ZTO Reports Fourth Quarter 2021 and Fiscal Year 2021 Unaudited Financial Results

22.3 Billion Annual Parcels Increased Market Share to 20.6%

Adjusted Net Income Reached RMB4.9 Billion while Price Competition Cooled

US$0.25 per Share Dividend Announced for 2021

SHANGHAI,March 17,2022 -- 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 fourth quarter and fiscal year ended December 31,2021[1]. The Company grew parcel volume 5.3 billion,or 31.1%,for 2021 while achieving high customer satisfaction as well as earnings growth. Cash generated from operating activities totaled RMB7.2 billion for the year.

Fourth Quarter 2021 Financial Highlights

Revenues were RMB9,217.5 million (US$1,446.4 million),an increase of 11.6% from RMB8,257.1 million in the same period of 2020.

Gross profit was RMB2,250.9 million (US$353.2 million),an increase of 21.1% from RMB1,858.3 million in the same period of 2020.

Net income was RMB1,747.7 million (US$274.2 million),an increase of 35.3% from RMB1,291.6 million in the same period of 2020.

Adjusted EBITDA[2] was RMB2,739.2 million (US$429.8 million),an increase of 29.3% from RMB2,119.3 million in the same period of 2020.

Adjusted net income[3] was RMB1,745.3 million (US$273.9 million),an increase of 35.2% from RMB1,290.5 million in the same period of 2020.

Basic and diluted net earnings per American depositary share ("ADS"[4]) were RMB2.18 (US$0.34),an increase of 40.6% from RMB1.55 in the same period of 2020.

Adjusted basic and diluted net earnings per American depositary share[5] attributable to ordinary shareholders were RMB2.18 (US$0.34),an increase of 40.6% from RMB1.55 in the same period of 2020.

Net cash provided by operating activities was RMB 3,023.8 million (US$474.5 million),compared with RMB2,040.3 million in the same period of 2020.

Fiscal Year 2021 Financial Highlights

Revenues were RMB30,405.8 million (US$4,771.3 million),an increase of 20.6% from RMB25,214.3 million in the same period of 2020.

Gross profit was RMB6,589.4 million (US$1,034.0 million),an increase of 12.9% from RMB5,837.1 million in the same period of 2020.

Net income was RMB4,701.3 million (US$737.7 million),an increase of 8.7% from RMB4,326.4 million in the same period of 2020.

Adjusted EBITDA[2] was RMB 8,300.7 million (US$1,302.6 million),an increase of 16.0% from RMB7,155.1 million in the same period of 2020.

Adjusted net income[3] was RMB4,947.0 million (US$776.3 million),an increase of 7.8% from RMB4,589.5 million in the same period of 2020.

Basic and diluted net earnings per American depositary share ("ADS"[4]) were RMB 5.80 (US$0.91),an increase of 7.0% from RMB 5.42 in the same period of 2020.

Adjusted basic and diluted net earnings per American depositary share[5] attributable to ordinary shareholders were RMB 6.10 (US$0.96),an increase of 6.1% from RMB5.75 in the same period of 2020.

Net cash provided by operating activities was RMB7,220.2 million (US$1,133.0 million),compared with RMB4,950.7 million in the same period of 2020.

Operational Highlights for Fourth Quarter 2021

Parcel volume was 6,343 million,an increase of 17.2% from 5,410 million in the same period of 2020.

Number of pickup/delivery outlets was over 30,400 as of December 31,2021.

Number of direct network partners was over 5,700 as of December 31,2021.

Number of line-haul vehicles was approximately 10,900 as of December 31,2021,which were self-owned vehicles.

Out of the approximately 10,900 self-owned trucks,over 9,000 were high capacity 15 to 17-meter-long models as of December 31,compared to approximately 7,900 as of September 30,2021.

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

Number of sorting hubs was 99 as of December 31,among which 88 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 net 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 net 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,"Facing COVID-19 pandemic shockwaves,signs of weakness in the economy and dislocations in industry dynamics,ZTO once again achieved satisfactory results in all three areas of our strategic focus for 2021. First,our quality of service and customer satisfaction continued to rank top above our industry peers; Secondly,our parcel volume grew 5.3 billion or 31.1% to reach 22.3 billion,with which,we maintained our number one position in market share at 20.6%; Thirdly,our adjusted net earnings expanded 7.8% to 4.9 billion,setting us further apart from the rest."

