Robust Profitable Growth amidst Consumption Mix-shift

Adjusted Net Income Grew 10.9% to RMB2.8 Billion

US$0.35 per Share Interim Dividend Announced

SHANGHAI,Aug. 21,2024 -- 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 its unaudited financial results for the second quarter ended June 30,2024[1]. The Company grew parcel volume by 10.1% year over year while maintaining high quality of service and customer satisfaction. Adjusted net income increased 10.9%[2] to reach RMB2.8 billion. Cash generated from operating activities was RMB3.5 billion.

Second Quarter 2024 Financial Highlights

Revenues were RMB10,726.0 million (US$1,475.9 million),an increase of 10.1% from RMB9,740.3 million in the same period of 2023.

Gross profit was RMB3,620.5 million (US$498.2 million),an increase of 9.6% from RMB3,304.4 million in the same period of 2023.

Net income was RMB2,614.0 million (US$359.7 million),an increase of 3.3% from RMB2,530.2 million in the same period of 2023.

Adjusted EBITDA[3] was RMB4,339.7 million (US$597.2 million),an increase of 11.7% from RMB3,883.9 million in the same period of 2023.

Adjusted net income was RMB2,805.7 million (US$386.1 million),an increase of 10.9% from RMB2,531.0 million in the same period of 2023.

Basic and diluted net earnings per American depositary share ("ADS"[4]) were RMB3.24 (US$0.45) and RMB3.16 (US$0.43),an increase of 3.2% and 2.9% from RMB3.14 and RMB3.07 in the same period of 2023,respectively.

Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders[5] were RMB3.48 (US$0.48) and RMB3.38 (US$0.47),an increase of 10.8% and 10.1% from RMB3.14 and RMB3.07 in the same period of 2023,respectively.

Net cash provided by operating activities was RMB3,480.1 million (US$478.9 million),compared with RMB3,761.6 million in the same period of 2023.

Operational Highlights for Second Quarter 2024

Parcel volume was 8,452 million,an increase of 10.1% from 7,677 million in the same period of 2023.

Number of pickup/delivery outlets was over 31,000 as of June 30,2024.

Number of direct network partners was over 6,2024.

Number of self-owned line-haul vehicles was approximately 10,2024.

Out of the approximately 10,000 self-owned trucks,over 9,200 were high capacity 15 to 17-meter-long models as of June 30,2024,compared to over 9,300 as of June 30,2023.

Number of line-haul routes between sorting hubs was over 3,800 as of June 30,compared to approximately 3,2023.

Number of sorting hubs was 96 as of June 30,among which 90 are operated by the Company and 6 by the Company's network partners.

(1) An investor relations presentation accompanies this earnings release and can be found at http://zto.investorroom.com.

(2) Adjusted net income is a non-GAAP financial measure,which is defined as net income before share-based compensation expense and non-recurring items such as impairment of investment in equity investees,gain/(loss) on disposal of equity investment and subsidiary and corresponding tax impact which management aims to better represent the underlying business operations.

(3) Adjusted EBITDA is a non-GAAP financial measure,which is defined as net income before depreciation,amortization,interest expenses and income tax expenses,and further adjusted to exclude the shared-based compensation expense and non-recurring items such as impairment of investment in equity investees,gain/(loss) on disposal of equity investment and subsidiary which management aims to better represent the underlying business operations.

(4) One ADS represents one Class A ordinary share.

(5) Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders is a non-GAAP financial measure. It is defined as adjusted net income attributable to ordinary shareholders divided by weighted average number of basic and diluted American depositary shares,respectively.

Mr. Meisong Lai,Founder,Chairman and Chief Executive Officer of ZTO,commented,"For the second quarter this year,we continued to advance our re-balanced strategy that prioritizes quality over quantity by enhancing volume mix,improving operational efficiencies,helping to reduce last mile delivery costs,and increase profitability for outlets and couriers. With 8.5 billion parcels,our market share decreased 2.0 points to 19.6%,and our adjusted earnings increased 10.9% to 2.8 billion. We are on track to double the retail volume by the end of the year,aiming to gradually but steadfastly differentiate ourselves from the rest of the "Tongda" in brand recognition and customer satisfaction,and further our leadership in profitable growth."

