ZTO Express reported stronger second-quarter results as rapid growth in loose parcels, reverse logistics and higher-value key-account shipments helped profit growth outpace revenue growth despite oil-price pressure on transportation costs. Revenue rose 23.0% year over year to RMB14.55 billion, while adjusted net income increased 50.3% to about RMB3.1 billion and net income climbed 56.7% to RMB3.08 billion. Founder, chairman and CEO Lai Meisong said ZTO handled 10.5 billion parcels in the quarter, up 6.5% from a year earlier and 2.3 percentage points faster than the industry average. He said daily loose-parcel volume exceeded 11.7 million pieces, including about 9.1 million reverse-logistics orders per day, and that reverse logistics now contributes more profit than standard e-commerce economy parcels. Core express per-parcel revenue rose 15.5%, while selling and administrative expenses excluding share-based compensation fell to about 3.8% of revenue from 5.2% a year earlier. For the first half, revenue increased 22.5% to RMB27.83 billion, net profit attributable to shareholders rose 31.5% to RMB5.17 billion, parcel volume reached 20.16 billion pieces and market share edged up to 20.1%. Per-parcel operating cost rose 13.5% to RMB1.01 as higher oil prices lifted line-haul costs, though management said digital operations and refined management reduced combined per-parcel sorting and transportation costs by RMB0.02. ZTO said AI is being deployed across transportation and customer service, with transportation savings in the first half accounting for about 10% of total transportation costs and AI handling more than 90% of merchant inquiries and work-order requests. The company revised its full-year parcel-volume growth guidance to 6.0%-10.0%, implying 40.8 billion to 42.4 billion parcels, and said cumulative 2026 buybacks reached $740 million, equal to 52% of 2025 adjusted net profit, leaving no interim dividend recommendation for the first half.