Mr. Lai added,"While the growth prospects are intact for the long run,2022 is likely a year of volatility or unexpectedness. We are watchful of what is taking place in the world and maintain vigilance and diligence in doing what we can and must. Capacity and efficiency are critical to the scale-dependent express delivery business. Our past success is built upon the strength of our vast network of infrastructure and well-integrated franchise-partners,both of which,took us years of consistent investments and cultivation. Together with an increasing level of standardization and digitization throughout our operations and our developing comprehensive logistic capabilities,we are ever so confident to secure a larger share of the growing market with greater cost efficiencies and achieve a bigger share of the profit than any of our competitors."

Ms. Huiping Yan,Chief Financial Officer of ZTO,"The impact from competition-driven price decline continued to diminish and,the 1.3% ASP decline for the fourth quarter brought the full year ASP decline for our core express delivery business to 5.7% or 7 cents,out of which,3 cents was resulted from average parcel weight drop. During the second half of the year,various corporate initiatives were systemically implemented to improve visibility to pertinent and timely data valuable for analytics and quicker response. More of such implementations are on the way and,we have begun to see benefit on our earnings quality."

Ms. Yan added,"Our corporate cost structure remained stable and efficient. SG&A as a percentage of revenue declined 0.2 pts to 5.4%. For the full year,capital expenditure totaled 9.3 billion and,we generated 7.2 billion of cash from operating activities which grew 45.8% year over year. We reasonably anticipate that cash generated from operating activities would well exceed capital expenditures for 2022."

Fourth Quarter 2021 Financial Results

Three Months Ended December 31,

2020

2021

RMB

%

RMB

US$

%

(in thousands,except percentages)

Express delivery services

7,172,717

86.9

8,428,942

1,322,685

91.4

Freight forwarding services

618,930

7.5

378,248

59,355

4.1

Sale of accessories

336,628

4.1

352,414

55,301

3.8

Others

128,869

1.5

57,915

9,089

0.7

Total revenues

8,257,144

100.0

9,217,519

1,446,430

100.0

Total Revenues were RMB9,217.5million (US$1466.4 million),257.1 million in the same period of 2020. Revenuefrom the core express delivery business increased 15.7% compared to the same period of 2020,as a combined result of a 17.2% increase in parcel volume and a 1.3% decrease in parcel unit price. Revenue from freight forwarding services decreased by 38.9% compared to the same period of 2020 as cross border e-commerce demand and pricing graduallyreturned to normal post COVID-19 recovery. Revenue from sales of accessories,largely consisted of sales of thermal paper used for digital waybills,increased 4.7%. Other revenues were mainly consisted of financing services and advertising services receipts.

Three Months Ended December 31,

2020

2021

RMB

% of

revenues

RMB

US$

% of

revenues

(in thousands,except percentages)

Line-haul transportation cost

2,956,311

35.8

3,350,847

525,821

36.4

Sorting hub operating cost

1,650,757

20.0

2,014,763

316,160

21.9

Freight forwarding cost

561,273

6.8

322,785

50,652

3.5

Cost of accessories sold

109,288

1.3

85,104

13,355

0.9

Other costs

1,121,184

13.6

1,193,096

187,223

12.9

Total cost of revenues

6,398,813

77.5

6,966,595

1,093,211

75.6

Total cost of revenues was RMB6,966.6 million (US$1,093.2 million) compared to RMB6,398.8 million in the same period last year,an increase of 8.9% against 17.2% volume increase year over year.

Line haul transportation cost was RMB3,350.8 million (US$525.8 million),an increase of 13.3% from RMB2,956.3 million in the same period lastyear. Line-haul transportation cost per parcel decreased 3.3% to RMB0.53 benefited mainly from improved operating efficiency through increased usage of high-capacity vehicles and better route planning. There were approximately 1,100 more self-owned and operated high-capacity vehicles in operation compared to the same period last year.

