ZTO Reports Third Quarter 2019 Unaudited Financial Results

3.1 Billion Parcels to Expand Market Share 2.3 pts to 18.9%

Adjusted Net Income Increased 24.6% to Reach RMB1.32 Billion

SHANGHAI,Nov. 19,2019 -- 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 third quarter ended September30,2019[1]. The Company beat market expectations by generating parcel volume growth of 45.9%,or 18.4percentage points faster than the industry average. Market share by parcel volume expanded to 18.9% during the third quarter of 2019. Adjusted net income increased 24.6% to reach RMB1,318.5 million.

Third Quarter 2019 Financial Highlights

Revenues were RMB5,265.8 million (US$736.7 million),an increase of 24.4% from RMB4,234.6 million in the same period of 2018

Gross profit was RMB1,596.9 million (US$223.4 million),an increase of 20.5% from RMB1,325.3 million in the same period of 2018

Net income was RMB 1,307.7 million (US$183.0 million),an increase of 23.4% from RMB 1,059.4 million in the same period of 2018

Adjusted EBITDA[2] was RMB1,887.5 million (US$264.1 million),an increase of 28.1% from RMB1,473.1 million in the same period of 2018

Adjusted net income[3] was RMB 1,318.5 million (US$184.5 million),an increase of 24.6% from RMB1,058.5 million in the same period of 2018

Basic and diluted earnings per American depositary share ("ADS"[4]) attributable to ordinary shareholders were RMB1.67 (US$0.23),an increase of 23.7% and 24.6% from RMB1.35 and RMB1.34 in the same period of 2018,respectively

Adjusted basic and diluted earnings per American depositary share[5] attributable to ordinary shareholders were RMB1.69 (US$0.24),an increase of 25.2% and 26.1% from RMB1.35 and RMB1.34 in the same period of 2018,respectively

Net cash provided by operating activities was RMB1,417.7 million (US$198.3 million),compared with RMB911.7 million in the same period of 2018

Operational Highlights for Third quarter 2019

Parcel volume was 3,057.9 million,an increase of 45.9% from 2,095.9 million in the same period of 2018

Number of pickup/delivery outlets was approximately 30,000 as of September 30,2019,while the number of direct network partners was approximately 4,750 as of September 30,2019

Number of line-haul vehicles was over 6,600 as of September 30,which included over 5,700 self-owned vehicles and over 900 vehicles owned and operated by Tonglu Tongze Logistics Ltd.,a transportation operator that works exclusively for ZTO. Among the 6,600 vehicles,over 3,950 were high capacity 15-to-17-meter-long trailer trucks compared to over 3,150 as of June 30,2019

Number of line-haul routes between sorting hubs was over 2,400 as of September 30,2019

Number of sorting hubs was 89 as of September 30,among which 80 are operated by the Company and the other nine by the Company's network partners

[1]An investor relations presentation accompanies this earnings release and can be found at ir.zto.com.

[2]Adjusted EBITDA is a non-GAAP financial measure,which is defined as net income before depreciation,amortization,interest expenses and income tax expenses,and further adjusted to exclude the shared-based compensation expense and non-recurring items such as the gain on disposal of equity investees and subsidiary which management aims to better represent the underlying business operations

[3]Adjusted net income is a non-GAAP financial measure,which is defined as net income before share-based compensation expense and non-recurring items such as gain on disposal of equity investees and subsidiary in which management aims to better represent the underlying business operations

[4]One ADS represents one ClassA ordinary share

[5] Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders is a non-GAAP financial measure. It is defined as adjusted net income divided by weighted average number of basic and diluted shares,respectively.

Mr.Meisong Lai,Founder,Chairman and Chief Executive Officer of ZTO,commented,"ZTO's market share by parcel volume expanded 2.3percentage points to 18.9% during the thirdquarter of 2019. With the strong partnership with thousands of our network partners,ZTO delivered sound execution on our corporate strategy by maintaining high quality of services and achievingtargeted net earnings growth as we continue to strengthen our industry leadership."

