ZTO Express (Cayman) Inc.

Thank you for standing by, and welcome to the VTO Express Fourth Quarter and Fiscal Year 2022 Financial Results Conference Call. All participants will be in a listen-only mode. 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 Ms. Sophie Lee, Director of Capital Market. Thank you, Sophie. 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.gpo.com. On the call today from the PPO are Mr. Mason Lai, Chairman and Chief Executive Officer, Ms. Hui-Ping Yan, Chief Financial Officer. Mr. Lai will give a brief overview of the company's business operations and highlights. Then I will go through the financials and guidance. We 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, proper 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, all of which are difficult to predict and many of which are beyond a 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 filing 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 due to 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 by translate for him in English.

The market share has increased by 1.5% compared to the same period last year. Our public satisfaction ranking continues to remain at the top of the industry. Service capability is steadily improving. At the same time, we have achieved a net profit of 21.2 billion yuan after adjustment, which is 21% of the total growth. In 2022, due to the impact of the epidemic, the express delivery industry is in full swing. In the face of all kinds of challenges, the central government has been devoted to itself. The market share, service quality, and profit level are on a higher level, further expanding the advantage. In 2022, our business volume has increased to 243.9 billion pieces. The market share has risen 1.5 points to 22.1%, achieving 68.1 billion yuan of adjusted net profit. Thank you. to ensure the safety of the Internet. During the epidemic, we must ensure the safety of the Internet and provide the best security and services to the consumers. Secondly, through effective control, the quality of the whole network operation and the effective link between the transmission and transmission, our service quality and public satisfaction will be increased again. It has boosted the brand image of Zhongtong and boosted the reputation of the company. Third, it has strengthened the credibility and transparency of the network policy. It has further sorted out the rationality and customer value of the customer ratio of the marketing department. It has made it clear that the unsanitary data in the network can improve the market competitiveness at the same time as improving the economic efficiency. 4. Continuous deepening of industry-rich integration, thereby increasing the ability of digital operation. Digital engineering has been upgraded from providing the ability of this data for the headquarters to providing the management of the process for the operation level. This is a problem. In 2022, in the face of challenges, China's economy has shown strength and resilience. The Chinese Communist Party has also accelerated various examinations. to achieve a good price-to-sell balance. This fully proves the correctness of our strategy, and gives us the confidence to continue to focus on self-reliance and improve business efficiency. With the introduction of the 2.3 billion system, China's economy will steadily recover, and the general consumer will be more confident. Welfare is a fundamental, strategic, and leading industry that supports the development of the national economy. As a leader, the President will not disappoint the country's anticipation of expanding and strengthening the industry. Under the premise of focusing on the industry and the development of online software, we will expand the market share, increase the level of profit, and provide high-quality products and services to promote the following focus work. First, Ensure the safety of the whole network, the base, the production, the road, and the information. Not only to optimize the security management mechanism, but also to reduce the loss of resource and the loss of personnel. Second, to improve the infrastructure, the construction ability, the investment, and the output efficiency. Combine the long-term development needs and investment capabilities of the whole network, and more scientifically reasonable optimization of the production ability, planning, investment, and total investment, including the ability deployment within the home network. Third, by not only upgrading the digital management system, perfecting cost-efficiency analysis, flexible control of traffic flow and traffic flow, optimizing ranking, improving efficiency, monitoring and improving the usability of the equipment, and further advancing technical management. Fourth, all the negative power outages are divided by the market to set up a business volume indicator for the base, and the outage of the outage must be increased year by year. The quality of the service will be tested and evaluated, and the source will be manipulated, and the quality of the service will be increased from the fundamental point of view. The outage of the outage of the outage of the outage of the outage of the outage of the outage of the outage of as much as possible to provide management tools for the end-of-the-year. Fifth, to promote side-by-side work, to develop the internal motivation of 1,000 employees, to create the best income level in the industry, to really go from employment to entrepreneurship, and to serve our consumers better. Sixth, to accelerate the end-of-the-year construction, to promote and enhance the chain of stores and the ability to deliver safely, and explore community commercial service wisdom, while reducing the cost of both parties, enriching the end product and service. Seventh, while strengthening the main business, gathering resources and advantages for each ecological section, focusing on core products, polishing multi-faceted operation, and building a quality and consistent ecological layout. We have always been optimistic about the stable development of the fast food industry in the long term. The development trend of the express delivery industry is becoming stronger and stronger. The attitude of the enterprise to pursue and guarantee profit is also becoming more and more bright. The amount of business and market share brought by low-cost competition is unstoppable. Only a stable network, efficient operation, good service, and the best cost are the fundamental principles of the enterprise. The increase in the level of technical management will not only optimize the design of our network policy, but also enhance the accuracy and effectiveness of operational efficiency guidelines, which will not only strengthen the control capability of the strategic goal and resource arrangement, but also strengthen it. In 2023, we will use the shared industrial culture of the same building to scale the stable network, rich production capacity and healthy cash flow, accelerate the change of high-speed to high-quality, unify thinking, clear goals, use good resources, and make good systems, and ensure safety, achieve the ecological optimization of the chain of disease, improve the supply and demand, strengthen the confidence of the network, improve the ability to complete, and ensure employee rights, and increase the income. Strengthen the main business, Hello, everyone. Thank you for participating in today's conference call. For the fourth quarter of 2022, ZTO delivered a passive volume of $6.59 billion, which increased 3.9% year-over-year.