Q2 2024 ZTO Express (Cayman) Inc Earnings Call Transcript
Key Points
- ZTO Express (Cayman) Inc (ZTO) achieved a 10% year-over-year parcel volume growth, reaching RMB8.45 billion.
- Adjusted net income increased by 11% year-over-year to RMB2.81 billion, demonstrating strong profitability.
- The company maintained industry-leading service quality management and reduced customer complaint rates.
- ZTO Express (Cayman) Inc (ZTO) implemented initiatives to reduce last-mile delivery costs and improve profitability for couriers.
- The company announced an interim cash dividend of USD35 per ADS and ordinary share, reflecting a 40% payout ratio.
- Market share contracted by 2 percentage points compared to the same period last year due to intensified price competition.
- The proportion of low-priced e-commerce parcels continues to trend up, putting pressure on pricing.
- Operating cash flow decreased by 7.5%, mainly due to dividend tax and increased financing or loans to network partners.
- Unit sorting costs increased by 4.6% due to higher depreciation and amortization costs on new equipment and facilities.
- Despite the strong growth in parcel volume, the company's ASP for core express delivery business stayed flat.
Good day, and welcome to the ZTO Express to announce second-quarter and half year 2024 financial results conference call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Songfei Li, Corporate Secretary and Director of Capital Markets. Please go ahead.
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Thank you, May. Hello, everyone, and thank you for joining us today. The company's results and the Investor Relations presentation were released earlier today and are available on the company's IR website at ir.zto.com. On the call today from ZTO are Mr. Meisong Lai, Chairman and Chief Executive Officer; and Ms. Huiping Yan, Chief Financial Officer. Mr. Lai will give a brief overview of the company's business operations and highlights, followed by Ms. Yan, who will go through the financials and guidance.
They will both be available to answer your questions during Q&A session that follows. I remind you that this call may contain
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