ZTO EXPRESS (CAYMAN) INC. 了 喜玉拿中通快递 ZTO EXPRESS (CAYMAN) INC. 中通快遞 ( 開星 ) 有限公司 ( ) ANNUAL REPORT 2021 ( 於開曼群島註冊成立以不同投票權控制的有限責任公司 ) 股份代號 : 2057 2021 年度報告 www.zto.com 有關我們不同投票權架構的資料 中通快遞（開曼）有限公司（「本公司」）以不同投票權控制。我們的股本包括A類普通股及B類普通股。對於所有需要股 東投票的事項，每股A類普通股賦予持有人行使一票投票權，而每股B類普通股賦予持有人行使十票投票權。除B類普 通股所附的不同投票權外，所有類別股份所附的投票權均相同。 截至2022年3月31日，我們不同投票權受益人所持有的B類普通股數目及其各自的股權及投票權如下： | --- | --- | --- | |-------------------------------------|----------------|------------------| | | B 類普通股數目 | 投票權概約百分比 | | 賴梅松先生（附註 1 ） | 206,100 ...

Financial Performance - ZTO Express reported a total revenue of approximately $1.5 billion for the fiscal year ended December 31, 2020, representing a year-over-year increase of 30%[3]. - The company reported a net income of approximately $300 million for 2020, reflecting a net profit margin of 20%[3]. - The company reported a total revenue of RMB 100 billion for the fiscal year ending December 31, 2020, representing a year-over-year increase of 15%[10]. - The gross profit margin for the year was reported at 25%, a slight increase from 24% in 2019[10]. - The company anticipates a revenue guidance of RMB 115 billion for the fiscal year 2021, indicating a growth target of 15%[8]. - Total revenue for the latest quarter reached RMB 25,214,290, with a gross profit of RMB 5,837,106, resulting in a gross margin of approximately 23%[12]. - Operating profit for the quarter was RMB 4,754,367, reflecting a decrease of 13% compared to the previous quarter[12]. - Net profit attributable to shareholders was RMB 4,312,213, with earnings per share (EPS) of RMB 5.42, down from RMB 7.24 in the previous quarter[12]. Package Volume and Logistics - The company processed approximately 4.7 billion packages in 2020, an increase of 26% compared to the previous year[3]. - The total package volume handled by the company reached 10 billion packages in 2020, reflecting a growth of 20% compared to the previous year[10]. - Over 90% of the company's total package volume in December 2020 came from e-commerce platforms, indicating a strong reliance on the growth of the Chinese e-commerce industry[16]. - As of December 31, 2020, the company operated approximately 30,000 pickup/delivery points and had over 5,350 direct network partners, emphasizing its extensive operational network[19]. - The company has established a comprehensive and reliable delivery network, supported by partnerships with network operators[136]. - The company currently operates over 68,000 end stations in China, which serve as pickup locations for recipients[146]. Growth and Expansion Plans - ZTO Express expects revenue growth to continue in 2021, projecting an increase of 25% to 30% year-over-year[3]. - The company plans to expand its service network by adding 1,000 new service stations in 2021 to enhance its logistics capabilities[3]. - The company plans to expand its service network by adding 1,000 new delivery points in 2021, aiming to enhance customer accessibility[8]. - The company aims to enhance its market share in the e-commerce logistics sector, targeting a 5% increase in market penetration by the end of 2021[3]. - The company is exploring potential mergers and acquisitions to strengthen its competitive position in the logistics industry[3]. - The company is exploring potential acquisitions in the logistics sector to strengthen its competitive position in the market[8]. Technology and Innovation - ZTO Express is investing in technology development, focusing on automation and artificial intelligence to improve operational efficiency[3]. - The company is investing RMB 2 billion in new technology development to improve sorting efficiency and delivery speed[8]. - The company has developed proprietary algorithms for order scheduling and forecasting, capable of processing up to 100 million orders per day[155]. - The company utilizes automated hardware and software solutions to improve operational efficiency, including dynamic weighing machines and image-based learning algorithms for package inspection[143]. - The proprietary Zhongtian system includes over a hundred modules for package sorting, transportation, and tracking management, which is crucial for operational efficiency[153]. Sustainability Initiatives - The company is committed to sustainability initiatives, aiming to reduce carbon emissions by 15% over the next five years[3]. - The company has established a special team to lead environmental sustainability initiatives, promoting the use of green, recyclable, and biodegradable packaging[161]. - The company has implemented energy-efficient equipment in sorting, transportation, and distribution processes to reduce environmental impact[161]. - The company actively promotes rural market development through the "Express Delivery to Villages" initiative, enhancing logistics services in rural areas[161]. Risks and Challenges - The company faces significant risks from various factors affecting the e-commerce sector, including consumer spending ability, regulatory changes, and macroeconomic conditions[17]. - The company is vulnerable to external factors such as economic downturns, inflation, and geopolitical issues, which could adversely affect consumer confidence and spending behavior[17]. - The company may face increased operational costs due to compliance with the demands and regulations of third-party platforms like Alibaba[18]. - The competitive landscape in the Chinese express delivery industry may lead existing network partners to switch to competitors, posing a risk to service continuity[20]. - The company faces intense competition from leading domestic express delivery companies, which may adversely affect its operational performance and market share[21]. Regulatory Compliance - The company is subject to various regulations regarding its express delivery operations, including compliance with the Express Delivery Interim Regulations, which mandate timely registration of delivery points and proper handling of user information[35]. - The company must comply with the E-commerce Law, which includes obligations for logistics service providers to adhere to service standards and use environmentally friendly packaging materials[36]. - The company is required to report any incidents of user information leakage to the relevant postal authorities immediately[35]. - The company must comply with various construction requirements under Chinese laws and regulations, including obtaining necessary permits before commencing construction projects[182]. Financial Position and Investments - Cash and cash equivalents increased to RMB 14,212,778, indicating a strong liquidity position[13]. - The company generated net cash flow from operating activities of RMB 4,950,749, demonstrating robust operational efficiency[14]. - The company reported a net cash flow from financing activities of RMB 8,337,407, highlighting strong capital inflow[14]. - The company has authorized a share repurchase plan with a maximum value of $1 billion, extending the plan until June 30, 2023[133]. Human Resources and Labor Relations - As of December 31, 2020, the company employed 22,536 employees and over 57,000 outsourced personnel, indicating a labor-intensive business model[25]. - The company has established a comprehensive talent development mechanism, including a management trainee program to cultivate future leaders[161]. - The company provides ongoing training and performance evaluations for network partners to ensure high-quality customer service[152]. Shareholder and Governance Issues - The company’s dual-class share structure allows B class shareholders to have ten votes per share, while A class shareholders have one vote per share, leading to concentrated voting power[108]. - The concentration of ownership may hinder potential mergers or acquisitions, affecting the ability of other shareholders to realize premium value on their shares[108]. - The company’s organizational documents include provisions that may hinder third parties from acquiring control, impacting shareholder rights[116]. Market and Economic Conditions - The company is sensitive to changes in the economic conditions and political policies in China, which could impact its overall growth rate[53]. - The company’s ability to raise additional capital on favorable terms may be limited, especially in disappointing operational performance scenarios[50]. - The company faces significant adverse impacts on its business and financial condition due to potential severe or prolonged economic downturns in China or globally[53].