrom RMB10,891.5 million in the same period of 2025.\n* Gross profit was RMB3,235.2 million (US$469.0 million), an increase of 20.3%\nfrom RMB2,689.2 million in the same period of 2025.\n* Net income was RMB2,156.4 million (US$312.6 million), an increase of 5.7%\nfrom RMB2,039.2 million in the same period of 2025.\n* Adjusted EBITDA([3]) was RMB3,941.3 million (US$571.4 million), an increase\nof 6.9% from RMB3,686.7 million in the same period of 2025.\n* Adjusted net income was RMB2,377.1 million (US$344.6 million), an increase\nof 5.2% from RMB2,259.3 million in the same period of 2025.\n* Basic and diluted net earnings per American depositary share (\"ADS\"([4]))\nwere RMB2.73 (US$0.40) and RMB2.68 (US$0.39), an increase of 9.2% and 9.8%\nfrom RMB2.50 and RMB2.44 in the same period of 2025, respectively.\n* Adjusted basic and diluted earnings per American depositary share\nattributable to ordinary shareholders([5]) were RMB3.01 (US$0.44) and RMB2.95\n(US$0.43), an increase of 8.7% and 8.9% from RMB2.77 and RMB2.71 in the same\nperiod of 2025 respectively.\n* Net cash provided by operating activities was RMB2,789.0 million (US$404.3\nmillion), compared with RMB2,363.0 million in the same period of 2025.\nOperational Highlights for First Quarter 2026\n* Parcel volume was 9,668 million, increased 13.2% from 8,539 million in the\nsame period of 2025.\n* Number of pickup/delivery outlets was over 31,000 as of March 31, 2026.\n* Number of direct network partners was approximately 6,000 as of March 31,\n2026.\n* Number of self-owned line-haul vehicles was over 10,000 as of March 31,\n2026.\n* Number of line-haul routes between sorting hubs was approximately 3,800 as\nof March 31, 2026.\n* Number of sorting hubs was 93 as of March 31, 2026, among which 88 are\noperated by the Company and 5 by the Company's network partners.\n [1] An investor relations presentation accompanies this earnings release and can be found at http://zto.investorroom.com . \n [2] Adjusted net income is a non-GAAP financial measure, which is defined as net income before share-based compensation expense and non-recurring items such as impairment of investments in equity investees, gain/(loss) on disposal of equity investment and subsidiary and corresponding tax impact which management aims to better represent the underlying business operations. \n [3] Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses, and further adjusted to exclude the shared-based compensation expense and non-recurring items such as impairment of investments in equity investees, gain/(loss) on disposal of equity investment and subsidiary which management aims to better represent the underlying business operations. \n [4] One ADS represents one Class A ordinary share. \n [5] Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders is a non-GAAP financial measure. It is defined as adjusted net income attributable to ordinary shareholders divided by weighted average number of basic and diluted American depositary shares, respectively. \n\nMr. Meisong Lai, Founder, Chairman and Chief Executive Officer of ZTO,\ncommented, \"During the first quarter of 2026, ZTO maintained focus on quality\nof services and customer satisfaction, and well executed our key strategies to\nimprove operating cost efficiencies and strengthening network pricing policy\nfairness and transparency. Our parcel volume reached 9.7 billion, which grew\n13.2%, or 7.4 points above industry average, mainly attributable to strong key\naccounts growth. Our adjusted net income was 2.4 billion, as the daily average\nretail volume continued to expand at a faster rate than traditional ecommerce\nvolume resulting in improved revenue structure that not only contributed to\nvolume increase as well as positive contribution to overall margin.\"\n\nMr. Lai added, \"China's express delivery industry is benefiting from the\nlasting effect of the anti-involution policy. It is well demonstrated by this\nquarter's industry-wide profit expansion, some faster than its volume growth,\nthat there was an increasing focus on quality growth. ZTO's Quality-First\nstrategy is consistent with regulatory attention as our operating efficiency\ncontinues to lead the industry and our effort to drive fairness and\ntransparency across the entire network has generated positive impact on\nsustainable long-term growth. Shared-Success is never meant to be a corporate\nslogan, and our work in being fair and supportive of our partners never ends\nespecially given the depth and width of our network footprint. By relying on\ndigitization and diligent follow-through, we are seeing better alignment of\nstrategy consensus and execution cohesiveness from headquarter to the\nfurthest-reached outlets.\"\n\nMs. Huiping Yan, Chief Financial Officer of ZTO, commented, \"For the first\nquarter, ZTO's core express ASP increased 8.2%, driven by a favorable\nmix-shift towards key accounts, which included fast-growing reverse logistics\nvolume, and its positive impact more than offset the per unit increase in\nvolume incentives. Combined unit sorting and transportation costs decreased 6\ncents, driven largely by volume-leveraged productivity gain. SG&A excluding\nSBC as a percentage of revenue improved to approximately 4.5% compared to 4.7%\nin the same period last year. Cash flow from operating activities was 2.8\nbillion, and capital spending was 1.8 billion.\"\n\nMs. Yan added, \"The sustainable growth strategy we focused on throughout the\nyears is equally effective during economic stabilization and recovery. Our\nunique partner-franchise model requires fine tuning from time to time to\nmaintain equitable sharing of the cost and profit. Our volume growth against\nindustry deceleration came from the consistency of anti-involution policy as\nwell as our initiatives to drive reasonable profit allocation for everyone\nunder the ZTO brand. We aim to strengthen our volume leadership, and we are\nmaintaining our annual parcel growth guidance at 10-13% over last year.\"\n\n First Quarter 2026 Unaudited Financial Results \n \n Three Months Ended March 31, \n 2025 2026 \n RMB % RMB US$ % \n (in thousands, except percentages) \n Express delivery services 10,122,290 92.9 12,523,779 1,815,567 94.3 \n Freight forwarding services 179,219 1.7 155,910 22,602 1.2 \n Sale of accessories 560,297 5.1 577,675 83,745 4.3 \n Others 29,659 0.3 25,000 3,624 0.2 \n Total revenues 10,891,465 100.0 13,282,364 1,925,538 100.0 \n\nTotal Revenues were RMB13,282.4 million (US$1,925.5 million), increased 22.0%\nfrom RMB10,891.5 million in the same period of 2025. Revenue from the core\nexpress delivery business increased by 22.5% compared to the same period of\n2025 as a result of a 13.2% growth in parcel volume and an 8.2% increase in\nparcel unit price. Key account revenue, generated by direct sales\norganizations, increased by 92.2% mainly driven by increase in e-commerce\nreturn parcels. Revenue from freight forwarding services decreased by 13.0%\ncompared to the same period of 2025. Revenue from sales of accessories,\nlargely consisted of sales of thermal paper for digital waybills, increased by\n3.1%. Other revenues were mainly derived from financing services.\n\n Three Months Ended March 31, \n 2025 2026 \n RMB % RMB US$ % \n (in thousands, except percentages) \n Line-haul transportation cost 3,483,065 32.0 3,530,168 511,767 26.6 \n Sorting hub operating cost 2,314,595 21.3 2,454,271 355,795 18.5 \n Freight forwarding cost 172,792 1.6 154,265 22,364 1.2 \n Cost of accessories sold 133,259 1.2 127,589 18,497 1.0 \n Other costs 2,098,534 19.2 3,780,850 548,107 28.3 \n Total cost of revenues 8,202,245 75.3 10,047,143 1,456,530 75.6 \n\nTotal cost of revenues was RMB10,047.1 million (US$1,456.5 million), an\nincrease of 22.5% from RMB8,202.2 million in the same period last year.\n\nLine-haul transportation cost was RMB3,530.2 million (US$511.8 million),\nincreased 1.4% from RMB3,483.1 million in the same period last year. The unit\ntransportation cost decreased 9.8% or 4 cents mainly attributable to better\neconomies of scale and improved load rate through more effective route\nplanning.