China based delivery company ZTO Express has reported that its Q3 revenues for 2017 were up 33.6% compared to last year, to US$472.4 million. The express delivery company said that it is to increase the price of some of its delivery services.
ZTO also saw profits grow significantly to US$171 million, a 33.5% jump on last year.
Parcel volumes grew significantly, hitting nearly 1.54 billion pieces in Q3, up 39.4% on Q3 of 2016.
“I’m pleased to report that our revenues for the third quarter of 2017 came in at RMB3,143.1 million , exceeding the high end of our guidance for the quarter by 4.8% as we continue to gain growth momentum,” said Meisong Lai , Founder, Chairman and Chief Executive Officer of ZTO, in a statement issued yesterday (20 November).
“Parcel volume growth also accelerated sequentially, increasing 39.4% year-over-year to 1,535.9 million during the quarter. Both our revenues and parcel volume outgrew the industry average as our market share steadily expands when compared to the same period last year.
“According to data published by the PRC State Post Bureau, ZTO once again received one of the highest scores for customer satisfaction among the major express delivery companies in China during the third quarter.
The ZTO Chairman then touched on the price increase: “As part of our strategy of aligning the interests of our network partners with ZTO while carefully balancing growth with service quality and profitability, we announced certain increases in the prices of our delivery services last month, which we expect will further enhance service quality, protect the interests of our customers, and offset rising costs for our network partners.
“I am confident that this increase in price will aid in further improving the stability of our network and enhancing service quality, while helping to create a healthier and more sustainable market environment.
“We continue to further strengthen our cost leadership position through greater economies of scale and cost cutting initiatives. As part of our efforts to prepare for China’s peak e-commerce season, we have been reinvesting in our infrastructure and capacity by installing more automated sorting equipment, expanding our self-owned fleet of high-capacity trucks and increasing the use of digital waybills.”
Finally, Meisong Lai reported on ZTO’s Singles Day success: “According to data from the State Post Bureau, total parcel volume during China’s Singles’ Day was 331 million, an increase of 31.5% when compared to the same day of last year. Our parcel volume was approximately 65.7 million on the Singles’ Day this year, outgrowing the industry average by over 10 percentage points from the same period last year.”
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