ZTO Express (Cayman) Inc.

Good day and welcome to the ZTO Express third quarter financial results conference call. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing star then 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. In the interest of time, please limit yourself to two questions. 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, ir.zto.com. On the call today from ZTO are Mr. Mason Lai, Chairman and the Chief Executive Officer. Mrs. Hui-Ping Yan, Chief Financial Officer. Mr. Lai will give a brief overview of the company's business operations and highlights. Then Ms. Yan 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 Probations 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 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.

The market share increased by 1.3% compared to the same period last year, reaching 22.1%. Our public satisfaction score is rising again. The whole chain has been effective and the 72-hour demand has continued to rise. At the same time, we have achieved a net profit of 63.1% after the adjustment of 18.7 billion yuan. The three systems are affected by the pandemic, and the shipping industry is in a slump overall. The Chinese Communist Party is focused on self-reliance, and through continuous deepening of economic and digital management and digital operations, not only improves the quality of business, but also continues to develop the ability and conditions to ensure the normalization of the pandemic, while continuing the previous two systems and double-sale industry, especially in terms of market share, property quality, and profit margin. In addition to the system, we have achieved obvious results in terms of improving platform operating quality and profit capacity. First, we have made clear some unhealthy conditions through the sorting and adjustment of customers in the Zheying Market Department and the corresponding network policy. At the same time, the fair and transparent policy has improved the market competitiveness of the end point. The optimization of quantity-based report data and the storage of management tools have provided the ability to see and catch at the flow-to-line level, so that we can effectively avoid big waves and big waves, improve the accuracy of the decision-making, and better balance the reasonable relationship between cost and price. Third, further standardize to optimize the assessment indicators and continuously improve the digitization capability, so that we can track and analyze the data for the rolling process more accurately, and thus more reasonably optimize the ranking, and more precisely adjust the route, and more effectively improve the performance of personnel and equipment transportation. At the same time, not only improve the practicality, but also reduce the occurrence of problems. to improve the overall operating quality. At the same time as optimizing our own business, we also fully pay attention to the improvement of the comprehensive capability of our customers and customers, and thus develop the expansion of market share. First, we extend the work of Liang Benli to the end point, and immediately send relevant data to the end point for its own business. to encourage and assist players to learn how to play, from the world's best players, to help the players to grow and solve problems, to increase the competitiveness of the market. Second, we have further simplified the collection policy of the left-wing players. At the same time as the implementation of the policy is fair and transparent, we have further balanced the balance between the left-wing players and the interest-adjusting mechanism, and deeply dug into the potential of the players. to effectively increase the capacity and efficiency of the customer base. The control of the whole chain of service quality is a prerequisite for expanding the market share and increasing profit growth. In the past several seasons, we have continued to test the service quality assessment indicators and reward mechanisms through the effective linkage of the whole network in each link, from the beginning to the end to solve the problem of service quality. The gap between the share price of three systems and the share price of the same industry has greatly increased the gap between the share price of three systems and the share price of the same industry has greatly increased the gap between the share price of the same industry has greatly increased the gap between the share price of the same industry has greatly increased the gap between the share price of the same industry has greatly increased the gap between the share price of the same industry has greatly increased the gap between the share price of the same industry has greatly increased the gap between the share price of the same industry has greatly increased the gap between the share price of the same industry has greatly increased the gap between the share price of the same industry has greatly increased the gap between the share price of the same industry has greatly increased the gap between the share price of the same industry has greatly increased the gap between the share price of the same industry has greatly increased the gap between the share price of the same industry has greatly increased the gap between the share price of the same industry has greatly increased the gap between the share price of the same industry has greatly increased the gap to promote the core work of the following guidelines. First, strictly implement the safety production responsibility, strengthen the implementation of the epidemic prevention and control requirements, ensure the safety of the geological channels, prevent major accidents. Second, temporarily expand the network base construction, improve the overall chain of transmission efficiency, help the endpoints, supplement the production capacity, and further improve the wave capacity. Third, deepening network governance and rich energy. Promote end-to-end policy to the end. Ensure that the end-to-end is profitable. At the same time, put the market price in the hands of the business owners. Expand the inner motivation of the front-end customers. Fourth, accelerate high-quality end-to-end construction. Build a comprehensive ability of door-to-door chain and delivery and community service. At the same time, reduce the cost of supply and demand. 5. Promote the development and promotion of eco-friendly and eco-friendly products. From the point of view of size, difference, and quality, focus on core advantages, and further build products such as standard products to meet the needs of individualized consumption. Looking forward to the future, the prospects of the fast food industry are still broad. The trend of change and diversification has never faded. Tungtung is equipped with a culture of many years of co-creation and co-sharing, and is brave to explore new trends. The network is stable and large-scale, and the performance is high. In addition to the gradual improvement of the financial management, Tungtung has confidence and ability to achieve a market share and accelerate the expansion of its goals. Hello, everyone, and thank you for joining us today. For the third quarter of 2022, CTO delivered a parcel volume of $6.37 billion, which increased 11.7% year-over-year.