ZTO Express-W(02057.HK): Full-year adjusted net profit reaches RMB 9.5 billion, announces semi-annual dividend of $0.39 per share

Zhongtong Express (02057.HK) announced that in Q4 2025, revenue was RMB 14.5107 billion (USD 2.075 billion), a year-over-year increase of 12.3%; gross profit was RMB 3.6819 billion (USD 526.5 million), a decrease of 2.1% YoY; net profit was RMB 2.6932 billion (USD 385.1 million), up 10.1% YoY; adjusted EBITA was RMB 4.2415 billion (USD 606.5 million), down 8.1% YoY; adjusted net profit was RMB 2.6945 billion (USD 385.3 million), down 1.4% YoY.

In Q4 2025, total revenue was RMB 14.5107 billion (USD 2.075 billion), a 12.3% YoY growth. Core express delivery revenue increased by 12.4% compared to the same period in 2024, driven by a 9.2% increase in parcel volume and a 2.9% rise in revenue per parcel. Direct customer revenue generated by direct sales channels grew by 71.5%, mainly due to an increase in e-commerce return parcels. Freight forwarding service revenue grew by 8.1% YoY. Material sales revenue (primarily from sales of thermal paper used for digital waybills) increased by 1.6%. Other income mainly comes from financial services.

For the fiscal year 2025, revenue was RMB 49.0987 billion (USD 7.021 billion), up 10.9% YoY; gross profit was RMB 12.2714 billion (USD 1.754 billion), down 10.5% YoY; net profit was RMB 9.2357 billion (USD 1.3207 billion), up 3.9% YoY; adjusted EBITA was RMB 15.0456 billion (USD 2.1515 billion), down 8.0% YoY; adjusted net profit was RMB 9.5127 billion (USD 1.3603 billion), down 6.3% YoY. The board has approved a cash dividend of USD 0.39 per ADS and common share for shareholders listed as of the close of business on April 8, 2026, for the six months ending December 31, 2025. Additionally, on March 17, 2026, the board approved a new share repurchase program, authorizing the repurchase of up to USD 1.5 billion worth of shares over the next 24 months, effective from March 20, 2026, to March 20, 2028.

Mr. Lai Meisong, Founder, Chairman, and CEO of Zhongtong, stated: “In Q4, the continued effectiveness of anti-inflation policies has curbed extreme low-price phenomena in the express delivery industry. Zhongtong remains committed to service quality and customer satisfaction, with business volume surpassing the industry average, reaching 10.6 billion parcels. Adjusted net profit was RMB 2.7 billion, in line with expectations. Additionally, the volume of scattered parcel business continued to rise throughout the year, reaching an average of 9.8 million parcels per day in Q4, a YoY increase of over 38%. Behind our revenue diversification is our expanding product and service capabilities, which are surpassing traditional express delivery in quality and scale, positively contributing to overall revenue and profit margins.”

Mr. Lai added: “On one hand, we are pleased to see the industry shifting towards a development model that emphasizes both volume and quality. Relying solely on low prices for growth is neither sustainable nor economical. For business models with significant scale effects, this fundamental shift will accelerate the industry’s move away from fierce price competition toward a new stage where capability wins customers, further promoting industry consolidation. On the other hand, we are in a period of transformation. Short-term macro and micro conditions may be highly volatile. However, it is certain that our business and financial fundamentals remain solid. We will continue to prioritize quality, aiming to strengthen Zhongtong’s leading position in business volume and profitability. During this period of change, we will focus more on fair sharing among all stakeholders. It is this consistent practice of ‘building together and sharing’ that enables us to win this marathon and deliver sustainable returns to all investors.”