ZTO Express (Cayman) Inc.

Good day and welcome to the ZTO Express to Announce Second Quarter and Half Year 2024 Financial Results Conference Call. All participants will be in a 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 touchtone phone. 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, Corporate Secretary and Director of Capital Markets. Please go ahead.

Thank you, Betsy. 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.bto.com. On the call today from BTO are Mr. Maison Lai, Chairman and the Chief Executive Officer, and Ms. Hui-Ting Yan, Chief Financial Officer. Mr. Lai will give a brief overview of the company's business operations and highlights. followed by Ms. Yen, 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 the inland that involve no one 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. Security 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.

to 11% in the same period. The second wave, due to the double effect of the economic pressure on the red line and the general sale of e-commerce, the online consumption has maintained a relatively high growth. The business volume of the courier industry has increased by 21.3% in the same period, exceeding the expected overall scale. In comparison, the proportion of low-end e-commerce businesses has increased further in the previous period, and the price of couriers has continued to increase. while focusing on quality improvement, continue to pursue service quality, business scale, and profit balance in three aspects, and thus maintain the sustainable health development of the whole network. In the second phase, we continue to control the whole chain of loss and loss. The market share of the system decreased by 2% in the same period last year. In the beginning of this year, we proposed In the second phase, The cost-effectiveness and reasonable management costs achieved continuously remain at the leading level of the industry at the level of single-voting profits and total profit. In the second half of the year, the business volume of the fast-growing industry continued to grow rapidly. Although the price of mass-produced goods and services is still strong, we believe that the cost-efficiency law has reached the bottom line. The whole of the express delivery industry is really moving from high volume to high quality, in order to achieve social values and meet the demand of capital. The Chinese Communist Party takes the lead from high volume to high quality, which comes from our continuous focus on ourselves, continuous effective balance of product quality, business scale and profit level. In the face of the current situation of the market, We will use our own strength to enhance the brand value, grasp the bottom line of scale and share, achieve reasonable profits, and do a fair and just distribution of profits between the center, the focus, and the business people. The exact implementation of the catch-up includes to consolidate the network policy, to effectively bridge the direction of the policy with various work indicators, 3. Promote cross-border work. 5. Increase the penetration of high-end product services, deepen the connection with platform customers, coordinate with central logistics ecological resources, expand the ability of comprehensive logistics supply chain, build brand awareness and customer confidence. Facing changes in the market, maintain urgency and sense of crisis. to strengthen and complete communication, unify thoughts, and build confidence, to promote the reasonable balance of the industry, and to maintain the stability of the network. Although the marketing environment is still uncertain, with the promotion of e-commerce and the new retail industry, express delivery has also shown the need for more than a week. To serve the online marketing development, to promote product element circulation, We have provided a strong support. In the face of internal competition and competition-based industry songs, we have captured the opportunity in the challenge. The Chinese Communist Party will focus on quality first, and the adjustment of the operation of the MoDAN network will create a good profit capacity for stations and businessmen, and thus create unique competitive resources and advantages. Following the two-stage division of industry songs, Let me translate for Chairman first. Hello everyone, thank you for attending today's conference call.