\n\nSorting hub operating cost was RMB2,454.3 million (US$355.8 million),\nincreased 6.0% from RMB2,314.6 million in the same period last year. The\nincrease primarily consisted of (i) RMB74.3 million (US$10.8 million) increase\nin labor-associated costs partially offset by automation-driven efficiency\nimprovements, and (ii) RMB43.1 million (US$6.3 million) increase in\ndepreciation and amortization costs associated with automation facilities and\nequipment upgrades. As of March 31, 2026, there were 780 sets of automated\nsorting equipment in service, compared to 631 sets as of March 31, 2025.\n\nCost of accessories sold was RMB127.6 million (US$18.5 million), decreased by\n4.3% compared with RMB133.3 million in the same period last year.\n\nOther costs were RMB3,780.9 million (US$548.1 million), increased 80.2% from\nRMB2,098.5 million in the same period last year, which was mainly attributable\nto an increase of RMB1,711.3 million (US$248.1 million) for pickup and\ndispatching costs paid to network partners associated with serving key account\ncustomers.\n\nGross Profit was RMB3,235.2 million (US$469.0 million), increased by 20.3%\nfrom RMB2,689.2 million in the same period last year. Gross margin rate was\n24.4% compared to 24.7% in the same period last year.\n\nTotal Operating Expenses were RMB690.0 million (US$100.0 million), compared to\nRMB283.8 million in the same period last year.\n\nSelling, general and administrative expenses were RMB815.7 million (US$118.2\nmillion), increased by 10.6% from RMB737.5 million in the same period last\nyear, mainly due to (i) RMB64.0 million (US$9.3 million) increase in\ncompensation and benefit expenses, and (ii) RMB11.4 million (US$1.6 million)\nincrease in depreciation and amortization costs associated with administrative\nfacilities and equipment.\n\nOther operating income, net was RMB125.7 million (US$18.2 million), compared\nto RMB453.7 million in the same period last year. Other operating income\nmainly consisted of (i) RMB80.9 million (US$11.7 million) of government\nsubsidies and tax rebates, and (ii) RMB51.4 million (US$7.5 million) of rental\nincome.\n\nIncome from operations was RMB2,545.3 million (US$369.0 million), increased\n5.8% from RMB2,405.4 million for the same period last year. The operating\nmargin rate was 19.2% compared to 22.1% in the same period last year.\n\nInterest income was RMB165.9 million (US$24.1 million), compared with RMB198.4\nmillion in the same period last year.\n\nInterest expenses was RMB50.3 million (US$7.3 million), compared with RMB68.9\nmillion in the same period last year.\n\nGain from fair value changes of financial instruments was RMB54.9 million\n(US$8.0 million), compared with a gain of RMB36.6 million in the same period\nlast year. Such gain or loss from fair value changes of the financial\ninstruments is quoted by commercial banks according to market-based estimation\nof future redemption prices.\n\nIncome tax expenses were RMB552.2 million (US$80.0 million) compared to\nRMB531.6 million in the same period last year. Overall income tax rate was\n20.5%, decreased by 0.2 percentage points year over year.\n\nNet income was RMB2,156.4 million (US$312.6 million), which increased by 5.7%\nincrease from RMB2,039.2 million in the same period last year.\n\nBasic and diluted earnings per ADS attributable to ordinary shareholders were\nRMB2.73 (US$0.40) and RMB2.68 (US$0.39), compared to basic and diluted\nearnings per ADS of RMB2.50 and RMB2.44 in the same period last year,\nrespectively.\n\nAdjusted basic and diluted earnings per ADS attributable to ordinary\nshareholders were RMB3.01 (US$0.44) and RMB2.95 (US$0.43), compared with\nRMB2.77 and RMB2.71 in the same period last year, respectively.\n\nAdjusted net income was RMB2,377.1 million (US$344.6 million), compared with\nRMB2,259.3 million during the same period last year.\n\nEBITDA([1]) was RMB3,720.7 million (US$539.4 million), compared with\nRMB3,466.6 million in the same period last year.\n\nAdjusted EBITDA was RMB3,941.3 million (US$571.4 million), compared to\nRMB3,686.7 million in the same period last year.\n\nNet cash provided by operating activities was RMB2,789.0 million (US$404.3\nmillion), compared with RMB2,363.0 million in the same period last year.\n\n [1] EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses which management aims to better represent the underlying business operations. \n\nResignation of Non-Executive Director and Termination of Investor Rights\nAgreement\n\nThe Board announces that Ms. Di XU has tendered her resignation as a\nnon-executive director of the Company, with effect from May 20, 2026 given\nthe recent termination of the investor rights agreement entered by and among\nthe Company, the Company's founders and subsidiaries of Alibaba Group Holdings\nLimited in June 2018. Ms. Xu has confirmed that (i) she has no disagreement\nwith the board of directors of the Company (the \"Board\") and (ii) there is no\nmatter in respect of her resignation that needs to be brought to the attention\nof the shareholders of the Company or The Stock Exchange of Hong Kong. The\nBoard would like to take this opportunity to express its gratitude to Ms. Xu\nfor her valuable contribution to the Company during her tenure.\n\nCompany Share Repurchase Program\n\nThe Board has approved a new share repurchase program in March 2026,\nauthorizing the repurchase of up to US$1.5 billion of its shares over the next\n24 months, effective from March 20, 2026, through March 20, 2028. The Company\nexpects to fund these repurchases utilizing its existing cash balance.\n\nBusiness Outlook\n\nBased on current market and operating conditions, the Company reiterates that\nits parcel volume for 2026 is expected to increase by 10% to 13% year over\nyear, representing a parcel volume range of 42.37 billion to 43.52 billion.\nSuch estimates represent management's current and preliminary view, which are\nsubject to change.\n\nExchange Rate\n\nThis announcement contains translation of certain Renminbi amounts into U.S.\ndollars at specified rates solely for the convenience of readers. Unless\notherwise noted, all translations from Renminbi to U.S. dollars were made at\nthe exchange rate of RMB6.898 to US$1.00, the noon buying rate on March 31,\n2026 as set forth in the H.10 statistical release of the Board of Governors of\nthe Federal Reserve Systems.\n\nUse of Non-GAAP Financial Measures\n\nThe Company uses EBITDA, adjusted EBITDA, adjusted net income, adjusted net\nincome attributable to ordinary shareholders, and adjusted basic and diluted\nearnings per American depositary share attributable to ordinary shareholders,\neach a non-GAAP financial measure, in evaluating ZTO's operating results and\nfor financial and operational decision-making purposes.\n\nReconciliations of the Company's non-GAAP financial measures to its U.S. GAAP\nfinancial measures are shown in tables at the end of this earnings release,\nwhich provide more details about the non-GAAP financial measures.\n\nThe Company believes that such non-GAAP measures help identify underlying\ntrends in the Company's business that could otherwise be distorted by the\neffect of the related expenses and gains that the Company includes in income\nfrom operations and net income, and provide useful information about its\noperating results, enhance the overall understanding of its past performance\nand future prospects and allow for greater visibility with respect to key\nmetrics used by the Company's management in its financial and operational\ndecision-making.\n\nEBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable\nto ordinary shareholders and adjusted basic and diluted earnings per American\ndepositary share attributable to ordinary shareholders should not be\nconsidered in isolation or construed as an alternative to net income or any\nother measure of performance or as an indicator of the Company's operating\nperformance. Investors are encouraged to compare the historical non-GAAP\nfinancial measures to the most directly comparable GAAP measures. EBITDA,\nadjusted EBITDA, adjusted net income, adjusted net income attributable to\nordinary shareholders and adjusted basic and diluted earnings per American\ndepositary share attributable to ordinary shareholders presented here may not\nbe comparable to similarly titled measures presented by other companies. Other\ncompanies may calculate similarly titled measures differently, limiting their\nusefulness as comparative measures to ZTO's data. ZTO encourages investors and\nothers to review the Company's financial information in its entirety and not\nrely on a single financial measure.