Expanded Market Share to 20.8%, Grew Volume 51.2% to 4.6 Billion Parcels

Achieved RMB1.2 Billion Adjusted Net Income Amidst Fierce Competition

ZTO Reports Third Quarter 2020 Unaudited Financial Results

SHANGHAI,Nov. 19,2020 -- ZTO Express (Cayman) Inc. (NYSE: ZTO and HKEX: 2057),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 September 30,2020(1). The Company maintained high quality of service and customer satisfaction,and expanded parcel volume market share by 1.9 percentage points to 20.8%.

Third Quarter 2020 Financial Highlights

Revenues were RMB6,638.8 million (US$977.8 million),an increase of 26.1% from RMB5,265.8 million in the same period of 2019.

Gross profit was RMB1,391.0 million (US$204.9 million),a decrease of 12.9% from RMB1,596.9 million in the same period of 2019.

Net income was RMB1,210.3 million (US$178.3 million),a decrease of 7.4% from RMB1,307.7 million in the same period of 2019.

Adjusted EBITDA(2) was RMB1,675.4 million (US$246.8 million),a decrease of 11.2% from RMB1,887.5 million in the same period of 2019.

Adjusted net income(3) was RMB1,a decrease of 8.2% from RMB1,318.5 million in the same period of 2019.

Basic and diluted earnings per American depositary share ("ADS"(4)) were RMB1.53 (US$0.23),a decrease of 8.4% from RMB1.67 in the same period of 2019.

Adjusted basic and diluted earnings per American depositary share(5) attributable to ordinary shareholders were RMB1.53 (US$0.23),a decrease of 9.5% from RMB1.69 in the same period of 2019.

Net cash provided by operating activities was RMB1,480.4 million (US$218.0 million),compared with RMB1,417.7 million in the same period of 2019.

Operational Highlights for Third Quarter 2020

Parcel volume was 4,623 million,an increase of 51.2% from 3,058 million in the third quarter of 2019.

Number of pickup/delivery outlets was approximately 30,000 as of September 30,2020.

Number of direct network partners was over 5,150 as of September 30,2020.

Number of line-haul vehicles was over 10,100 as of September 30,2020,which included approximately 9,250 self-owned vehicles,increased from 9,900 as of June 30,and approximately 850 vehicles owned and operated by Tonglu Tongze Logistics Ltd.,a transportation operator that works exclusively for ZTO.

Out of the self-owned trucks,over 7,400 were high capacity 15 to 17-meter-long models as of September 30,compared to over 7,100 as of June 30,2020.

Number of line-haul routes between sorting hubs was approximately 3,400 as of September 30,compared to over 3,400 as of June 30,2020.

Number of sorting hubs was 91 as of September 30,among which 82 are operated by the Company and 9 by the Company's network partners.

(1) An investor relations presentation accompanies this earnings release and can be found at http://zto.investorroom.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 Class A 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 "During the third quarter,driven by a steady economic recovery,China express delivery industry maintained its strong growth momentum from previous quarter and achieved a 37.8% parcel volume increase over last year. ZTO grew 51.2% with 4.6billion parcels and expanded its market share by 1.9 percentage points to 20.8%. Our 3Q performance resulted from consistent focus on investing in infrastructure,improving capacity and operating efficiency on one hand,and at the same time,addressing our network partners' interest and needs fairly so that our entire network can remain stable and thrive."

Mr. Lai added,"ZTO's recent secondary listing on Hong Kong stock exchange gave us an opportunity to review what contributed to our success in the past and think deep and clear about what's crucial for us to expand our competitive edge and transform ultimately into a world-class comprehensive logistic service provider. We firmly believe in the long-term growth prospects of the express delivery market as well as the tremendous opportunities in the logistic industries in China and overseas. Express delivery has increasingly become an essential part of our daily lives for its ability and potential to efficiently connect a vast array of supply and demand with wide coverage and deep penetration. We are preparing for that pinnacle moment to arrive when the express delivery industry can start to receive deserved payback."

