ZTO Express (Cayman) Inc.

Hello and welcome to the ZTO Express conference call to announce fourth quarter and fiscal year 2020 financial results. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Sophie Lee, Director of Investor Relations, with Mei-Sung Lay, Director and CEO, and Hui-Ping Yan, CFO. Please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining us today. The company's results and the investor relations presentation were released earlier today and are available on the company's IR website at ir.zto.com. On the call today from ZTOR, Mr. Mason Lai, Chairman and the Chief Executive Officer, and Ms. Wei-Ping 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 follows. 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. They 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 statement. Further information regarding this and other risks, uncertainties, and factors is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to upload 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.

2020 is a very unusual year. The President has adhered to the concept of sharing with each other, and through the large coverage and penetration of high-end brands, the scale and capacity of leading industries, and the continuous improvement of operational efficiency, the network research partners of Tongzhou, Gongzhi, and Gaoxiao, in the year of the COVID-19 pandemic, the growth of industries, and the increase in price competition, Our service quality level is still at the forefront of the industry. After the adjustment of 45.9 billion yuan last year, the net profit fully reflects ZTE's excellent profit level. ZTE continues to adhere to business growth, accelerate market share expansion, and balance the balance of service quality and profit. This is effective. First of all, we focused on the construction of platform capabilities. On the other hand, we have constructed a larger area of land and land to deploy comprehensive smart logistics, plan the smart operation center and interoperability of ecological integration, while improving the utilization of automated coverage, consider the operation of interoperability in the production area and the operation of different transport systems. We have expanded the size of free vehicles and increased the proportion of high transport and car heads to carriages. We have also optimized the configuration of three-way traffic and free transport. On the other hand, we continue to advance the construction of technological information-based power. In addition to optimizing the existing information systems such as Zangzhongtong, Shenzhou, Xinhe and Xiaomeifeng, We are also experiencing new breakthroughs in the process of user experience, product innovation, and ecological renewable energy. Thanks to the continuous ability to build, refined control, scale efficiency, and good policy during the pandemic, our single-vote division and supply costs have decreased by 4.3% throughout the year, and the cost-effectiveness has increased further. Second, we have continuously expanded the construction of two-sale delivery, while focusing on platform operation scale and efficiency, and strengthening the work of end-of-sale production and quality management. On the one hand, through financial, technology, and management, we have been able to meet the bottlenecks of bottlenecks and challenges in business management. The two-sale foundation's financial strength is reasonable to match the network policy and compete in market competition with joint partners. On the other hand, serious problems such as negative growth or continuous low growth, unbalanced service quality, and so on, will be improved through network management system and problem solving. Third, we continue to speed up the deployment and construction of Modan. Since the beginning of 2018, Modan has gradually shown its advantage. In fact, at the end of 2020, there were more than 68,000 stores in Modan. The size and quantity are leading in the industry. The non-top-down and one-stop delivery method of Modan is not only effective in relieving the pressure on the number of customers and the pressure on the cost, but also provides a competitive space for the front-end market customers. At the same time, the Chinese Communist Party has used the new business model and Internet thinking, broadening supply chain and sales logic experience. At the end of the last mile, the Chinese Communist Party's connection with consumers has been strengthened. As the year of the opening of the 14-5 plan, 2021 will be an important year for the Chinese Communist Party to strengthen brand construction, expansion and promotion services and products, and continue to strengthen the deployment of ecological systems. At the same time, we will continue to advance the key points of global work, and will continue to develop in the following aspects. First, respond to national calls, emphasize the continuity of development, widen the path of historical operation, and serve the poor and the poor. For example, in fast-packaging history, the use of new energy vehicles has increased significantly. We look forward to the development of express delivery. The main focus of our current business is to maximize the market share. We need to expand our knowledge and investment, not only to expand the size of express delivery and increase the efficiency of transportation, but also to quickly improve and grow our ecological capacity. Third, we will deepen the network management work of the two-handed network management to ensure the stable connection between the search engine and the platform. The closer the price competition to the end, the more advantageous it will be. We will promote the flexible and flexible network policy policy to actively grasp the market opportunities and challenges. Fourth, we will accelerate the Thank you. The role of the director-in-chief of the central office is down to the bottom. The multi-channel acceleration helps to cultivate talents. Through more effective assessment mechanisms, the value innovation and digital operation and construction of technological intermediaries, strengthen the process management, and assess the stock, it will be a great success. Thank you very much. We believe that international, fast transport, cloud storage, finance, and other eco-businesses, we can maximize the use of the resources in our hands to provide customers with differentiated and personalized services and products, while also bringing benefits to our investors and partners. In the context of global epidemic prevention and control, more and more consumer products including brands, has accelerated the supply and demand of online and offline products. Online shopping groups, including product categories, have increased and declined. Digital economy is a hot topic on the platform. On the contrary, the concentration of the fast-food industry and the diversification of the head-to-head business are hotly debated in the competition. In 2020, nearly one-fourth of the The express delivery industry has shown unprecedented explosiveness. At that time, for China, we will pay more attention to the long-running resilience and endurance. We are only 18 years old. No one can predict the future of the market. We can take the initiative to control the correct development direction and path of self-awareness, 我们的新征程永远持于脚下。 感谢各位的信赖和支持。 谢谢。 Thank you, Liza. Now please let me translate first. Hello everyone and thank you for joining us today.