Mr. Lai added,"China express delivery industry maintained relatively high growth,however,competition remained intense,the industry is under increased pressure. It is crucial for us to ensure fairness and maintain stability across the network. Our last-mile initiatives to drive up the ratio of retail parcel pickup to delivery will provide opportunities for franchise and couriers to earn more and ultimately provide greater pricing advantage for the front end in the long run."

Ms. Huiping Yan,Chief Financial Officer of ZTO,"Core express ASP was flat at 1.24 while the impact of volume incentives and average parcel weight decline were offset by increases in non-ecommerce parcel mix. Combined unit sorting and transportation cost decreased 2 cents mainly driven by improvements in fleet operations with better resource utilizations. SG&A as a percentage of revenue remained stable at approximately 5.5%. Cash flow from operating activities was 3.5 billion,and capital spending was 1.3 billion."

Ms. Yan added,"Volume is not unimportant because it enables scale-leverage. We are getting better at weighing risks and opportunities in order to achieve appropriate level of profit and maximize value creation. We are reiterating our 2024 volume growth guidance of 15% to 18%. Strengthening long-term competitive advantage,breaking away from homogenized product offering that is conducive for unproductive price competition and building healthier and stronger partner-network and entrepreneurial courier excellence will prepare us for the vast opportunities ahead the logistic industry."

Second Quarter 2024 Unaudited Financial Results

Three Months Ended June 30,

Six Months Ended June 30,

2023

2024

2023

2024

RMB

%

RMB

US$

%

RMB

%

RMB

US$

%

(in thousands,except percentages)

Express delivery services

8,998,444

92.4

9,875,923

1,358,972

92.1

17,387,187

92.9

19,116,095

2,630,462

92.4

Freight forwarding services

238,872

2.5

233,242

32,095

2.2

431,597

2.3

435,989

59,994

2.1

Sale of accessories

467,778

4.8

580,422

79,869

5.4

836,616

4.5

1,065,484

146,615

5.2

Others

35,230

0.3

36,377

5,006

0.3

68,163

0.3

68,402

9,413

0.3

Total revenues

9,740,324

100.0

10,725,964

1,475,942

100.0

18,723,563

100.0

20,685,970

2,846,484

100.0

Total Revenueswere RMB10,740.3 million in the same period of 2023. Revenue from the core express delivery business increased by 10.4% compared to the same period of 2023 as a result of a 10.1% growth of parcel volume and stable parcel unit price. KA revenue including delivery fees from direct sales organizations,established to serve core express KA customers,increased by 73.9% as the proportion of higher-value customers continue to increase. Revenue from freight forwarding services decreased by 2.4% compared to the same period of 2023. Revenue from sales of accessories,largely consisted of sales of thermal paper used for digital waybills' printing,increased by 24.1%. Other revenues were mainly derived from financing services.

Three Months Ended June 30,

2023

2024

2023

2024

RMB

% of

RMB

US$

% of

RMB

% of

RMB

US$

% of

revenues

revenues

revenues

revenues

(in thousands,except percentages)

Line-haul

transportation cost

3,199,832

32.9

3,283,123

451,773

30.6

6,381,652

34.1

6,654,616

915,706

32.2

Sorting hub

operating cost

1,934,666

19.9

2,227,670

306,538

20.8

3,948,037

21.1

4,395,871

604,892

21.3

Freight

forwarding cost

222,272

2.3

216,724

29,822

2.0

405,244

2.2

405,106

55,744

2.0

Cost of

accessories sold

126,700

1.3

160,093

22,030

1.5

234,128

1.3

293,140

40,337

1.4

Other costs

952,429

9.7

1,217,877

167,585

11.3

1,926,669

10.2

2,314,675

318,510

11.1

Total cost of

revenues

6,435,899

66.1

7,105,487

977,748

66.2

12,895,730

68.9

14,063,408

1,935,189

68.0

Total cost of revenues was RMB7,105.5 million (US$977.7 million),an increase of 10.4% from RMB6,435.9 million in the same period last year.

