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• Parcel Volume (Q4 2024): RMB9.67 billion, up 11% year-over-year.

• Annual Parcel Volume (2024): RMB34 billion, growing 12.6% year-over-year.

• Adjusted Net Income (Q4 2024): RMB2.73 billion, up 23.4% year-over-year.

• Adjusted Annual Net Income (2024): RMB10.15 billion, increasing by 12.7% year-over-year.

• Total Revenue (Q4 2024): RMB12.9 billion, up 21.7% year-over-year.

• Total Revenue (2024): RMB44 billion, up 15.3% year-over-year.

• ASP Increase (Q4 2024): 10.3% or RMB0.13.

• ASP Increase (2024): 2.7% or RMB0.04.

• Total Cost of Revenue (Q4 2024): RMB9.2 billion, up 22.3% year-over-year.

• Total Cost of Revenue (2024): RMB30.6 billion, up 14.2% year-over-year.

• Gross Profit (Q4 2024): RMB3.8 billion, up 20.2% year-over-year.

• Gross Profit (2024): RMB13.7 billion, up 17.6% year-over-year.

• Gross Profit Margin (Q4 2024): 29.1%, decreased by 0.4 points.

• Gross Profit Margin (2024): 31%, increased by 0.6 points.

• Operating Cash Flow (Q4 2024): RMB2.8 billion, decreased by 28.5% year-over-year.

• Operating Cash Flow (2024): RMB11.4 billion, decreased by 14.5% year-over-year.

• Adjusted EBITDA (Q4 2024): RMB4.6 billion.

• Adjusted EBITDA (2024): RMB16.4 billion.

• Capital Expenditure (Q4 2024): RMB1.2 billion.

• Capital Expenditure (2024): RMB5.9 billion.

• Warning! GuruFocus has detected 2 Warning Signs with ZTO.

Release Date: March 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ZTO Express (Cayman) Inc (NYSE:ZTO) achieved an 11% year-over-year increase in parcel volume for Q4 2024, reaching RMB9.67 billion.

• The company reported a 23.4% year-over-year growth in adjusted net income for Q4 2024, amounting to RMB2.73 billion.

• ZTO Express (Cayman) Inc (NYSE:ZTO) maintained high service quality and improved end-to-end timeliness, reducing loss, damage, and complaint rates.

• The company successfully increased its annual parcel volume by 12.6% year-over-year, reaching RMB34 billion.

• ZTO Express (Cayman) Inc (NYSE:ZTO) plans to grow its parcel volume by 20% to 24% in 2025, aiming to exceed industry growth expectations.

Negative Points

• The express delivery industry faces downward pressure on logistics pricing due to increased lower-value parcels and intense price competition.

• Operating cash flow decreased by 28.5% for Q4 and 14.5% for the year, primarily due to a one-time refund of franchise deposits and other factors.

• The company anticipates continued intense price competition in the express delivery industry in 2025.

• ZTO Express (Cayman) Inc (NYSE:ZTO) faces challenges from consumption downgrades and the need to align closely with market dynamics.

• The company incurred additional costs for sorting activities conducted on behalf of franchise partners, impacting overall cost efficiency.