Sorting hub operating costwas RMB2,014.8 million (US$316.2 million),an increase of 22.1% from RMB1,650.8 million in the same period last year. The increase was primarily consisted of (i) RMB234.5 million (US$36.8 million) increase in labor-associated costs,a net result ofwage increases offset by automation-driven headcount reductions,and (ii) RMB77.5 million (US$12.2 million) increase in depreciation and amortization costs from increased number of installed automated sorting equipment and facilities. Sorting hub operating cost per unit increased 4.1% to RMB0.32. As of December 31,385 sets of automated sorting equipment were in service,compared to 339 sets as of December 31,2020.

Cost of accessories sold was RMB85.1 million (US$13.4 million),decreased 22.1% compared with RMB109.3 million in the same period last year.

Other costs were RMB1,193.1 million (US$187.2 million),an increase of RMB71.9 million (US$11.3 million) compared to the same period lastyear. The increase was mainly consisted of an increase of RMB71.2 million (US$11.2 million) in tax surcharge driven by the expiration of tax relief policies during Covid-19 outbreak.

Gross Profit was RMB2,increased 21.1% from RMB1,858.3 million in the same period last year as a combined result of increased volume and decreased ASP absorbed by unit cost efficiency. Gross margin rateincreased to 24.4% from 22.5% for the same period last year.

Total Operating Expenses were RMB196.9 million (US$30.9 million),compared to RMB291.7 million in the same period last year.

Selling,general and administrative expenses were RMB472.3 million (US$74.1 million),increased by 13.1% from RMB417.6 million in the same period last year,mainly from increases of compensation and benefits and office expenditures.

Other operating income,net was RMB275.4 million (US$43.2 million),compared to RMB125.9 million in the same period last year. Other operating income/expense mainly consisted of (i) RMB140.5 million (US$22.0 million) of VAT super deduction and (ii) government subsidies and tax rebates of RMB56.7 million (US$8.9 million).

Income from operations was RMB2,054.0 million (US$322.3 million),an increase of 31.1% from RMB1,566.6 million for the same period last year. Operating margin rate increased to 22.3% from 19.0% in the same period last year.

Interest income was RMB94.2 million (US$14.8 million),compared with RMB105.6 million in the same period last year.

Interest expenses was RMB24.9 million (US$3.9 million),compared with RMB12.2 million in the same period last year.

Loss from fair value changes of financial instruments was RMB0.3 million (US$0.1 million),compared with RMB0.9 million in the same period last year,which reflected fair value changes,assessed usingmarket-based redemption prices estimated by selling banks,onfinancial instruments.

Income tax expenses were RMB371.4 million (US$58.3 million) compared to RMB289.6 million in the same period last year.

Net income was RMB1,which increased by 35.3% from RMB1,291.6 million in the same period last year.

Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB2.18 (US$0.34),compared to basic and diluted earnings perADS of RMB1.55 in the same period last year.

Adjusted basic and diluted earnings per ADS attributable to ordinary shareholders were RMB2.18 (US$0.34),compared with RMB 1.55 in the sameperiod last year.

Adjusted net income was RMB1,compared with RMB1,290.5 million during the same period last year.

EBITDA was RMB2,741.6 million (US$430.2 million),120.4 million in the same period last year.

Adjusted EBITDA was RMB2,compared to RMB2,119.3 million in the same period last year.

Net cash provided by operating activities was RMB3,040.3 million in the same period last year.

Fiscal Year 2021 Financial Results

Year Ended December 31,except percentages)

Express delivery services

21,900,201

86.9

27,450,922

4,307,649

90.3

Freight forwarding services

1,862,689

7.4

1,529,601

240,028

5.0

Sale of accessories

1,133,712

4.5

1,231,283

193,215

4.0

Others

317,688

1.2

194,033

30,448

0.7

Total revenues

25,214,290

100.0

30,405,839

4,771,340

100.0

Total Revenues were RMB30,214.3 million last year. Revenuefrom the core express delivery business increased by 23.7%,as a combined result of a 31.1% increase in parcel volume and a 5.7% decrease in parcel unit price mainly driven by per parcel weight decline and volume incentives. Revenue from freight forwarding services decreased by 17.9% compared to last year as cross border e-commerce demand and pricing graduallyreturned to normal post COVID-19 recovery. Revenue from sales of accessories,increased by 8.6%. Other revenues were mainly consisted of financing services and advertising services receipts.

