ZTO Reports Second Quarter 2021 Unaudited Financial Results

Adjusted Net Income Reached RMB1.27 Billion

5.8 Billion Parcels Attained 21.0% Market Share

SHANGHAI,Aug. 19,2021 -- ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057),a leading and fast-growing express delivery company in China ("ZTO" or the "Company"),today announced its unaudited financial results for the second quarter ended June 30,2021[1]. The Company delivered a parcel volume growth of 25.6% while maintaining high quality of service and customer satisfaction. Adjusted net income reached RMB1,272.2 million. Cash generated from operating activities was RMB1,932.4 million.

Second Quarter 2021 Financial Highlights

Revenues were RMB7,325.1 million (US$1,134.5 million),an increase of 14.4% from RMB6,402.4 million in the same period of 2020.

Gross profit was RMB1,673.6 million (US$259.2 million),a decrease of 5.4% from RMB1,769.2 million in the same period of 2020.

Net income was RMB1,272.2 million (US$197.0 million),a decrease of 12.5% from RMB1,453.6 million in the same period of 2020.

Adjusted EBITDA[2] was RMB2,125.7 million (US$329.2 million),a decrease of 2.8% from RMB2,187.0 million in the same period of 2020.

Adjusted net income[3] was RMB1,453.6 million in the same period of 2020.

Basic and dilutednet earnings per American depositary share ("ADS"[4]) were RMB1.56 (US$0.24),a decrease of 15.7% from RMB1.85 in the same period of 2020.

Adjusted basic and dilutednet earnings per American depositary share[5] attributable to ordinary shareholders were RMB1.56 (US$0.24),a decrease of 15.7% from RMB1.85 in the same period of 2020.

Net cash provided by operating activities was RMB1,932.4 million (US$299.3 million),compared with RMB1,252.3 million in the same period of 2020.

Operational Highlights for Second Quarter 2021

Parcel volume was 5,772 million,an increase of 25.6% from 4,595 million in the same period of 2020.

Number of pickup/delivery outlets was over 30,100 as of June 30,2021.

Number of direct network partners was over 5,450 as of June 30,2021.

Number of line-haul vehicles was approximately 10,300 as of June 30,2021,which included approximately 10,100 self-owned vehicles and approximately 200 vehicles owned and operated by Tonglu Tongze Logistics Ltd.,a transportation operator that works exclusively for ZTO.

Out of the approximately 10,100 self-owned trucks,approximately 8,150 were high capacity 15 to 17-meter-long models as of June 30,compared to over 8,100 as of March 31,2021.

Number of line-haul routes between sorting hubs was approximately 3,600 as of June 30,compared to over 3,650 as of March 31,2021.

Number of sorting hubs was 96 as of June 30,among which 85 are operated by the Company and 11 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 investment 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 investment 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 attributable to ordinary shareholders 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 consistent strategy to balance competing priorities of service quality,volume growth and earnings withstood the test of shifting policy environment and evolving market dynamics during the quarter. Our customer satisfaction scores ranked top of the peer group with a widening lead. The slight retreat in our market share for the quarter was a direct result of reemphasizing profitable volume when it was neither sensible nor sustainable to trade profits for short-term market share gain. We achieved strong corporate earnings. Meanwhile,our network policies and protective initiatives enabled thousands of our entrepreneurial partners including couriers to feel safe and secured,and they maintained high quality operations amidst persisted competition and diminishing profits."

Mr. Lai added,"At the current rate of medium to high level of growth,China's express delivery industry will likely grow daily volume to surpass 400 million or more parcels in the next 2-3 years. Capacity and operational efficiencies will set apart the winners and the rest. ZTO has undoubtedly established infrastructure advantages with years of consistent investments and innovations. Our network will further evolve with volume growth to become less layered and more streamlined generating greater cost efficiencies. Furthermore,our distinct shared-success philosophy and long-term practice are consistent with recent regulatory interventions aimed to establish fairness and restore healthy competition. ZTO stands to benefit because we have been relying on our operational edge to profit while allowing our network partners their fair share so that they can flourish. That is why ZTO's network is more stable,and going forward,our network partners will be more resilient and will invest with greater confidence to develop their own capabilities that are in synch with our expanding transit and sorting operations,so together,we can continue to thrive."

Ms. Huiping Yan,Chief Financial Officer of ZTO,commented,"We achieved RMB1.27billion net income in the second quarter by focusing on effectively priced volume that contributed profit instead of loss-making. Normalized for one-time benefits from pandemic fee waivers and low oil prices last year,our combined transportation and sorting costs per unit generated positive productivity gains despite operating below the optimal capacity level."

