Shanghai-based, US-listed express delivery company, ZTO Express says net income grew by 27.6 per cent (constant currency) to RMB 966.4 million (USD 144 million) for the first quarter ended 31 March.
The company generated parcel volume growth of 41.6 per cent to 2.26 billion packages, 19.1 percentage points faster than market average, which helped push up its market share in terms of parcel volume by 18.6 per cent during the quarter.
Revenues came in at RMB 4.57 billion (USD 681.6 million), an increase of 29 per cent in the same quarter of 2018.
Meisong Lai, founder, chairman and chief executive officer of ZTO, comments: “ZTO strengthened its leadership position in the Chinese express delivery industry with market share in terms of parcel volume expanding 2.5 percentage points to 18.6 oer cent during the first quarter of 2019.”
“Our newly implemented volume-incentive metrics were effective in providing confidence and meaningful support to our network partners who faced intensifying competitions in regions with concentrated originating e-commerce volume as well as in those previously less penetrated markets,” he says.
“Our continued efforts to standardise pickup and delivery fees are paving the way to increase couriers’ wages and enhance profitability of our network partners. With years of continued investments in shared-success culture and operational infrastructure, ZTO is able to deliver consistent and strong operating performances on both volume and earnings,” Lai adds.
In May 2018 a consortium led by Alibaba’s majority-owned logistics affiliate Cainiao Smart Logistics Network, Alibaba and other partners bought a 10 per cent stake in ZTO for an estimated USD 1.4 billion.
ZTO owns 1.0 per cent of Cainiao, which it co-founded with Alibaba and over a dozen other Chinese companies in 2013.
The company has a fleet of over 5,700 line-haul vehicles including over 4,850 self-owned vehicles and over 850 vehicles owned and operated by Tonglu Tongze Logistics Ltd., a transportation operator that works exclusively for ZTO.