ZTO Express Financial Overview slide image

ZTO Express Financial Overview

Continuous Cost Efficiencies and Productivity Gains Cost of Revenues - Breakdown (RMB million) (RMB million) Gross Profit and Margin ZIO 中通快递 ZTO EXPRESS 33.9% I 21.2% 24.4% 25.4% 27.3% 28.1% 28.1% 29.8% 1 20.5% -323 1,193 238 3,304 308 301 85 1,059 307 1,106 -284 1,179 183 222 2,773 1 1,068 148 974 952 2,444 2,523 2,706 954 83 120 113 107 127 2,251 2,203 92 2,015 2,140 1,636 1,880 1,891 1,934 2,013 1,935 2,048 1,568 1,620 2,840 3,351 2,954 3,030 3,102 3,394 3,182 3,200 3,246 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 ■Line-Haul Transportation Cost Sorting Hub Cost Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Gross Profit Gross Margin ■ Other Costs (RMB) ■ Cost of Accessories Sold ■Freight Forwarding Cost Cost of Revenues per Parcel¹ Key Observations on 3Q 2023 Results Line-haul transportation cost Better economies of scale (+) Improved load rate (+) Real-time data monitoring and analytics to optimize route planning(+) Diesel price declined, decreased ~1 cents (+) Sorting hub cost - Better economies of scale (+) Improved standardization in operating procedures with improved labor productivity (+) Increased automation, 482 sets of automated sorting equipment in use (441 sets @ 3Q22) (+) 0.06 0.05 0.20 0.05 0.05 0.05 0.17 0.02 0.19 0.01 0.02 0.18 0.18 0.02 0.02 0.36 0.32 0.29 0.30 0.30 0.50 0.53 0.57 0.49 0.49 www 0.04 0.03 0.18 0.15 0.02 0.02 0.12 8.93 0.32 0.32 0:02 0.25 0.27 0.51 0.51 0.42 0.43 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 ■Line-Haul Transportation Cost Other Costs Sorting Hub Cost Cost of Accessories Sold Gross profit Freight Forwarding Cost Note: 1. Cost of revenues per parcel is calculated based on cost of revenues divided by the number of parcels handled in a given quarter Gross profit increased as the result of increased revenue and cost productivity gain 36
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