Mr.Lai added,"Since the founding of our business 17 years ago,we have followed the philosophy of taking control of our own destiny and investwisely inthe future. Throughout the years,we have consistently builtinfrastructure that are suitable to the stage of market development and operational needs,and we have not only cumulated valuable resources but also developed ability to leverage and maximize value creation and recreation by consolidating resources and expand on our product and service capabilities. We believe that the Chinese express delivery industry and the Chinese logistic industry have great potential for further steady growth as Chinese economy continue to expand. ZTO is on one hand focusing on execution of our near-term strategies surrounding last mile effectiveness including courier advantages,we are also working towards our longer-term goal of becoming a world-leading comprehensive logistics service provider."

Ms.Huiping Yan,Chief Financial Officer of ZTO,added,"ZTO is increasingly benefiting from its brand recognition for wide service coverage and deep penetration into the Chinese express delivery industry. We are on track to deliver another year of strong volume and solid profit growth based on the first three quarters performances and the most recent assessment of the market and operational conditions for the rest of 2019. Supported by the increase in economies of scale,consistent cost productivity gain and corporate structure efficiency,we are able to dampen the impact of price pressureand achieve healthy net income growth. Combined sorting hub and line-haul transportation costs per parcel declined 10.7% year over year,and corporate SG&A,excluding share-based compensation,was 5.3% of total revenues down from5.6% last year. Adjusted net income rose 24.6% to RMB1.32billion,and cash from operating activities rose 55.5% to RMB1.42billion."

Third Quarter 2019 Financial Results

ThreeMonthsEndedSeptember30,

NineMonthsEndedSeptember30,

2018

2019

2018

2019

RMB

%

RMB

US$

%

RMB

%

RMB

US$

%

(inthousands,exceptpercentages)

Express delivery services

3,688,358

87.1

4,675,993

654,195

88.8

10,439,890

87.2

13,499,267

1,888,617

88.4

Freight forwarding services

291,153

6.9

274,356

38,384

5.2

886,216

7.4

913,758

127,839

6.0

Sale of accessories

199,997

4.7

276,452

38,677

5.3

560,059

4.7

777,859

108,826

5.1

Others

55,088

1.3

38,959

5,451

0.7

90,754

0.7

72,546

10,150

0.5

Total revenues

4,234,596

100.0

5,265,760

736,707

100.0

11,976,919

100.0

15,263,430

2,135,432

100.0

Revenueswere RMB5,234.6 million in the same period of 2018. Revenue from express delivery services increased by 26.8% compared to the same period of 2018,mainly driven by a 45.9% increase in parcel volume and partially offset by a 13.2% decrease in unit price per parcel largely for incremental volume incentives in response to competition. Revenue from freight forwarding services decreased 5.8% when compared to the same period of 2018. The increase in revenue from sales of accessories was in-line with the increase in the sale of thermal paper used for the printing of digital waybills. Other revenues are mainly associated with equipment sales,financing services and advertising services.

ThreeMonthsEndedSeptember30,

2018

2019

2018

2019

RMB

%of

revenues

RMB

US$

%of

revenues

RMB

%of

revenues

RMB

US$

%of

revenues

(inthousands,exceptpercentages)

Line-haul transportation cost

1,354,209

32.0

1,783,180

249,476

33.9

3,810,114

31.8

5,073,052

709,746

33.2

Sorting hub cost

765,863

18.1

978,417

136,886

18.6

2,154,262

18.0

2,823,387

395,007

18.5

Freight forwarding cost

281,967

6.7

265,426

37,134

5.0

853,985

7.1

893,823

125,050

5.9

Cost of accessories sold

119,211

2.8

138,112

19,323

2.6

333,651

2.8

414,169

57,944

2.7

Other costs

388,032

9.2

503,686

70,468

9.6

1,010,213

8.4

1,433,901

200,610

9.4

Total cost of revenues

2,909,282

68.8

3,668,821

513,287

69.7

8,162,225

68.1

10,638,332

1,488,357

69.7

Total cost of revenueswas RMB3,668.8 million (US$ 513.3million),an increase of 26.1% from RMB2,909.3 million in the same period last year.

