ZTO Express Inc. (NYSE: ZTO) experienced a significant pre-market decline of 5.65% on Wednesday, as the stock reacted negatively to the company's first-quarter 2026 financial results and a key board member's resignation.

The Chinese express delivery leader reported adjusted earnings per American depositary share of RMB2.95 for the quarter, falling short of the consensus estimate of RMB3.07. While the company posted revenue growth of 22.0% year-over-year to RMB13.28 billion, its adjusted net income increased by a modest 5.2% to RMB2.4 billion. The operating margin rate declined to 19.2% from 22.1% in the same period last year, indicating pressure on profitability.

Adding to investor concerns, the company announced that non-executive director Di Xu will resign effective May 20, 2026, following the termination of an investor rights agreement with Alibaba Group subsidiaries. This development signals a shift in the strategic relationship with one of ZTO's major shareholders and introduces uncertainty regarding corporate governance.