ZTO Express revenues up by more than a third
ZTO Express has reported revenues of RMB3,143.1m (US$472.4m) for the third quarter (Q3) of 2017, which was 33.6% up on last year – and it will also be increasing the price of some delivery services.
Gross profit was also up by more than a third (33.5%) at RMB1,137.8m (US$171.0m).
On the operational front, ZTO Express saw its parcel volume hit 1,535.9m in Q3, which was up 39.4% on the same period of 2016.
The company also reported that it now has 28,900 pickup/delivery outlets; 9,400 network partners; 79 sorting hubs, which includes 73 operated by the company and six by network partners; and 4,410 line-haul vehicles, which includes around 3,250 self-operated vehicles and around 1,160 vehicles owned and operated by Tonglu Tongze Logistics, a transportation operator that works exclusively for ZTO.
“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.”