Line haul transportation cost was RMB1,783.2 million (US$249.5 million),an increase of 31.7% from RMB1,354.2 million in the same period last year. Higher usage of self-owned fleet with increasing number of higher-capacity trailer trucks,improved line-haul route planning and better load rate enhanced the transportation cost leverage.

Sorting hub operating cost was RMB978.4 million (US$136.9 million),an increase of 27.8% or RMB 212.6 million from RMB765.9 million in the same period last year. Of this increase: (i) RMB130.1 million (US$18.2 million) was associated with sorting hub labor costs,the headcount of sorting hub workers increased 16.7% year over year,much slower than the 45.9% volume increase; and (ii) RMB40.8 million (US$5.7 million) came from depreciation costs associated with the newly installed automated sorting equipment. As of September 30,208 sets of automated sorting equipment have been put into use,compared to 78 sets as of September 30,2018.

Cost of accessories was RMB138.1 million (US$19.3 million),an increase of 15.9% from RMB119.2 million in the same period last year.

Other costs were RMB503.7 million (US$70.5 million),an increase of RMB115.7 million (US$16.2 million) compared to the same period last year,which mainly resulted from (i) an increase of RMB66.4 million (US$9.3 million) in dispatching costs associated with serving enterprise customers,(ii) an increase of RMB57.8 million (US$8.1 million) in expenses related to IT and technology development. The Company increased its level of investment in IT research and development to support digitized operational management.

Gross Profitwas RMB1,596.9million (US$223.4 million),325.3million in the same period last year. Gross margin rate decreased one percentage point to 30.3% from 31.3% year over year,as a net result of parcel volume growth,increase in volume incentives and cost productivity gains.

Total Operating Expenseswere RMB196.4 million (US$27.5 million),compared to RMB233.6 million in the same period last year.

Selling,general and administrative expenses were RMB290.9 million (US$40.7 million),compared to RMB249.5 million in the same period last year. The increase was mainly due to an increase in salaries and accrued performance-based bonuses from RMB142.4 million to RMB154.3 million (US$21.6 million). Selling,general and administrative expenses,excluding share-based compensation expense accounted for 5.3% of total revenues compared to 5.6% during the same period last year.

Other operating income,net was RMB94.5 million (US$13.2 million) for the quarter which was mainly consisted of government subsidies and tax rebates of RMB84.8 million (US$11.9 million) received in the third quarter of 2019

Income from operationswas RMB1,400.5 million (US$195.9 million),an increase of 28.3% from RMB1,091.7 million for the same period last year. Operating margin rate increased by 0.8 percentage point to 26.6% year over year while the gross margin rate decreased by 1.0 percentage points. This demonstrated sound corporate cost control and healthy economy of scale.

Interest incomewas RMB146.4 million (US$20.5 million),compared with RMB124.0 million in the same period in 2018.

Foreign currency exchange gain,before taxwas RMB28.5million (US$4.0 million) in the third quarter of 2019,resulted from the appreciation of the U.S. dollar against the Chinese renminbi in the third quarter of 2019.

Income tax expenseswere RMB266.3 million (US$37.3 million) and the effective income tax rate was 16.9% for the third quarter of 2019.

Net incomewas RMB1,an increase of 23.4% from RMB1,059.4 million in the same period last year.

Basic and diluted earnings per ADS attributable to ordinary shareholderswere RMB1.67 (US$0.23),compared with basic and diluted earnings per ADS attributable to ordinary shareholders of RMB1.35 and RMB1.34in the same period last year,respectively.

Adjusted basic and diluted earnings per ADS attributable to ordinary shareholderswere RMB1.69 (US$0.24),compared with adjusted basic and diluted earnings per ADS attributable to ordinary shareholders of RMB1.35 and RMB1.34 in the same period last year,respectively.