\n\nConference Call Information\n\nZTO's management team will host an earnings conference call at 8:30 PM U.S.\nEastern Time on Tuesday, May 19, 2026 (8:30 AM Beijing Time on Wednesday, May\n20, 2026).\n\nDial-in details for the earnings conference call are as follows:\n\n United States: 1-888-317-6003 \n Hong Kong: 800-963-976 \n Mainland China: 4001-206-115 \n International: 1-412-317-6061 \n Passcode: 2836360 \n\nPlease dial in 15 minutes before the call is scheduled to begin and provide\nthe passcode to join the call.\n\nA replay of the conference call may be accessed by phone at the following\nnumbers until May 25, 2026:\n\n United States: 1-855-669-9658 \n International: 1-412-317-0088 \n Passcode: 1895291 \n\nAdditionally, a live and archived webcast of the conference call will be\navailable at http://zto.investorroom.com. \n\nAbout ZTO Express (Cayman) Inc.\n\nZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK:2057) (\"ZTO\" or the \"Company\")\nis a leading and fast-growing express delivery company in China. ZTO provides\nexpress delivery service as well as other value-added logistics services\nthrough its extensive and reliable nationwide network coverage in China.\n\nZTO operates a highly scalable network partner model, which the Company\nbelieves is best suited to support the significant growth of e-commerce in\nChina. The Company leverages its network partners to provide pickup and\nlast-mile delivery services, while controlling the mission-critical line-haul\ntransportation and sorting network within the express delivery service value\nchain.\n\nFor more information, please visit http://zto.investorroom.com. \n\nSafe Harbor Statement\n\nThis announcement contains statements that may constitute \"forward-looking\"\nstatements pursuant to the \"safe harbor\" provisions of the U.S. Private\nSecurities Litigation Reform Act of 1995. These forward-looking statements can\nbe identified by terminology such as \"will,\" \"expects,\" \"anticipates,\" \"aims,\"\n\"future,\" \"intends,\" \"plans,\" \"believes,\" \"estimates,\" \"likely to,\" and other\nsimilar expressions. Among other things, the business outlook and quotations\nfrom management in this announcement contain forward-looking statements. ZTO\nmay also make written or oral forward-looking statements in its periodic\nreports to the U.S. Securities and Exchange Commission (the \"SEC\") and The\nStock Exchange of Hong Kong Limited (the \"HKEX\"), in its interim and annual\nreports to shareholders, in announcements, circulars or other publications\nmade on the website of the HKEX, in press releases and other written\nmaterials, and in oral statements made by its officers, directors, or\nemployees to third parties. Statements that are not historical facts,\nincluding but not limited to statements about ZTO's beliefs, plans, and\nexpectations, are forward-looking statements. Forward-looking statements\ninvolve inherent risks and uncertainties. A number of factors could cause\nactual results to  differ  materially  from  those  contained  in \nany  forward-looking  statement,  including  but  not  limited  to \nthe  following:  risks  relating  to  the development of the e-commerce\nand express delivery industries in China; its significant reliance on certain\nthird-party e-commerce platforms; risks associated with its network partners\nand their employees and personnel; intense competition which could adversely\naffect the Company's results of operations and market share; any service\ndisruption of the Company's sorting hubs or the outlets operated by its\nnetwork partners or its technology system; ZTO's ability to build its brand\nand withstand negative publicity, or other favorable government policies.\nFurther information regarding these and other risks is included in ZTO's\nfilings with the SEC and the HKEX. All information provided in this\nannouncement is as of the date of this announcement, and ZTO does not\nundertake any obligation to update any forward-looking statement, except as\nrequired under applicable law.\n\n UNAUDITED CONSOLIDATED FINANCIAL DATA \n \n Summary of Unaudited Consolidated Comprehensive Income Data: \n \n Three Months Ended March 31, \n 2025 2026 \n RMB RMB US$ \n (in thousands, except for share and per share data) \n Revenues 10,891,465 13,282,364 1,925,538 \n Cost of revenues (8,202,245) (10,047,143) (1,456,530) \n Gross profit 2,689,220 3,235,221 469,008 \n Operating (expenses)/income: \n Selling, general and administrative (737,511) (815,664) (118,246) \n Other operating income, net 453,669 125,711 18,224 \n Total operating expenses (283,842) (689,953) (100,022) \n Income from operations 2,405,378 2,545,268 368,986 \n Other income/(expenses): \n Interest income 198,392 165,945 24,057 \n Interest expense (68,876) (50,272) (7,288) \n Gain from fair value changes of financial instruments 36,613 54,944 7,965 \n Gain on disposal of equity investees, subsidiary and others 147 478 69 \n Foreign currency exchange loss before tax (4,044) (28,834) (4,180) \n Income before income tax, and share of income in equity method investments 2,567,610 2,687,529 389,609 \n Income tax expense (531,574) (552,180) (80,049) \n Share of income in equity method investments 3,145 21,007 3,045 \n Net income 2,039,181 2,156,356 312,605 \n Net income attributable to non-controlling interests (45,934) (38,023) (5,512) \n Net income attributable to ZTO Express (Cayman) Inc. 1,993,247 2,118,333 307,093 \n Net income attributable to ordinary shareholders 1,993,247 2,118,333 307,093 \n Net earnings per share attributed to ordinary shareholders \n Basic 2.50 2.73 0.40 \n Diluted 2.44 2.68 0.39 \n Weighted average shares used in calculating net earnings per ordinary share/ADS \n Basic 798,486,427 776,158,342 776,158,342 \n Diluted 832,052,527 798,341,566 798,341,566 \n Net income 2,039,181 2,156,356 312,605 \n Other comprehensive income/(expense) ,net of tax of nil: \n Foreign currency translation adjustment 8,701 (9,922) (1,438) \n Comprehensive income 2,047,882 2,146,434 311,167 \n Comprehensive income attributable to non-controlling interests (45,934) (38,023) (5,512) \n Comprehensive income attributable to ZTO Express (Cayman) Inc. 2,001,948 2,108,411 305,655 \n \n \n\n Unaudited Consolidated Balance Sheets Data: \n \n As of \n December 31, March 31, \n 2025 2026 \n RMB RMB US$ \n (in thousands, except for share data) \n ASSETS \n Current assets: \n Cash and cash equivalents 10,011,533 11,406,935 1,653,658 \n Restricted cash 29,129 29,129 4,223 \n Accounts receivable, net 1,287,475 1,264,820 183,360 \n Financing receivables 674,880 532,466 77,191 \n Short-term investment 15,620,892 19,079,372 2,765,928 \n Inventories 40,648 39,042 5,660 \n Advances to suppliers 719,277 743,940 107,849 \n Prepayments and other current assets 5,102,997 5,250,750 761,199 \n Amounts due from related parties 477,865 506,822 73,474 \n Total current assets 33,964,696 38,853,276 5,632,542 \n Investments in equity investees 1,951,910 2,164,047 313,721 \n Property and equipment, net 35,433,509 36,233,881 5,252,810 \n Land use rights, net 6,762,240 6,875,348 996,716 \n Intangible assets, net 52,758 45,466 6,591 \n Operating lease right-of-use assets 398,082 331,050 47,992 \n Goodwill 4,157,111 4,157,111 602,655 \n Deferred tax assets 1,103,655 1,191,798 172,774 \n Long-term investment 5,221,110 6,292,110 912,164 \n Long-term financing receivables 1,039,946 989,488 143,446 \n Other non-current assets 938,980 645,036 93,511 \n TOTAL ASSETS 91,023,997 97,778,611 14,174,922 \n LIABILITIES AND EQUITY \n Current liabilities \n Short-term bank borrowing 10,934,419 11,089,280 1,607,608 \n Accounts payable 2,577,229 2,420,258 350,864 \n Advances from customers 1,833,131 1,717,342 248,962 \n Income tax payable 279,541 287,950 41,744 \n Amounts due to related parties 796,660 92,221 13,369 \n Operating lease liabilities 139,787 120,382 17,452 \n Dividends payable 