ZTO Express (Cayman) Inc.

Good day and welcome to the ZTO Express fourth quarter and full year 2024 financial results conference call. All participants will be in listen early 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. We do ask that you please limit yourself to two questions. Please also 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, Rocco. Hello, everyone, and thank you for joining us today. The company's results in 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 CTOR, Mr. Mason Lai, Chairman and the 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, 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 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 statements. 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.

Hello, everyone. Thank you all In 2024, The express delivery industry has seen a rapid growth, and the overall scale has exceeded expectations. At the same time, with the decline in sales activities on the e-commerce platform, consumers are increasingly pursuing cost-efficiency. The ratio of low-cost home appliances to e-commerce continues to expand, and the volume of logistics prices is increasing. In the face of challenges, the Chinese Communist Party insists on developing high-quality products. On the one hand, to build a differentiated product and service capability. Through deepening cooperation with e-commerce platforms, while increasing brand recognition and customer knowledge, we have optimized the product structure and profit. On the other hand, we have strengthened the standardized operation and connectivity of our own transportation and transportation. We have further increased the full network efficiency, reduced loss and loss, reduced cost, At the same time, we continue to improve the ability to build, reduce the cost pressure of the leftist party, and improve the quality of the end-of-life services. In 2024, the total annual business volume reached 3.4 billion units, with a growth of 12.6%. Of which, the annual business volume of the fourth generation is nearly 50%, far exceeding the overall growth of the third generation. After a full year of adjustment, China's net profit and profit margin to 101.5 billion yuan, which is 12.7% of the total growth. By 2025, the express delivery industry will maintain a fast-growing growth trend. However, the trend of consumption decline has not been reversed. Price competition is still strong. In the face of the current market environment, our core technology is to improve service quality through market status, to achieve an average business volume of higher than the industry. With reasonable cost and profit allocation mechanism, we work together with our joint partners to co-operate with the network to increase the spread and penetration, to strengthen the main business, to strengthen the end-to-end advantage, to increase the profit level of the end-to-end and the business people, to increase the confidence and stability of the network. Our own work includes One. High-efficiency achievement, volume target, full authorization, audit management, and market change, adjustment of policy resources, unified policy standards, recommend fair and transparent at the same time, divide and divide, deep-dive customer resources, match specific needs, carefully measure, hand-in-hand collection of two ends, clarify, increase the amount, fully capture, and increase the amount of revenue. 3. Continuous optimization of products and services, deepening the strategic cooperation between customers and platforms, integrating China-China interoperability and ecological resources, strengthening China-China interoperability supply chain capabilities, refining the product and service capabilities, strengthening brand awareness and customer intelligence. 4. Deepening the network construction work, clearly expanding the network and increasing the execution power, implementing the ability to build from the beginning to the end, 5. Promote all-round road, reduce cost-effectiveness, balance, reduce transportation efficiency, and invest in operation costs. 5. Promote all-round road, reduce cost-effectiveness, balance, and invest in operation costs. As a result of the increase in business volume, optimization of travel, professionalism, and scientific planning, the production can be heated and the consumption can be eaten. China's private express has experienced a change in scale, concentration, and profitability over the past 30 years. China can make a breakthrough and continue to lead, but no one. No matter how the industry and science change, China's core competitiveness comes from us and We believe that the Chinese currency industry and the overall development of the micro-ecotourism ecosystem is very broad. As long as we insist on the choice of the express industry, focus on doing our own work, and expand the advantage of leading the scale, we will be able to reduce the change in the market at the same time. We will continue to support our partners and express customers, and thus provide diverse products and services to consumers and customers. 我们有信心,更有实力去达成我们的职业使命, 也就是用我们的产品造就更多人的幸福。 接下来我们请严总给大家介绍财务支付和预期规划,谢谢。 Thank you, Chairman Lai.