Adjusted net incomewas RMB1,compared with adjusted net income of RMB1,058.5 million during the same period last year.

EBITDAwas RMB1,876.7 million (US$262.6 million),compared with RMB1,475.1 million in the same period last year.

Adjusted EBITDAwas RMB1,compared to RMB1,473.1 million in the same period last year.

Net cash provided by operating activitieswas RMB1,compared with RMB911.7 million in the same period last year.

Business Outlook

The Company makes no changes to its previously stated annual guidance: parcel volume for 2019 is expected to be in the range of 11.51 billion to 11.93 billion,representing a 35% to 40% increase year over year,and the Company's adjusted net income is expected to be in the range of RMB4.8 billion to RMB5.2 billion,representing a 14.3% to 23.8% increase from the same period of 2018. Above estimates are subject to change.

Company Share Purchase

On November15,2018,the Company announced a new share repurchase program whereby ZTO was authorized to repurchase its own ClassA ordinary shares in the form of ADSs with an aggregate value of up to US$500 million during an 18-month period thereafter. The Company expects to fund the repurchase out of its existing cash balance. As of September30,the Company has purchased an aggregate of 7,716,436 ADSs at an average purchase price of US$17.33,including repurchase commissions.

The Company believes that the share repurchase program represents ZTO's confidence in the overall market opportunities as well as ZTO's solid operating fundamentals and financial strength for sustained profitable growth and value creation for its shareholders.

Exchange Rate

This announcement contains translation of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted,all translations from Renminbi to U.S. dollars were made at the exchange rate of RMB7.1477 to US$1.00,the noon buying rate on September30,2019 as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve Systems.

Use of Non-GAAP Financial Measures

The Company uses adjusted EBITDA,adjusted net income,and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders,each a non-GAAP financial measure,in evaluating ZTO's operating results and for financial and operational decision-making purposes.

Reconciliations of the Company's non-GAAP financial measures to its U.S. GAAP financial measures are shown in tables at the end of this earnings release,which provide more details about the non-GAAP financial measures.

The Company believes that adjusted EBITDA,adjusted net income and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders help identify underlying trends in ZTO's business that could otherwise be distorted by the effect of the expenses and gains that the Company includes in income from operations and net income. The Company believes that adjusted EBITDA,adjusted net income and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders provide useful information about its operating results,enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by ZTO's management in its financial and operational decision-making.

Adjusted EBITDA,adjusted net income and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders should not be considered in isolation or construed as an alternative to net income or any other measure of performance or as an indicator of the Company's operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted EBITDA,adjusted net income and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently,limiting their usefulness as comparative measures to ZTO's data. ZTO encourages investors and others to review the Company's financial information in its entirety and not rely on a single financial measure.

Conference Call Information

ZTO's management team will host an earnings conference call at 8:00 P.M.U.S. Eastern Time on Monday,November18,2019 or 9:00 A.M.Beijing Time on Tuesday,November 19,2019.

Dial-in details for the earnings conference call are as follows:

United States:

1-888-317-6003

Hong Kong:

852-5808-1995

Mainland China:

4001-206-115

International:

1-412-317-6061

Passcode:

8033711

Please dial in 15 minutes before the call is scheduled to begin and provide the passcode to join the call.

A replay of the conference call may be accessible through November 25,2019 by dialing the following numbers:

United States:

1-877-344-7529

International:

1-412-317-0088

Passcode:

10133925

A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://zto.investorroom.com.

About ZTO Express (Cayman) Inc.

ZTO Express (Cayman) Inc. (NYSE: ZTO) ("ZTO" or the "Company") is a leading and fast-growing express delivery company in China. ZTO provides express delivery service as well as other value-added logistics services through its extensive and reliable nationwide network coverage in China.

ZTO operates a highly scalable network partner model,which the Company believes is best suited to support the significant growth of e-commerce in China. The Company leverages its network partners to provide pickup and last-mile delivery services,while controlling the mission-critical line-haul transportation and sorting network within the express delivery service value chain.