Line haul transportation cost was RMB3,283.1 million (US$451.8 million),an increase of 2.6% from RMB3,199.8 million in the same period last year. The unit transportation cost decreased 6.8% or 3 cents mainly attributable to better economies of scale,optimized line-haul route planning and improved load rate.

Sorting hub operating cost was RMB2,227.7million (US$306.5 million),an increase of 15.1% from RMB1,934.7 million in the same period lastyear. The increase primarily consisted of (i) RMB154.6 million (US$21.3 million) increase in labor-associated costs,a net result of wage increases partially offset by automation-driven efficiency improvements and (ii) RMB73.9 million (US$10.2 million) increase in depreciation and amortization costs associated with expansion of automation equipment and facility upgrades to further improve the transit efficiency. As a result,sorting hub operating cost per unit increased 4.6% or 1 cent. As of June 30,there were 515 sets of automated sorting equipment in service,compared to 460 sets as of June 30,2023.

Cost of accessories sold was RMB160.1 million (US$22.0 million),increased 26.4% compared with RMB126.7 million in the same period last year.

Other costs were RMB1,217.9 million (US$167.6 million),an increase of 27.9% from RMB952.4 million in the same period last year. The increase was mainly driven by RMB338.3 million (US$46.6 million) increase in costs associated with serving higher-value enterprisecustomers,level of which is consistent with related revenue increases.

Gross Profit was RMB3,increased by 9.6% from RMB3,304.4 million in the same period last year. Gross margin rate was 33.8% compared to 33.9% in the same period last year.

Total Operating Expenses were RMB405.3 million (US$55.8 million),compared to RMB425.7 million in the same period last year.

Selling,general and administrative expenses were RMB593.0 million (US$81.6 million),increased by 17.5% from RMB504.6 million in the same period last year,mainly due to the increases of compensation and benefits.

Other operating income,net was RMB187.7 million (US$25.8 million),compared to RMB79.0 million in the same period last year. Otheroperating income mainly consisted of (i) RMB147.1 million (US$20.2 million) of government subsidies and tax rebates,and (ii) RMB40.6 million (US$5.6 million) of rental and other income.

Income from operations was RMB3,215.2 million (US$442.4 million),an increase of 11.7% from RMB2,878.8 million for the same period last year. Operating margin rate increased to 30.0% from 29.6% in the same period last year.

Interest income was RMB288.1 million (US$39.6 million),compared with RMB167.1 million in the same period last year.

Interest expenses was RMB115.9 million (US$15.9 million),compared with RMB72.2 million in the same period last year.

Gain from fair value changes of financial instruments was RMB54.9 million (US$7.5 million),compared with a gain of RMB51.6 million in the same period last year. Such gain or loss from fair value changes of the financial instruments are quoted by commercial banks according to market-based estimation of future redemption prices.

Impairment of investment in equity investeewas RMB194.5 million (US$26.8 million). Such provision for impairment charge was related to the Company's investment in Zhejiang Yizhan Network Technology Co.,Ltd.(浙江驛棧網絡科技有限公司),a subsidiary of Cainiao Smart Logistics Network Ltd.(菜鳥智慧物流網絡有限公司).

Income tax expenses were RMB665.0 million (US$91.5 million) compared to RMB575.6 million in the same period last year. Overall income tax rate increased by 1.8 percentage pointsyear over year mainly due to RMB54.0 million accrual of withholding tax on distributable earnings planned for dividend payment to ZTO Express (Hong Kong) Limited attributable for the second quarter.

Net income was RMB 2,which increased by 3.3% from RMB2,530.2 million in the same period last year.

Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB3.24 (US$0.45) and RMB3.16 (US$0.43),compared to basic and diluted earnings per ADS of RMB3.14 and RMB3.07 in the same period last year,respectively.

Adjusted basic and diluted earnings per ADS attributable to ordinary shareholders were RMB3.48 (US$0.48) and RMB3.38 (US$0.47),compared with RMB3.14 and RMB3.07 in the same period last year,respectively.

Adjusted net income was RMB2,compared with RMB2,531.0 million during the same period last year.

EBITDA[1] was RMB4,150.1 million (US$571.1 million),883.1 million in the same period last year.

Adjusted EBITDA was RMB4,compared to RMB3,883.9 million in the same period last year.

Net cash provided by operating activities was RMB3,761.6 million in the same period last year.

(1) EBITDA is a non-GAAP financial measure,interest expenses and income tax expenses which management aims to better represent the underlying business operations.

Declaration of Interim Dividend Payment

The board of directors (the "Board")has approved an interim cash dividend ofUS$0.35per ADS and ordinary share for the six months ended June 30,to holders of its ordinary shares and ADSs as of the close of business onSeptember 10,2024. The dividend payment represents a 40% dividend payout ratio. For holders of ClassA and Class B ordinary shares,in order to qualify for entitlement to the dividend,all valid documents for the transfer of shares accompanied by the relevant share certificates must be lodged for registration with the Company'sHong Kongbranch share registrar,Computershare Hong Kong Investor Services Limited,at Shops 1712-1716,17th Floor,Hopewell Centre,183 Queen's Road East,Wanchai,Hong Kongno later than4:30 p.m.onSeptember10,2024(Hong Kong Time). The payment date is expected to beOctober 10,2024for holders of ClassA and Class B ordinary shares,andOctober17,2024for holders of ADSs.

Business Outlook

Based on current market and operating conditions,the Company maintains its previously stated annual guidance. Parcel volume for 2024 is expected to be in the range of 34.73 billion to 35.64 billion,representing a 15% to 18% increase year over year. Such estimates represent management's current and preliminary view,which are subject to change.

Exchange Rate

This announcement contains translation of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted,all translations from Renminbi to U.S. dollars were made at the exchange rate of RMB7.2672 to US$1.00,the noon buying rate on June 28,2024 as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve Systems.

Use of Non-GAAP Financial Measures

The Company uses EBITDA,adjusted EBITDA,adjusted net income,adjusted net income attributable to ordinary shareholders,and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders,each a non-GAAP financial measure,in evaluating ZTO's operating results and for financial and operational decision-making purposes.

Reconciliations of the Company's non-GAAP financial measures to its U.S. GAAP financial measures are shown in tables at the end of this earnings release,which provide more details about the non-GAAP financial measures.

The Company believes that such Non-GAAP measures help identify underlying trends in ZTO's business that could otherwise be distorted by the effect of the related expenses and gains that the Company includes in income from operations and net income. The Company believes that EBITDA,adjusted net income attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders provide useful information about its operating results,enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used byZTO's management in its financial and operational decision-making.

EBITDA,adjusted net income attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders should not be considered in isolation or construed as an alternative to net income or any other measure of performance or as an indicator of the Company's operating performance. Investors are encouraged to compare the historical non-GAAP financial measures to the most directly comparable GAAP measures. EBITDA,adjusted net income attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently,limiting their usefulness as comparative measures to ZTO's data. ZTO encourages investors and others to review the Company's financial information in its entirety and not rely on a single financial measure.

Conference Call Information

ZTO's management team will host an earnings conference call at 8:30 PM U.S. Eastern Time on Tuesday,August 20,2024 (8:30 AM Beijing Time on August 21,2024).

Dial-in details for the earnings conference call are as follows:

United States:

1-888-317-6003

Hong Kong:

800-963-976

Mainland China:

4001-206-115

Singapore:

800-120-5863

International:

1-412-317-6061

Passcode:

6523012

Please dial in 15 minutes before the call is scheduled to begin and provide the passcode to join the call.

