ZTO Express (Cayman) Inc.

Good day and welcome to the ZTO Express Third 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 two. Please note this event is being recorded. I would now like to turn the conference over to Sophie Lee. 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.zto.com. On the call today from ZTO are Mr. Mason Lai, Chairman and the Chief Executive Officer, and Ms. Weiping 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 the 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 the 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.

The market share has increased to 22.4%, and the service quality ranking maintains the industry's lead, and the adjusted net profit of 23.4 billion yuan has increased by 25%. In the third quarter of this year, the industry's business volume increased by 16.7%, and it still maintains a rapid growth. At the same time, the competition for price and exchange has significantly increased. In the face of competition, to maintain the same strategic goals, that is, to maintain high quality, high level of service, and to improve market share under the premise of achieving a fixed profit and profit goal, to keep up with the bottom line of losing capital, and to emphasize the construction of self-sufficient network stability and long-term competitiveness, to continue to advance and implement the following specific work. The industry and assets have suffered certain losses. In the face of natural disasters, the whole network is actively cooperating with the network in various areas to adjust the network, to carry out shareholding, and to maintain the overall service quality of the network. In September, the CPC's full network efficiency returned to its previous position in the industry. Second, while the service quality is steadily improving, we are not only reducing its efficiency and cost, to find the best balance between these two goals. The performance of the three systems is once again exceeding expectations. This trial and evaluation system has advanced standardization operation, and has improved the ability to track the process data and track people. We have passed the test, visualized the comparison method, and improved the law, and effectively discovered abnormalities. We have optimized the whole system in a targeted way, 3. Increase the overall operation efficiency. Increase the overall operation efficiency of the full chain road in the deepening and completion of the completion ability construction. Increase the overall operation efficiency of the full chain road in the deepening and completion ability construction. China's fast food industry has experienced 30 years of development and change. It is in the critical stage of development. Even though the competitive environment has changed, the monopoly advantage is already very obvious. The President has been pursuing sustainable development, focusing on protecting the service industry, optimizing customer satisfaction, increasing brand value, and creating long-term competitive advantage. Next, We will integrate our own development rhythm, continue to hinder the network base, promote products and operate innovation, and deeply promote the following five key tasks. First, strengthen the corner to the edge, strengthen the snake to the corner to the edge, guide the end point, let the courier enjoy the first-hand market price, and try to increase the return volume. Second, we will promote the development of end-to-end capabilities, accelerate the deployment of post-housing homes, reduce the cost of the industry, and improve the service capability of the upper door, enriching and improving the income of late-time and business people. Third, we will upgrade the digitalization tools, digitize and downgrade the data, improve the management of the industry, and transform the management capability from post-housing to pre-management. to further enhance the management effect. Fourth, to enhance the output effect of infrastructure construction. This will further optimize the production and planning investment of long-term development needs and investment capabilities of the whole network. Fifth, to strengthen the express main business, which is based on third parties, to enrich and diversify practical products, to compensate for the demand for diversified market, Thank you very much. Thank you very much. We will continue to insist on quality of goods, business scale and profit level, the balance of these three strategic goals, and continuous improvement. By using the rich energy of technology, pay attention to product and service diversification, medium-sized frequency reduction, and central and end-to-end value chain, and other model-based innovation, we can create an absolute competitive advantage from the top, starting from the new starting point of the Japanese military, to all customers, middle-sized entrepreneurs, investors,