ZTO Express (Cayman) Inc (ZTO, Financial), a leading express delivery company in China, announced its unaudited financial results for the fourth quarter and fiscal year ending December 31, 2024, on March 18, 2025. The company reported a 12.6% increase in parcel volume, reaching 34 billion parcels, and a 12.7% growth in adjusted net income, totaling RMB 10.2 billion. ZTO also declared a semi-annual dividend of US$0.35 per share.
Positive Highlights
- Revenue increased by 21.7% in Q4 2024 compared to the same period in 2023.
- Gross profit rose by 20.2% year-over-year in Q4 2024.
- Adjusted EBITDA grew by 26.4% in Q4 2024.
- Net income increased by 10.7% in Q4 2024.
- Declared a semi-annual dividend of US$0.35 per share.
Negative Highlights
- Net cash from operating activities decreased to RMB 2,806.3 million in Q4 2024 from RMB 3,923.3 million in Q4 2023.
- Freight forwarding services revenue decreased by 11.7% in Q4 2024.
Financial Analyst Perspective
As a financial analyst, the results from ZTO Express indicate a robust performance in the express delivery sector, driven by increased parcel volume and improved operational efficiency. The company's ability to grow its adjusted net income by 12.7% despite economic challenges is commendable. However, the decline in net cash from operating activities suggests a need for careful cash flow management moving forward.
Market Research Analyst Perspective
From a market research standpoint, ZTO Express's growth aligns with the expanding e-commerce market in China. The company's strategic focus on enhancing service quality and customer satisfaction has likely contributed to its increased market share. The decline in freight forwarding revenue highlights the challenges in cross-border e-commerce, which may require strategic adjustments.
Frequently Asked Questions (FAQ)
Q: What was the total parcel volume for ZTO in 2024?
A: The total parcel volume was 34 billion parcels.
Q: How much did ZTO's adjusted net income grow in 2024?
A: Adjusted net income grew by 12.7% to RMB 10.2 billion.
Q: What is the declared dividend per share?
A: The declared semi-annual dividend is US$0.35 per share.
Q: What was the revenue growth in Q4 2024?
A: Revenue increased by 21.7% compared to Q4 2023.
Q: How did the freight forwarding services perform in Q4 2024?
A: Revenue from freight forwarding services decreased by 11.7% in Q4 2024.
Read the original press release here.
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