ZTO Holds 2025 National Network Conference

Rhea-AI Summary

ZTO Express held its National Network Conference in Shanghai on January 9, 2025, where it reviewed 2024 performance and outlined 2025 strategies. Chairman Meisong LAI reported that ZTO achieved 34 billion parcel volume in 2024, marking a 12.6% year-on-year growth and maintaining its position as industry leader in business scale for the ninth consecutive year.

The conference emphasized 2025 key objectives including prioritizing safety, strengthening services, promoting fairness, fostering unity, strengthening execution, exploring potential, enhancing capabilities, and increasing efficiency. The company aims to drive development through quality improvements and enhance business performance through capability building.

The chairman expressed confidence in the Chinese express delivery industry's potential and highlighted the trend of increasing industry concentration and high-quality development. ZTO plans to focus on implementing development strategies, improving service quality, expanding business scale, and consolidating network advantages.

Positive

• Achieved 34 billion parcel volume in 2024
• 12.6% year-over-year growth in parcel volume
• Maintained #1 industry position in business scale for 9th consecutive year

Negative

• None.

Insights

Financial Analyst

ZTO's 34 billion parcel volume and 12.6% year-over-year growth in 2024 solidify its market leadership position in China's express delivery industry. The company's ninth consecutive year as industry leader in business scale demonstrates remarkable operational consistency and execution capability.

The emphasis on differentiated products and services, coupled with brand enhancement initiatives, indicates a strategic pivot towards premium market segments. This shift could potentially improve profit margins beyond the traditional volume-driven growth model.

From an investment perspective, ZTO's balanced development strategy and focus on operational efficiency suggest a mature approach to sustainable growth. The company's commitment to quality improvements while maintaining scale advantages positions it well to capitalize on industry consolidation trends. However, execution of these initiatives and competitive pressures in China's express delivery market will be important factors to monitor.

Market Research Analyst

The Chinese express delivery market's continued expansion presents significant growth opportunities for ZTO. With increasing industry concentration and a shift towards high-quality development, ZTO's market-leading position and established network infrastructure provide competitive advantages that could be difficult for smaller players to replicate.

The company's strategic focus on service quality and operational efficiency aligns well with evolving market dynamics. As the industry matures, the ability to deliver premium services while maintaining cost leadership will become increasingly important. ZTO's emphasis on grassroots initiatives and network coordination suggests a comprehensive approach to maintaining its competitive edge.

The conference's emphasis on safety, service enhancement and efficiency improvements indicates a well-rounded strategy that addresses key industry challenges. These priorities could help ZTO maintain its market leadership while potentially expanding its margin profile through operational leverage.

SHANGHAI, Jan. 9, 2025 /PRNewswire/ -- On January 9 2025, ZTO Express (Cayman) Inc. (NYSE: ZTO and HKEX: 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 conveyed and studied the spirit of the 2025 National Postal Management Work Conference by the State Post Bureau, summarized and reviewed the work of 2024, analyzed the situation, and outlined key tasks for 2025.

The chairman, Meisong LAI, pointed out in his presentation titled "Service First, Actions Count, Development is the Only Way Forward" that in 2024, ZTO has consistently adhered to its balanced development strategy, achieving 34 billion of parcel volume, representing a year-on-year growth of 12.6%, and ranked the first in the industry in terms of business scale for the ninth consecutive year. At the same time, the Company has accelerated the establishment of differentiation in product and services while enhancing brand awareness and recognition, steadily advancing high-quality development, and further enhancing operational quality and efficiency.

The conference also specified the overall work approach and key tasks for 2025. It is emphasized that the Company should fully implement the spirit of the National Postal Management Work Conference, integrate "quality" and "development", take "prioritizing safety", "strengthening services", "promoting fairness", "fostering unity", "strengthening execution ", "exploring potential", "enhancing capabilities" and "increasing efficiency" as the main line of work for the entire network. The goal is to drive development through quality improvements, enhance business performance through capability building, empower grassroots initiatives, and enhance overall quality and efficiency.

Chairman Meisong LAI expressed gratitude to ZTO's network partners and all employees for their tireless efforts over the past year, firmly believing in the industry's development and ZTO's capabilities. The Chinese express delivery industry boasts a vast market, immense potential and a promising future. With increasing industry concentration, the trend of high-quality development is becoming increasing evident. Chairman LAI emphasized that the entire network must do its utmost to promote the implementation of the Company's development strategy, remain vigilant to market dynamics, enhance service quality, expand business scale, and consolidate its network advantages. With the precise coordination from headquarter, effective leadership at regional level, efficient execution by outlets, and diligent efforts from front-line personnel, ZTO will fulfill its responsibilities and work in concert. This concerted effort will enable ZTO to break through challenges and secure success. 

About ZTO Express (Cayman) Inc.

ZTO Express (Cayman) Inc. 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 announcement 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 U.S. Securities and Exchange Commission and The Stock Exchange of Hong Kong Limited. All information provided in this announcement is as of the date of this announcement, 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
Phone: +86 21 5980 4508

 

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SOURCE ZTO Express (Cayman) Inc.

FAQ

What was ZTO Express's parcel volume growth in 2024?

ZTO Express achieved a 12.6% year-over-year growth in parcel volume, reaching 34 billion parcels in 2024.

How long has ZTO (NYSE: ZTO) maintained its industry leadership position?

ZTO has ranked first in the industry in terms of business scale for nine consecutive years.

What are ZTO's key strategic priorities for 2025?

ZTO's 2025 priorities include prioritizing safety, strengthening services, promoting fairness, fostering unity, strengthening execution, exploring potential, enhancing capabilities, and increasing efficiency.

What was the main focus of ZTO's 2025 National Network Conference?

The conference focused on reviewing 2024 performance, analyzing market conditions, outlining 2025 key tasks, and emphasizing quality improvements and capability building for future growth.