ZTO Express – double digit growth as market share increases

Chinese final mile delivery giant ZTO Express has reported revenue growth of 20.6% for the financial year ending 31 December 2021. Volumes and price per unit both increased, leading to the strong performance. It now holds just over 1/5th of the Chinese parcels market.

Gross profit was CNY6589.4 million (£787.9 million) for the financial year on revenues of 30,405.8 million (£3.6bn) . Meisong Lai, Founder, Chairman and Chief Executive Officer of ZTO, commented: “Facing COVID-19 pandemic shockwaves, signs of weakness in the economy and dislocations in industry dynamics, ZTO once again achieved satisfactory results in all areas of our strategic focus for 2021. While the growth prospects are intact for the long run, 2022 is likely a year of volatility or unexpectedness. We are watchful of what is taking place in the world and maintain vigilance and diligence. Capacity and efficiency are critical to the scale-dependent express delivery business. Our network, together with an increasing level of standardisation and digitisation throughout our operations and good partnerships, makes us confident to secure a larger share of the growing market with greater cost efficiencies.”

Huiping Yan, Chief Financial Officer of ZTO, added: “The impact from competition-driven price decline continued to diminish. Also, during the second half of the year, various corporate initiatives were systemically implemented to improve visibility to pertinent and timely data valuable for analytics and quicker response. More of such implementations are on the way and, we have begun to see benefit on our earnings quality.” 

In the coming year the delivery giant projects parcel volume increases of between 18-24%, leading to continued double digit revenue growth.

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