ZTO Express (Cayman) Inc.

Good day and welcome to the ZTO second quarter and half year 2025 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, and 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 are available on the company's IR website at ir.dto.com. On the call today from CTO are Mr. Mason Lai, Chairman and Chief Executive Officer, and Mrs. Huiping 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 they 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 filing 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.

大家好,感谢各位参加今天的电话会议。 2025年二次度,快递行业延迟了较高的增长, business volume increased by 17.3%. The Chinese Communist Party insisted on putting quality first, maintaining a top-of-the-line service level. Business volume increased by 16.5%, reaching 98.5% a year. Market share has increased significantly. At the same time, in the face of the current market competition, after adjustment, the net profit reached 25%. 20.5 billion yuan. 20.5 billion yuan. Especially in the price and competition-based production areas, the volume of business growth is lower than expected. Thus, a clear contrast is formed, which means that the total retail business volume is more than 50% of the total. Since last year, the central government has continued to focus on the construction of decentralized products and the improvement of service efficiency. It has not only strengthened the service quality, but also strengthened the online coverage capability The second quarter, the retail business volume accounted for 8% of the total success rate. The optimization of the product structure relieved the pressure of increasing the volume of subsidies, and brought a single ticket rate of 1.7 cents and 1.2 cents of improvement for express delivery and new business. In addition, through the strengthening of digital operations, reasonable configuration of resources, and the implementation of the new products and services, the Chinese Communist Party realized that single-voting, self-sufficiency, and cost-division, all at the same time, will benefit from the results. These achievements reflect the strategic focus of the central government on operational efficiency and ability-building, and also reflect the difference between the advantage of products and the ability to serve the future, and the key elements of comprehensive competitiveness. A healthy and stable network ecosystem and the long-term confidence of our partners is the foundation for fast-growing and sustainable development. The concept of co-sharing with the country and the industry management department of the CCP's sustainable development is highly consistent with the concerns of the Social Welfare Program. We have always supported the operational system of high-efficiency fraud. Sustainable rich network partners achieve co-sustainable development. In the face of price competition in the front line, the approach of Pooch is to build the end-of-the-year and the development of the negative energy network. The core measures are as follows. One, optimize the network policy. System-connected network points are the cost of each part of the process. Make sure the network policy is reasonable. The policy of the same type of network point is the same. increase transparency, and continue to deepen supply and demand. Combine with the actual level of the industry market, design accurate security mechanisms, and stop the excess supply and demand. 2. Increase the end-to-end efficiency. It can deploy all kinds of automated sorting and transportation equipment, reduce artificial interference, and increase the professional efficiency. By practicing the self-reflection, reduce the late-time, 4. to optimize the position and product of the station. While providing a solution for the cost of professional delivery, there is also the connection between the consumer's establishment of a multidirectional, convenient and efficient connection with the construction of a multidirectional, convenient and efficient connection with the construction of a multidirectional, convenient and efficient connection with the construction of a multidirectional, convenient and efficient connection with the construction of a multidirectional, convenient and efficient connection with the construction of a multidirectional, convenient and efficient connection with the construction of a multidirectional, convenient and efficient connection with the construction to achieve the world's largest scale and highest efficiency, and become one of the most developed support industries. The deep participation of China and the Chinese Communist Party in this process has fully proven that the leading scale advantage and operational efficiency are the basic conditions and core functions of sustainable health development. The evolution of industry competitiveness has shown that from the scale of quantity, Back to the past, we used to seek prosperity from the evil of adversity. Through the space of non-discretion, we realized the transcendence. In the past ten years, No matter how the red-light economy and the fast-food industry are intertwined, we have always insisted on looking at the objective and practical aspects at the same time, dealing with and doing our best, in order to maintain quality, scale, and profit. Behind Zontong's brand is thousands of employees and partners. What we pursue together is to realize a good life for everyone, to solve real problems for the society, and use our products to create happiness for more people. Looking forward to the future, the new economic environment and competition have proposed new challenges for us. We believe that the development of China's fast food and the overall logistics industry is in full swing. China's unique brand culture, firm network of resources, and strong financial strength Thank you, Chairman. Please allow me to translate first.