ZTO EXPRESS-W (02057) announced its mid-term performance, with net profit attributable to shareholders increasing by 31.5% year-on-year to 5.169 billion yuan, continuously enhancing service quality and operational efficiency.

ZTO EXPRESS-W (02057) announced its interim results for the six months ending June 30, 2026, reporting a revenue of 27.832 billion yuan (RMB, the same below), a year-on-year increase of 22.5%; a net profit of 5.234 billion yuan, a year-on-year increase of 30.7%; a net profit attributable to ordinary shareholders of 5.169 billion yuan, a year-on-year increase of 31.5%; and an adjusted basic earnings per American Depositary Share for ordinary shareholders of 7.01 yuan. In the first half of 2026, as industry anti-competition sentiments deepened, the company continued to enhance service quality and operational efficiency, resulting in robust financial and operational performance. The company's revenue increased by 22.5% from 22.723 billion yuan for the six months ending June 30, 2025, to 27.832 billion yuan for the same period in 2026. This growth was primarily driven by an increase in parcel volume and a continuous shift towards higher-value customer segments. Most of the companys revenue comes from providing express services to network partners, mainly including parcel sorting and trunk transportation. For each parcel processed through the companys network, a transfer fee is charged to the network partners. Additionally, the company directly provides express services to certain enterprise clients (including vertical e-commerce clients and traditional merchants) to deliver their products to end consumers, as well as related reverse logistics services. The company also generates revenue by selling supplementary materials (such as portable barcode readers, thermal paper, and ZTO-branded packaging materials and uniforms) to network partners. Revenue from the core express business grew by 22.8% compared to the same period in 2025, driven by a 9.6% increase in parcel volume and a 12.0% increase in parcel pricing. Within core express revenue, the direct customer revenue generated by direct sales agencies rose by 75.4%, mainly due to an increase in e-commerce returns. The company aims to become a comprehensive logistics service provider. Building on its core express business, the company is continuously expanding the variety of services offered, with the goal of creating an ecosystem that includes express delivery, less-than-truckload (LTL) freight, cross-border logistics, warehousing, air freight, cold chain, and commercial solutions. By expanding its business channels, the company is able to capture diverse demand. The company provides LTL logistics services focused on heavy cargo, as well as international express services to Southeast Asia, Africa, and other countries; cross-border services (including freight forwarding services); and comprehensive logistics solutions such as warehousing, distribution, and transportation to clients. Considering the continuously changing market conditions and the broader slowdown in industry parcel volume growth, the company has adjusted its previous annual business volume guidance, anticipating that the total parcel volume for 2026 will be in the range of 40.8 billion to 42.4 billion parcels, representing a year-on-year growth of 6.0% to 10.0%. This estimate is based on the management's current preliminary views and may be adjusted based on actual conditions.