19,659 2,085,103 302,276 \n Other current liabilities 6,288,714 5,876,810 851,958 \n Total current liabilities 22,869,140 23,689,346 3,434,233 \n Long-term bank borrowing 18,000 17,000 2,464 \n Non-current operating lease liabilities 261,257 218,721 31,708 \n Deferred tax liabilities 615,073 628,469 91,109 \n Convertible senior bond 124,114 10,347,781 1,500,113 \n TOTAL LIABILITIES 23,887,584 34,901,317 5,059,627 \n Shareholders' equity \n Ordinary shares (US$0.0001 par value; 10,000,000,000 shares authorized; 513 495 72 \n 795,528,169 shares issued and 790,812,316 shares outstanding as of December \n 31, 2025; 769,900,693 shares issued and 766,482,022 shares outstanding \n as of March 31, 2026) \n Additional paid-in capital 24,000,698 22,795,854 3,304,705 \n Treasury shares, at cost (254,480) (245,970) (35,658) \n Retained earnings 42,918,864 39,859,455 5,778,408 \n Accumulated other comprehensive loss (281,266) (291,188) (42,213) \n ZTO Express (Cayman) Inc. shareholders' equity 66,384,329 62,118,646 9,005,314 \n Non-controlling interests 752,084 758,648 109,981 \n Total Equity 67,136,413 62,877,294 9,115,295 \n TOTAL LIABILITIES AND EQUITY 91,023,997 97,778,611 14,174,922 \n \n \n\n Summary of Unaudited Consolidated Cash Flow Data: \n \n Three Months Ended March 31, \n 2025 2026 \n RMB RMB US$ \n (in thousands) \n Net cash provided by operating activities 2,362,976 2,789,045 404,327 \n Net cash used in investing activities (3,158,465) (7,174,549) (1,040,091) \n Net cash (used in)/provided by financing activities (261,091) 5,831,073 845,328 \n Effect of exchange rate changes on cash, cash equivalents and restricted cash (12,560) (50,167) (7,273) \n Net (decrease)/increase in cash, cash equivalents and restricted cash (1,069,140) 1,395,402 202,291 \n Cash, cash equivalents and restricted cash at beginning of period 13,530,947 10,046,717 1,456,468 \n Cash, cash equivalents and restricted cash at end of period 12,461,807 11,442,119 1,658,759 \n \n\nThe following table provides a reconciliation of cash, cash equivalents and\nrestricted cash reported within the condensed consolidated balance sheets that\nsum to the total of the same such amounts shown in the condensed consolidated\nstatements of cash flows:\n\n As of \n December 31, March 31, \n 2025 2026 \n RMB RMB US$ \n (in thousands) \n Cash and cash equivalents 10,011,533 11,406,935 1,653,658 \n Restricted cash, current 29,129 29,129 4,223 \n Restricted cash, non-current 6,055 6,055 878 \n Total cash, cash equivalents and restricted cash 10,046,717 11,442,119 1,658,759 \n \n\n Reconciliations of GAAP and Non-GAAP Results \n \n Three Months Ended March 31, \n 2025 2026 \n RMB RMB US$ \n (in thousands, except for share and per share data) \n Net income 2,039,181 2,156,356 312,605 \n Add: \n Share-based compensation expense ((1)) 220,269 221,119 32,056 \n Gain on disposal of equity investees and subsidiary, net of income taxes (121) (395) (57) \n Adjusted net income 2,259,329 2,377,080 344,604 \n \n Net income 2,039,181 2,156,356 312,605 \n Add: \n Depreciation 789,108 912,649 132,306 \n Amortization 37,819 49,211 7,134 \n Interest expenses 68,876 50,272 7,288 \n Income tax expenses 531,574 552,180 80,049 \n EBITDA 3,466,558 3,720,668 539,382 \n \n Add: \n Share-based compensation expense 220,269 221,119 32,056 \n Gain on disposal of equity investees and subsidiary (147) (478) (69) \n Adjusted EBITDA 3,686,680 3,941,309 571,369 \n \n (1) Net of income taxes of nil \n \n \n\n Reconciliations of GAAP and Non-GAAP Results \n \n Three Months Ended March 31, \n 2025 2026 \n RMB RMB US$ \n (in thousands, except for share and per share data) \n Net income attributable to ordinary shareholders 1,993,247 2,118,333 307,093 \n Add: \n Share-based compensation expense ((1)) 220,269 221,119 32,056 \n Loss/(gain) on disposal of equity investees \n and subsidiary, net of income taxes (121) (395) (57) \n Adjusted Net income attributable to ordinary shareholders 2,213,395 2,339,057 339,092 \n \n Weighted average shares used in calculating net earnings per ordinary share/ADS \n Basic 798,486,427 776,158,342 776,158,342 \n Diluted 832,052,527 798,341,566 798,341,566 \n \n Net earnings per share/ADS attributable to \n ordinary shareholders \n Basic 2.50 2.73 0.40 \n Diluted 2.44 2.68 0.39 \n \n Adjusted net earnings per share/ADS \n attributable to ordinary shareholders \n Basic 2.77 3.01 0.44 \n Diluted 2.71 2.95 0.43 \n \n (1) Net of income taxes of nil \n\nFor investor and media inquiries, please contact:\nZTO Express (Cayman) Inc.\nInvestor Relations\nE-mail: ir@zto.com\nPhone: +86 21 5980 4508\n\nView original\ncontent:https://www.prnewswire.com/apac/news-releases/zto-reports-first-quarter-2026-unaudited-financial-results-302776373.html\n\nSOURCE ZTO Express (Cayman) Inc.\n\n\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPNA3WC5Da","title":"ZTO Reports First Quarter 2026 Unaudited Financial Results","author":"PR Newswire","ticker":"2057","created":"2026-05-19T22:00:01.625Z","tickers":["2057"],"exchange":"HKEX","article_body":"ZTO Reports First Quarter 2026 Unaudited Financial Results\nPR Newswire\n\nSHANGHAI, May 20, 2026\n\n9.7 Billion Parcel Volume Grew 7.4 Points Faster than Industry Average\nAdjusted Net Income Increased 5.2% to RMB2.4 Billion\n\nSHANGHAI, May 20, 2026 /PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO\nand SEHK: 2057), a leading and fast-growing express delivery company in China\n(\"ZTO\" or the \"Company\"), today announced its unaudited financial results for\nthe first quarter ended March 31, 2026([1]). The Company grew parcel volume by\n13.2% year over year while maintaining high quality of service and customer\nsatisfaction. Adjusted net income increased 5.2%([2]) to RMB2.4 billion. Net\ncash generated from operating activities was RMB2.8 billion.\n\nFirst Quarter 2026 Financial Highlights\n* Revenues were RMB13,282.4 million (US$1,925.5 million), an increase of 22.0%\nfrom RMB10,891.5 million in the same period of 2025.\n* Gross profit was RMB3,235.2 million (US$469.0 million), an increase of 20.3%\nfrom RMB2,689.2 million in the same period of 2025.\n* Net income was RMB2,156.4 million (US$312.6 million), an increase of 5.7%\nfrom RMB2,039.2 million in the same period of 2025.\n* Adjusted EBITDA([3]) was RMB3,941.3 million (US$571.4 million), an increase\nof 6.9% from RMB3,686.7 million in the same period of 2025.\n* Adjusted net income was RMB2,377.1 million (US$344.6 million), an increase\nof 5.2% from RMB2,259.3 million in the same period of 2025.\n* Basic and diluted net earnings per American depositary share (\"ADS\"([4]))\nwere RMB2.73 (US$0.40) and RMB2.68 (US$0.39), an increase of 9.2% and 9.8%\nfrom RMB2.50 and RMB2.44 in the same period of 2025, respectively.\n* Adjusted basic and diluted earnings per American depositary share\nattributable to ordinary shareholders([5]) were RMB3.01 (US$0.44) and RMB2.95\n(US$0.43), an increase of 8.7% and 8.9% from RMB2.77 and RMB2.71 in the same\nperiod of 2025 respectively.\n* Net cash provided by operating activities was RMB2,789.0 million (US$404.3\nmillion), compared with RMB2,363.0 million in the same period of 2025.\nOperational Highlights for First Quarter 2026\n* Parcel volume was 9,668 million, increased 13.2% from 8,539 million in the\nsame period of 2025.\n* Number of pickup/delivery outlets was over 31,000 as of March 31, 2026.\n* Number of direct network partners was approximately 6,000 as of March 31,\n2026.\n* Number of self-owned line-haul vehicles was over 10,000 as of March 31,\n2026.\n* Number of line-haul routes between sorting hubs was approximately 3,800 as\nof March 31, 2026.\n* Number of sorting hubs was 93 as of March 31, 2026, among which 88 are\noperated by the Company and 5 by the Company's network partners.