On May 16th, Zhongtong Express released its unaudited financial performance for the first quarter of 2024. The company's operating revenue for the quarter increased by 10.9% year-on-year to 9.96 billion yuan, the package volume increased by 13.9% year-on-year to 7.171 billion items, the adjusted net profit increased by 15.8% to 2.2 billion yuan, and the net cash flow generated from operating activities was 2 billion yuan.
Lai Meisong, founder, chairman, and CEO of Zhongtong Express, said, "In the first quarter of this year, the industry's parcel volume increased by 25.2% year-on-year, far exceeding expectations. The booming development of new live streaming e-commerce and social platforms has stimulated online consumption by the public, driving the growth of express delivery business volume. On the other hand, it has also led to an increase in the proportion of low priced e-commerce parcels. At the same time, the competition for express delivery prices has further intensified, especially in grain producing areas, where the proportion of unprofitable or even loss making parcels in the industry has become more. Zhongtong adheres to the bottom line of 'not making loss making parcels' and maintains healthy growth in profits. Although the parcel volume market share has decreased compared to the same period last year, our profit market share has further increased, proving the effectiveness of our strategy."
As of March 31, 2024, Zhongtong Express has 96 sorting centers, over 31000 pick-up/delivery points, more than 6000 direct network partners, approximately 3800 trunk transportation routes between sorting centers, and more than 10000 self owned trunk vehicles. Among them, about 9100 self owned vehicles are high capacity vehicles with a length of 15 to 17 meters. The company maintains its previous annual business volume guidance of 34.73 billion to 35.64 billion, with a growth rate of 15% to 18%.