Ms. Huiping Yan,Chief Financial Officer of ZTO,commented,"Impacted by competition that remained fierce during the period,ZTO's adjusted net income was RMB1.2 billion and the 8.2% decrease was relatively moderate given an 18.4% price decline which was at the low end of themarket range ofprice decline. We were more effective in managing competing priorities of accelerated volume growth and market share gain,sustained network partners' confidence and trust in our brand,and solid corporate earnings. Meanwhile,scale leverage and cost productivity initiatives continued to dampen the impact of price decline where our combined sorting and transportation costs per unit dropped 9.0% or 8 cents,and corporate SG&A cost as a percentage of total revenues remained low at 5.6%."

Ms. Yan added,"Cash from operating activities increased 4.4% to RMB1.48 billion for the quarter. The cumulative capital spending for the year was RMB6.2 billion as we have accelerated infrastructure development in response to the steady increase in demand. Together with the proceeds received this quarter for our secondary listing in Hong Kong,ZTO has RMB 22.7 billion available cash including those on deposits. With a strong balance sheet,we intend to further build-out scale and capacity,to support our network partners to expand and grow with us,and to form advantages in comprehensive logistic service capabilities.

Third Quarter 2020 Financial Results

ThreeMonthsEnded September 30,

NineMonthsEnded September 30,

2019

2020

2019

2020

RMB

%

RMB

US$

%

RMB

%

RMB

US$

%

(inthousands,exceptpercentages)

Express delivery services

4,675,993

88.8

5,780,410

851,362

87.1

13,499,267

88.4

14,727,484

2,169,124

86.9

Freight forwarding services

274,356

5.2

481,188

70,871

7.2

913,758

6.0

1,243,759

183,186

7.3

Sale of accessories

276,452

5.3

298,871

44,019

4.5

777,859

5.1

797,084

117,398

4.7

Others

38,959

0.7

78,367

11,543

1.2

72,546

0.5

188,819

27,810

1.1

Total revenues

5,265,760

100

6,638,836

977,795

100

15,263,430

100

16,957,146

2,497,518

100

Total Revenues were RMB6,265.8 million in the same period of 2019. Revenue from the core express delivery business increased by 23.4% compared to the same period of 2019,as a combined result of an increase of 51.2% in parcel volume and a decrease of 18.4% in parcel unit price mainly driven by competition and the decrease in average parcel weight. Revenue from freight forwarding services increased by 75.4% compared to the same period of 2019,driven by increased cross border e-commerce demand and improved pricing as a result of the COVID-19 outbreak globally. Revenue from sales of accessories,largely consisting of the sales of thermal paper used for digital waybills' printing,increased by 8.1% due to increased usage of lower-priced single-sheet digital waybill since second half of last year. Other revenues were mainly derived from financing services and advertising services.

ThreeMonthsEnded September 30.

NineMonthsEnded September 30.

2019

2020

2019

2020

RMB

%of

RMB

US$

%of

RMB

%of

RMB

US$

%of

revenues

revenues

revenues

revenues

(inthousands,exceptpercentages)

Line-haul transportation cost

1,783,180

33.9

2,446,793

360,373

36.9

5,073,052

33.2

5,740,772

845,524

33.9

Sorting hub operating cost

978,417

18.6

1,353,754

199,386

20.4

2,823,387

18.5

3,573,787

526,362

21.1

Freight forwarding cost

265,426

5.0

447,047

65,843

6.7

893,823

5.9

1,151,319

169,571

6.8

Cost of accessories sold

138,112

2.6

95,007

13,993

1.4

414,169

2.7

281,965

41,529

1.7

Other costs

503,686

9.6

905,283

133,335

13.6

1,433,901

9.4

2,230,528

328,521

13.0

Total cost of revenues

3,668,821

69.7

5,247,884

772,930

79.0

10,332

69.7

12,978,371

1,911,507

76.5

Total cost of revenueswas RMB5,247.9 million (US$772.9 million),an increase of 43.0% from RMB3,668.8 million in the same period last year.

Line haul transportation cost was RMB2,446.8 million (US$360.4 million),an increase of 37.2% from RMB1,783.2 million in the same period lastyear. The line-haul transportation cost per parcel declined 9.2% to RMB0.53. The decrease resulted mainly fromincreased usage of self-owned vehicles with a greater number of higher-capacity trailer trucks. Approximately 86.0% of the line-haul transportation costs were associated with self-owned fleet compared to that of 66.2% in the same period last year.

