ZTO Provides Updates on Response to Short Seller Report

ZTO Express (Cayman) Inc. (NYSE: ZTO) announced on March 9, 2023, that its Audit Committee will conduct an Independent Investigation following allegations made in a March 2 report by Grizzly Research.

Rhea-AI Summary

ZTO Express (Cayman) Inc. (NYSE: ZTO) announced on March 9, 2023, that its Audit Committee will conduct an Independent Investigation following allegations made in a March 2 report by Grizzly Research. This decision aims to protect shareholder interests. The investigation will be supported by independent advisors, including a law firm and a forensic accounting firm. ZTO emphasizes its commitment to corporate governance and compliance with regulations. Updates regarding the investigation will be provided in accordance with SEC and stock exchange rules.

Positive

• Audit Committee's decision to conduct an independent investigation can enhance transparency.
• Engagement of independent professional advisors may improve credibility with investors.

Negative

• Allegations from Grizzly Research may affect investor confidence and stock price.

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SHANGHAI, March 9, 2023 /PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057), a leading and fast-growing express delivery company in China ("ZTO" or the "Company"), today announced that following its previous statement in response to the allegations made in a report issued by the short-seller firm Grizzly Research LLC on March 2, 2023 (the "Short Seller Report"), the audit committee of the Company's board of directors (the "Audit Committee"), after having reviewed the allegations, at the recommendation of the management of the Company and in order to protect the interests of all shareholders, has decided to conduct an independent investigation into the allegations made in the Short Seller Report (the "Independent Investigation"). The Audit Committee has engaged and will be assisted by independent professional advisors, including an international law firm and a forensic accounting firm that is not the Company's auditor.

The Company will provide updates on the Independent Investigation in due course consistent with the requirements of applicable rules and regulations of the Securities and Exchange Commission, the New York Stock Exchange, and The Stock Exchange of Hong Kong Limited.

The Company reiterates its continued and unwavering commitment to maintaining high standards of corporate governance and internal control, as well as transparent and timely disclosure in compliance with applicable rules and regulations.

About ZTO

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. ZTO may also make forward-looking statements in the Company's periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the " Hong Kong Stock Exchange" ), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology, such as " will,"  " expects,"  " anticipates,"  " future,"  " intends,"  " plans,"  " believes,"  " confidence,"  " estimates,"  "likely to" and similar statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to,  the development of the e-commerce industry in China, its significant reliance on the Alibaba ecosystem, risks associated with its network partners and their employees and personnel, intense competition which could adversely affect the Company's results of operations and market share, any service disruption of the Company's sorting hubs or the outlets operated by its network partners or its technology system. Further information regarding these and other risks is included in ZTO's annual report on Form 20-Fs and other filings with the SEC and  the Hong Kong Stock Exchange. All information provided in this press release is current as of the date hereof, and ZTO assumes no obligation to update such information, 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

View original content:https://www.prnewswire.com/news-releases/zto-provides-updates-on-response-to-short-seller-report-301768611.html

SOURCE ZTO Express (Cayman) Inc.

FAQ

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What is the purpose of ZTO's independent investigation?

The investigation aims to address allegations made by Grizzly Research to protect shareholder interests.

When did ZTO announce the independent investigation?

ZTO announced the independent investigation on March 9, 2023.

What triggered ZTO's independent investigation?

The investigation was triggered by allegations in a report issued by Grizzly Research on March 2, 2023.

Who is assisting ZTO with the investigation?

ZTO's Audit Committee has engaged independent professional advisors, including a law firm and a forensic accounting firm.

What will ZTO do next regarding the investigation?

ZTO will provide updates on the Independent Investigation in line with SEC and stock exchange regulations.