\n [1] An investor relations presentation accompanies this earnings release and can be found at http://zto.investorroom.com . \n [2] Adjusted net income is a non-GAAP financial measure, which is defined as net income before share-based compensation expense and non-recurring items such as impairment of investments in equity investees, gain/(loss) on disposal of equity investment and subsidiary and corresponding tax impact which management aims to better represent the underlying business operations. \n [3] Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses, and further adjusted to exclude the shared-based compensation expense and non-recurring items such as impairment of investments in equity investees, gain/(loss) on disposal of equity investment and subsidiary which management aims to better represent the underlying business operations. \n [4] One ADS represents one Class A ordinary share. \n [5] Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders is a non-GAAP financial measure. It is defined as adjusted net income attributable to ordinary shareholders divided by weighted average number of basic and diluted American depositary shares, respectively. \n\nMr. Meisong Lai, Founder, Chairman and Chief Executive Officer of ZTO,\ncommented, \"During the first quarter of 2026, ZTO maintained focus on quality\nof services and customer satisfaction, and well executed our key strategies to\nimprove operating cost efficiencies and strengthening network pricing policy\nfairness and transparency. Our parcel volume reached 9.7 billion, which grew\n13.2%, or 7.4 points above industry average, mainly attributable to strong key\naccounts growth. Our adjusted net income was 2.4 billion, as the daily average\nretail volume continued to expand at a faster rate than traditional ecommerce\nvolume resulting in improved revenue structure that not only contributed to\nvolume increase as well as positive contribution to overall margin.\"\n\nMr. Lai added, \"China's express delivery industry is benefiting from the\nlasting effect of the anti-involution policy. It is well demonstrated by this\nquarter's industry-wide profit expansion, some faster than its volume growth,\nthat there was an increasing focus on quality growth. ZTO's Quality-First\nstrategy is consistent with regulatory attention as our operating efficiency\ncontinues to lead the industry and our effort to drive fairness and\ntransparency across the entire network has generated positive impact on\nsustainable long-term growth. Shared-Success is never meant to be a corporate\nslogan, and our work in being fair and supportive of our partners never ends\nespecially given the depth and width of our network footprint. By relying on\ndigitization and diligent follow-through, we are seeing better alignment of\nstrategy consensus and execution cohesiveness from headquarter to the\nfurthest-reached outlets.\"\n\nMs. Huiping Yan, Chief Financial Officer of ZTO, commented, \"For the first\nquarter, ZTO's core express ASP increased 8.2%, driven by a favorable\nmix-shift towards key accounts, which included fast-growing reverse logistics\nvolume, and its positive impact more than offset the per unit increase in\nvolume incentives. Combined unit sorting and transportation costs decreased 6\ncents, driven largely by volume-leveraged productivity gain. SG&A excluding\nSBC as a percentage of revenue improved to approximately 4.5% compared to 4.7%\nin the same period last year. Cash flow from operating activities was 2.8\nbillion, and capital spending was 1.8 billion.\"\n\nMs. Yan added, \"The sustainable growth strategy we focused on throughout the\nyears is equally effective during economic stabilization and recovery. Our\nunique partner-franchise model requires fine tuning from time to time to\nmaintain equitable sharing of the cost and profit. Our volume growth against\nindustry deceleration came from the consistency of anti-involution policy as\nwell as our initiatives to drive reasonable profit allocation for everyone\nunder the ZTO brand. We aim to strengthen our volume leadership, and we are\nmaintaining our annual parcel growth guidance at 10-13% over last year.\"\n\n First Quarter 2026 Unaudited Financial Results \n \n Three Months Ended March 31, \n 2025 2026 \n RMB % RMB US$ % \n (in thousands, except percentages) \n Express delivery services 10,122,290 92.9 12,523,779 1,815,567 94.3 \n Freight forwarding services 179,219 1.7 155,910 22,602 1.2 \n Sale of accessories 560,297 5.1 577,675 83,745 4.3 \n Others 29,659 0.3 25,000 3,624 0.2 \n Total revenues 10,891,465 100.0 13,282,364 1,925,538 100.0 \n\nTotal Revenues were RMB13,282.4 million (US$1,925.5 million), increased 22.0%\nfrom RMB10,891.5 million in the same period of 2025. Revenue from the core\nexpress delivery business increased by 22.5% compared to the same period of\n2025 as a result of a 13.2% growth in parcel volume and an 8.2% increase in\nparcel unit price. Key account revenue, generated by direct sales\norganizations, increased by 92.2% mainly driven by increase in e-commerce\nreturn parcels. Revenue from freight forwarding services decreased by 13.0%\ncompared to the same period of 2025. Revenue from sales of accessories,\nlargely consisted of sales of thermal paper for digital waybills, increased by\n3.1%. Other revenues were mainly derived from financing services.\n\n Three Months Ended March 31, \n 2025 2026 \n RMB % RMB US$ % \n (in thousands, except percentages) \n Line-haul transportation cost 3,483,065 32.0 3,530,168 511,767 26.6 \n Sorting hub operating cost 2,314,595 21.3 2,454,271 355,795 18.5 \n Freight forwarding cost 172,792 1.6 154,265 22,364 1.2 \n Cost of accessories sold 133,259 1.2 127,589 18,497 1.0 \n Other costs 2,098,534 19.2 3,780,850 548,107 28.3 \n Total cost of revenues 8,202,245 75.3 10,047,143 1,456,530 75.6 \n\nTotal cost of revenues was RMB10,047.1 million (US$1,456.5 million), an\nincrease of 22.5% from RMB8,202.2 million in the same period last year.\n\nLine-haul transportation cost was RMB3,530.2 million (US$511.8 million),\nincreased 1.4% from RMB3,483.1 million in the same period last year. The unit\ntransportation cost decreased 9.8% or 4 cents mainly attributable to better\neconomies of scale and improved load rate through more effective route\nplanning.\n\nSorting hub operating cost was RMB2,454.3 million (US$355.8 million),\nincreased 6.0% from RMB2,314.6 million in the same period last year. The\nincrease primarily consisted of (i) RMB74.3 million (US$10.8 million) increase\nin labor-associated costs partially offset by automation-driven efficiency\nimprovements, and (ii) RMB43.1 million (US$6.3 million) increase in\ndepreciation and amortization costs associated with automation facilities and\nequipment upgrades. As of March 31, 2026, there were 780 sets of automated\nsorting equipment in service, compared to 631 sets as of March 31, 2025.\n\nCost of accessories sold was RMB127.6 million (US$18.5 million), decreased by\n4.3% compared with RMB133.3 million in the same period last year.\n\nOther costs were RMB3,780.9 million (US$548.1 million), increased 80.2% from\nRMB2,098.5 million in the same period last year, which was mainly attributable\nto an increase of RMB1,711.3 million (US$248.1 million) for pickup and\ndispatching costs paid to network partners associated with serving key account\ncustomers.\n\nGross Profit was RMB3,235.2 million (US$469.0 million), increased by 20.3%\nfrom RMB2,689.2 million in the same period last year. Gross margin rate was\n24.4% compared to 24.7% in the same period last year.\n\nTotal Operating Expenses were RMB690.0 million (US$100.0 million), compared to\nRMB283.8 million in the same period last year.\n\nSelling, general and administrative expenses were RMB815.7 million (US$118.2\nmillion), increased by 10.6% from RMB737.5 million in the same period last\nyear, mainly due to (i) RMB64.0 million (US$9.3 million) increase in\ncompensation and benefit expenses, and (ii) RMB11.4 million (US$1.6 million)\nincrease in depreciation and amortization costs associated with administrative\nfacilities and equipment.\n\nOther operating income, net was RMB125.7 million (US$18.2 million), compared\nto RMB453.7 million in the same period last year. Other operating income\nmainly consisted of (i) RMB80.9 million (US$11.7 million) of government\nsubsidies and tax rebates, and (ii) RMB51.4 million (US$7.5 million) of rental\nincome.\n\nIncome from operations was RMB2,545.3 million (US$369.0 million), increased\n5.8% from RMB2,405.4 million for the same period last year. The operating\nmargin rate was 19.2% compared to 22.1% in the same period last year.