YTO Express Faces Operational Halt Amid Wage Disputes
In a recent development, YTO Express, a prominent courier service, faced significant operational challenges starting August 16. Reports indicate that the company has been unable to ship or receive goods in Chuzhou, Anhui, affecting multiple districts including Nanqiao, Langya, and Laian County.
Reasons Behind the Operation Suspension
Insider information reveals that the root cause of this disruption stems from unpaid wages owed to YTO couriers. Consequently, business outlets have temporarily suspended their operations. The sudden halt has raised concerns among both consumers and businesses reliant on these delivery services.
Company Response and Assurance
In response to the public outcry, YTO Express issued a statement acknowledging the issue. The company attributed the disturbances to poor management by its franchisees in the Chuzhou area. To address the problem, YTO Express has deployed a special task force to oversee the situation on the ground. They anticipate that services will gradually resume by August 31, bringing relief to affected customers and partners.
Financial Performance Overview
Despite the recent operational setbacks, YTO Express reported robust financial performance for the first half of 2025. The company achieved an operating income of 35.883 billion yuan, marking a 10.19% year-on-year increase. However, net profit attributable to shareholders saw a decline, amounting to 1.831 billion yuan, which is a 7.90% decrease compared to the previous year. Notably, the express delivery segment contributed 1.985 billion yuan to this figure.
The volume of completed express deliveries soared to 14.863 billion pieces, reflecting a substantial year-on-year growth of 21.79%. This figure is notably higher than the industry average growth rate by 2.5 percentage points, emphasizing YTO’s expanding market share and business scale.
Challenges in Revenue and Profit Margins
The financial report highlighted challenges including a decrease in single-ticket express delivery revenue and gross profit margins. YTO Express reported that revenue per delivery ticket declined by 6.55% year-on-year, resting at 2.19 yuan. The gross profit per ticket too decreased significantly, by 25.34%, down to 0.17 yuan.
However, the company noted improvements in operational efficiency and cost control measures. The overall cost of single-ticket deliveries decreased by 4.51% year-over-year, benefiting from a reduction in oil prices and effective cost management strategies.
Conclusion
While YTO Express continues to navigate through operational challenges due to management issues in some regions, its strong financial performance showcases resilience in the face of adversity. The company’s commitment to restoring services by the end of August is crucial for regaining customer trust and ensuring business stability.
With a strategic focus on cost control and efficiency, YTO Express aims to overcome current difficulties and reinforce its position in the competitive logistics market. As the situation unfolds, stakeholders will be closely monitoring the company’s recovery trajectory and efforts to enhance service reliability.
For updates on YTO Express and the logistics industry, stay tuned.