Ms. Yan added,"We generated RMB1.93 billion net operating cash flow which increased 54.3% from last year. Capital expenditures totaled RMB 2.2 billion for the quarter with nearly 70% used for acquisition of land use rights and sorting hub construction and upgrades. We are strengthening infrastructure for the core express delivery and developing comprehensive logistic service capabilities to form competitive edge for the long run."

Second Quarter 2021 Financial Results

Three Months Ended June 30,

Six Months Ended June 30,

2020

2021

2020

2021

RMB

%

RMB

US$

%

RMB

%

RMB

US$

%

(in thousands,except percentages)

Express delivery services

5,540,664

86.5

6,652,936

1,030,409

90.8

8,947,074

86.7

12,325,745

1,909,015

89.3

Freight forwarding services

467,095

7.3

313,553

48,563

4.3

762,571

7.4

806,540

124,917

5.8

Sale of accessories

321,189

5.0

314,131

48,653

4.3

498,214

4.8

574,311

88,949

4.2

Others

73,473

1.2

44,440

6,882

0.6

110,451

1.1

91,001

14,095

0.7

Total revenues

6,402,421

100.0

7,060

1,134,507

100.0

10,318,310

100.0

13,797,597

2,136,976

100.0

Total Revenues were RMB7,402.4 million in the same period of 2020. Revenue from the core express delivery business increased by 18.1% compared to the same period of 2020,as a combined result of a 25.6% increase in parcel volume and a 5.9% decrease in parcel unit price mainly driven by per parcel weight decline. Revenue from freight forwarding services decreased by 32.9% compared to the same period of 2020 as cross border e-commerce demand and pricing gradually returned to normal post COVID-19 recovery. Revenue from sales of accessories,largely consisted of sales of thermal paper used for digital waybills' printing,decreased by 2.2%. Other revenues were mainly derived from financing services and advertising services.

Three Months Ended June 30,

2020

2021

2020

2021

RMB

% of

revenues

RMB

US$

% of

revenues

RMB

% of

revenues

RMB

US$

% of

revenues

(in thousands,except percentages)

Line-haul transportation cost

1,996,562

31.2

2,763,264

427,975

37.7

3,293,979

31.9

5,297,177

820,428

38.4

Sorting hub operating cost

1,254,278

19.6

1,612,704

249,776

22.0

2,220,035

21.5

3,124,074

483,857

22.6

Freight forwarding cost

416,659

6.5

266,229

41,234

3.6

704,273

6.8

702,621

108,822

5.1

Cost of accessories sold

112,483

1.8

98,141

15,200

1.3

186,958

1.8

172,716

26,750

1.3

Other costs

853,276

13.3

911,080

141,108

12.6

1,242

12.9

1,730,834

268,073

12.5

Total cost of revenues

4,633,258

72.4

5,651,418

875,293

77.2

7,487

74.9

11,027,422

1,707,930

79.9

Total cost of revenues was RMB5,651.4 million (US$875.3 million),an increase of 22.0% from RMB4,633.3 million in the same period last year.

Line haul transportation cost was RMB2,763.3 million (US$428.0 million),an increase of 38.4% from RMB1,996.6 million in the same period last year. Other than incremental volume driven,the increase reflected (i) expiration of federal toll road fee waiver policy from mid-February to early May 2020 during the pandemic,and (ii) lower domestic diesel price during the pandemic outbreak last year. Line-haul transportation cost per parcel increased by 10.2% to RMB0.48 due to the combined effect of absence of one-time benefits existed last year and efficiency gains from increased usage of more self-owned high-capacity vehicles. There were approximately 1,050 more high-capacity vehicles in our fleet compared to the same period last year.

Sorting hub operating cost was RMB1,612.7 million (US$249.8 million),an increase of 28.6% from RMB1,254.3 million in the same period last year. The increase was primarily consisted of (i) RMB251.3 million (US$38.9 million) increase in labor-associated costs resulted from wage increases offset by automation-driven headcount productivity gain,and (ii) RMB68.5 million (US$10.6 million) increase in depreciation and amortization costs from increased number of installed automated sorting equipment and facilities. Sorting hub operating cost per unit increased 2.4%. As of June 30,361 sets of automated sorting equipment were in service,compared to 282 sets as of June 30,2020.

Cost of accessories sold was RMB98.1 million (US$15.2 million),decreased 12.8% compared with RMB112.5 million in the same period last year.