For more information,please visit http://zto.investorroom.com.

Safe Harbor Statement

This news release contains "forward-looking" statements within the meaning of Section27A of the Securities Act of 1933,as amended,and Section21E of the Securities Exchange Act of 1934,and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to the Company's unaudited results for the third quarter of 2019,ZTO management quotes and the Company's financial outlook.

These forward-looking statements are not historical facts but instead represent only the Company's belief regarding expected results and events,many of which,by their nature,are inherently uncertain and outside of its control. The Company's actual results and other circumstances may differ,possibly materially,from the anticipated results and events indicated in these forward-looking statements. The financial results to which this news release is related are preliminary,unaudited and subject to audit adjustment. In addition,the Company may not meet its financial outlook included in this news release and may be unable to grow its business in the manner planned. The Company may also modify its strategy for growth. In addition,there are other risks and uncertainties that could cause the Company's actual results to differ from what it currently anticipates,including those relating to the development of the e-commerce industry in China,its significant reliance on the Alibaba ecosystem,risks associated with its network partners and their employees andpersonnel,intense competition which could adversely affect the Company's results of operations and marketshare,any service disruption of the Company's sorting hubs or the outlets operated by its network partners or its technology system. For additional information on these and other important factors that could adversely affect the Company's business,financial condition,results of operations,and prospects,please see its filings with the U.S. Securities and Exchange Commission.

All information provided in this press release and in the attachments is as of the date of the press release. The Company undertakes no obligation to update any forward-looking statement,whether as a result of new information,future events or otherwise,after the date of this release,except as required by law. Such information speaks only as of the date of this release.

UNAUDITED CONSOLIDATED FINANCIAL DATA

Summary of Unaudited Consolidated Comprehensive IncomeData:

ThreeMonthsEndedSeptember30,

2018

2019

2018

2019

RMB

RMB

US$

RMB

RMB

US$

(inthousands,exceptforshareandpersharedata)

Revenues

4,596

5,707

11,919

15,432

Cost of revenues

(2,282)

(3,821)

(513,287)

(8,225)

(10,332)

(1,357)

Gross profit

1,325,314

1,596,939

223,420

3,814,694

4,625,098

647,075

Operating income (expenses):

Selling,general and administrative

(249,493)

(290,893)

(40,697)

(934,292)

(1,021)

(161,453)

Other operating income,net

15,918

94,469

13,217

98,598

182,102

25,477

Total operating expenses

(233,575)

(196,424)

(27,480)

(835,694)

(971,919)

(135,976)

Income from operations

1,091,739

1,400,515

195,940

2,979,000

3,653,179

511,099

Other income (expenses):

Interest income

123,995

146,372

20,478

255,024

437,313

61,182

Interest expense

(4)

-

-

(780)

-

-

Gain/(loss) on disposal of

equity investees

12,904

-

-

562,637

(529)

(74)

Foreign currency exchange

gain,before tax

40,382

28,511

3,989

39,530

24,850

3,477

Income before income tax,

and share of loss in equity

method investments

1,269,016

1,575,398

220,407

3,835,411

4,114,813

575,684

Income tax expense

(201,355)

(266,297)

(37,256)

(706,494)

(746,958)

(104,503)

Share of loss in equity method

investments

(8,286)

(1,420)

(199)

(19,859)

(13,433)

(1,879)

Net income

1,059,375

1,307,681

182,952

3,109,058

3,422

469,302

Net income/(loss) attributable

to noncontrolling interests

262

(153)

(21)

(1,575)

(6,700)

(937)

Net income attributable to

ZTO Express (Cayman) Inc.