A replay of the conference call may be accessed by phone at the following numbers until August 27,2024:

United States:

1-877-344-7529

International:

1-412-317-0088

Passcode:

9226740

Additionally,a live and archived webcast of the conference call will be available athttp://zto.investorroom.com.

About ZTO Express (Cayman) Inc.

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 announcement 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. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and other similar expressions. Among other things,the business outlook and quotations from management in this announcement contain forward-looking statements. ZTO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC") and The Stock Exchange of Hong Kong Limited (the "HKEX"),in its interim and annual report to shareholders,in announcements,circulars or other publications made on the website of the HKEX,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 but not limited to statements about ZTO's beliefs,plans,and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement,including but not limited to the following: risks relating to the development of the e-commerce and express delivery industries in China; its significant reliance on certain third-party e-commerce platforms; 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; ZTO's ability to build its brand and withstand negative publicity,or other favorable government policies. Further information regarding these and other risks is included in ZTO's filings with the SEC and the HKEX. All information provided in this announcement is as of the date of this announcement,and ZTO does not undertake any obligation to update any forward-looking statement,except as required under applicable law.

UNAUDITED CONSOLIDATED FINANCIAL DATA

Summary of Unaudited Consolidated Comprehensive Income Data:

Three Months Ended June 30,

2023

2024

2023

2024

RMB

RMB

US$

RMB

RMB

US$

(in thousands,except for share and per share data)

Revenues

9,324

10,942

18,563

20,484

Cost of revenues

(6,899)

(7,487)

(977,748)

(12,730)

(14,408)

(1,189)

Gross profit

3,304,425

3,620,477

498,194

5,827,833

6,622,562

911,295

Operating (expenses)/income:

Selling,general and administrative

(504,607)

(592,978)

(81,596)

(1,291,214)

(1,489,619)

(204,978)

Other operating income,net

78,957

187,698

25,828

292,598

348,955

48,018

Total operating expenses

(425,650)

(405,280)

(55,768)

(998,616)

(1,140,664)

(156,960)

Income from operations

2,878,775

3,215,197

442,426

4,829,217

5,481,898

754,335

Other income/(expenses):

Interest income

167,108

288,077

39,641

259,020

533,098

73,357

Interest expense

(72,218)

(115,855)

(15,942)

(143,928)

(199,771)

(27,489)

Gain from fair value changes of

financial instruments

51,640

54,862

7,549

207,213

97,582

13,428

Loss/(gain)on disposal of equity investees,

subsidiary and others

(764)

11,683

1,608

(764)

12,134

1,670

Impairment of investment in equity investee

-

(194,452)

(26,757)

-

(672,816)

(92,583)

Foreign currency exchange gain

before tax

81,134

15,178

2,089

70,921

20,562

2,829

Income before income tax,and share of

loss in equity method

3,675

3,274,690

450,614

5,221,679

5,272,687

725,547

Income tax expense

(575,585)

(665,011)

(91,509)

(1,030,592)

(1,231,316)

(169,435)

Share of gain in equity method

investments

123

4,318

594

3,947

20,373

2,803

Net income

2,530,213

2,613,997

359,699

4,195,034

4,061,744

558,915

Net loss/(income) attributable to non-

controlling

interests

10,991

(2,195)

(302)

16,506

(23,896)

(3,288)

Net income attributable to ZTO Express

(Cayman) Inc.

