2.4 Billion Parcels Expanded Market Share to 18.9% Amidst Pandemic Achieved RMB 635.1 Million Adjusted Net Income Despite Headwind

ZTO Express (Cayman) Inc. (NYSE: ZTO), a leading and fast-growing express delivery company in China ("ZTO" or the "Company"), today announced its unaudited financial results for the first quarter ended March 31, 2020[1]. Although adversely affected by the global pandemic COVID-19 outbreak, the Company delivered 4.9% volume growth to reach 2.4 billion parcels and achieved better than expected adjusted net income of RMB635.1 million.

First Quarter 2020 Financial Highlights

• Revenues were RMB3,915.9 million (US$553.0 million), a decrease of 14.4% from RMB4,574.0 million in the same period of 2019.

• Gross profit was RMB818.7 million (US$115.6 million), a decrease of 35.0% from RMB1,259.6 million in the same period of 2019.

• Net income was RMB371.0 million (US$52.4 million), a decrease of 45.6% from RMB681.6 million in the same period of 2019.

• Adjusted EBITDA[2] was RMB1,173.4 million (US$165.7 million), a decrease of 18.6% from RMB1,441.0 million in the same period of 2019.

• Adjusted net income[3] was RMB635.1 million (US$89.7 million), a decrease of 34.3% from RMB966.4 million in the same period of 2019.

• Basic and diluted earnings per American depositary share ("ADS"[4]) were RMB0.48 (US$0.07), a decrease of 44.8% from RMB0.87 in the same period of 2019.

• Adjusted basic and diluted earnings per American depositary share[5] attributable to ordinary shareholders were RMB0.82 (US$0.12), a decrease of 33.3% from RMB1.23 in the same period of 2019.

• Net cash provided by operating activities was RMB 177.8 million (US$25.1 million), compared with RMB 633.3 million in the same period of 2019.

Operational Highlights for First Quarter 2020

• Parcel volume was 2,374 million, an increase of 4.9% from 2,264 million in the same period of 2019.

• Number of pickup/delivery outlets was approximately 30,000 as of March 31, 2020.

• Number of direct network partners was over 4,850 as of March 31, 2020.

• Number of line-haul vehicles was over 7,700 as of March 31, 2020, which included over 6,800 self-owned vehicles and over 900 vehicles owned and operated by Tonglu Tongze Logistics Ltd., a transportation operator that works exclusively for ZTO.

• Number of self-owned trucks increased to around 6,800 as of March 31, 2020 from 6,450 as of December 31, 2019. Among the self-owned trucks, over 5,000 were high capacity 15 to 17-meter-long models as of March 31, 2020, compared to over 4,650 as of December 31, 2019.

• Number of line-haul routes between sorting hubs was over 2,900 as of March 31, 2020, compared to over 2,600 as of December 31, 2019.

• Number of sorting hubs was 90 as of March 31, 2020, among which 81 are operated by the Company and 9 by the Company's network partners.