\n\nInterest income was RMB165.9 million (US$24.1 million), compared with RMB198.4\nmillion in the same period last year.\n\nInterest expenses was RMB50.3 million (US$7.3 million), compared with RMB68.9\nmillion in the same period last year.\n\nGain from fair value changes of financial instruments was RMB54.9 million\n(US$8.0 million), compared with a gain of RMB36.6 million in the same period\nlast year. Such gain or loss from fair value changes of the financial\ninstruments is quoted by commercial banks according to market-based estimation\nof future redemption prices.\n\nIncome tax expenses were RMB552.2 million (US$80.0 million) compared to\nRMB531.6 million in the same period last year. Overall income tax rate was\n20.5%, decreased by 0.2 percentage points year over year.\n\nNet income was RMB2,156.4 million (US$312.6 million), which increased by 5.7%\nincrease from RMB2,039.2 million in the same period last year.\n\nBasic and diluted earnings per ADS attributable to ordinary shareholders were\nRMB2.73 (US$0.40) and RMB2.68 (US$0.39), compared to basic and diluted\nearnings per ADS of RMB2.50 and RMB2.44 in the same period last year,\nrespectively.\n\nAdjusted basic and diluted earnings per ADS attributable to ordinary\nshareholders were RMB3.01 (US$0.44) and RMB2.95 (US$0.43), compared with\nRMB2.77 and RMB2.71 in the same period last year, respectively.\n\nAdjusted net income was RMB2,377.1 million (US$344.6 million), compared with\nRMB2,259.3 million during the same period last year.\n\nEBITDA([1]) was RMB3,720.7 million (US$539.4 million), compared with\nRMB3,466.6 million in the same period last year.\n\nAdjusted EBITDA was RMB3,941.3 million (US$571.4 million), compared to\nRMB3,686.7 million in the same period last year.\n\nNet cash provided by operating activities was RMB2,789.0 million (US$404.3\nmillion), compared with RMB2,363.0 million in the same period last year.\n\n [1] EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses which management aims to better represent the underlying business operations. \n\nResignation of Non-Executive Director and Termination of Investor Rights\nAgreement\n\nThe Board announces that Ms. Di XU has tendered her resignation as a\nnon-executive director of the Company, with effect from May 20, 2026 given\nthe recent termination of the investor rights agreement entered by and among\nthe Company, the Company's founders and subsidiaries of Alibaba Group Holdings\nLimited in June 2018. Ms. Xu has confirmed that (i) she has no disagreement\nwith the board of directors of the Company (the \"Board\") and (ii) there is no\nmatter in respect of her resignation that needs to be brought to the attention\nof the shareholders of the Company or The Stock Exchange of Hong Kong. The\nBoard would like to take this opportunity to express its gratitude to Ms. Xu\nfor her valuable contribution to the Company during her tenure.\n\nCompany Share Repurchase Program\n\nThe Board has approved a new share repurchase program in March 2026,\nauthorizing the repurchase of up to US$1.5 billion of its shares over the next\n24 months, effective from March 20, 2026, through March 20, 2028. The Company\nexpects to fund these repurchases utilizing its existing cash balance.\n\nBusiness Outlook\n\nBased on current market and operating conditions, the Company reiterates that\nits parcel volume for 2026 is expected to increase by 10% to 13% year over\nyear, representing a parcel volume range of 42.37 billion to 43.52 billion.\nSuch estimates represent management's current and preliminary view, which are\nsubject to change.\n\nExchange Rate\n\nThis announcement contains translation of certain Renminbi amounts into U.S.\ndollars at specified rates solely for the convenience of readers. Unless\notherwise noted, all translations from Renminbi to U.S. dollars were made at\nthe exchange rate of RMB6.898 to US$1.00, the noon buying rate on March 31,\n2026 as set forth in the H.10 statistical release of the Board of Governors of\nthe Federal Reserve Systems.\n\nUse of Non-GAAP Financial Measures\n\nThe Company uses EBITDA, adjusted EBITDA, adjusted net income, adjusted net\nincome attributable to ordinary shareholders, and adjusted basic and diluted\nearnings per American depositary share attributable to ordinary shareholders,\neach a non-GAAP financial measure, in evaluating ZTO's operating results and\nfor financial and operational decision-making purposes.\n\nReconciliations of the Company's non-GAAP financial measures to its U.S. GAAP\nfinancial measures are shown in tables at the end of this earnings release,\nwhich provide more details about the non-GAAP financial measures.\n\nThe Company believes that such non-GAAP measures help identify underlying\ntrends in the Company's business that could otherwise be distorted by the\neffect of the related expenses and gains that the Company includes in income\nfrom operations and net income, and provide useful information about its\noperating results, enhance the overall understanding of its past performance\nand future prospects and allow for greater visibility with respect to key\nmetrics used by the Company's management in its financial and operational\ndecision-making.\n\nEBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable\nto ordinary shareholders and adjusted basic and diluted earnings per American\ndepositary share attributable to ordinary shareholders should not be\nconsidered in isolation or construed as an alternative to net income or any\nother measure of performance or as an indicator of the Company's operating\nperformance. Investors are encouraged to compare the historical non-GAAP\nfinancial measures to the most directly comparable GAAP measures. EBITDA,\nadjusted EBITDA, adjusted net income, adjusted net income attributable to\nordinary shareholders and adjusted basic and diluted earnings per American\ndepositary share attributable to ordinary shareholders presented here may not\nbe comparable to similarly titled measures presented by other companies. Other\ncompanies may calculate similarly titled measures differently, limiting their\nusefulness as comparative measures to ZTO's data. ZTO encourages investors and\nothers to review the Company's financial information in its entirety and not\nrely on a single financial measure.\n\nConference Call Information\n\nZTO's management team will host an earnings conference call at 8:30 PM U.S.\nEastern Time on Tuesday, May 19, 2026 (8:30 AM Beijing Time on Wednesday, May\n20, 2026).\n\nDial-in details for the earnings conference call are as follows:\n\n United States: 1-888-317-6003 \n Hong Kong: 800-963-976 \n Mainland China: 4001-206-115 \n International: 1-412-317-6061 \n Passcode: 2836360 \n\nPlease dial in 15 minutes before the call is scheduled to begin and provide\nthe passcode to join the call.\n\nA replay of the conference call may be accessed by phone at the following\nnumbers until May 25, 2026:\n\n United States: 1-855-669-9658 \n International: 1-412-317-0088 \n Passcode: 1895291 \n\nAdditionally, a live and archived webcast of the conference call will be\navailable at http://zto.investorroom.com. \n\nAbout ZTO Express (Cayman) Inc.\n\nZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK:2057) (\"ZTO\" or the \"Company\")\nis a leading and fast-growing express delivery company in China. ZTO provides\nexpress delivery service as well as other value-added logistics services\nthrough its extensive and reliable nationwide network coverage in China.\n\nZTO operates a highly scalable network partner model, which the Company\nbelieves is best suited to support the significant growth of e-commerce in\nChina. The Company leverages its network partners to provide pickup and\nlast-mile delivery services, while controlling the mission-critical line-haul\ntransportation and sorting network within the express delivery service value\nchain.