ZTO Express (Cayman) Inc. released unaudited results for the three months ended 30 June 2026, highlighting robust earnings momentum, continued market-share gains and disciplined cost control.

Financial performance • Revenue climbed 23.0% year on year (YoY) to RMB14.55 billion (US$2.14 billion), driven by stronger express-delivery pricing and higher parcel volumes. • Gross profit rose 26.8% to RMB3.73 billion, lifting gross margin to 25.7% from 24.9% a year earlier. • Net income surged 56.7% to RMB3.08 billion (US$453.58 million); adjusted net income increased 50.3% to RMB3.09 billion. • Adjusted EBITDA reached RMB4.24 billion, up 20.0%; operating margin improved to 22.2% (Q2 2025: 20.9%). • Basic earnings per ADS grew 64.9% to RMB3.99; diluted EPS gained 59.5% to RMB3.78.

Operating metrics • Parcel volume expanded 6.5% YoY to 10.49 billion items, extending market share to 19.9%—2.3 percentage points above industry growth. • Average selling price for core express services increased 15.5%, supported by a richer mix of key-account and reverse-logistics business. • The network comprised more than 31,000 pickup/delivery outlets, roughly 6,000 direct network partners, over 10,000 self-owned trucks, 3,600+ line-haul routes and 92 sorting hubs at quarter-end.

Revenue composition • Core express delivery contributed RMB13.68 billion, up 23.0%, accounting for 94% of total revenue. Key-account sales climbed 63.6%, reflecting growth in e-commerce return parcels. • Freight-forwarding revenue added 21.1% to RMB0.22 billion, while accessory sales slipped 1.7% to RMB0.62 billion.

Cost and efficiency trends • Total cost of revenues increased 21.7% to RMB10.82 billion. – Line-haul transportation cost rose 2.6% to RMB3.38 billion; unit transportation cost fell 3.0% on better route planning and higher vehicle load factors. – Sorting-hub cost grew 3.8% to RMB2.51 billion, tempered by automation gains; automated sorting sets in operation rose to 782 from 690 a year earlier. – Other costs jumped 61.2% to RMB4.61 billion, reflecting higher payments to network partners to handle expanding key-account and reverse-logistics volumes. • Selling, general & administrative expenses declined 10.7% to RMB0.56 billion; SG&A (excluding share-based compensation) fell to 3.8% of revenue (Q2 2025: 5.2%). • The effective tax rate compressed to 7.7%, aided by a RMB0.34 billion tax refund tied to “Key Software Enterprise” status.

Cash flow and balance sheet • Net cash from operating activities more than doubled YoY to RMB4.56 billion. • Capital expenditure stood at RMB0.95 billion; cash and equivalents at 30 June 2026 totaled RMB9.91 billion. • Convertible senior notes on the balance sheet amounted to RMB10.19 billion.

Capital return strategy • Year-to-date 2026 share repurchases reached 31.79 million Class A shares for US$740 million, equivalent to 52% of 2025 adjusted net income. • Under the US$1.50 billion buyback authorization (valid through March 2028), US$1.36 billion remains available. No interim dividend was proposed.

Corporate governance Wei Zhu, an executive with more than 35 years’ experience in consulting, investment banking and private equity, joined the board as an independent director on 19 August 2026.

Outlook Management now forecasts 2026 parcel-volume growth of 6–10% YoY, implying 40.80–42.40 billion parcels for the full year, reflecting moderated industry expansion and an emphasis on value-driven development.