Gelonghui, May 16 | Zhongtong Express-W (02057.HK) announced that for the first quarter of 2024, revenue was RMB 99.60 billion (US$1,379 million), up 10.9% year on year; gross profit was RMB 3.02 billion (US$416 million), up 19.0% year on year; net profit was RMB 1,447.8 billion (US$201 million), down 13.0% year on year; adjusted net profit was RMB 3.66 billion (US$507 million), up 16.8% year on year; adjusted net profit RMB2,224 million (US$308 million), up 15.8% year over year; net income per basic and diluted American Depositary Shares was RMB1.77 ($0.25) and RMB1.75 ($0.24). Net cash flow from operating activities was RMB2,031 million (US$281 million) compared to RMB2,738 million for the same period in 2023.

In the first quarter of 2024, the number of packages was 7.171 billion, up 13.9% from 6.297 billion in the same period in 2023. As of March 31, 2024, the number of pickup/delivery outlets was over 31,000. As of March 31, 2024, the number of direct network partners was over 6,000. As of March 31, 2024, the number of own mainline vehicles was approximately 10,000. As of March 31, 2024, about 9,100 of the approximately 10,000 vehicles were high-capacity models with a length of 15 to 17 meters, compared to about 9,500 as of March 31, 2023. As of March 31, 2024, there were about 3,800 trunk routes between sorting centers, similar to the same period last year. As of March 31, 2024, the number of sorting centers was 96, of which 88 were operated by the company and 8 by the company's network partners.

Mr. Lai Meisong, founder, chairman and CEO of Zhongtong said, “In the first quarter of this year, the volume of the industry increased 25.2% year-on-year, far exceeding expectations. The booming development of new live e-commerce and social networking platforms has, on the one hand, stimulated public online consumption and led to an increase in express delivery business; on the other hand, it has also contributed to an increase in the proportion of e-commerce items with low unit prices. At the same time, competition for express delivery prices has further intensified, especially in grain-producing regions. The share of unprofitable or even loss-making express shipments in the industry has increased. Zhongtong has maintained healthy profit growth by adhering to the bottom line of 'no loss-making express ships'. Although the volume market share has declined compared to the same period last year, our profit market share has further increased, proving the effectiveness of our strategy.”

Ms. Yan Huiping, Chief Financial Officer of Zhongtong, said, “Our core single ticket revenue fell 2.5% year over year, or 4 points. The decline was far below the industry average. Despite the slowdown in business volume growth, thanks to the continuous deepening of standardization and digital intelligence operations, our single ticket sorting and transportation costs have decreased by 6 percent year-on-year, while the management cost structure is stable and effective. The adjusted net profit for the quarter was 2.2 billion yuan, up 15.8% year over year. Operating cash flow was 2 billion yuan, and capital expenditure was 1.7 billion yuan.”