\n\nFor more information, please visit http://zto.investorroom.com. \n\nSafe Harbor Statement\n\nThis announcement contains statements that may constitute \"forward-looking\"\nstatements pursuant to the \"safe harbor\" provisions of the U.S. Private\nSecurities Litigation Reform Act of 1995. These forward-looking statements can\nbe identified by terminology such as \"will,\" \"expects,\" \"anticipates,\" \"aims,\"\n\"future,\" \"intends,\" \"plans,\" \"believes,\" \"estimates,\" \"likely to,\" and other\nsimilar expressions. Among other things, the business outlook and quotations\nfrom management in this announcement contain forward-looking statements. ZTO\nmay also make written or oral forward-looking statements in its periodic\nreports to the U.S. Securities and Exchange Commission (the \"SEC\") and The\nStock Exchange of Hong Kong Limited (the \"HKEX\"), in its interim and annual\nreports to shareholders, in announcements, circulars or other publications\nmade on the website of the HKEX, in press releases and other written\nmaterials, and in oral statements made by its officers, directors, or\nemployees to third parties. Statements that are not historical facts,\nincluding but not limited to statements about ZTO's beliefs, plans, and\nexpectations, are forward-looking statements. Forward-looking statements\ninvolve inherent risks and uncertainties. A number of factors could cause\nactual results to  differ  materially  from  those  contained  in \nany  forward-looking  statement,  including  but  not  limited  to \nthe  following:  risks  relating  to  the development of the e-commerce\nand express delivery industries in China; its significant reliance on certain\nthird-party e-commerce platforms; risks associated with its network partners\nand their employees and personnel; intense competition which could adversely\naffect the Company's results of operations and market share; any service\ndisruption of the Company's sorting hubs or the outlets operated by its\nnetwork partners or its technology system; ZTO's ability to build its brand\nand withstand negative publicity, or other favorable government policies.\nFurther information regarding these and other risks is included in ZTO's\nfilings with the SEC and the HKEX. All information provided in this\nannouncement is as of the date of this announcement, and ZTO does not\nundertake any obligation to update any forward-looking statement, except as\nrequired under applicable law.\n\n UNAUDITED CONSOLIDATED FINANCIAL DATA \n \n Summary of Unaudited Consolidated Comprehensive Income Data: \n \n Three Months Ended March 31, \n 2025 2026 \n RMB RMB US$ \n (in thousands, except for share and per share data) \n Revenues 10,891,465 13,282,364 1,925,538 \n Cost of revenues (8,202,245) (10,047,143) (1,456,530) \n Gross profit 2,689,220 3,235,221 469,008 \n Operating (expenses)/income: \n Selling, general and administrative (737,511) (815,664) (118,246) \n Other operating income, net 453,669 125,711 18,224 \n Total operating expenses (283,842) (689,953) (100,022) \n Income from operations 2,405,378 2,545,268 368,986 \n Other income/(expenses): \n Interest income 198,392 165,945 24,057 \n Interest expense (68,876) (50,272) (7,288) \n Gain from fair value changes of financial instruments 36,613 54,944 7,965 \n Gain on disposal of equity investees, subsidiary and others 147 478 69 \n Foreign currency exchange loss before tax (4,044) (28,834) (4,180) \n Income before income tax, and share of income in equity method investments 2,567,610 2,687,529 389,609 \n Income tax expense (531,574) (552,180) (80,049) \n Share of income in equity method investments 3,145 21,007 3,045 \n Net income 2,039,181 2,156,356 312,605 \n Net income attributable to non-controlling interests (45,934) (38,023) (5,512) \n Net income attributable to ZTO Express (Cayman) Inc. 1,993,247 2,118,333 307,093 \n Net income attributable to ordinary shareholders 1,993,247 2,118,333 307,093 \n Net earnings per share attributed to ordinary shareholders \n Basic 2.50 2.73 0.40 \n Diluted 2.44 2.68 0.39 \n Weighted average shares used in calculating net earnings per ordinary share/ADS \n Basic 798,486,427 776,158,342 776,158,342 \n Diluted 832,052,527 798,341,566 798,341,566 \n Net income 2,039,181 2,156,356 312,605 \n Other comprehensive income/(expense) ,net of tax of nil: \n Foreign currency translation adjustment 8,701 (9,922) (1,438) \n Comprehensive income 2,047,882 2,146,434 311,167 \n Comprehensive income attributable to non-controlling interests (45,934) (38,023) (5,512) \n Comprehensive income attributable to ZTO Express (Cayman) Inc. 2,001,948 2,108,411 305,655 \n \n \n\n Unaudited Consolidated Balance Sheets Data: \n \n As of \n December 31, March 31, \n 2025 2026 \n RMB RMB US$ \n (in thousands, except for share data) \n ASSETS \n Current assets: \n Cash and cash equivalents 10,011,533 11,406,935 1,653,658 \n Restricted cash 29,129 29,129 4,223 \n Accounts receivable, net 1,287,475 1,264,820 183,360 \n Financing receivables 674,880 532,466 77,191 \n Short-term investment 15,620,892 19,079,372 2,765,928 \n Inventories 40,648 39,042 5,660 \n Advances to suppliers 719,277 743,940 107,849 \n Prepayments and other current assets 5,102,997 5,250,750 761,199 \n Amounts due from related parties 477,865 506,822 73,474 \n Total current assets 33,964,696 38,853,276 5,632,542 \n Investments in equity investees 1,951,910 2,164,047 313,721 \n Property and equipment, net 35,433,509 36,233,881 5,252,810 \n Land use rights, net 6,762,240 6,875,348 996,716 \n Intangible assets, net 52,758 45,466 6,591 \n Operating lease right-of-use assets 398,082 331,050 47,992 \n Goodwill 4,157,111 4,157,111 602,655 \n Deferred tax assets 1,103,655 1,191,798 172,774 \n Long-term investment 5,221,110 6,292,110 912,164 \n Long-term financing receivables 1,039,946 989,488 143,446 \n Other non-current assets 938,980 645,036 93,511 \n TOTAL ASSETS 91,023,997 97,778,611 14,174,922 \n LIABILITIES AND EQUITY \n Current liabilities \n Short-term bank borrowing 10,934,419 11,089,280 1,607,608 \n Accounts payable 2,577,229 2,420,258 350,864 \n Advances from customers 1,833,131 1,717,342 248,962 \n Income tax payable 279,541 287,950 41,744 \n Amounts due to related parties 796,660 92,221 13,369 \n Operating lease liabilities 139,787 120,382 17,452 \n Dividends payable 19,659 2,085,103 302,276 \n Other current liabilities 6,288,714 5,876,810 851,958 \n Total current liabilities 22,869,140 23,689,346 3,434,233 \n Long-term bank borrowing 18,000 17,000 2,464 \n Non-current operating lease liabilities 261,257 218,721 31,708 \n Deferred tax liabilities 615,073 628,469 91,109 \n Convertible senior bond 124,114 10,347,781 1,500,113 \n TOTAL LIABILITIES 23,887,584 34,901,317 5,059,627 \n Shareholders' equity \n Ordinary shares (US$0.0001 par value; 10,000,000,000 shares authorized; 513 495 72 \n 795,528,169 shares issued and 790,812,316 shares outstanding as of December \n 31, 2025; 769,900,693 shares issued and 766,482,022 shares outstanding \n as of March 31, 2026) \n Additional paid-in capital 24,000,698 22,795,854 3,304,705 \n Treasury shares, at cost (254,480) (245,970) (35,658) \n Retained earnings 42,918,864 39,859,455 5,778,408 \n Accumulated other comprehensive loss (281,266) (291,188) (42,213) \n ZTO Express (Cayman) Inc. shareholders' equity 66,384,329 62,118,646 9,005,314 \n Non-controlling interests 752,084 758,648 109,981 \n Total Equity 67,136,413 62,877,294 9,115,295 \n TOTAL LIABILITIES AND EQUITY 91,023,997 97,778,611 14,174,922 \n \n \n\n Summary of Unaudited Consolidated Cash Flow Data: \n \n Three Months Ended March 31, \n 2025 2026 \n RMB RMB US$ \n (in thousands) \n Net cash provided by operating activities 2,362,976 2,789,045 404,327 \n Net cash used in investing activities (3,158,465) (7,174,549) (1,040,091) \n Net cash (used in)/provided by financing activities (261,091) 5,831,073 845,328 \n Effect of exchange rate changes on cash, cash equivalents and restricted cash (12,560) (50,167) (7,273) \n Net (decrease)/increase in cash, cash equivalents and restricted cash (1,069,140) 1,395,402 202,291 \n Cash, cash equivalents and restricted cash at beginning of period 13,530,947 10,046,717 1,456,468 \n Cash, cash equivalents and restricted cash at end of period 12,461,807 11,442,119 1,658,759 \n \n\nThe following table provides a reconciliation of cash, cash equivalents and\nrestricted cash reported within the condensed consolidated balance sheets that\nsum to the total of the same such amounts shown in the condensed consolidated\nstatements of cash flows:\n\n As of \n December 31, March 31, \n 2025 2026 \n RMB