1,637

1,528

182,931

3,107,483

3,347,722

468,365

Net earnings per share

attributable to ordinary

shareholders

Basic

1.35

1.67

0.23

4.20

4.27

0.60

Diluted

1.34

1.67

0.23

4.19

4.26

0.60

Weighted average shares used

in calculating net earnings per

ordinary share

Basic

787,163,859

782,011,037

782,037

739,967,814

784,701,835

784,835

Diluted

788,144,763

782,389,377

782,377

740,779,797

784,981,054

784,054

Other comprehensive income,

net of tax of nil:

Foreign currency translation

adjustment

556,140

480,712

67,254

844,123

429,859

60,139

Comprehensive income

1,615,515

1,788,393

250,206

3,953,181

3,784,281

529,441

Comprehensive income

attributable to noncontrolling

interests

262

(153)

(21)

(1,700)

(937)

Comprehensive income

attributable to ZTO Express

(Cayman) Inc.

1,777

1,240

250,185

3,951,606

3,777,581

528,504

Unaudited Consolidated Balance Sheets Data:

Asof

December31,

2018

September30,2019

RMB

RMB

US$

(inthousands,exceptforshareandpersharedata)

ASSETS

Current assets:

Cash and cash equivalents

4,622,554

5,058,640

707,730

Restricted cash

400

912

128

Accounts receivable,net of allowance for doubtful accounts of

RMB13,996 and RMB13,525 at December31,2018 and

September30,respectively

596,995

538,063

75,278

Financing receivables,net of allowance for doubtful accounts of

RMB4,139 and RMB13,369 at December31,2018 and September30,

2019,respectively

517,983

477,259

66,771

Short-term investment

13,599,852

11,304,068

1,581,497

Inventories

43,813

35,954

5,030

Advances to suppliers

337,874

341,216

47,738

Prepayments and other current assets

1,507,996

1,666,941

233,213

Amounts due from related parties

6,600

87,017

12,174

Total current assets

21,067

19,510,070

2,729,559

Investments in equity investees

2,207,410

2,228,272

311,747

Property and equipment,net

9,035,704

10,906,604

1,525,890

Land use rights,net

1,969,176

2,309,558

323,119

Intangible assets,net

54,227

49,578

6,936

Right-of-use assets6

-

726,375

101,624

Goodwill

4,241,541

4,541

593,413

Deferred tax assets

318,063

360,334

50,413

Other non-current assets

622,669

2,149,305

300,697

TOTAL ASSETS

39,682,857

42,481,637

5,943,398

LIABILITIES AND EQUITY

Current liabilities

Accounts payable

1,311,807

1,071,867

149,960

Advances from customers

436,710

990,764

138,613

Income tax payable

405,683

117,064

16,378

Amounts due to related parties

132,216

44,548

6,232

Lease liabilities6

-

281,352

39,363

Acquisition consideration payable

19,581

22,942

3,210

Dividends payable

1,699

1,672

234

Other current liabilities

2,833,769

2,948,569

412,520

Total current liabilities

5,141,465

5,478,778

766,510

Lease liabilities [6]

-

365,715

51,165

Deferred tax liabilities

157,940

154,236

21,578

Acquisition consideration payable

22,942

-

-

Other non-current liabilities

90,961

94,562

13,230

TOTAL LIABILITIES

5,413,308

6,093,291

852,483

[6]In February2016,the FASB issued ASU 2016-02,Leases (Topic 842),which requires lessees to

recognize a right-of-use asset and lease liability on their balance sheet for all leases. The Group adopted this ASU on

January1,2019 using the modified retrospective approach and will not restate comparative periods.

