ZTO Express (2057) said it plans to issue US$1.5 billion (HK$11.7 billion) of convertible senior notes due 2031 in a private offering to qualified institutional buyers on Wednesday.
The company said the notes will be senior, unsecured obligations and will bear interest payable semi-annually. The notes will be convertible into cash, Class A ordinary shares, American depositary shares, or a combination thereof, at ZTO’s election, subject to certain conditions.
The company said it plans to use the net proceeds from the notes offering primarily to fund share repurchases of its Class A ordinary shares and/or American depositary shares, as well as the concurrent share repurchase and capped call transactions, with the remainder for general corporate purposes.
For the financial result ending December 31, 2025, the company expected total revenues to range between 48.5 billion yuan (HK$54.61 billion) and 50.0 billion yuan, representing a year-on-year increase of about 9.5 percent to 12.9 percent, primarily driven by growth in parcel volume.
Gross profit for 2025 is expected to be between 12.15 billion yuan and 12.55 billion yuan, compared with 13.72 billion yuan in 2024.
Cynthia ZHONG
