ZTO Express is one of China's largest express delivery companies, primarily moving small parcels for e-commerce merchants across China. ZTO operates a franchise network model: roughly 6,000 direct network partners own and run over 31,000 pickup and delivery outlets under the ZTO brand, handling first- and last-mile service, while ZTO owns and operates the middle of the network — 93 sorting hubs and a line-haul fleet of over 10,000 trucks across approximately 3,800 routes. ZTO's network covers over 99% of China's cities and counties. ZTO makes money by charging network partners a per-parcel "network transit fee" covering sorting and line-haul transportation. Revenue is driven by parcel volume, pricing per parcel, and parcel mix. Because sorting and transportation costs are largely fixed, unit costs fall as volume rises — ZTO has aggressively pursued this leverage through automation, route optimization, and a shift to high-capacity trailers. Beyond commodity e-commerce parcels, ZTO is growing in retail parcels (direct-to-consumer deliveries) and reverse logistics (e-commerce returns), which carry better unit economics. ZTO is also investing in autonomous delivery vehicles, AI-driven operations, and integrated logistics services including LTL freight, international express in Southeast Asia and Africa, warehousing, and freight forwarding. ZTO targets returning at least 50% of prior-year adjusted net income to shareholders via dividends and buybacks annually.