Sorting hub operating cost was RMB1,353.8 million (US$199.4 million),an increase of 38.4% from RMB978.4 million in the same period last year. The increase was primarily due to (i) an RMB274.0 million (US$40.4 million) increase in labor associated costs,and (ii) an RMB80.3 million (US$11.8 million) increase in depreciation and amortization costsdue tothe increased number of installed automated sorting equipment. As of September 30,300 sets of automated sorting equipment have been placed into service,compared to 208 sets as of September 30,2019. The sorting hub operating cost per parcel decreased 8.5% to RMB0.29 as a result of increased level of automation and improved economies of scale.

Cost of accessoriessold was RMB95.0 million (US$14.0 million),a decrease of 31.2% from RMB138.1 million in the same period last year. The decrease was mainly driven by the increased use of lower-cost single-sheet digital waybills since the second half of 2019.

Other costswere RMB905.3 million (US$133.3 million),an increase of RMB401.6 million (US$59.1 million) compared to the same period last year. The increase was mainly consisted of (i) an increase of RMB304.8 million (US$44.9 million) in dispatching costs serving enterprise customers associated with a similar level of volume increase of 99.7%,and (ii) an increase of RMB80.2million (US$11.8 million) in technology related expenses.

Gross Profit was RMB1,391.0 million (US$204.9million),596.9 million in the same period last year. Gross margin ratewas 21.0%comparedto30.3% in the same period last year as a netresult of competition-led core express delivery ASP decline of 18.4% and related unit costdecline of 6.7%.

Total Operating Expenses were RMB221.8 million (US$32.7 million),compared to RMB196.4 million in the same period last year.

Selling,general and administrative expenses were RMB373.7 million (US$55.0 million),increased by 28.5% from RMB290.9 million in the sameperiod last year. The increase was mainly due to (i) an increase of RMB70.1 million (US$10.3 million) in salaries and accrued performance-based bonuses,and (ii) an increase of RMB9.7 million (US$1.4 million) in depreciation and amortization expenses.

Other operating income,net was RMB151.8 million (US$22.4 million),compared to RMB94.5 million in the same period last year. Other operating income mainly consisted of (i) RMB69.0 million (US$10.2 million) ADR fee adjustment,(ii) RMB43.5 million (US$6.4 million) of VAT super deduction recognized,and (iii) government subsidies and tax rebates of RMB24.5 million (US$3.6 million) received.

Income from operations was RMB1,169.1 million (US$172.2 million),a decrease of 16.5% from RMB1,400.5 million for the same period last year. Operating margin rate decreased to 17.6% from 26.6% in the same period last year,derived from the9.4 percentage points decrease in gross margin rate.

Interest income was RMB96.7 million (US$14.2 million),compared with RMB146.4 million in the same period last year.

Foreign currency exchange loss,before tax was RMB64.4 million (US$9.5 million) in the third quarter of 2020.

Income tax expenses were negative RMB27.8 million (US$4.1 million) compared to RMB266.3 million in the same period last year. An income tax refund of RMB200.7 million (US$29.6 million) was received during the quarter by Shanghai Zhongtongji Network,a wholly-owned subsidiary,for being recognized as a "Key Software Enterprise" that qualified for a preferential tax rate of 10% for tax year 2019.

Net income was RMB1,which decreased by 7.4% from RMB1,307.7 million year over year mainly due to intensified price competition while the Company's scale and cost leverage remained strong.

Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB1.53 (US$0.23),compared to RMB1.67 in the same period last year.

Adjusted basic and diluted earnings per ADS attributable to ordinary shareholders were RMB1.53 (US$0.23),compared with RMB1.69 in the sameperiod last year.

Adjusted net income was RMB1,318.5 million during the same period last year.

EBITDA was RMB1,876.7 million in the same period last year.

Adjusted EBITDA was RMB1,compared to RMB1,887.5 million in the same period last year.

Net cash provided by operating activitieswas RMB1,417.7 million in the same period last year.

