ZTO Express (Cayman) Inc.

Good evening and welcome to the ZTO to announce first quarter financial results on May 20, 2020 conference call. All participants will be in a listen-only mode. There will be a presentation followed by a question and answer session. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. Please note this event is being recorded. I would now like to turn the conference over to Ms. Ong Lai Chairman and CEO, please go ahead.

Thank you, operator. Please allow me to read the safe paper first. Hello, everyone. Thank you for joining us today. The company's results in the investor relations presentation were released earlier today and available on the company's IR website at ir.bpo.com. On the day-to-day from BPO are Mr. Mason Lai, Chairman and Chief Executive Officer. and Mrs. Huibin Yan, Chief Financial Officer. Mr. Lai will give a brief overview of the company's business operations and highlights, followed by Ms. Yan, who will go through the financials and guidance. They will both be available to answer your questions during the Q&A session that will take place. I remind you that this call may contain forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding this and other risks uncertainties and factors is included in the company's balance with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law. It is now my pleasure to introduce Mr. Mason Lai. Mr. Lai will read through his prepared remarks in their entirety in Chinese before I translate for him in English. Hello, everyone.

Thank you for attending today's telephone meeting. In 2020, considering the impact of the epidemic, the central government's overall business is fundamentally reasonable. We have completed 23.7 billion units of business and 6.4 billion yuan of adjustment and net profit. The market share of the central government has increased by 18.9% compared to last year. The downfall of unemployment and high-speed roads, the reduction of income tax policies and the drop in the international oil price, the increase in single-voting and the decrease in the cost of transportation, all of these have reduced by 3.1%. Partly because of the pressure of single-voting in the system. During the pandemic, the effective control of unemployment and the policy of the country has been greatly supported. The express delivery service as a subsidizing industry for the people's livelihood and employment, has not been successful for the first time. In March, in the express delivery industry, the volume of business increased to 23%. In April, it gradually increased to 32%, exceeding the same level as last year. In the same way, the number of online sales of food products has decreased by nearly 20% in the number of social consumer goods sales. On the one hand, due to the epidemic, The online consumption has increased and the online shopping has increased. Social consumption has accelerated to the online market. On the other hand, the fast-food industry is well-prepared and can respond quickly, providing online sales with the protection of the exchange rate. Since the resumption of operations at the end of February, the President has followed the prediction of a good trend in market development, and through the unified planning and the system of the Provincial Department and the Provincial Management Center, At the same time, while maintaining the necessary measures against the epidemic, it is necessary to accelerate growth, expand the leading advantage, and continue to increase the strategic focus of the market share, and carry out the following comprehensive deployment. Re-designate the goal of business volume in the third quarter, and divide it into layers to meet the assessment criteria. Second, build more high-capacity vehicles. Improve the ratio of the head of the vehicle and the frame, and further adjust the structure of the transport resources to the maximum extent to reduce the use of third-party logistics. Fourth, build a comprehensive transport line the number of participants and the number of debtors, to promote the integration of resources, to integrate the movement, and to gather a large amount. Five, through the abundant cash reserves and diverse financial resources, to have a market potential and a solid business base, to provide mobile funds and multiple places for investment and other financial resources. according to the target of the business, to carry out these or immediate support. Six, continue to guide and increase the deployment and construction of end-to-end resources, trying to know the cost of controlling the end-to-end operation and the cost of dealing with customers. Seven, in establishing an excellent small and medium-sized supply chain, sending the standard execution to the right place and science and technology support, employees provide work efficiency, and other aspects, and further improve their skills. The digitalization of software and software, as well as the monitoring and management of this kind of monitoring, will form a responsible and fast response mechanism. In terms of the development and application of information technology, the Chinese Communist Party has gradually rolled down the system and standards from the concept of the Chibu Islands. through data to follow up on the modernized management of stocks and stocks. The digital operation platform, which focuses on business, finance, and information integration, will further support decision-making, process monitoring, and decision-making, to ensure that the pre-said strategic deployment can be efficiently deployed. It shows that the COVID-19 pandemic has brought great challenges to society and the industry, as well as opportunities. The consumption of society and the way of life have therefore accelerated changes. China's Internet Information Center has reported that since March 2020, the number of netizens in China has increased by 9.04 billion, with more than 700 million users on the Internet. At the same time, the demand for telecoms and social media purchases is growing rapidly. The rapid development of digital economy has become a new starting point for economic development. Express delivery will play a more and more important role as a chain of consumers and producers. We believe that the leading enterprise of the CCP as a delivery company will be able to support the values, human resources and capital resources that have been accumulated in the past. excellent operating system, and stable cooperation network. We continue to break through ourselves and grasp the new wisdom of the new economy. We have walked the 18-year road of adults. We are still in this era of full development, and we dare not have a good generation. In the next 18 years, Zhongtong will need to expand its new business capacity, integrate and develop resources in the new business segment, and meet the needs of customers. In the future, Zhongtong will not only be a courier company, but will also have the advantage of eco-competitive advantage in terms of platform positioning. thousands of individuals and professions will work on this platform. The Chinese Communist Party is not just a small brand. The brand is the feeling of sharing. It is the bond of trust and trust. It is the spiritual state of the society. It is the way of life of the whole country. We just started at the age of 18. Thank you, Chairman.