Other costs were RMB911.1 million (US$141.1 million),an increase of RMB57.8 million (US$9.0 million) compared to the same period lastyear. The increase was mainly consisted of (i) an increase of RMB36.4 million (US$5.6 million) in expenses related to the development of technology platform,(ii) an increase of RMB35.8 million (US$5.5 million) in tax surcharge,and (iii) a decrease of RMB29.4 million (US$4.6 million) in the costs of the advertising services.

Gross Profit was RMB1,decreased 5.4% from RMB1,769.2 million in the same period last year as a combined result of increased volume at a lower price and increased costs absent one-time benefits during COVID-19 outbreak. Gross margin rate was 22.8% compared to 27.6% in the same period last year. Average selling price declined 5.9% for the core express delivery business and unit cost increased 1.7%.

Total Operating Expenses were RMB218.0 million (US$33.8 million),compared to RMB122.6 million in the same period last year.

Selling,general and administrative expenses were RMB394.0 million (US$61.0 million),increased by 26.1% from RMB312.4 million in the same period last year,mainly from increases of compensation and benefits,office expenditures,depreciation and write-off of obsolete assets.

Other operating income,net was RMB176.0 million (US$27.3 million),compared to RMB189.9 million in the same period last year. Otheroperating income mainly consisted of (i) RMB95.8 million (US$14.8 million) of VAT super deduction,and (ii) government subsidies and tax rebates of RMB38.5 million (US$6.0 million).

Income from operations was RMB1,455.7 million (US$225.5 million),a decrease of 11.6% from RMB1,646.6 million for the same period last year. Operating margin rate decreased to 19.9% from 25.7% in the same period last year,mainly driven by a 4.8 percentage points decrease in gross margin.

Interest income was RMB102.4 million (US$15.9 million),compared with RMB114.3 million in the same period last year.

Interest expenses was RMB33.8 million (US$5.2 million),compared with RMB9.1 million in the same period last year.

Gain from fair value changes of financial instruments was RMB32.3 million (US$5.0 million),which reflected fair value changes,assessed using market based redemption prices estimated by selling banks,on dual currency deposits,foreign currency options and forward contracts. There were no similar financial instruments in the same period last year.

Income tax expenses were RMB254.9 million (US$39.5 million) compared to RMB298.3 million in the same period last year.

Net income was RMB1,which decreased by 12.5% from RMB1,453.6 million in the same period.

Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB1.56 (US$0.24),compared to basic and diluted earnings perADS of RMB1.85 in the same period last year.

Adjusted basic and diluted earnings per ADS attributable to ordinary shareholders were RMB1.56 (US$0.24),compared with RMB1.85 in the sameperiod last year.

Adjusted net income was RMB1,453.6 million during the same period last year.

EBITDA was RMB2,compared with RMB2,187.0 million in the same period last year.

Adjusted EBITDA was RMB2,compared to RMB2,187.0 million in the same period last year.

Net cash provided by operating activities was RMB1,252.3 million in the same period last year.

Business Outlook

Based on current market and operating conditions,the Company maintains its previously stated annual guidance. Parcel volume for 2021 is expected to be in the range of 22.95 billion to 23.80 billion,representing a 35% to 40% increase year over year. Such estimates represent management's current and preliminary view,which are 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 13,2020,the board of directors of the Company approved the extension of the active share repurchase program to June 30,2021. On March 31,the board of directors has approved changes to the share repurchase program,increasing the aggregate value of shares that may be repurchased from US$500 million to US$1 billion and extending the effective time by two years through June 30,2023. The Company expects to fund the repurchases out of its existing cash balance. As of June 30,the Company has purchased an aggregate of 17,519,583 ADSs at an average purchase price of US$23.17,including repurchase commissions.

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 RMB6.4566 to US$1.00,the noon buying rate on June 30,2021 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,adjusted net income attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share,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 attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share 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 attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share 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 attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share 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 compare the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted EBITDA,adjusted net income attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share 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 8:30 PM U.S. Eastern Time on Wednesday,August 18,2021 (8:30 AM Beijing Time on August 19,2021).

