ZTO Express (Cayman) Inc.

Good day and welcome to the ZTO Express first quarter 2024 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 today's event is being recorded. I would now like to turn the conference over to Sophie Lee, head 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 available on the company's IR website at ir.cto.com. On the call today from DTL are Mr. Mason Lai, Chairman and Chief Executive Officer, and Mrs. Weiping 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 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 achievements to differ maturely 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 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.

and the same growth rate of 14%. At the same time, we achieved a growth rate of 16% after 22.2 billion yuan was adjusted. In the first quarter of this year, the business volume of the express delivery industry increased by 25.2%, far exceeding the expected. New e-commerce live broadcasts and the rapid development and cancellation of social media platforms On the one hand, it has stimulated the online consumption of the general public, which has led to a growth in express delivery business volume. On the other hand, it has also led to a rise in the proportion of low-end e-commerce stores. The core of a family business is to create value. The Chinese Communist Party insists on sustainable health development. Under the premise of maintaining the necessary basic business volume, we actively abandon some of the shortcomings. The market share of a system dropped by 1.9% in the same period last year. However, our profit level and the market share have further increased. The main objective of the Sino-Turkish War is to maintain a balanced development in terms of service quality, profit and business scale. In the beginning of 2024, we will focus on service quality. while maintaining the scale of the business and a good level of profit. We also pay more attention to creating differentiated products and services to meet the needs of diversification and individualization of customers, and to improve the understanding and recognition of consumers of Chinese-made brands. As you know, we have taken a step forward in the development of all-in-one schools, and we have improved the responsiveness of the MoDAN-Samen service and the ability of the Anshu service. We focus on our own, expanding our high-value platform customers, increasing our retail ratio, and optimizing our revenue structure. We also know that the single-vote revenue of the central express delivery core business has dropped by 10%. The drop is significantly lower than the industry, As for the continuous deepening of financial management, our single-vote division and supply costs have decreased by six points at the same time. In addition to the stable and reasonable management cost structure, the profits of single-vote and total profits have been increased. In the second phase, the industry business volume has continued to grow rapidly. At the same time, the price competition is still very strong in some core markets. 3. Effectively face competition, grasp market confidence, clear your own debt, 4. Enhance the construction of the last unit, increase the speed of the car to the corner and the side, and increase the proportion of the team. Directly deploy the last unit, let the staff focus on the collection work, and build on the ability and cost advantage of the service. to provide solutions to the challenges of the entire industry. Through express delivery, we can add business elements, and thus enrich the end-of-year income. Fifth, we can strengthen the network, strengthen the communication with the end-of-year, unify the market, unify the thinking, promote the reasonable balance of long-term interests and short-term interests, maintain the rights of the end-of-year and business people, and make the policy fair and reasonable. The development of technical products and functions to improve management, management capability, and convenience. The change from high quantity to quantity to quantity is a natural trend. We adjust the strategic focus, put the service quality in the first place, deploy new growth points, and replace competition advantages. The purpose is to create a neutral, The development of a long-term and unbreakable Housheng River stands on the pinnacle of the diversification of the industry. The Chinese people will stick to innovation, full of confidence, and a solid foundation, and work together with joint partners and businessmen. With the comprehensive strength of the whole chain of networks and the leadership of tolerance and peace, we will integrate resources and create values. The positive development of the operating industry Please allow me to translate for Chairman.