Asof

December31,

2018

September30,2019

RMB

RMB

US$

Shareholders' equity

Ordinary shares (US$0.0001 par value; 10,000,000 shares

authorized,811,267,551 shares issued and 785,463,859 shares

outstanding as of December31,2018; 803,551,115 shares

issued and 781,947,464 shares outstanding as of September30,

2019)

523

517

72

Additional paid-in capital

24,137,681

22,786

3,123,492

Treasury shares,at cost

(1,545,077)

(1,436,767)

(201,011)

Retained earnings

11,052,395

14,117

2,014,650

Accumulated other comprehensive income

571,716

1,001,575

140,125

ZTO Express (Cayman)Inc. shareholders' equity

34,217,238

36,291,228

5,077,328

Noncontrolling interests

52,311

97,118

13,587

Total Equity

34,549

36,388,346

5,090,915

TOTAL LIABILITIES AND EQUITY

39,398

Summary of Unaudited Consolidated Cash Flow Data:

ThreeMonthsEndedSeptember 30,

Nine MonthsEndedSeptember30,

2018

2019

2018

2019

RMB

RMB

US$

RMB

RMB

US$

(inthousands)

Net cash provided by operating activities

911,741

1,417,706

198,345

2,601,711

4,043,780

565,746

Net cash used in investing activities[7]

(2,295,672)

(4,015,458)

(561,783)

(9,542,593)

(1,621,341)

(226,834)

Net cash provided by/ (used in) financing

activities

1,380,280

511,528

71,565

7,195,347

(1,995,524)

(279,184)

Effect of exchange rate changes on cash,

cash equivalents and restricted cash

101,353

33,113

4,633

243,160

9,683

1,355

Net increase/(decrease) in cash,cash

equivalents and restricted cash

97,702

(2,053,111)

(287,240)

497,625

436,598

61,083

Cash,cash equivalents and restricted cash

at beginning of period

6,173,657

7,112,663

995,098

5,773,734

4,954

646,775

Cash,cash equivalents and restricted cash

at end of period

6,271,359

5,552

707,858

6,858

[7] The amount of cash provided by investing activities mainly includes mature of the fixed term bank deposits with an

original maturity of three months to one year. For the third quarter of 2019,the amounts of cash flow out for purchasing the

short-term investment are approximately RMB1,613.3 million (US$225.7 million),and the amounts of cash flow out for

purchasing the short-term investment are approximately RMB1,857.9 million in the same period last year.

Reconciliations of GAAP and Non-GAAP Results

ThreeMonthsEndedSeptember30,exceptforshareandpersharedata)

Net income

1,302

Add:

Share-based compensation expense

10,876

10,800

1,511

238,603

305,865

42,792

(Gain)/loss on disposal of equity

investees,net of income taxes

(11,756)

-

-

(436,277)

529

74

Adjusted net income

1,495

1,318,481

184,463

2,911,384

3,660,816

512,168

Net income

1,302

Add:

Depreciation

202,669

288,749

40,397

565,066

843,581

118,021

Amortization

11,709

13,951

1,952

35,072

39,920

5,585

Interest expenses

4

-

-

780

-

-

Income tax expenses

201,355

266,297

37,256

706,494

746,958

104,503

EBITDA

1,475,112

1,876,678

262,557

4,416,470

4,984,881

697,411

Add:

Share-based compensation expense

10,before income taxes

(12,904)

-

-

(562,637)

529

74

Adjusted EBITDA

1,473,084

1,887,478

264,068

4,092,436

5,275

740,277

ThreeMonthsEndedSeptember30,exceptforshareandpersharedata)

Net income attributable to ordinary

shareholders

1,365

Add:

Share-based compensation expense

10,792

(Gain)/loss on disposal of equity investees,

net of income taxes

(11,277)

529

74

Adjusted net income attributable to

ordinary shareholders

1,757

1,328

184,442

2,809

3,654,116

511,231

Weighted average shares used in

calculating net earnings per ordinary share

Basic

787,054

Net earnings per share attributable

to ordinary shareholders

Basic

1.35

1.67

0.23

4.20

4.27

0.60

Diluted

1.34

1.67

0.23

4.19

4.26

0.60

Adjusted net earnings per share attributable

to ordinary shareholders

Basic

1.35

1.69

0.24

3.93

4.66

0.65

Diluted

1.34

1.69

0.24

3.93

4.66

0.65

For investor and media inquiries,please contact:

ZTO

Investor Relations Department

Phone: +86-21-6978 7037

E-mail: ir@zto.com

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