How did ZTO's revenue and expenses perform in Q4 2024 compared to previous quarters?

ZTO Express's revenue and expenses in Q4 2024 showed notable performance compared to previous quarters:

1. Revenue Performance:
   • ZTO Express reported a 21.7% increase in revenue for Q4 2024 compared to the same period in 2023, reaching RMB12.92 billion ($1.77 billion).
   • This growth outpaced parcel volume increases, indicating improved pricing power and operational efficiency.
   • For the full year 2024, ZTO Express reported a 15.3% increase in revenue, reaching RMB44.28 billion ($6.07 billion).
2. Expense Management:
   • The company's adjusted net income grew by 12.7% in Q4 2024, reaching RMB10.2 billion.
   • However, there was a decrease in net cash from operating activities, dropping to RMB2.8063 billion in Q4 2024 from RMB3.9233 billion in Q4 2023.
   • The cost of sales accounted for 69% of the total revenue, highlighting the impact of non-core activities on the company's expenses.
3. Comparative Analysis:
   • ZTO Express's revenue and adjusted net income growth in Q4 2024 were robust, driven by increased parcel volume and improved operational efficiency.
   • Despite the positive revenue growth, the decline in net cash from operating activities suggests a need for enhanced cash flow management.
   • The company's core express delivery business saw a 22.4% year-over-year revenue increase, driven by an 11% growth in parcel volume and a 10.3% increase in unit price.

In conclusion, ZTO Express demonstrated strong revenue growth and improved profitability in Q4 2024, despite facing challenges in cash flow management and competitive pricing pressures. The company's strategic focus on enhancing service quality and customer satisfaction has likely contributed to its financial performance.