Business Outlook

The Company makes no changes to its previously stated annual guidance: parcel volume for 2020 is expected to be in the range of 16.2 billion to 17.0 billion,representing a 33.7% to 40.3% 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 1.7% to 9.3% decrease year over year. These above estimates are based on management's current and preliminary view and subject to change.

Company Share Purchase

On November 15,2018,the Company announced a share repurchase program whereby ZTO was authorized to repurchase its own Class A ordinary shares in the form of ADSs with an aggregate value of up to US$500 million during an 18-month period thereafter. On March 13,the board of directors of the Company approved the extension of the current share repurchase program to June 30,2021. The Company expects to fund the repurchases out of its existing cash balance. As of September 30,the Company has purchased an aggregate of 7,716,436 ADSs at an average purchase price of US$17.33,including repurchase commissions.

Initial Public Offering in Hong Kong

On September 29,the Company successfully listed on the Main Board of the Hong Kong Stock Exchange ("HKEX") under the stock code of "2057" with a global offering of 51,750,000 Class A ordinary shares (including the exercise of the over-allotment option on October 22,2020) at the public offering price of HK$218 per share (the "Global Offering"). The Hong Kong-listed shares are fully fungible with the Company's American depositary shares (ADSs) listed on the New York Stock Exchange ("NYSE") (one ADS representing one Class A ordinary share). Gross proceeds from the Global Offering before any underwriting fees and other offering expenses,were HK$11,281.5 million (US$1,455.7 million).

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 RMB6.7896 to US$1.00,the noon buying rate on September 30,2020 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 and adjusted net income,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 and adjusted net income 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 and adjusted net income 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 and adjusted net income 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 tocompare the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted EBITDA and adjusted net income 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 PM U.S. Eastern Time on Wednesday,November 18,2020 (9:00 AM Beijing Time on November 19,2020).

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

Singapore:

800-120-5863

International:

1-412-317-6061

Passcode:

2473190

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 accessed by phone at the following numbers until November 25,2020:

United States:

1-877-344-7529

International:

1-412-317-0088

Passcode:

10149585

Additionally,a live and archived webcast of the conference call will be available at http://zto.investorroom.com.

About ZTO Express (Cayman) Inc.

ZTO Express (Cayman) Inc. (NYSE: ZTOand HKEX:2057) ("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 Section 27A of the Securities Act of 1933,as amended,and Section 21E 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 2020,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. Announced results for the third quarter of 2020 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 and personnel,intense competition which could adversely affect the Company's results of operations and market share,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 Income Data:

Three Months Ended Sept 30,

Nine Months Ended Sept 30.

2019

2020

2019

2020

RMB

RMB

US$

RMB

RMB

US$

(inthousands,exceptforshareandpersharedata)

Revenues

5,760

6,836

977,795

15,430

16,146

2,518

Cost of revenues

(3,821)

(5,884)

(772,930)

(10,332)

(12,371)

(1,507)

Gross profit

1,596,939

1,390,952

204,865

4,625,098

3,775

586,011

Operating income (expenses):

-

Selling,general and administrative

(290,893)

(373,668)

(55,035)

(1,154,021)

(1,246,140)

(183,537)

Other operating income,net

94,469

151,836

22,363

182,102

455,106

67,030

Total operating expenses

(196,424)

(221,832)

(32,672)

(971,919)

(791,034)

(116,507)

Income from operations

1,400,515

1,120

172,193

3,653,179

3,187,741

469,504

Other income (expenses):

Interest income

146,372

96,654

14,236

437,313

337,138

49,655

Interest expense

-

(13,707)

(2,019)

-

(23,132)

(3,407)

Loss on disposal of equity investees and

subsidiary

-

-

-

(529)

-

-

Foreign currency exchange gain/(loss),

before tax

28,511

(64,354)

(9,478)

24,850

(45,307)

(6,673)

Income before income tax,and share of

loss in equity method investments

1,575,398

1,713

174,932

4,114,813

3,456,440

509,079

Income tax expense

(266,297)

27,845

4,101

(746,958)

(400,228)

(58,947)

Share of loss in equity method

investments

(1,420)

(5,268)

(776)

(13,433)

(21,378)

(3,149)

Net income

1,307,681

1,210,290

178,257

3,354,422

3,034,834

446,983

Net loss (income) attributable to noncontrolling

interests

(153)

(9,271)

(1,365)

(6,700)

(10,762)

(1,585)

Net income attributable to ZTO Express

(Cayman) Inc.

