ZTO Express (Cayman) Inc.

Good day and welcome to the CTO Express to announce first quarter 2025 financial results conference call. All participants will be in a listen-only mode. Should you need assistance, please seek conference specialists 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 a touch-tone phone. To withdraw your questions, please press stars and two. Please note this 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 are available on the company's IR website at ir.dq.com. On the call today from CTO are Mr. Mason Lai, Chairman and the Chief Executive Officer, and Mrs. Yen, Chief Financial Officer. Mr. Lai will give a brief overview of the company's business operations and highlights, followed by Mrs. 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 Probations of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations in 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 statements. Further information regarding this and other risks, uncertainties, and factors is included in the company's filings with the US 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.

大家好,感谢各位参加今天的电话会议。 2025年一制度,中通继续保持行业领先的服务质量水平,业务量达成85.4亿件。 . . . . . The ratio of low-end and high-end e-commerce companies is further expanding. Express price competition is still very strong. Faced with the pressure of increase in volume and reclamation, the central government, with the focus on service quality and business volume, has widened the penetration of low-end companies under the pretext of unreasonable price competition. On the one hand, we continue to strengthen the standardization and consistency of medium-term operations. continue to improve the full chain efficiency and reduce unit costs, and quickly consolidate the brand's advantages. This is the basis for improving the operation efficiency. On the other hand, we focus on improving the continuity of the overall policy framework, maintaining the stability of the home network, and further strengthening the construction of the end-to-end delivery capability. to create a long-term competitive advantage. What we are concerned about is the results of the company in the construction of differentiated products and service efficiency. First of all, ZTE continues to upgrade the service quality and reach the range, which has earned the trust of e-commerce platforms and professional customers for deeper cooperation. In the first quarter, the retail business volume achieved a quick growth of 46% in the same year. Among them, the image-saving business volume increased by more than 150% in the same year. The impact of the Chinese brand on customers and customers continues to improve. The optimization of the product structure brings a 1.2% increase in the income per ticket of core business. 12. Through the efficient assessment mechanism of digitalization operation and accountability, the cost of single-vote transfer and division has decreased by 9 points at the same level. It fully reflects the ability of the central government to stick to its own discipline and quickly discover problems and solve problems. The continuous demonstration of single-vote operation cost efficiency and effective management and cost control to maintain a healthy profit level in the current market competition. In the second quarter, the fast food industry continues to grow at a high rate, but the price competition is increasing. In the face of a competitive environment, we maintain the strategic goal of the beginning of the year, which is to ensure a high-quality service level and achieve an average business volume of higher than the industry. and achieve reasonable profits. Specific work goals and measures include the following four aspects. One, improve the effectiveness of the network policy, encourage the management of the city to jointly coordinate full network resources, integrate market level, design clear goals, targeted design and implementation of these mechanisms in the In a fair, reasonable, and unified direction, we need to deal with the necessary layers. We need to activate the potential of new and old customers, and form a positive cycle of business volume, revenue, and stable network stability. We need to enhance the ability of Moza and revenue, optimize the network layer structure, and promote the construction of a standstill, division, and distribution ability. We need to deepen the ability to deliver, 3. Continuous optimization of revenue structure, implementation of e-commerce platforms and professional customers' requirements. to clean up the difference between e-commerce logistics products and supply chain service capabilities, and to improve brand awareness and customer confidence. Fourth, to promote the maximization of resources, and to provide more scientifically-adjusted production and investment. This is to support digital resources, to rely on digitalized means, to optimize travel planning, and to be more professional and efficient in operation. To build resources, the whole life cycle management system is further excavated, In the past 23 years, the President has been working with hundreds of people, from a few hundred people to hundreds of thousands of people. The development of this cross-border system combines the wisdom and sweat of all the President's people, with customers, and the trust and support of partners, as well as the care and support of the country and society. In the face of the hot-and-wild competition in the current industry, as well as the challenges in the supply chain, the Chinese Communist Party's strategic focus is to maintain the priority of service quality and the priority of the supply chain, to achieve reasonable profit goals, 我们相信快力市场竞争科学 正在加速演变 中东将坚持健康可持续发展的原则 坚守同线共享的合作理念 拥抱经验加数据的科技创新 承担利他利社会的职业责任 立足当下脚踏实地 憨实基础 面对未来 前瞻不觉 构建护城河 Hello, everyone.