RMB US$ \n (in thousands) \n Cash and cash equivalents 10,011,533 11,406,935 1,653,658 \n Restricted cash, current 29,129 29,129 4,223 \n Restricted cash, non-current 6,055 6,055 878 \n Total cash, cash equivalents and restricted cash 10,046,717 11,442,119 1,658,759 \n \n\n Reconciliations of GAAP and Non-GAAP Results \n \n Three Months Ended March 31, \n 2025 2026 \n RMB RMB US$ \n (in thousands, except for share and per share data) \n Net income 2,039,181 2,156,356 312,605 \n Add: \n Share-based compensation expense ((1)) 220,269 221,119 32,056 \n Gain on disposal of equity investees and subsidiary, net of income taxes (121) (395) (57) \n Adjusted net income 2,259,329 2,377,080 344,604 \n \n Net income 2,039,181 2,156,356 312,605 \n Add: \n Depreciation 789,108 912,649 132,306 \n Amortization 37,819 49,211 7,134 \n Interest expenses 68,876 50,272 7,288 \n Income tax expenses 531,574 552,180 80,049 \n EBITDA 3,466,558 3,720,668 539,382 \n \n Add: \n Share-based compensation expense 220,269 221,119 32,056 \n Gain on disposal of equity investees and subsidiary (147) (478) (69) \n Adjusted EBITDA 3,686,680 3,941,309 571,369 \n \n (1) Net of income taxes of nil \n \n \n\n Reconciliations of GAAP and Non-GAAP Results \n \n Three Months Ended March 31, \n 2025 2026 \n RMB RMB US$ \n (in thousands, except for share and per share data) \n Net income attributable to ordinary shareholders 1,993,247 2,118,333 307,093 \n Add: \n Share-based compensation expense ((1)) 220,269 221,119 32,056 \n Loss/(gain) on disposal of equity investees \n and subsidiary, net of income taxes (121) (395) (57) \n Adjusted Net income attributable to ordinary shareholders 2,213,395 2,339,057 339,092 \n \n Weighted average shares used in calculating net earnings per ordinary share/ADS \n Basic 798,486,427 776,158,342 776,158,342 \n Diluted 832,052,527 798,341,566 798,341,566 \n \n Net earnings per share/ADS attributable to \n ordinary shareholders \n Basic 2.50 2.73 0.40 \n Diluted 2.44 2.68 0.39 \n \n Adjusted net earnings per share/ADS \n attributable to ordinary shareholders \n Basic 2.77 3.01 0.44 \n Diluted 2.71 2.95 0.43 \n \n (1) Net of income taxes of nil \n\nFor investor and media inquiries, please contact:\nZTO Express (Cayman) Inc.\nInvestor Relations\nE-mail: ir@zto.com\nPhone: +86 21 5980 4508\n\nView original\ncontent:https://www.prnewswire.com/apac/news-releases/zto-reports-first-quarter-2026-unaudited-financial-results-302776373.html\n\nSOURCE ZTO Express (Cayman) Inc.\n\n\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-05-19T22:00:01.656891217Z","server_sent_at_ms":1779228001656},"received_at":"2026-05-19T22:00:01.856Z","source_url":null},"analysis":{"id":"29452","press_release_id":"40012","analysis_json":{"industry":{"label":"Air Freight & Logistics","sector":"Industrials"},"redFlags":[],"eventType":"earnings","narrative":"ZTO reported Q1 2026 revenue of $1.93 billion, up 22% year-over-year, driven by a 13.2% increase in parcel volume to 9.7 billion parcels.\n\nThe company's volume growth outpaced the industry average by 7.4 percentage points, supported by strong key account growth and an 8.2% increase in average selling price.\n\nAdjusted net income rose 5.2% to $345 million, while operating cash flow reached $404 million. The board authorized a new $1.5 billion share repurchase program over the next 24 months.\n\nZTO reaffirmed its full-year 2026 parcel volume growth guidance of 10-13%. Di Xu resigned as a non-executive director following the termination of an investor rights agreement with Alibaba.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"ZTO beats on volume and revenue with significant industry outperformance; adds $1.5B buyback."},"keyFigures":{"eps":0.4,"revenue":1925538000,"guidance":"FY2026 parcel volume growth 10-13% YoY (42.37B-43.52B parcels)","revenueYoy":"22.0%","customDimensions":{"ebitda_usd":539382000,"gross_margin":"24.4%","parcel_volume":9668000000,"operating_margin":"19.2%","parcel_volume_yoy":"13.2%","adjusted_eps_basic":0.44,"adjusted_ebitda_usd":571369000,"adjusted_eps_diluted":0.43,"adjusted_net_income_usd":344604000,"adjusted_net_income_yoy":"5.2%","operating_cash_flow_usd":404327000,"buyback_authorization_usd":1500000000}},"quotedText":"Our parcel volume reached 9.7 billion, which grew 13.2%, or 7.4 points above industry average, mainly attributable to strong key accounts growth.","namedEntities":{"people":[{"name":"Meisong Lai","role":"Founder, Chairman and CEO"},{"name":"Huiping Yan","role":"CFO"},{"name":"Di Xu","role":"Non-Executive Director (resigned)"}],"products":[],"companies":[{"name":"ZTO Express (Cayman) Inc.","ticker":"2057","relationship":"filer"},{"name":"Alibaba Group Holdings Limited","relationship":"former investor rights agreement party"}],"dollarAmounts":[{"amount":"US$1,925.5 million","context":"Q1 2026 Revenue"},{"amount":"US$344.6 million","context":"Q1 2026 Adjusted Net Income"},{"amount":"US$404.3 million","context":"Q1 2026 Operating Cash Flow"},{"amount":"US$1.5 billion","context":"Share repurchase authorization"}]},"materialImpact":{"score":4,"reasoning":"Strong Q1 results with 22% revenue growth and 13.2% parcel volume growth (outpacing industry by 7.4 points). The company also authorized a significant $1.5B share repurchase program, signaling strong confidence in cash generation and valuation."},"tickerRelevance":{"others":[{"ticker":"ZTO","relevance":"primary listing (NYSE)"},{"ticker":"BABA","relevance":"mentioned in context of terminated investor rights agreement"}],"primary":"2057"},"globalImportance":45,"audienceRelevance":35,"eventTypeSecondary":["buyback","board_change"],"importanceComponents":{"tickerTier":"large-cap","eventGravity":"earnings_beat","sectorWeight":"high","householdBrandBoost":"low","marketCapAdjustment":"positive","retailFavoriteBoost":"low"}},"event_type":"earnings","event_type_secondary":["buyback","board_change"],"sentiment":"bullish","material_impact_score":4,"narrative":"ZTO reported Q1 2026 revenue of $1.93 billion, up 22% year-over-year, driven by a 13.2% increase in parcel volume to 9.7 billion parcels.\n\nThe company's volume growth outpaced the industry average by 7.4 percentage points, supported by strong key account growth and an 8.2% increase in average selling price.\n\nAdjusted net income rose 5.2% to $345 million, while operating cash flow reached $404 million. The board authorized a new $1.5 billion share repurchase program over the next 24 months.\n\nZTO reaffirmed its full-year 2026 parcel volume growth guidance of 10-13%. Di Xu resigned as a non-executive director following the termination of an investor rights agreement with Alibaba.","key_figures":{"eps":0.4,"revenue":1925538000,"guidance":"FY2026 parcel volume growth 10-13% YoY (42.37B-43.52B parcels)","revenueYoy":"22.0%","customDimensions":{"ebitda_usd":539382000,"gross_margin":"24.4%","parcel_volume":9668000000,"operating_margin":"19.2%","parcel_volume_yoy":"13.2%","adjusted_eps_basic":0.44,"adjusted_ebitda_usd":571369000,"adjusted_eps_diluted":0.43,"adjusted_net_income_usd":344604000,"adjusted_net_income_yoy":"5.2%","operating_cash_flow_usd":404327000,"buyback_authorization_usd":1500000000}},"named_entities":{"people":[{"name":"Meisong Lai","role":"Founder, Chairman and CEO"},{"name":"Huiping Yan","role":"CFO"},{"name":"Di Xu","role":"Non-Executive Director (resigned)"}],"products":[],"companies":[{"name":"ZTO Express (Cayman) Inc.","ticker":"2057","relationship":"filer"},{"name":"Alibaba Group Holdings Limited","relationship":"former investor rights agreement party"}],"dollarAmounts":[{"amount":"US$1,925.5 million","context":"Q1 2026 Revenue"},{"amount":"US$344.6 million","context":"Q1 2026 Adjusted Net Income"},{"amount":"US$404.3 million","context":"Q1 2026 Operating Cash Flow"},{"amount":"US$1.5 billion","context":"Share repurchase authorization"}]},"model_name":"qwen3_6_27b_awq","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-05-19T22:00:51.834Z","global_importance":45,"audience_relevance":35,"importance_components":{"tickerTier":"large-cap","eventGravity":"earnings_beat","sectorWeight":"high","householdBrandBoost":"low","marketCapAdjustment":"positive","retailFavoriteBoost":"low"}},"durationMs":49899,"modelName":"george-droid-qwen-72b"}}