1,528

1,201,019

176,892

3,347,722

3,024,072

445,398

Net income attributable to

ordinary shareholders

Basic

1.67

1.53

0.23

4.27

3.86

0.57

Diluted

1.67

1.53

0.23

4.26

3.86

0.57

Weighted average shares used in

calculating net earnings per ordinary

share/ADS

Basic

782,011,037

784,872,994

784,701,835

783,711,509

783,509

Diluted

782,389,377

784,981,054

783,778,138

783,138

Other comprehensive income,net of tax

of nil:

Foreign currency translation adjustment

480,712

(326,880)

(48,144)

429,859

(173,511)

(25,555)

Comprehensive income

1,788,393

883,410

130,113

3,784,281

2,861,323

421,428

Comprehensive income attributable to

noncontrolling interests

(153)

(9,365.47)

(6,585)

Comprehensive income attributable to

ZTO Express (Cayman) Inc.

1,240

874,139

128,748

3,777,581

2,850,561

419,843

Unaudited Consolidated Balance Sheets Data:

As of

December 31,

Sept 30,2020

2019

RMB

RMB

US$

(inthousands)

ASSETS

Current assets:

Cash and cash equivalents

5,270,204

16,408,906

2,416,771

Restricted cash

7,210

8,070

1,189

Accounts receivable,net

675,567

606,462

89,322

Financing receivables,net

511,124

1,046,286

154,101

Short-term investment

11,113,217

4,804,528

707,630

Inventories

43,845

49,929

7,354

Advances to suppliers

438,272

711,853

104,845

Prepayments and other current assets

1,964,506

2,224,856

327,688

Amounts due from related parties

74,312

63,620

9,370

Total current assets

20,098,257

25,924,510

3,818,270

Investments in equity investee

3,109,494

3,271,612

481,856

Property and equipment,net

12,470,632

16,477,106

2,426,815

Land use rights,net

2,508,860

4,105,231

604,635

Intangible assets,net

48,029

43,381

6,389

Operating lease right-of-use assets

901,956

844,208

124,338

Goodwill

4,241,541

4,541

624,711

Deferred tax assets

403,587

701,942

103,385

Long-term investment

946,180

1,472,960

216,944

Long-term financing receivables,net

549,775

1,355,041

199,576

Other non-current assets

612,191

465,375

68,542

TOTAL ASSETS

45,890,502

58,902,907

8,461

LIABILITIES AND EQUITY

Current liabilities

Short-term bank borrowing

-

2,084,430

307,003

Accounts payable

1,475,258

1,468,675

216,312

Notes payable

-

720,420

106,106

Advances from customers

1,887

1,137,709

167,566

Income tax payable

80,272

39,269

5,784

Amounts due to related parties

38,943

21,082

3,105

Operating lease liabilities

298,728

267,348

39,376

Acquisition consideration payable

22,942

22,942

3,379

Dividends payable

1,629

12,304

1,812

Other current liabilities

3,552,288

4,083,074

601,372

Total current liabilities

6,680,947

9,857,253

1,451,815

Non-current operating lease liabilities

504,442

459,518

67,680

Deferred tax liabilities

207,896

214,382

31,575

Other non-current liabilities

93,820

-

-

TOTAL LIABILITIES

7,487,105

10,531,153

1,551,070

Shareholders' equity

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

803,115 shares issued and 781,947,464 shares outstanding as of

December 31,2019; 848,115 shares issued and 828,894,733 shares

outstanding as of September 30,2020)

517

548

81

Additional paid-in capital

22,336,594

29,357,326

4,323,867

Treasury shares,at cost

(1,436,767)

(1,350,529)

(198,911)

Retained earnings

16,726,540

19,612

2,908,951

Accumulated other comprehensive income

675,720

502,207

73,967

ZTO Express (Cayman)Inc. shareholders' equity

38,302,604

48,260,164

7,107,955

Noncontrolling interests

100,793

111,590

16,435

Total Equity

38,403,397

48,371,754

7,124,390

TOTAL LIABILITIES AND EQUITY

45,460

In June 2016,the FASB issued ASU 2016-13,Financial Instruments—Credit Losses (Topic 326),which requires all entities to disclose

their current estimate of all expected credit losses. The Group adopted this ASU on January 1,2020 using the modified retrospective

transition method and no material adjustment to the opening balance of retained earnings of 2020 was necessary. The adoption of this

new ASU has no material impact on its consolidated financial position,results of operations or cashflow.

