July 17, 2017 (Shareholders Foundation) - An investigation on behalf of investors of ZTO Express (Cayman) Inc (ADR) (NYSE:ZTO) shares over potential securities laws violations by ZTO Express Inc and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of ZTO Express (Cayman) Inc (ADR) (NYSE:ZTO) concerning whether a series of statements by ZTO Express (Cayman) Inc regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

ZTO Express (Cayman) Inc. is an express delivery company in China that provides express delivery service through its nationwide network, as well as other value-added logistics services.

On October 27, 2016, ZTO Express (Cayman) Inc conducted a public offering of 72,100,000 American Depository Shares (ADSs) at a price of $19.50 per share, raising $1.4 billion (the Offering). ZTO Express (Cayman) Incs registration statement and prospectus filed with the U.S. Securities and Exchange Commission in support of the Offering presented a highly positive picture of ZTOs business, performance, prospects, and acreage, while omitting crucial realities. ZTO Express (Cayman) Inc specifically emphasized its strong operating leverage, superior profitability, and rapid growth. However, according to the investigation ZTO Express (Cayman) Inc failed to disclose that it was improperly inflating its stated profit margins far above industry norms by keeping low-margin segments of its business out of its financial statements.

The price of ZTO Express (Cayman) Incs ADSs has fallen approximately 25%.