ZTO Express reports Q1 adjusted EBITDA $508M, up 0.7% y/y

Reports Q1 revenue $1.50B, up 9.4% y/y. Parcel volume was 8,539 million, an increase of 19.1% from 7,171 million in the same period of 2024. Number of pickup/delivery outlets was over 31,000 as of March 31, 2025. Number of direct network partners was approximately 6,000 as of March 31, 2025. Number of self-owned line-haul vehicles was over 10,000 as of March 31, 2025, out of which, over 9,400 were high capacity 15 to 17-meter-long models compared to over 9,100 as of March 31, 2024. Number of line-haul routes between sorting hubs was over 3,900 as of March 31, 2025. Number of sorting hubs was 95 as of March 31, 2025, among which 91 were operated by the Company and 4 by the Company’s network partners. Mr. Meisong Lai, Founder, Chairman and Chief Executive Officer of ZTO, commented, “During the first quarter, ZTO maintained leading service quality and achieved 8.5 billion of parcel volume and 2.3 billion of adjusted net income. Retail volume increased by 46% year over year for the quarter as we penetrated deeper into reverse logistics, and we continued to work closely with various e-commerce platform and enterprise customers to develop differentiated products and services which include time-definite delivery and customized KA consumer services. We believe competition in China’s express delivery industry has reached the “white-hot” stage, and it is further exacerbated by a greater portion of volume being either low value or loss-making for the logistic service providers. Our approach to network policies has been on maintaining consistency and cultivating long-term stability. At times of fierce competition, we are learning to better leverage our existing competitive advantage and at the same time, stay focused on initiatives that can bring about long-term prospects of profitable growth.”