China-based carrier, ZTO Express, delivered parcel volume growth of 11.7 per cent and expanded its market share according to Q3 2022 results.
ZTO Express’ market share expanded by 1.3 percentage points to 22.1 per cent despite a weakened economy and Covid impact.
Adjusted net income for the reported period increased 63.1 per cent to 1,872.6 million CNY (approx. €256.3 million)
Cash generated from operating activities was 2,823.3 million CNY (approx. €386.4 million).
“Despite macroeconomic softness and Covid-19 related disruptions, ZTO once again achieved volume and profit growth for the quarter,” said ZTO Express founder, Chairman and CEO, Meisong Lai.
“Our 6.4 billion parcel volume helped to increase our market share by 1.3 points to 22.1 per cent, and the adjusted net income grew 63.1 per cent to 1.9 billion while we held our leading position on the customer satisfaction scoreboard.
“While price competition stabilised in the marketplace, our internally focused initiatives to enhance operational excellence and earnings quality have generated enhancements to our topline and bottom-line.
“Granular level of assessments of cost coverage, price competitiveness and operating efficiencies allowed us to respond to problems firsthand as well as establishing systemic solutions.
“Further, many of these solutions are inclusive of our network partners’ interests so that the entire network becomes more profitable with improved capabilities and cohesiveness to address external challenges and seize opportunities ahead.”
Lai said the business saw clear divergence of the major players in China’s express delivery niche.
“The stronger ones will scale up faster and grow profit while weaker ones will likely stagnate or exit,” he said. “Our focus is on being the best we can during uncertain times. Opportunities awaits those who are well prepared.”
ZTO Express Chief Financial Officer, Huiping Yan, said the business has always strived to achieve optimal balance between quality of service, volume growth and earnings.
“Through consistent equitable sharing of burden and benefits, we have built a partner network that is unified under common goals and objectives,” said Yan.
:Widening our market share lead is of even greater strategic importance now, and we are self-assured to continue to deliver on our strategies.
“Even though our annual volume guidance was modified given external market conditions, our conviction to achieve at least one percentage point market share gain for the year remains strong.”
ZTO Express was founded in May, 2002. It is reported to be a key enabler of China’s fast-growing e-commerce market.