ZTO Express (Cayman) Inc.

Good day, and welcome to the ZTO Express, Inc. First Quarter 2021 Conference Call. All participants will be in 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. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. And please note that today's event is being recorded. I would now like to turn the conference over to Ms. Sophie Lee. Ms. Lee, the floor is yours, ma'am.

Thank you, operator. Hello, everyone, and thank you for joining us today. The company's results in 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 CTO are Mr. Mason Lai, Chairman and Chief Executive Officer, and Ms. Huiping 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 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 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 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.

last year's growth was 88.5%, and the operating industry's average growth was 13.5%. The market share expanded by 1.5% to 20.4% for the retail industry. As the scale increased, our service quality remained bright. In a year, ZTE achieved a net profit of 7.82 billion yuan after adjustment. the same growth rate of 23.1%. As you know, the industry still maintains a high growth rate, and the competitive attitude continues. In a price-defeating environment, the industry team continues to show a deteriorating performance in terms of profit and loss. While the company is making a positive growth in profits, it is further developing in terms of transfer platform performance, network management optimization, and end-to-end construction. First of all, the transfer platform will further improve its effectiveness. During the transfer period, we will continue to increase our investment in resources and prepare for the rapid expansion of future production capacity. One system capital expenditure of 22.8 billion yuan. We will build a harmonious logistics area around the idea of ​​constructing a comprehensive smart logistics area, and make reasonable and forward-looking plans for three-year production sites, add, improve, and expand, etc. At present, There are dozens of projects in the process. In the transportation section, under the premise of adhering to practicality and cost, we will further optimize the cooperation of free transport and three-way transport, and better play out the performance of free vehicles. Under the help of big data, we will continue to optimize the location of travel and open the road of discovery according to the business needs. Second, the stability of the network. Recently, and the development of the network organization and the ability of the network point. In addition, the number of network points in the whole network remains stable, and the structure is more flat and resilient. On the one hand, we implement network-based management, do well, and do not help, and change, eliminate, and replace, etc. On the other hand, we speed up the promotion of policies, to the end, to the end, to the end, to the end, to the end, to the end, to the end, to the end, to the end, to the end, Our last-mile resource advantage is gradually increasing. As of the end of the first quarter, the total number of shipments is nearly 70,000, which is close to the same level. At present, with the change in consumer acquisition habits, the President has almost half of the package completed by sending by the way of flying above the door, about 90% of which are through shipments. Modern construction has the imagination space for the development of the future. In order to welcome the Japanese opinion, is one of the key tasks that we have been working on since the beginning. As you know, we have handed out a relatively satisfactory result sheet. In the fast-growing main business, in the fast-growing main business track, we are doing a great job in the main business, and while we are doing a good job in managing the business, to double-focus on maximizing the use of SMEs, and to promote the system of generation units, and to build comprehensive logistics service capabilities. Our goal is to develop consumer knowledge with differentiated products and services in the next three to five years, and to promote customers' awareness of SMEs. We believe that the future competition is the competition of the ecosystem, Thank you, Lai Zong. Please let me translate first. Hello, everyone, and thank you for joining us today.