On August 19, ZTO Express-W (02057) announced its unaudited financial results for the second quarter of 2026. The report highlights a 6.5% year-over-year increase in parcel volume, achieved while maintaining high service quality and customer satisfaction. Adjusted net profit surged 50.3% to RMB 3.1 billion, with net cash flow from operating activities reaching RMB 4.6 billion.

Meisong Lai, Founder, Chairman, and CEO of ZTO Express (ZTO.US), commented: "In Q2 2026, ZTO continued to prioritize service quality and customer experience, while optimizing operational efficiency and fostering a fair, transparent network policy. We processed 10.5 billion parcels, up 6.5% year-over-year, outpacing the industry average growth rate by 2.3 percentage points. Adjusted net profit reached RMB 3.1 billion. Our parcel-by-parcel business continues to grow faster than traditional e-commerce parcels, a structural shift that not only drives volume growth but also effectively enhances overall profitability."

Lai added: "China's express delivery industry continues to benefit from regulatory guidance, leading to broadly improved industry profitability. This marks a shift from a sole focus on scale to a value-driven 'volume with quality' approach. ZTO's 'quality-first' strategy and stable performance are underpinned by our industry-leading operational efficiency and fairness-oriented network governance. We remain committed to our 'co-build and share' philosophy, empowering network partners and frontline couriers to achieve better economic returns while generating robust profitability for the company. Supported by proactive regulatory policies, ongoing digital upgrades, and deep trust with our network partners, we are well-positioned to navigate industry and economic cycles."

Hui Ping Yan, CFO of ZTO Express, stated: "In Q2, the share of high-value key account business continued to rise, particularly with rapid growth in platform reverse logistics, driving continuous optimization of our revenue mix. Our core express delivery revenue per parcel increased 15.5% year-over-year. Despite oil price fluctuations, our combined sorting and transportation cost per parcel declined by RMB 0.02 through digital operations and refined management. Selling, general, and administrative expenses (excluding share-based compensation) accounted for approximately 3.8% of revenue, compared to 5.2% in the same period last year. Operating cash flow for the quarter was RMB 4.6 billion, with capital expenditures of RMB 952 million."

Yan added: "In the current environment of moderating market growth, ZTO's long-standing strategy of sustainable profitable growth remains effective. Our steady market share gains are attributable to continued government efforts to curb industry involution, as well as our long-term investment in network stability and our risk-sharing, benefit-sharing allocation mechanism. We will continue to consolidate our leading position in parcel volume. However, given the industry's slowing growth, we have adjusted our full-year volume growth guidance to 6%-10%."

From an operational perspective, as of June 30, 2026, ZTO Express operated 92 sorting centers, over 31,000 pickup/delivery outlets, approximately 6,000 direct network partners, more than 3,600 line-haul routes between sorting centers, and over 10,000 self-owned line-haul vehicles. Based on current market and operational conditions, the company has adjusted its full-year parcel volume guidance to 40.8-42.4 billion parcels, representing 6.0%-10.0% year-over-year growth.

Under the shareholder return mechanism approved by the board in March 2026, ZTO Express's full-year shareholder returns (dividends plus buybacks) will be no less than 50% of adjusted net profit. In the first half of the year, the company completed share repurchases totaling USD 740 million (including commissions), equivalent to 52% of 2025 adjusted net profit. Consequently, no interim dividend will be distributed. Additionally, USD 138 million (including commissions) has been utilized under the new USD 1.5 billion buyback program, leaving approximately USD 1.36 billion in remaining capacity, valid until March 2028.