ZTO Express (Cayman) Inc. (ZTO) reported unaudited interim results for the six months ended 30 June 2026 prepared under U.S. GAAP.

Revenue and Earnings • Group revenue rose 22.5% year on year to RMB 27.83 billion, driven by a 9.6% expansion in parcel volume and a 12.0% increase in parcel unit price. • Net income advanced 30.7% to RMB 5.23 billion. Net income attributable to ordinary shareholders reached RMB 5.17 billion, up 31.5%. • Adjusted net income attributable to ordinary shareholders increased 27.3% to RMB 5.40 billion. • Basic and diluted adjusted earnings per ADS were RMB 7.01 and RMB 6.73, up 32.0% and 29.9%, respectively.

Margins and Costs • Gross profit improved 23.7% to RMB 6.97 billion; gross margin edged up to 25.0% from 24.8%. • Operating income grew 18.3% to RMB 5.77 billion, with the operating margin at 20.7% (H1 2025: 21.5%). • Cost of revenues increased 22.1% to RMB 20.86 billion, representing 75.0% of sales. Line-haul transport cost rose 1.9%, while unit transport cost fell 8.1% on efficiency gains. • Other costs climbed 69.2% to RMB 8.39 billion, largely reflecting higher payments to network partners for e-commerce return parcels.

Segment Performance • Core express delivery contributed RMB 26.21 billion, 94.2% of total revenue, up 22.8%. • Freight forwarding revenue grew 4.1% to RMB 374.26 million. • Sales of accessories were stable at RMB 1.20 billion.

Cash Flow and Balance Sheet • Operating cash inflow reached RMB 7.35 billion. • Cash, restricted cash and short-term investments totalled RMB 31.35 billion at end-June. • Net capital expenditure amounted to RMB 2.76 billion, mainly for sorting hubs, automation and fleet expansion. • Gearing ratio rose to 35.5% from 26.2% at end-2025, following the February 2026 issuance of US$1.50 billion convertible senior notes due 2031 (0.925% coupon).

Shareholder Returns and Capital Actions • ZTO targets an annual shareholder return of at least 50% of prior-year adjusted net income via dividends and buybacks. • Year-to-date share repurchases reached US$740 million (RMB 5.11 billion), equivalent to 52% of 2025 adjusted net income; no interim dividend was proposed. • Under the US$1.50 billion buyback programme authorised to March 2028, US$1.36 billion remains available.

Operational Footprint • As at 30 June 2026: 6,000 direct network partners, 31,000 pickup-and-delivery outlets, 100,000 last-mile posts, 92 sorting hubs with 782 automation lines, and over 10,000 self-owned line-haul trucks.

Outlook Management revised 2026 parcel volume guidance to 40.8 billion–42.4 billion pieces, implying 6%–10% growth, citing moderating industry expansion.

Governance Update Wei Zhu, with more than 35 years’ experience in consulting and investment banking, joined the Board as an independent non-executive director effective 19 August 2026.