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:

4725527

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 August 25,2021:

United States:

1-877-344-7529

International:

1-412-317-0088

Passcode:

10158503

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: ZTO and SEHK: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 second quarter of 2021,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 second quarter 2021 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 IncomeData:

Three Months Ended June 30,

Six Months Ended June 31,

2020

2021

2020

2021

RMB

RMB

US$

RMB

RMB

US$

(inthousands,exceptforshareandpersharedata)

Revenues

6,421

7,060

1,507

10,310

13,597

2,976

Cost of revenues

(4,258)

(5,418)

(875,293)

(7,487)

(11,422)

(1,930)

Gross profit

1,769,163

1,673,642

259,214

2,587,823

2,770,175

429,046

Operating income (expenses):

Selling,general and administrative

(312,421)

(394,006)

(61,024)

(872,472)

(1,014,230)

(157,084)

Other operating income,net

189,867

176,019

27,262

303,270

332,590

51,512

Total operating expenses

(122,554)

(217,987)

(33,762)

(569,202)

(681,640)

(105,572)

Income from operations

1,646,609

1,455,655

225,452

2,018,621

2,088,535

323,474

Other income (expenses):

Interest income

114,258

102,400

15,860

240,485

177,882

27,550

Interest expense

(9,135)

(33,798)

(5,235)

(9,426)

(49,380)

(7,648)

Gain from fair value changes of financial

instruments

-

32,331

5,007

-

48,130

7,454

Foreign currency exchange gain/(loss),

before tax

2,594

(25,751)

(3,988)

19,047

(26,084)

(4,040)

Income before income tax,and share of

loss in equity method

1,754,326

1,530,837

237,096

2,268,727

2,239,083

346,790

Income tax expense

(298,302)

(254,859)

(39,473)

(428,074)

(404,497)

(62,649)

Share of loss in equity method investments

(2,453)

(3,753)

(581)

(16,109)

(28,835)

(4,466)

Net income

1,453,571

1,272,225

197,042

1,824,544

1,805,751

279,675

Net (income)/loss attributable to

noncontrolling interests

(5,217)

19,947

3,089

(1,490)

20,046

3,105

Net income attributable to ZTO Express

(Cayman) Inc.

1,448,354

1,292,172

200,131

1,823,054

1,825,797

282,780

Net income attributable to ordinary

shareholders

1,780

Net earnings per share attributed toordinary shareholders

Basic

1.85

1.56

0.24

2.33

2.21

0.34

Diluted

1.85

1.56

0.24

2.33

2.21

0.34

Weighted average shares used in

calculating net earnings per ordinary

share/ADS

Basic

783,894,733

827,015,267

827,267

783,385

827,755,090

827,090

Diluted

783,224,329

827,090

Other comprehensive (expenses)/ income,

net of tax of nil:

Foreign currency translation adjustment

(23,558)

(102,171)

(15,824)

153,368

(84,260)

(13,050)

Comprehensive income

1,430,013

1,170,054

181,218

1,977,912

1,721,491

266,625

Comprehensive income attributable to

noncontrolling interests

(5,105

Comprehensive income attributable to

ZTO Express (Cayman) Inc.

1,424,796

1,190,001

184,307

1,976,422

1,741,537

269,730

Unaudited Consolidated Balance Sheets Data:

As of

December 31,

2020

June 30,2021

RMB

RMB

US$

(in thousands,except for share data)

ASSETS

Current assets:

Cash and cash equivalents

14,212,778

12,098,453

1,873,812

Restricted cash

133,196

51,716

8,010

Accounts receivable,net

746,013

767,851

118,925

Financing receivables

492,159

984,796

152,525

Short-term investment

3,690,402

3,138,782

486,135

Inventories

53,070

39,589

6,132

Advances to suppliers

589,042

695,319

107,691

Prepayments and other current assets

2,334,688

2,746,873

425,436

Amounts due from related parties

73,278

71,951

11,144

Total current assets

22,324,626

20,595,330

3,189,810

Investments in equity investee

3,463

3,405

510,083

Property and equipment,net

18,565,161

21,370,865

3,309,926

Land use rights,net

4,360,673

4,922,064

762,331

Intangible assets,net

41,832

38,733

5,999

Operating lease right-of-use assets

876,259

852,270

132,000

Goodwill

4,241,541

4,541

656,931

Deferred tax assets

720,561

929,866

144,018

Long-term investment

1,842,000

2,140,160

331,469

Long-term financing receivables

1,970,340

1,859

238,649

Other non-current assets

537,294

821,750

127,273

Amounts due from related parties-non current

500,000

521,000

80,693

TOTAL ASSETS

59,204,750

61,267,843

9,489,182

LIABILITIES AND EQUITY

Current liabilities

Short-term bank borrowing

1,432,929

3,391,472

525,272

Accounts payable

1,635,888

1,596,483

247,264

Notes payable

326,200

351,107

54,380

Advances from customers

1,119,666

1,191,605

184,556

Income tax payable

48,628

80,192

12,420

Amounts due to related parties

16,655

21,495

3,329

Operating lease liabilities

246,394

226,037

35,009

Acquisition consideration payable

22,942

22,942

3,553

Dividends payable

11,198

2,438

378

Other current liabilities

4,487,084

4,409,817

682,994

Total current liabilities

9,347,584

11,588

1,749,155

Non-current operating lease liabilities

502,481

549,690

85,136

Deferred tax liabilities

254,987

256,346

39,703

TOTAL LIABILITIES

10,105,052

12,099,624

1,994

Shareholders' equity

Ordinary shares (US$0.0001 par value; 10,000,000 shares authorized,855,301,115

shares issued and 828,869,972 shares outstanding as of December 31,2020; 845,497,968

shares issued and 827,002,948 shares outstanding as of June 30,2021)

