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    Aaron LuoUBS Group AG

    Aaron Luo's questions to ZTO Express (Cayman) Inc (ZTO) leadership

    Aaron Luo's questions to ZTO Express (Cayman) Inc (ZTO) leadership • Q4 2024

    Question

    Aaron Luo inquired about the growth outlook for retail and return parcels in 2025, asking for a specific target and an update on unit economics amid rising competition. He also asked about the potential for further reductions in core transportation and sorting costs and the expected impact of social insurance expenses.

    Answer

    Chairman Meisong Lai, translated by CFO Huiping Yan, set a 2025 daily retail parcel volume goal of 8.4 million, a significant increase from 5.46 million in 2024. For costs, the goal is to reduce combined sorting and transportation unit cost by at least RMB 0.03 in 2025. Regarding social welfare, he confirmed 100% coverage for direct and outsourced employees and highlighted ZTO's pioneering role in providing group accidental insurance for couriers to ensure network stability.

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