Year Ended December 31,except percentages)

Line-haul transportation cost

8,697,081

34.5

11,487,810

1,802,688

37.8

Sorting hub operating cost

5,224,544

20.7

6,774,595

1,063,081

22.3

Freight forwarding cost

1,712,592

6.8

1,326,557

208,166

4.4

Cost of accessories sold

391,253

1.6

349,647

54,867

1.1

Other costs

3,351,714

13.3

3,877,853

608,521

12.7

Total cost of revenues

19,377,184

76.9

23,816,462

3,737,323

78.3

Total cost of revenues was RMB23,816.5 million (US$3,737.3 million) compared to RMB19,377.2 million in the same period last year,an increase of 22.9% against 31.1% volume increase year over year.

Line haul transportation cost was RMB11,487.8 million (US$1,802.7 million),an increase of 32.1% from RMB8,697.1 million last year. Line-haul transportation cost per parcel was RMB 0.52,which increased 0.8% compared to last year. This was primarily due to improved operating efficiency through increased usage of high-capacity vehicles and better route planning offset by (i) reduced toll road fee charges by a federal waiver policy which took effect in mid-February andlasted through early May in 2020 to provide relief and support economic recovery from COVID-19 outbreak,and (ii) the increase of diesel price.

Sorting hub operating costwas RMB6,774.6 million (US$1,063.1 million),an increase of 29.7% from RMB5,224.5 million last year. The increase was primarily consisted of (i) RMB1,109.6 million (US$174.1 million) increase in labor-associated costs,a result of wage increases and headcount increase against higher volume growth,and (ii) RMB269.8 million (US$42.3 million) increase in depreciation and amortization costs from increased number of installed automated sorting equipment and facilities. Sorting hub operating cost per unit declined by 1.1% to RMB0.30 compared with last year mainly driven by higher utilization of automation equipment and improved economies of scale.

Cost of accessories sold was RMB349.6 million (US$54.9 million),decreased 10.6% compared with RMB391.3 million last year.

Other costs were RMB3,877.9 million (US$608.5 million),an increase of RMB526.1 million (US$82.6 million) from RMB3,351.7 million in 2020,primarily due to (i) an increase in costs associated with serving key enterprise customers of RMB269.6 million (US$42.3 million); and (ii) anincrease of RMB188.3 million (US$29.5 million) in tax surcharge driven by the expiration of tax relief policies during Covid-19 outbreak.

Gross Profit was RMB6,837.1 million last year. Gross profit margin decreased to21.7% from 23.1% in 2020,which resulted mainly from competition-led ASP decline partially offset by cost productivity gain.

Total Operating Expenseswere RMB1,086.4 million (US$170.5 million),compared to RMB1,082.7 million last year.

Selling,general and administrative expenses were RMB1,875.9 million (US$294.4 million),an increase of 12.8% from RMB1,663.7 million last year. The increase was primarily due to (i) an increase of RMB124.6 million (US$19.5 million) in compensation and benefit expenses; (ii) an increase of RMB62.9 million (US$9.9 million) in headquarter facility expenses; and (iii) an increase of RMB22.2 million (US$3.5 million) in depreciation and amortization expenses.

Other operating income,net was RMB789.5 million (US$123.9 million),compared with RMB581.0 million last year. The increase is mainly composed of (i) the RMB250.3 million (US$39.3 million) of VAT super deduction,(ii) an increase in government subsidies and tax rebate of RMB23.4 million (US$3.7 million),and offset by (iii) RMB91.5 million (US$14.4 million) ADR fee rebate.

Income from operations was RMB5,503.0 million (US$ 863.5 million),an increase of 15.7% from RMB4,754.4 million last year. Operating margin decreased to 18.1% from 18.9% last year.

Interest income was RMB363.9 million (US$57.1 million),compared with RMB442.7 million in 2020.

Gain on disposal of equity investees and subsidiary was RMB2.4 million (US$0.4 million),compared with RMB1.1 million in 2020.

