![]() 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. 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. Globally, ZTO provides delivery services in key overseas markets through its business partners as it expands coverage of international express delivery by collaborating with international industry players. ZTO is both a key enabler and a direct beneficiary of China’s fast-growing e-commerce market, and has established itself as one of the largest express delivery service providers for millions of online merchants and consumers transacting on leading Chinese e-commerce platforms, such as Alibaba and JD.com. ZTO provides express delivery service as well as other value-added logistics services through its extensive and reliable nationwide network in China covering over 96% of China’s cities and counties as of June 30, 2016. ZTO Express is a express delivery company in China and one of the largest express delivery companies globally, in terms of total parcel volume in 2015, according to the iResearch Report. Hillhouse Capital Group, Warber Pincus, Sequioa Capital With a stable corporate cost structure, we grew our adjusted net income over 82% over last year, much faster than our top line increases.Meisong Lai(Founder&CEO), Jilei Wang(Director), James Jianmin Guo(CFO) ![]() The standardization of operating procedures and measurement metrics helped to identify performance anomalies and address inefficiencies more timely and effectively. Unit cost decreased 12.8% or 14 cents because, aside from greater economies of scale, our process management initiatives started in the second half of 2022 continued to pay dividend. Huiping Yan, Chief Financial Officer of ZTO, commented, “Our quarterly core express delivery ASP decreased 3.7%, or 5 cents year over year resulted mainly from lower average weight per parcel, decrease in KA volume where associated revenue includes delivery fees, and improved effectiveness of our network pricing policy. Other revenues were derived mainly from financing services. Revenue from sales of accessories, largely consisted of sales of thermal paper used for digital waybills’ printing, increased by 30.8% in line with parcel volume growth. Revenue from freight forwarding services decreased by 41.8% compared to the same period of 2022 primarily due to declined cross border e-commerce demand and pricing caused by weak global economy. Express delivery services revenue amounted to RMB8,388.7m in Q1 2023, accounting for 93.4% of group revenue. Revenue from the core express delivery business increased by 16.1% compared to the same period of 2022, as a combined result of a 20.5% increase in parcel volume and a 3.7% decrease in parcel unit price. Operationally, parcel volume was up 20.5%, from 6,297m parcels in Q1 2023, compared to 5,226m in Q1 of 2022.Įxpress delivery services are the main revenue source for the company, but it is also active in freight forwarding and ‘sales of accessories’ and other activities. ![]() Adjusted EBITDA was RMB3,133.0m (US$456.2m), an increase of 56.5% from RMB2,002.1m in the same quarter of 2022. ZTO Express, a leading express delivery company in China announced its first quarter 2023 results.
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