ZTO Express reports revenues of $1,292m in Q2 2022

ZTO Express

ZTO Express has reported its Q2 2022 results. The Company stated that it expanded its market share by 2 percentage points to 23% despite the adverse impact from COVID.

Total revenues were RMB 8,656.7m* (US$ 1,292.4m) in Q2 2022, an increase of 18.2% from RMB 7,325.1m in the same period of 2021. Gross profit was RMB 2,202.8m (US$ 328.9m), an increase of 31.6% from RMB 1,673.6m in the same period of 2021.

For its core Express Delivery Service segment, revenue increased by 19.2% y-o-y to RMB 7,931.6m (US$ 1,184.2m).  Parcel volumes increased by 7.5% y-o-y to 6,203m, up from 5,772m the previous year.

Revenue from ZTO’s Freight Forwarding Services increased to RMB 330m (US$ 49.3m) from RMB 313.6m, up 5.2% y-o-y.

Revenue from Sales of Accessories increased by 11.3% y-o-y to RMB 349.7m (US$ 52.2m), whilst Other revenue increased by 2.2% y-o-y to RMB 45.4m (US$ 6.8m).

Chief Financial Officer of ZTO Express stated: “As price competition deescalated, our core express delivery ASP grew 10.5% or 13 cents year-on-year. We continued to gain operating efficiencies and soften the negative impact from rising labour cost and fuel price hike.”

Chairman and Chief Executive Officer Meison Lai commented: “While short-term challenges exist in the marketplace, the express delivery industry is resilient with huge potential to expand. As the pandemic prevention becomes routine, we are focused on quality of operations and earnings as we further leverage our core competencies. In the past, we benefited from a better integrated network of sortation centres across the country. Our success for the future depends largely on our ability to reduce the number of sortation and further reach to customers through better linkage with last mile operations to reduce costs and improve timeliness. Our strategies to widen our market share lead and enhance operational excellence are crucial for consistent and profitable growth.”

* RMB 1 = $0.1475/ €0.1451

Source: ZTO Express