553

546

85

Additional paid-in capital

30,613,948

29,096,081

4,506,409

Treasury shares,at cost

(2,578,870)

(2,504)

(312,626)

Retained earnings

21,038,753

22,160,492

3,223

Accumulated other comprehensive loss

(95,571)

(179,831)

(27,852)

ZTO Express (Cayman)Inc. shareholders' equity

48,978,813

49,058,784

7,598,239

Noncontrolling interests

120,885

109,435

16,949

Total Equity

49,698

49,168,219

7,615,188

TOTAL LIABILITIES AND EQUITY

59,182

Summary of Unaudited Consolidated Cash Flow Data:

Three Months Ended June 30,

2020

2021

2020

2021

RMB

RMB

US$

RMB

RMB

US$

(in thousands)

Net cash provided by operating activities

1,252,270

1,932,405

299,291

1,061

2,357

373,162

Net cash used in investing activities

(1,097,851)

(184,468)

(28,570)

(1,812,554)

(4,556,458)

(705,705)

Net cash provided by / (used in) financing

activities

65,298

(943,506)

(146,130)

362,952

50,462

7,816

Effect of exchange rate changes on cash,

cash equivalents and restricted cash

2,145

(133,881)

(20,736)

19,460

(100,613)

(15,584)

Net increase/ (decrease) in cash,cash

equivalents and restricted cash

221,862

670,550

103,855

(81)

(2,197,252)

(340,311)

Cash,cash equivalents and restricted cash

at beginning of period

5,055,471

11,492,290

1,779,929

5,277,414

14,092

2,095

Cash,cash equivalents and restricted cash

at end of period

5,333

12,162,840

1,883,784

5,784

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

June 30,

2021

RMB

RMB

US$

(in thousands)

Cash and cash equivalents

5,261,920

12,812

Restricted cash,current

1,300

51,010

Restricted cash,non-current

14,113

12,671

1,962

Total cash,cash equivalents and restricted cash

5,333

12,840

1,784

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended June 30,

2020

2021

2020

2021

RMB

RMB

US$

RMB

RMB

US$

(inthousands,exceptforshareandpersharedata)

Net income

1,675

Add:

Share-based compensation expense (1)

-

-

-

264,154

248,027

38,414

Adjusted net income

1,042

2,698

2,053,778

318,089

Net income

1,675

Add:

Depreciation

408,426

530,874

82,222

801,006

1,026,582

158,997

Amortization

17,602

33,928

5,255

33,250

59,579

9,228

Interest expenses

9,135

33,798

5,235

9,426

49,380

7,648

Income tax expenses

298,302

254,859

39,473

428,074

404,497

62,649

EBITDA

2,187,036

2,125,684

329,227

3,300

3,345,789

518,197

Add:

Share-based compensation expense

-

-

-

264,414

Adjusted EBITDA

2,454

3,593,816

556,611

(1) Net of income taxes of nil

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended June 30,exceptforshareandpersharedata)

Net income attributable to ordinary

shareholders

1,780

Add:

Share-based compensation expense (1)

-

-

-

264,414

Adjusted Net income attributable to

ordinary shareholders

1,131

2,087,208

2,073,824

321,194

Weighted average shares used in

calculating net earnings per ordinary

share/ADS

Basic

783,090

Net earnings per share/ADS attributable

to ordinary shareholders

Basic

1.85

1.56

0.24

2.33

2.21

0.34

Diluted

1.85

1.56

0.24

2.33

2.21

0.34

Adjusted net earnings per share/ADS

attributable to ordinary shareholders

Basic

1.85

1.56

0.24

2.67

2.51

0.39

Diluted

1.85

1.56

0.24

2.66

2.51

0.39

(1) Net of income taxes of nil

For investor and media inquiries,please contact:

ZTO Express (Cayman) Inc.

Investor Relations

E-mail: ir@zto.com

Phone: +86 21 5980 4508