ZTO Express Holds 2024 National Network Conference

Rhea-AI Summary

ZTO Express (Cayman) Inc. held its National Network Conference in Shanghai, summarizing achievements in 2023 and outlining key work tasks for 2024. The company achieved a 23.8% year-on-year growth in parcel volume, reaching 30.2 billion. ZTO also attained a market share of 22.9%, emphasizing balanced development and steady progress for stable business growth and improved quality and efficiency.

Market Research Analyst

The express delivery sector in China is experiencing a significant transformation and ZTO Express, as a market leader, is adapting to these changes. The growth figures presented by ZTO, with a 23.8% year-on-year increase in parcel volume, indicate robust demand and an expanding market share, now at 22.9%. This growth is not only a sign of the company's operational success but also a reflection of the broader e-commerce and logistics market expansion in China.

For investors, these metrics serve as indicators of the company's health and its competitive positioning. The emphasis on high-quality development and the transition from volume to value suggest a strategic pivot towards sustainability and efficiency, which could lead to improved margins and profitability in the long term. However, investors should also consider the costs associated with implementing such strategic changes and the potential risks in the highly competitive Chinese express delivery market.

Financial Analyst

The reported year-on-year growth of 23.8% in parcel volume by ZTO Express is a strong performance metric that likely impacts the company's revenue and earnings positively. Given the company's increasing market share, it is reasonable to infer a positive outlook for its financial results in the short term. Furthermore, the focus on strategic goals such as enhancing capabilities and strengthening last-mile delivery could potentially lead to cost efficiencies and better service quality, which are critical factors in maintaining and growing profitability in the logistics sector.

As ZTO Express is publicly traded on both NYSE and SEHK, these performance indicators and strategic plans may influence investor sentiment and stock performance. Stakeholders should monitor the company's ability to execute its strategic initiatives effectively, as this will be crucial in determining the long-term value creation for shareholders.

Economist

The express delivery industry is a significant component of the overall economy, especially in a country like China where e-commerce plays a major role. ZTO's reported growth and strategic focus on balanced development and innovation-driven progress are indicative of broader economic trends. The emphasis on high-quality development mirrors the Chinese government's own economic objectives.

For the broader economy, ZTO's efficiency improvements and expansion into integrated logistics could signal positive externalities, such as reduced costs for businesses and consumers and enhanced distribution networks. However, it is also important to consider the potential for market saturation and the impact of economic cycles on the industry. Analysts should keep an eye on how ZTO navigates these challenges while leveraging its scale and network to maintain its market leadership position.

SHANGHAI, Jan. 23, 2024 /PRNewswire/ -- On 23 January 2024, ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK:2057) ("ZTO" or the "Company"), a leading and fast-growing express delivery company in China, held its National Network Conference at its headquarters in Shanghai. The conference aimed to fully implement the spirit of the 2024 National Postal Management Work Conference by the State Post Bureau. During the conference, the Company summarized and reviewed its achievements in 2023, outlined key work tasks for 2024, unified thinking, strengthened confidence, and clarified goals, developing a joint force to promote the high-quality development of ZTO's network.

The chairman, Meisong LAI, pointed out in the work report that in 2023, ZTO achieved parcel volume of 30.2 billion, representing a year-on-year growth of 23.8%. The Company achieved a market share of 22.9%, further widening its lead. ZTO has consistently adhered to its strategic goal of balanced development, with emphasis on long-term growth and focus on its own strengths and steady progress. As a result, the Company has achieved excellent results in "stable business growth and improved quality and efficiency".

The conference also outlined the overall work approach and key tasks for the Company in 2024. It is emphasized that the Company should comprehensively implement the spirit of the National Postal Management Work Conference, integrate "development" and "security", and promote the realization of various work objectives in a down-to-earth manner, with key focus on "prioritizing safety, enhancing capabilities, strengthening services, improving efficiency, ensuring transparency, activating potential, promoting collaboration, implementing plans, strengthening last-mile delivery, and building a strong team". 

Chairman Meisong LAI emphasized that the Chinese express delivery market has good size, potential and prospect, and ZTO should boast its five advantages in scale, cost, foundation, brand and network. In light of the ongoing industry transformation from high-volume development to high-quality development, from single express delivery to integrated logistics, and from traditional factor-driven to innovation-driven, ZTO should aim to excel in the three growth curves, namely, strengthening its core business, expanding its ecology and building its channels. The whole ZTO network should strengthen its belief in development, enhance its self-confidence in progress and boost its determination to implement plans and enable all the business participants including outlets and couriers on the ZTO platform to have a greater sense of gain, belonging and happiness.

About ZTO Express (Cayman) Inc.

ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK:2057) ("ZTO" or the "Company") is a leading and fast-growing express delivery company in China. ZTO provides express delivery service as well as other value-added logistics services through its extensive and reliable nationwide network coverage in China.

ZTO operates a highly scalable network partner model, which the Company believes is best suited to support the significant growth of e-commerce in China. The Company leverages its network partners to provide pickup and last-mile delivery services, while controlling the mission-critical line-haul transportation and sorting network within the express delivery service value chain.

For more information, please visit http://zto.investorroom.com.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and other similar expressions. Statements that are not historical facts, including but not limited to statements about ZTO's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in ZTO's filings with the SEC and The Stock Exchange of Hong Kong Limited. All information provided in this press release is as of the date of this press release, and ZTO does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

ZTO Express (Cayman) Inc.
Investor Relations
E-mail: ir@zto.com
Tel: +86 21 5980 4508

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SOURCE ZTO Express (Cayman) Inc.

What was the year-on-year growth in parcel volume for ZTO in 2023?

ZTO achieved a 23.8% year-on-year growth in parcel volume, reaching 30.2 billion in 2023.

What was ZTO's market share in 2023?

ZTO attained a market share of 22.9% in 2023.

What are the key focus areas for ZTO in 2024?

The key focus areas for ZTO in 2024 include prioritizing safety, enhancing capabilities, strengthening services, improving efficiency, ensuring transparency, activating potential, promoting collaboration, implementing plans, strengthening last-mile delivery, and building a strong team.

What advantages does ZTO aim to boast in the Chinese express delivery market?

ZTO aims to boast its five advantages in scale, cost, foundation, brand, and network in the Chinese express delivery market.