ZTO Express (Cayman) Inc.

Welcome to the ZTO Report Second Quarter 2021 Unaudited Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please limit yourself to two questions each. Please note this event is being recorded. I would now like to turn the conference over to Sophie Lee, Director of Capital Markets. 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.vto.com. On the call today from VTO are Mr. Mason Lai, Chairman and Chief Executive Officer, and Ms. Hui-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 Security Litigation Reform Act of 1995. Such statements are based on management's current expectations in the current market and operating operations and relate to events that involve known or unknown risks, uncertainties, and other factors. 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 filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to upgrade update any forward-looking statements 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.

Our business volume has reached 57.72 billion yuan and achieved a net profit of 12.72 billion yuan after adjustment. At the same time, in terms of express delivery service, public satisfaction, and speed, the order is sharp. In terms of full-time efficiency and 72-hour accuracy, the central order performs well in the contact area. Stable network operation and cooperative partners' confidence and investment in long-term development are fundamental to maintaining vitality and not only development. This is very important in the environment of continuous competition, leading to profit growth, and the loss of intellectual property. In recent years, the stability of the industry management department and the common share concept that has been built in the Middle East for a long time have been highly consistent. We always focus on our own high-efficiency and solid operating efficiency to achieve excellent value for money and profit. At the same time, We not only support the development and supply of negative energy and network partners, but also support the development and supply of negative energy and network partners. This is the core reason why ZTE has been able to achieve 50% profit with about 25% of its business volume in the contact area in the past. This is the core reason why ZTE has been able to achieve 50% profit with about 25% of its business volume in the contact area in the past. This is the core reason why ZTE has been able to achieve 50% profit with about 25% of its business volume in the contact area in the contact area in the past. This is the core reason why ZTE has been able to achieve 50% profit with about 25% of its business volume in the contact area in the contact area in the contact area in the contact area in the contact area in the contact area in the contact area in the contact area in the contact area in the contact area in the contact area in the contact area in the contact area in the contact area in the contact area in the contact area in the contact area in the contact and our network are even more competitive and have a greater advantage than our friends. The Chinese Communist Party has always been focused on self-reliance, and has insisted on focusing on long-term development, focusing on the construction of infrastructure and other hard-working forces. We have achieved further achievements in the field of network development, expansion of modems, and promotion of brands. First, We continue to implement the strategy of helping and managing both hands, from top to bottom, deeply implementing network transformation management, strengthening transparency and credibility, improving the trust and confidence of network partners, and maintaining the stability of the network. For example, we have eliminated or integrated endpoints that no longer have competitiveness, focusing on the potential development of the network We have co-designed the production capacity expansion plan, and through financial assistance, digitalization, online policy optimization, legal and financial consultation, equipment technology transformation, and other multi-dimensional benefits, we have been able to effectively co-grow the production capacity and transfer platform. In addition, the industry support group of this regulatory institution These explorations, explorations and exercises have effectively improved the employee's sense of belonging, sense of achievement, and sense of security. to improve the asset protection and risk-resistant capabilities of our partners. Second, we accelerate the construction of end-to-end units and further increase the height of the strategic development of the association. In pursuing the concept of co-op, we hope to promote the deep integration of our partners in operations and capital levels through new cooperation models. The goal is to cultivate an image standard that covers the city and town, The last 1 km of our resources, in the number of Modan stores, has exceeded 10 million. The distance between the store and the same shop has been stretched. Customized services can meet the demand of consumers. While the demand for online shopping is flattening and falling, Modan will have more and more imagination in the future. At the same time as accelerating the expansion of Modan Door Store, we also further standardize the Door Store service standard, open-source search for public services, public services, and other platform cooperation wisdom to enhance the abundance and quality of Door Store operations, pay attention to user experience, and through full value, win the competitive space for market customers. Third, We are actively expanding new products and business channels, integrating eco-systems, form and diversify, upgrade brand awareness, and continue to enhance brand value. Surrounding the year-end designated strong brand construction, expansion and upgrade of products and services, and the goals of the eco-system, we will speed up the access to new e-commerce platforms, expand fresh, wine-based, three-storey and other special markets, Open a comprehensive logistics market for the development of ecological integrated services to form more industry solutions. At present, the service has been established in nearly 100 cities, and the route has been reached, and the pre-sale power supply and other reservation functions have been deeply recognized by users. The cold chain business under the Central Ecological System is operating online in the second quarter of the national scale, and the cold chain operation team of each region is also in the main line of support. We are continuously advancing the deployment of ecological resources to build a comprehensive network of service capabilities to provide a comprehensive, integrated multi-layer market in the future. We believe that in the next two to three years, the fast food industry will continue to maintain a high-speed development. Today, the fast food industry has formed a bright division. This division is not only reflected in quantity, but also in quality. For example, the overall operational efficiency and profit level The fundamental and mainstream model of express delivery decides that it needs to accumulate in the long term, not only to improve the capacity of the delivery and shipping of various areas, but also to form efficient connections in various areas. It needs to continue to grow with the increase in business volume, through reasonable optimization and evolution of the network structure, to achieve the highest cost-effectiveness. In the face of the arrival of the Japanese military in the era of 4 billion to 5 billion, the Chinese Communist Party will maintain a consistent and effective establishment. On the basis of existing scale advantages, it continues to expand the reasonable construction of transport platform capacity, reduce the spread of frequency, and rely on technological innovation, digital operation, and information management, to make the whole chain of networks more efficient. At the same time, we will continue to pay attention to and support the practicality and compatibility of the production and construction of cooperative partners, strengthen the development of end-to-end network and the business expansion of courier houses, and grasp the risks of stable development of both end-to-end. We will accelerate ecological deployment and joint development, and use diversified products and services to meet the needs of users in all levels of individualization. Thank you, Lai Zong.