ZTO Express Financial Overview
2. Distinct Partner Network Built Upon a "Shared-Success" Philosophy ZO
中通快递
Our "shared-success" philosophy inspired us to enhance and transform the network partner model,
and has underpinned our success
Fee Sharing Mechanism
Before 2008: Last-mile delivery is free of charge
Outlets earn revenue only on pick-up
• Outlets with higher delivery volumes relative to pickup volumes (e.g.
due to geographic disparity, uneven nature of economic
development) are less profitable or loss making
Negatively impacted outlets' service quality and network stability
Successfully Convert Major Network Partners to Shareholders
ZTO founded in
2002
Acquired 8 regional
network partners
2014
2013
Consolidated Shanghai
Zhongtongji Express and
certain network partners
to form ZTO Express
2015
Acquired an additional
16 network partners to form
a centrally-managed
nationwide network
Chairman Lai
currently
holds 25.9%1
After 2008:
ZTO introduced delivery service fee sharing mechanism
Pickup outlets pay last-mile outlets for delivery based on pre-set
formulae
Sharing mechanism facilitated by implementation of our proprietary
operating system
• Today, the fee sharing mechanism continues to serve as a balancing
function across our network
Major network partners became shareholders of ZTO and united
under a common goal
Share-swap transactions fairly priced and with transparency
⚫ The reorganization aligned interests, built trust and forged loyalty, and
laid the foundation for network stability
Note: 1. Data as of Sep 30, 2023
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