ZTO Express reports mixed H1 2025: revenue up, net income down

ZTO Express (Cayman) Inc. reported a 9.8% increase in revenues to RMB22,723.3 million for the first half of 2025, up from RMB20,686.0 million in the same period of 2024. This growth was primarily driven by increased express delivery demand and a shift towards higher-value customers. However, the cost of revenues also rose significantly by 21.5% to RMB17,089.7 million, leading to a 14.9% decrease in gross profit to RMB5,633.6 million. Net income for the period decreased by 1.4% to RMB4,003.7 million.

The core express delivery business saw revenues increase by 10.4% due to a 17.7% growth in parcel volume, despite a 6.2% decrease in parcel unit price. Operating expenses decreased by 34.0% to RMB753.2 million, mainly due to an RMB88.7 million reduction in compensation and benefit expenses. The company's gearing ratio remained stable at 31.5% as of June 30, 2025.

For the full year 2025, ZTO Express has revised its parcel volume guidance downwards, now expecting it to be in the range of 38.8 billion to 40.1 billion, representing a 14% to 18% increase year over year. The board also approved an interim dividend of $0.30 per ADS and ordinary share for the six months ended June 30, 2025.