Gain from fair value changes of financial instruments was RMB52.9 million (US$8.3 million),compared with negative RMB0.9 million in 2020,onfinancial instruments.

Foreign currency exchange loss,before tax was RMB56.5 million (US$8.9 million),mainly due to the depreciation of the onshore U.S. dollar-denominatedbank deposits against the Chinese Renminbi.

Income tax expenses were RMB1,005.5 million (US$157.8 million) compared to RMB689.8 million in 2020. In the third quarter of 2020,an income tax refund of RMB200.7 million was received 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 increased 8.7% to RMB4,701.3 million (US$737.7 million) from RMB4,326.4 million in 2020. Net incomemargin was 15.5% in 2021 compared with 17.2% in 2020.

Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB5.80 (US$ 0.91),compared to basic and diluted earnings perADS of RMB5.42 in the same period last year.

Adjusted basic and diluted earnings per ADS attributable to ordinary shareholders were RMB6.10 (US$0.96),compared with that of RMB5.75 for2020.

Adjusted net income was RMB4,589.5 million last year.

EBITDA was RMB8,055.0 million (US$1,264.0 million),compared with RMB6,892.0 million last year.

Adjusted EBITDA was RMB8,compared with RMB7,155.1 million last year.

Net cash provided by operating activities was RMB 7,220.2 million (US$ 1,increased by 45.8% from RMB4,950.7 million last year.

Business Outlook

Based on current market conditions and current operations,the Company's parcel volume for 2022 is expected to be in the range of 26.30 billion to27.64 billion,representing a 18% to 24% increase year over year. Above estimates represent management's current and preliminary view,which are subjectto change.

Special Dividend

The board of directors has approved a special dividend of US$0.25 per ADS and share for 2021 to shareholders of record as of the close of business on April 8,2022. For holders of class A ordinary shares,in order to qualify for the dividend,all valid documents for the transfer of shares accompanied by the relevant share certificates must be lodged for registration with the Company's Hong Kong branch share registrar,Computershare Hong Kong Investor Services Limited,at Shops 1712-1716,17th Floor,Hopewell Centre,183 Queen's Road East,Wanchai,Hong Kong no later than 4:30 p.m. on April 8,2022 (Hong Kong Time). The payment date is expected to be April 22,2022 for holders of class A ordinary shares and on April 27,2022 for holders of ADSs.

Company Share Purchase

On November 14,2018,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 December 31,the Company has purchased an aggregate of 36,074,242ADSs at an average purchase price of US$25.21,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 RMB6.3726 to US$1.00,the noon buying rate on December 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,March 16,2022 (8:30 AM Beijing Time on March 17,2022).

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:

6877338

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 March 23,2022:

United States:

1-877-344-7529

International:

1-412-317-0088

Passcode:

6411558

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 fourthquarter and fiscal year 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 fourthquarter and fiscal year of 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 CONDENSED CONSOLIDATED FINANCIAL DATA

Summary of Unaudited Consolidated Comprehensive IncomeData:

Three Months Ended December 31,

Year Ended December 31,

2020

2021

2020

2021

RMB

RMB

US$

RMB

RMB

US$

(inthousands,exceptforshareandpersharedata)

Revenues

8,144

9,519

1,430

25,290

30,839

4,340

Cost of revenues

(6,813)

(6,595)

(1,211)

(19,184)

(23,462)

(3,323)

Gross profit

1,858,331

2,250,924

353,219

5,837,106

6,589,377

1,034,017

Operating income (expenses):

Selling,general and administrative

(417,572)

(472,284)

(74,112)

(1,663,712)

(1,875,869)

(294,365)

Other operating income,net

125,867

275,363

43,210

580,973

789,503

123,890

Total operating expenses

(291,705)

(196,921)

(30,902)

(1,082,739)

(1,086,366)

(170,475)

Income from operations

1,566,626

2,054,003

322,317

4,754,367

5,503,011

863,542

Other income (expenses):

Interest income

105,559

94,208

14,783

442,697

363,890

57,102

Interest expense

(12,174)

(24,852)

(3,900)

(35,307)

(126,503)

(19,851)

(Loss)/Gain from fair value changes of

financial instruments

(877)

(337)

(53)

(877)

