Chinese Courier Firm ZTO Express’s Revenue in Q1 2023 Exceeds CNY 8.98 Bn, Up 13.7% YoY

Consumer Discretionary Author: Zhisheng Wang, Yiran Xing Editor: Yiran Xing May 19, 2023 02:53 PM (GMT+8)

On May 18, 2023, ZTO Express released its 2023 first quarterly report. In Q1 2023, its net profit increased 90% from the same period last year, with a 23.4% market share.


ZTO Express (Cayman) Inc. (hereinafter referred to as “ZTO Express, Chinese: 中通, NYSE: ZTO, HKEX: 2057), headquartered in Shanghai, recently released its 2023 first quarterly report. In Q1 2023, ZTO achieved revenue of CNY 8.98 billion (USD 1.28 billion), up 13.7% year-over-year, and net profit of CNY 1.67 billion, a 90.7% increase from the same period last year. The parcel volume increased by 20.5% to 6.30 billion pieces, compared to 5.23 billion pieces in Q1 2022, expanding its market share to 23.4% in China.

Founded in 2002, ZTO Express is a comprehensive logistics service enterprise with express delivery as its core business, integrating cross-border businesses, express, commercial business, cloud warehouse, aviation, cold chain, finance, etc. In 2022, ZTO Express had over 31,000 service outlets, over 5,900 direct network partners, over 3,750 trunk transport routes, and network access to over 99% of districts and counties, covering over 94% of China's townships.

Internationalization is an important strategy of ZTO Express. ZTO Express has set up transit warehouses in the US, France, Germany, Japan and Korea, New Zealand and Malaysia, covering over 220 countries and regions. It has also launched parcel delivery, logistics and distribution services of the EU special line, the US special line, the Japan and Korea special line, the New Australia special line, the ASEAN special line, the Middle East special line, the Africa special line and the special lines of other countries around the globe. At present, ZTO Global Logistics has over 40 overseas warehouses, and its overseas self-operated network has covered 10 countries in Asia and 6 countries in Africa.

The major competitors of ZTO Express in the express logistics industry include Chinese companies such as YTO Express (Chinese: 圆通), Yunda Express (Chinese: 韵达) and SF Express (Chinese: 顺丰), as well as international players such as DHL from Germany and Fedex from the US.

Based on current industry trends, Zhu Jingxi, Vice President and CTO of ZTO Express, has said that digitalization will reshape the development of the logistics industry chain. He believes that to promote digitalization, traditional enterprises must be integrated and connected with the business. Technology must not form an A-B relationship with the business, or stay inside the laboratory. At the same time, there must also be global and systematic thinking, and the return on investment must be considered.

As of press time, ZTO Express closed at USD 29.03 apiece, with a market cap of USD 23.73 billion.