ZTO EXPRESS-W (02057) announced its performance for the second quarter of 2026: achieving both volume and quality, with parcel volume increasing by 6.5% to 10.5 billion pieces, market share at 19.9%, and adjusted net profit of 3.1 billion yuan.

On August 19, ZTO EXPRESS-W (02057, ZTO.US) announced its unaudited financial results for the second quarter of 2026. The report showed that the number of packages delivered increased by 6.5% year-on-year, while maintaining high-quality service and customer satisfaction. Adjusted net profit rose 50.3% to 3.1 billion yuan, and the net cash flow from operating activities was 4.6 billion yuan. ZTO Express (Cayman), Inc. Sponsored ADR Class A founder, chairman, and CEO Lai Meisong stated, In the second quarter of 2026, ZTO continued to focus on enhancing service quality and customer experience, continuously optimizing operational efficiency, and promoting fairness and transparency in network policy. We achieved a business volume of 10.5 billion packages, a year-on-year increase of 6.5%, exceeding the industry average growth rate by 2.3 percentage points. Adjusted net profit reached 3.1 billion yuan. The growth rate of parcel business continues to surpass that of traditional e-commerce items, and this structural shift has not only driven business growth but also effectively improved overall profit levels. Lai Meisong added, The Chinese express delivery industry continues to benefit from regulatory guidance, with industry profits generally improving. This signifies a shift in the industry's development focus from merely pursuing scale to a value-driven approach of 'balancing quantity and quality.' ZTOs 'quality first' operational strategy and stable performance are attributable to our industry-leading operational efficiency and fairness-oriented network governance. We adhere to the concept of co-building and sharing to empower and support our network partners and frontline couriers in achieving better financial returns, while also creating robust profitability for the company. With the positive guidance of regulatory policies, and relying on continuous upgrades in digital capabilities as well as deep trust and cohesion with our network partners, we are fully capable of responding to industry and economic cycles. ZTO Express (Cayman), Inc. Sponsored ADR Class A Chief Financial Officer Yan Huiping stated, In the second quarter of this year, the proportion of high-value major customer business continued to increase, especially with the rapid growth of reverse logistics business contributing to sustained optimization of revenue structure. Our core express single-package revenue increased by 15.5% year-on-year. Despite fluctuations in oil prices, the combined sorting and transportation costs per package decreased by 2 cents through digital operations and meticulous management. Selling and administrative expenses (excluding stock incentive expenses) accounted for approximately 3.8% of operating revenue, compared to 5.2% in the same period last year. This quarters operating cash flow was 4.6 billion yuan, with capital expenditures amounting to 952 million yuan. Yan Huiping added, In the current environment of slowing market growth, ZTOs long-held strategy of sustainable profit growth remains effective. The gradual increase in market share is due to the governments continuous push against industry competition, as well as the companys long-term investment in network stability and the risk-sharing and interest-sharing distribution mechanism behind it. We will continue to solidify our industry-leading position in business volume. At the same time, considering the slowdown in industry growth, we are adjusting our full-year business volume growth guidance to between 6% and 10%. From operational data, as of June 30, 2026, ZTO has 92 sorting centers, over 31,000 pickup and delivery points, approximately 6,000 direct network partners, more than 3,600 trunk transportation routes between sorting centers, and over 10,000 self-owned trunk vehicles. Based on current market and operational conditions, ZTO has adjusted its full-year parcel volume guidance to between 40.8 billion and 42.4 billion packages, with a year-on-year growth of 6.0% to 10.0%. According to the return mechanism approved by the board in March 2026, ZTO's annual shareholder return (dividends + repurchases) will not be less than 50% of the adjusted net profit. In the first half of the year, a total repurchase of $740 million (including commissions) was conducted, which accounted for 52% of the adjusted net profit for 2025, thus no interim dividend will be distributed. In addition, among the $1.5 billion new repurchase plan, $138 million (including commissions) has been used, leaving an available balance of approximately $1.36 billion, effective until March 2028.