52,909

8,303

Gain on disposal of equity investees and

subsidiary

1,086

2,357

370

1,357

370

Foreign currency exchange loss,

before tax

(81,873)

(22,310)

(3,501)

(127,180)

(56,467)

(8,861)

Income before income tax,and share of

loss in equity method

1,578,347

2,103,069

330,016

5,786

5,739,197

900,605

Income tax expense

(289,605)

(371,429)

(58,285)

(689,833)

(1,005,451)

(157,777)

Share of gain/(loss) in equity method

investments

2,871

16,046

2,518

(18,507)

(32,419)

(5,087)

Net income

1,291,613

1,747,686

274,249

4,446

4,701,327

737,741

Net (loss)/income attributable to

noncontrolling interests

(3,472)

14,644

2,298

(14,233)

53,500

8,395

Net income attributable to ZTO Express

(Cayman) Inc.

1,288,141

1,762,330

276,547

4,312,213

4,827

746,136

Net income attributable to ordinary

shareholders

1,136

Net earnings per share attributed to

ordinary shareholders

Basic

1.55

2.18

0.34

5.42

5.80

0.91

Diluted

1.55

2.18

0.34

5.42

5.80

0.91

Weighted average shares used in

calculating net earnings per ordinary

share/ADS

Basic

832,986,610

808,448,289

808,289

796,097,532

819,961,265

819,265

Diluted

832,147,504

819,265

Other comprehensive loss,

net of tax of nil:

Foreign currency translation adjustment

(597,778)

(17,602)

(2,762)

(771,291)

(146,533)

(22,994)

Comprehensive income

693,835

1,730,084

271,487

3,555,155

4,554,794

714,747

Comprehensive (loss)/income attributable

to noncontrolling interests

(3,395

Comprehensive income attributable to

ZTO Express (Cayman) Inc.

690,363

1,744,728

273,785

3,540,608,294

723,142

Unaudited Condensed Consolidated Balance Sheets Data:

As of

December 31,2020

December 31,2021

RMB

RMB

US$

（in thousands,except for share data）

ASSETS

Current assets:

Cash and cash equivalents

14,212,778

9,721,225

1,525,472

Restricted cash

133,196

27,736

4,352

Accounts receivable,net

746,013

933,444

146,478

Financing receivables

492,159

1,111,461

174,412

Short-term investment

3,690,402

2,845,319

446,493

Inventories

53,070

82,961

13,018

Advances to suppliers

589,042

667,855

104,801

Prepayments and other current assets

2,334,688

3,142,368

493,106

Amounts due from related parties

73,278

133,990

21,026

Total current assets

22,324,626

18,666,359

2,929,158

Investments in equity investee

3,463

3,448

585,389

Property and equipment,net

18,565,161

24,897

3,912,045

Land use rights,net

4,360,673

5,335,549

837,264

Intangible assets,net

41,832

35,634

5,592

Operating lease right-of-use assets

876,259

897,238

140,796

Goodwill

4,241,541

4,541

665,590

Deferred tax assets

720,561

934,848

146,698

Long-term investment

1,842,000

1,500

190,582

Long-term financing receivables

1,970,340

1,412,956

221,724

Other non-current assets

537,294

762,273

119,617

Amounts due from related parties-non current

500,000

611,100

95,895

TOTAL ASSETS

59,204,750

62,772,343

9,850,350

LIABILITIES AND EQUITY

Current liabilities

Short-term bank borrowing

1,432,929

3,458,717

542,748

Accounts payable

1,635,888

1,957,529

307,179

Notes payable

326,200

174,920

27,449

Advances from customers

1,119,666

1,226,549

192,472

Income tax payable

48,628

86,789

13,619

Amounts due to related parties

16,655

22,786

3,576

Operating lease liabilities

246,394

250,995

39,387

Acquisition consideration payable

22,942

22,942

3,600

Dividends payable

11,198

708

111

Other current liabilities

4,084

5,794,380

909,263

Total current liabilities

9,347,584

12,996,315

2,039,404

Non-current operating lease liabilities

502,481

556,091

87,263

Deferred tax liabilities

254,987

292,356

45,877

TOTAL LIABILITIES

10,105,052

13,844,762

2,544

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; 826,943,309

shares issued and 808,289 shares outstanding as of December 31,2021)

