ZTO Express
| Company type | Public |
|---|---|
| Industry | Logistics |
| Founded | 2002 |
| Founder | Lai Meisong |
| Headquarters | Shanghai , China |
Area served | China |
Key people | Lai Meisong (Founder) |
| Products | Courier services |
ZTO Express (ZTO; ) is a logistics firm headquartered in Shanghai and ranks among the largest courier service providers in China. The company is listed on both the New York Stock Exchange (NYSE) and the Hong Kong Stock Exchange (SEHK).
Background
Established in 2002 by Lai Meisong, a native of Tonglu County—the same region that produced founders of STO Express, Yunda Express, and YTO Express—ZTO was built upon Lai’s prior experience at STO Express. Distinct from other Tonglu-based competitors, ZTO opted for an initial public offering on the NYSE in October 2016, securing US$1.4 billion, marking the largest IPO of that year. This approach contrasted with the domestic backdoor listing strategy used by peers, providing greater liquidity for shareholders while allowing Lai to maintain control and expand assets internationally. The company’s growth was significantly influenced by its relationship with Alibaba, with approximately 70% of its operations connected through partnerships.
After going public, ZTO’s stock value dropped by nearly 20% by July 2017. Subsequently, investors filed lawsuits against ZTO and its underwriters, Goldman Sachs and Morgan Stanley, accusing them of overstating profit margins in the prospectus. However, these claims were dismissed in July 2019 due to a lack of sufficient proof regarding any misrepresentation.
In May 2018, Alibaba and Cainiao made a US$1.38 billion investment to acquire a 10% stake in ZTO, aiming to enhance their logistics capabilities; this announcement led to a 14% increase in ZTO’s share price. Later, in September 2020, ZTO secured an additional US$1.27 billion through a secondary listing on the SEHK.
In May 2021, ZTO encountered public backlash when one of its outlets in Chengdu was found transporting live animals as part of contentious e-commerce pet blind box sales; following public outcry and company apologies, the outlet was closed.
Despite earlier denials of fundraising intentions, ZTO raised US$870 million through convertible bonds in August 2022. Furthermore, in December 2022, approval was granted for converting its Hong Kong listing status from "secondary" to "primary," effective as of May 2023.