SHANGHAI, Oct. 17, 2017 /PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO) ("ZTO" or the "Company"), a leading express delivery company in China, today announced that it has joined a seven-member consortium (the "Consortium") to establish a logistics insurer. In addition to ZTO, the consortium will consist of STO Express Co. Ltd., Yunda Holding Co. Ltd., Guangzhou Baogong International Freight Agency, Jiangxi Financial Holding Group, Shandong Jingjin Holding Group, and Shanghai YTO Jiaolong Investment Development (Group) Ltd.
The logistics insurer is expected to have registered capital of approximately RMB1 billion. ZTO plans to invest approximately RMB160 million and take a 16% stake in the insurer.
China's express delivery industry has experienced rapid growth in recent years but traditional insurance providers do not provide products specifically tailored to cover basic risks in the logistics sector. ZTO is jointly establishing the logistics insurer with some of its peers in the express delivery industry to fill in the gaps created by traditional insurance providers. The logistics insurer is expected to offer a wide variety of customized products including transportation, property, vehicles, liability and accident insurance. The establishment of the logistics insurer is still in the preliminary stages and is subject to the approval from China's insurance regulator and the entering into of definitive transaction documents.
About ZTO Express (Cayman) Inc.
ZTO Express (Cayman) Inc. is a leading express delivery company in China and one of the largest express delivery companies globally, in terms of total parcel volume in 2015, according to the iResearch Report. ZTO provides express delivery service as well as other value-added logistics services through its extensive and reliable nationwide network coverage in China.
ZTO operates a highly scalable network partner model, which the Company believes is best suited to support the significant growth of e-commerce in China. The Company leverages its network partners to provide pickup and last-mile delivery services, while controlling the mission-critical line-haul transportation and sorting network within the express delivery service value chain.
For more information, please visit http://zto.investorroom.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confidence" and similar statements. ZTO may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about ZTO's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and ZTO undertakes no duty to update such information, except as required under applicable law.
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SOURCE ZTO Express (Cayman) Inc.