553

535

84

Additional paid-in capital

30,613,948

28,229,026

4,429,750

Treasury shares,at cost

(2,870)

(2,067,009)

(324,359)

Retained earnings

21,038,753

22,716,799

3,564,762

Accumulated other comprehensive loss

(95,571)

(242,104)

(37,991)

ZTO Express (Cayman)Inc. shareholders' equity

48,978,813

48,637,247

7,632,246

Noncontrolling interests

120,885

290,334

45,560

Total Equity

49,099,698

48,927,581

7,677,806

TOTAL LIABILITIES AND EQUITY

59,350

Summary of Condensed Unaudited Consolidated Cash Flow Data:

Three Months Ended December 31,

2020

2021

2020

2021

RMB

RMB

US$

RMB

RMB

US$

(in thousands)

Net cash provided by operating activities

2,040,259

3,023,783

474,498

4,950,749

7,220,217

1,010

Net cash (used in) investing activities

(2,916,733)

(2,814,265)

(441,620)

(3,549,341)

(8,756,533)

(1,374,091)

Net cash (used in) /provided by financing

activities

(628,169)

(787,457)

(123,569)

8,337,407

(2,903,985)

(455,699)

Effect of exchange rate changes on cash,

cash equivalents and restricted cash

(566,354)

(47,876)

(7,513)

(656,137)

(150,430)

(23,606)

Net (decrease)/increase in cash,cash

equivalents and restricted cash

(2,070,997)

(625,815)

(98,204)

9,678

(4,590,731)

(720,386)

Cash,cash equivalents and restricted cash

at beginning of period

16,431,089

10,395,176

1,631,230

5,277,414

14,092

2,253,412

Cash,cash equivalents and restricted cash

at end of period

14,092

9,769,361

1,533,026

14,026

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

December 31,2020

December,2021

RMB

RMB

US$

(in thousands)

Cash and cash equivalents

14,472

Restricted cash,current

133,352

Restricted cash,non-current

14,118

20,400

3,202

Total cash,cash equivalents and restricted cash

14,092

9,361

1,026

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended December 31,exceptforshareandpersharedata)

Net income

1,741

Add:

Share-based compensation expense (1)

-

-

-

264,154

248,027

38,921

Less:

Gain on disposal of equity investees and

subsidiary (1)

(1,086)

(2,357)

(370)

(1,357)

(370)

Adjusted net income

1,290,527

1,745,329

273,879

4,514

4,946,997

776,292

Net income

1,741

Add:

Depreciation

503,814

567,264

89,016

1,758,638

2,102,310

329,898

Amortization

23,184

30,354

4,763

81,824

119,458

18,746

Interest expenses

12,174

24,852

3,900

35,307

126,503

19,851

Income tax expenses

289,605

371,429

58,285

689,833

1,451

157,777

EBITDA

2,120,390

2,741,585

430,213

6,892,048

8,055,049

1,264,013

Add:

Share-based compensation expense

-

-

-

264,921

Less:

Gain on disposal of equity investees and

subsidiary

(1,357)

(370)

Adjusted EBITDA

2,304

2,228

429,843

7,155,116

8,300,719

1,302,564

(1) Net of income taxes of nil

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended December 31,exceptforshareandpersharedata)

Net income attributable to ordinary

shareholders

1,136

Add:

Share-based compensation expense(1)

-

-

-

264,921

Less:

Gain on disposal of equity investees and subsidiary (1)

(1,357)

(370)

Adjusted net income attributable to

ordinary shareholders

1,287,055

1,759,973

276,177

4,575,281

5,497

784,687

Weighted average shares used in

calculating net earnings per ordinary share/ADS

Basic

832,265

Net earnings per share/ADS attributable

to ordinary shareholders

Basic

1.55

2.18

0.34

5.42

5.80

0.91

Diluted

1.55

2.18

0.34

5.42

5.80

0.91

Adjusted net earnings per share/ADS

attributable to ordinary shareholders

Basic

1.55

2.18

0.34

5.75

6.10

0.96

Diluted

1.55

2.18

0.34

5.75

6.10

0.96

(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