Summary of Unaudited Consolidated Cash Flow Data:

Three Months Ended September 30.

Nine Months Ended September 30.

2019

2020

2019

2020

RMB

RMB

US$

RMB

RMB

US$

(inthousands)

Net cash provided by operating activities

1,417,706

1,480,429

218,044

4,043,780

2,910,490

428,669

Net cash(used in) provided by/ investing

activities

(4,015,458)

1,179,946

173,787

(1,621,341)

(632,608)

(93,173)

Net cash/ provided by (used in) financing

activities

511,528

8,602,624

1,267,030

(1,995,524)

8,965,576

1,320,487

Effect of exchange rate changes on cash,

cash equivalents and restricted cash

33,113

(109,243)

(16,090)

9,683

(89,783)

(13,224)

Net (decrease) / increasein cash,cash

equivalents and restricted cash

(2,053,111)

11,153,756

1,642,771

436,598

11,675

1,759

Cash,cash equivalents and restricted cash

at beginning of period

7,112,663

5,277,333

777,267

4,622,954

5,414

777,279

Cash,cash equivalents and restricted cash

at end of period

5,059,552

16,431,089

2,420,038

5,038

The following table provides a reconciliation of cash,cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to

the total of the same such amounts shown in the condensed consolidated statements of cash flows:

As of

September 30,2019

September 30,2020

RMB

RMB

US$

(in thousands)

Cash and cash equivalents

5,058,640

16,771

Restricted cash,current

912

8,189

Restricted cash,non-current

-

14,113

2,079

Total cash,cash equivalents and restricted cash

5,552

16,089

2,038

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended Sept 30,exceptforshareandpersharedata)

Net income

1,983

Add:

Share-based compensation expense

10,800

-

-

305,865

264,154

38,906

Loss on disposal of equity investees

and subsidiary,net of income taxes

-

-

-

529

-

-

Adjusted net income

1,318,481

1,660,816

3,298,988

485,889

Net income

1,983

Add:

Depreciation

288,749

453,818

66,840

843,581

1,254,824

184,816

Amortization

13,951

25,390

3,740

39,920

58,640

8,637

Interest expenses

-

13,707

2,019

-

23,132

3,407

Income tax expenses

266,297

(27,845)

(4,101)

746,958

400,228

58,947

EBITDA

1,876,678

1,360

246,755

4,984,881

4,771,658

702,790

Add:

Share-based compensation expense

10,before income taxes

-

-

-

529

-

-

Adjusted EBITDA

1,887,478

1,755

5,291,275

5,035,812

741,696

Three Months Ended Sept 30,exceptforshareandpersharedata)

Net income attributable to ordinary

shareholders

1,398

Add:

Share-based compensation expense

10,906

Impairment of investment in equity

Loss on disposal of equity investees

and subsidiary,net of income taxes

-

-

-

529

-

-

Adjusted Net income attributable to

ordinary shareholders

1,328

1,654,116

3,288,226

484,304

Weighted average shares used in

calculating net earnings per ordinary

share/ADS

Basic

782,138

Net earnings per share/ADS attributable

to ordinary shareholders

Basic

1.67

1.53

0.23

4.27

3.86

0.57

Diluted

1.67

1.53

0.23

4.26

3.86

0.57

Adjusted net earnings per share/ADS

attributable to ordinary shareholders

Basic

1.69

1.53

0.23

4.66

4.20

0.62

Diluted

1.69

1.53

0.23

4.66

4.20

0.62

For investor and media inquiries,please contact:

ZTO Express (Cayman) Inc.

Investor Relations

E-mail: ir@zto.com

Phone: +86 21 5980 4508