2,541,204

2,611,802

359,397

4,211,540

4,037,848

555,627

Net income attributable to ordinary

shareholders

2,627

Net earnings per share attributed to

ordinary shareholders

Basic

3.14

3.24

0.45

5.21

5.01

0.69

Diluted

3.07

3.16

0.43

5.10

4.90

0.67

Weighted average shares used in

calculating net earnings per ordinary

share/ADS

Basic

808,967,248

806,668,101

806,101

808,916,820

805,806,731

805,731

Diluted

840,176,316

839,697,501

839,501

840,125,888

838,836,131

838,131

Net income

2,915

Other comprehensive income/(loss),

net of tax of nil:

Foreign currency translation adjustment

(161,168)

(35,230)

(4,848)

(141,897)

(117,560)

(16,177)

Comprehensive income

2,369,045

2,578,767

354,851

4,053,137

3,944,184

542,738

Comprehensive loss/(income) attributable to

non-controlling interests

10,288)

Comprehensive income attributable to ZTO

Express (Cayman) Inc.

2,380,036

2,576,572

354,549

4,069,643

3,920,288

539,450

Unaudited Consolidated Balance Sheets Data:

As of

December 31,

June 30,

2023

2024

RMB

RMB

US$

(in thousands,except for share data)

ASSETS

Current assets:

Cash and cash equivalents

12,333,884

10,542,131

1,450,646

Restricted cash

686,568

22,253

3,062

Accounts receivable,net

572,558

687,792

94,643

Financing receivables

1,135,445

1,070,565

147,315

Short-term investment

7,454,633

9,898,796

1,362,120

Inventories

28,074

28,095

3,866

Advances to suppliers

821,942

860,573

118,419

Prepayments and other current assets

3,772,377

4,657,146

640,845

Amounts due from related parties

148,067

170,038

23,398

Total current assets

26,953,548

27,937,389

3,844,314

Investments in equity investee

3,455,119

2,095,453

288,344

Property and equipment,net

32,181,025

33,180,203

4,565,748

Land use rights,net

5,637,101

5,780,463

795,418

Intangible assets,net

23,240

20,141

2,771

Operating lease right-of-use assets

672,193

521,130

71,710

Goodwill

4,241,541

4,541

583,655

Deferred tax assets

879,772

846,558

116,490

Long-term investment

12,170,881

14,034,434

1,931,202

Long-term financing receivables

964,780

1,000,306

137,647

Other non-current assets

701,758

931,597

128,192

Amounts due from related parties-non current

584,263

514,583

70,809

TOTAL ASSETS

88,465,221

91,103,798

12,536,300

LIABILITIES AND EQUITY

Current liabilities

Short-term bank borrowing

7,765,990

10,390,800

1,429,822

Accounts payable

2,557,010

2,200,315

302,773

Advances from customers

1,745,727

1,643,280

226,123

Income tax payable

333,257

317,156

43,642

Amounts due to related parties

234,683

154,446

21,252

Operating lease liabilities

186,253

154,257

21,226

Dividends payable

1,548

20,616

2,837

Other current liabilities

7,236,716

7,208,199

991,881

Total current liabilities

20,184

22,089,069

3,039,556

Non-current operating lease liabilities

455,879

328,909

45,259

Deferred tax liabilities

638,200

495,408

68,170

Convertible bond

7,029,550

7,216,538

993,029

TOTAL LIABILITIES

28,184,813

30,129,924

4,146,014

Shareholders' equity

Ordinary shares (US$0.0001 par value; 10,000 shares authorized;

812,866,663 shares issued and 804,719,252 shares outstanding as of

December 31,2023; 812,663 shares issued and 806,101 shares

outstanding as of June 30,2024)

525

525

72

Additional paid-in capital

24,201,745

24,477,250

3,368,182

Treasury shares,at cost

(510,986)

(377,156)

(51,898)

Retained earnings

36,301,185

36,634,344

5,041,054

Accumulated other comprehensive loss

(190,724)

(308,284)

(42,421)

ZTO Express (Cayman) Inc. shareholders' equity

59,801,745

60,426,679

8,989

Noncontrolling interests

478,663

547,195

75,297

Total Equity

60,280,408

60,973,874

8,286

TOTAL LIABILITIES AND EQUITY

88,300

Summary of Unaudited Consolidated Cash Flow Data:

Three Months Ended June 30,

2023

2024

2023

2024

RMB

RMB

US$

RMB

RMB

US$

(in thousands)

Net cash provided by operating activities

3,761,604

3,480,095

478,877

6,499,578

5,511,115

758,355

Net cash used in investing activities

(3,559)

(4,666,289)

(642,103)

(9,408,160)

(7,044,941)

(969,416)

Net cash used in by financing activities

(1,974,295)

(1,622)

(151,863)

(1,133,723)

(973,492)

(133,957)

Effect of exchange rate changes on cash,cash

equivalents and restricted cash

104,871

(3,526)

(485)

95,934

35,077

4,827

Net decrease in cash,cash equivalents

and restricted cash

(1,649,379)

(2,293,342)

(315,574)

(3,946,371)

(2,472,241)

(340,191)

Cash,cash equivalents and restricted cash at

beginning of period

10,306,095

12,872,411

1,771,303

12,603,087

13,051,310

1,795,920

Cash,cash equivalents and restricted cash at end of

period

8,656,716

10,579,069

1,729

8,729

The following table provides a reconciliation of cash,cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows:

As of

June 30,

2023

2024

RMB

RMB

US$

(in thousands)

Cash and cash equivalents

7,781,443

10,646

Restricted cash,current

851,899

22,062

Restricted cash,non-current

23,374

14,685

2,021

Total cash,cash equivalents and restricted cash

8,729

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended June 30,

2023

2024

2023

2024

RMB

RMB

US$

RMB

RMB

US$

(in thousands,except for share and per share data)

Net income

2,915

Add:

Share-based compensation expense (1)

-

6,768

931

254,976

305,155

41,991

Impairment of investment in equity investee (1)

-

194,452

26,757

-

672,816

92,583

Loss/(gain) on disposal of equity investees

and subsidiary,net of income taxes

764

(9,496)

(1,307)

764

(9,947)

(1,369)

Adjusted net income

2,977

2,805,721

386,080

4,774

5,768

692,120

Net income

2,915

Add:

Depreciation

671,283

720,930

99,203

1,322,968

1,473,049

202,698

Amortization

33,791

34,345

4,726

68,584

68,325

9,402

Interest expenses

72,218

115,855

15,942

143,928

199,771

27,489

Income tax expenses

575,585

665,011

91,509

1,592

1,316

169,435

EBITDA

3,883,090

4,150,138

571,079

6,106

7,205

967,939

Add:

Share-based compensation expense

-

6,991

Impairment of investment in equity investee

-

194,583

Loss/(gain) on disposal of equity investees

and subsidiary

764

(11,683)

(1,608)

764

(12,134)

(1,670)

Adjusted EBITDA

3,854

4,339,675

597,159

7,016,846

8,042

1,100,843

(1) Net of income taxes of nil

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended June 30,

Six Months Ended June 30

2023

2024

2023

2024

RMB

RMB

US$

RMB

RMB

US$

(in thousands,except for share and per share data)

Net income attributable to ordinary

shareholders

2,627

Add:

Share-based compensation expense (1)

-

6,369)

Adjusted Net income attributable to

ordinary shareholders

2,968

2,803,526

385,778

4,467,280

5,005,872

688,832

Weighted average shares used in

calculating net earnings per ordinary

share/ADS

Basic

808,131

Net earnings per share/ADS attributable to

ordinary shareholders

Basic

3.14

3.24

0.45

5.21

5.01

0.69

Diluted

3.07

3.16

0.43

5.10

4.90

0.67

Adjusted net earnings per share/ADS

attributable to ordinary shareholders

Basic

3.14

3.48

0.48

5.52

6.21

0.85

Diluted

3.07

3.38

0.47

5.40

6.06

0.83

(1) Net of income taxes of nil

For investor and media inquiries,please contact:

ZTO Express (Cayman) Inc.

Investor Relations

E-mail:ir@zto.com

Phone: +86 21 5980 4508