ZTO Express (Cayman) Inc.

Good day and welcome to the ZTO Express Second Quarter 2023 Financial Results 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 your telephone keypad. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Sophie Lee, Company Secretary. Please go ahead.

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.cto.com. On the call today from CTO are Mr. Mason Lai, Chairman and Chief Executive Officer, and Mrs. Hui-Ping Yan, Chief Financial Officer. Mr. Lai will give a brief overview of the company's business operations and highlights, followed by Mrs. 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.

with a growth of 23.8%. The market share has expanded to 23.5%. At the same time, through the optimization of the revenue structure and the strengthening of the process, we have refined the management and improved the overall operating efficiency. The operating efficiency has achieved a net profit of 25.3 billion yuan, with a growth of 43.9%. Compared to last year, the number of low-cost vehicles affected by the epidemic in the same period, the overall business volume of the express delivery industry in the second quarter of this year has increased by 20.9%. In the industry, the focus of each brand and group is different in terms of scale and profit. There is a difference in the amount of cars in the competition. The Chinese Communist Party's constant pursuit is to continue healthy development, focus on achieving long-term goals, and self-competitive advantages. In the second stage, we steadily recommended and implemented each specific work, and thus achieved good results. First of all, we strengthened the construction and talent development of the team. Through systematic assessment, we were able to achieve high-quality and fast delivery. The new power of the operation team in the audit management area has grown. In the context of academic fluency, the fighting power of the management personnel can be further improved. Second, we have improved the performance of our U本真校. In the second system, we continue to promote standardization operations, further optimize and optimize assessment systems, and improve the ability of process data tracking to catch up with people. In addition, we have found more effective abnormalities. with targeted optimization and modification to quickly solve problems. Thirdly, we will further plan and promote the application of quantum-type tools to resolve the rationality of the price and cost distribution between the selection center and the market, effectively increasing the level of profitability of the whole market, and further opening the gap of the leading industry. In the first half of 2023, With the recovery of the Chinese economy in the post-pandemic era, the express delivery industry has grown rapidly. Although low-price competition still exists, the pattern of the express delivery industry has changed dramatically. The market style brought by low-price competition is often unsustainable. At times, the recognition will not last. We can clearly see that high-quality service, stable network, efficient operation, to make the courier industry stronger and bigger. The competitive strategy of the CPC is to protect the economy, grasp the bottom line, focus on ourselves, and work hard. We will continue to advance the following four key tasks on the basis of safety operations, based on the stable and stable competition of the self-development rhythm of our own. First, to improve service capability, to improve the effectiveness of all networks, For a certain scale and above, in the infrastructure, safety and regulation, service quality, information management and other aspects, fully replenish, improve the business quality and responsibility of the end point. Fourth, accelerate the deployment of the end point agenda, build a public platform for service and the entire industry, reduce the cost of the industry, improve the service capability of the upper door, strengthen the connection with consumers. The trend of macroeconomic development is definitely going up. The gradual fluctuation has brought deep-dive potential and the wisdom to create and continue to establish. The development of the Chinese express industry and the evolution of competition are key points. We are very clear about what advantages we have, what we can do, and what we need to change. The spirit of innovation and entrepreneurship, accompanied by our shared industrial culture, will drive us to use it as a driving force for the local community, to use the technology to improve business efficiency, and to create absolute competitive advantages. To answer the questions of the people, to welcome the arrival of the couriers. Next, let's ask Director Yan to introduce the financial industry and the situation of the central government.